Tax Bulletin 56 PDF

JANUARY, 2020
TAX
Bulletin
VOLUME - 56
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

(Statutory Body under an Act of Parliament)
www.icmai.in
Headquarters: CMA Bhawan, 12 Sudder Street, Kolkata - 700016

Ph: 091-33-2252 1031/34/35/1602/1492
Delhi Office: CMA Bhawan, 3 Institutional Area, Lodhi Road, New Delhi - 110003
Ph: 091-11-24666100
MISSION STATEMENT
“The CMA Professionals would ethically
drive enterprises globally by creating
value to stakeholders in the
socio-economic context through
competencies drawn from the integration
of strategy, management
and accounting.”
VISION STATEMENT
“The Institute of Cost Accountants of India
would be the preferred source of
resources and professionals for the
financial leadership of enterprises
globally.”
Objec ves of Taxa on Commi ee:
1. Prepara on of Sugges ons and Analysis of various Tax ma ers for best Management Prac ces and
for the professional development of the members of the Ins tute in the field of Taxa on.
2. Conduc ng webinars, seminars and conferences etc. on various taxa on related ma ers as per
relevance to the profession and use by various stakeholders.
3. Submit representa ons to the Ministry from me to me for the be erment and financial inclusion
of the Economy.
4. Evalua ng opportuni es for CMAs to make way for further development and sustenance of the
opportuni es.
5. Conduc ng and monitoring of Cer ficate Courses on Direct and Indirect Tax for members,
prac oners and stake holders and also Crash Courses on GST for Colleges and Universi es.
JANUARY, 2020
TAX
Bulletin
VOLUME - 56

www.icmai.in

Ph: 091-33-2252 1031/34/35/1602/1492
Ph: 091-11-24666100
CMA Rakesh Bhalla CMA Niranjan Mishra
Chairman, Direct Taxation Committee Chairman, Indirect Taxation Committee
FROM THE DESK OF CHAIRMAN

Dear Friends, Members and Professional Colleagues,
W e extend our warm wishes to all the members, resource persons and stakeholders for their continued
support towards the Tax bulletin month on month. We would like to inform that we have successfully
conducted a valedictory session in Umeschandra College-Kolkata on the occasion of Certificate
distribution ceremony of Crash Course on GST for College and University. The Vice President of The Institute
of Cost Accountants of India, CMA Biswarup Basu motivated the students for successful and bright future and
the event was appreciated by the college authorities.
This Crash course on GST for Colleges and Universities is also undergoing at various locations PAN India and
some are in pipeline at locations like Punjab, Chennai, and Madurai etc.
Tax research department in association with Southern India Regional Council of the Institute and Commercial
Tax Departmen, Tamilnadu have started Training Program on Advanced GST for Senior Level Officers of
Commercial Tax, Tamilnadu. Second batch and third batch of this training program will also be conducted in
Madurai and Coimbatore for Senior Level Officers of Commercial Tax, Tamilnadu. CMA H Padmanabhan,
Council member and CMA Jyothi Satish, Chairperson SIRC were the instrumental in initiating discussion and
administering the Training program.
Beside this, admissions for Certificate Course in GST, Advanced Certificate Course in GST and Certificate
Course in Filing of Returns and Certificate Course on TDS are going on and we are getting a good response for
the same. We urge the learners to take part in the courses and upgrade their knowledge.
During this fortnight, we have organized two webinars i.e “New TDS Return & Certificate under Section 194M
& 194N (Form 26QD & 16D)” and “Warehousing in Customs”.
On behalf of the Institute, we met Shri Bhrtruhari Mahatab, Hon’ble MP Loksabha from Cuttack constituency
and Dr. Rajashree Mallick, Hon’ble MP Loksabha from Jagatsinghpur constituency and apprised them the role
of CMA’s in the Direct Taxation regime.
We pledge our best efforts in continuing our service for highest possible level to serve our fraternity and stake
holders.
Jai Hind
CMA Rakesh Bhalla CMA Niranjan Mishra

20th January 2020 20th January 2020
TAX BULLETIN JANUARY, 2020 VOLUME - 56 -THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
TAXATION COMMITTEES 2019 - 2020
Indirect Taxation Committee Direct Taxation Committee
Chairman Chairman
CMA Niranjan Mishra CMA Rakesh Bhalla
Members Members
1. CMA Rakesh Bhalla 1. CMA P. Raju Iyer
2. CMA P. Raju Iyer 2. CMA Niranjan Mishra
3. CMA V. Murali 3. CMA V. Murali
4. CMA H. Padmanabhan 4. CMA Paparao Sunkara
5. CMA (Dr.) Ashish P. Thatte 5. CMA (Dr.) Ashish P. Thatte
6. CMA B.M. Sharma (Co-Opted) 6. CMA Rakesh Sinha (Co-opted)
7. CMA (Dr.) Sanjay Bhargave (Co-Opted) 7. CMA Ajay Singh (Co-opted)
8. CMA V.S. Datey (Co-Opted) 8. CMA Rajesh Goyal (Co-opted)
Permanent Invitees Permanent Invitees

CMA Balwinder Singh - President CMA Balwinder Singh - President
CMA Biswarup Basu - Vice-President CMA Biswarup Basu - Vice-President
Secretary
CMA Rajat Kumar Basu, Addl. Director
ACKNOWLEDGEMENTS
CMA Mrityunjay Acharjee Vice-President (Accounts, Finance & Taxation), Balmer Lawrie Ltd.
CMA Amit Sarker Director Indirect Taxation, Deloitte Haskins & Sells
CMA Vishwanath Bhat Practicing Cost & Management Accountant
CMA Bhogavalli Mallikarjuna Gupta Chief Taxologist & Head of Cloud Business
CMA T K Jagannathan Practicing Cost & Management Accountant
CMA Shiba Prasad Padhi Practicing Cost & Management Accountant
CMA Arindam Goswami Practicing Cost & Management Accountant
CMA Anil Sharma Practicing Cost & Management Accountant
CMA Utpal Kumar Saha AGM – Indirect Tax, McNally Bharat Engineering Co. Ltd.
CMA Kanchan Agarwal Tax Consultant
CA Saurabh Tibrewal Practicing Chartered Accountant
TEAM - TAX RESEARCH DEPARTMENT

CMA Rajat Kumar Basu - Additional Director - Tax Research
CA Neelesh Jain - Deputy Director - Tax Research
CMA Priyanka Roy - Assistant Director - Tax Research
Ms. Mukulika Poddar - Officer - Tax Research
CMA Debasmita Jana - Associate - Tax Research
SPECIAL ACKNOWLEDGEMENT
Mr. Dipayan Roy Chaudhuri - Graphics & Web Designer
CONTENTS
ARTICLES
INDIRECT TAX
01 SCRUTINY OF RETURNS – A WEAPON TO THE DEPARTMENT
CMA Utpal Kumar Saha Page - 1
02 DEMYSTIFYING CIRCULAR NO 129 OF CGST
CMA Bhogavalli Mallikarjuna Gupta Page - 3
03 GST 2019 – A QUICK GLANCE
CMA Kanchan Agarwal Page - 6
DIRECT TAX
04 CASE LAWS ON SECTION – 54F OF THE INCOME TAX ACT, 1961
CA Saurabh Tibrewal Page - 8
TAX UPDATES, NOTIFICATIONS AND CIRCULARS
Indirect Tax Page - 10
Direct Tax Page - 11
PRESS RELEASE
JUDGEMENTS
TAX COMPLIANCE CALENDAR AT A GLANCE
Courses - Tax Research Department Page - 20
Snapshots of MOU entered between ICAI and Umeschandra College, Kolkata Page - 21
Other Snapshots Page - 22
Articles on the Topics of Direct and Indirect Taxation are invited from readers and
authors. Along with the article please share a recent passport-sized photograph, a
brief profile and the contact details. The articles should be the author’s own
original.
Please send the articles to
trd@icmai.in / trd.ad1@icmai.in
SCRUTINY OF RETURNS – A WEAPON
TO THE DEPARTMENT
CMA Utpal Kumar Saha
AGM – Indirect Tax, McNally Bharat Engineering Co. Ltd.
N ow a days department is sending notice in the FORM ASMT 10 to the registered persons stating that
there are discrepancies in the returns they have filed till date. Currently, two returns are functionally
effective. One is GSTR 3B and another is GSTR 1. Under GSTR 3B, we are disclosing outward
supply, input tax credit, output tax payable, inward supply liable to reverse charge, exempted supply etc.
However, GSTR 1 is mainly a statement of detailed outward supply. Sometimes it may happen that the
registered person has considered the credit note in filing GSTR 3B and calculate tax considering such credit
note. However, at the time of filing GSTR 1 it has been unintentionally ignored. As a result of that there is a
difference of liability in GSTR 3B and GSTR 1. There is another difference with respect to input tax credit
availed in GSTR 3B and GSTR 2A. Despites of these two there may be several reasons that the department is
issuing notices to the registered person.
In this given article, we want to explore the relevant sections read with the rules and how to tackle such
notices in a prudent manner to avoid any future litigation.
Analysis of section 61 read with rules 99 –
Section 61 of GST Act has empowered GST officer to verify the correctness of returns and the related
particulars furnished by the registered persons. After scrutiny of the returns if any discrepancies is noticed
then the proper officer shall inform by serving notice in FORM ASMT-10.
The registered person shall within a period of 30 days or further extended period as allowed by the CGST
officer, shall either accept the discrepancies and pay the tax including interest and penalty or furnish an
explanation for the said discrepancies in FORM ASMT 11.
Where the explanation in ASMT 11 is found acceptable then the proper officer shall inform the acceptance in
ASMT 12 and no further action is required and accordingly the proceeding is dropped.
Where the explanation in ASMT 11 is not satisfactory, then the proper officer may initiate appropriate action
under section 65 or 66 or 67 or proceed to determine tax under section 73 or 74. Here no personal hearing is
required before the proper officer to explain the case.
Some important FAQ issued by GSTN in this matter are as follows:
(i) Does a taxpayer get any intimation about the notice or order issued to him?
Taxpayer will get intimation of issue of all notices and orders issued to him/her though SMS and e-mail.
(ii) From where can I view notice issued for Scrutiny of Returns?
Navigate to Services > User Services > View Additional Notices/Orders > View > NOTICES option.
(iii) From where can I reply to notice issued for Scrutiny of Returns?
Navigate to Services > User Services > View Additional Notices/Orders > View > REPLIES option.
(iv) From where can I view order issued for Scrutiny of Returns?
Navigate to Services > User Services > View Additional Notices/Orders > View > ORDERS option.
(v) What is the relevance of amount admitted and paid while replying to notice issued for
Scrutiny of Returns?
TAX BULLETIN JANUARY, 2020 VOLUME - 56 - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 1
The notice issued by the tax official may indicate some discrepancies which were observed during
scrutiny of return by him. If due to any of the indicated discrepancy, taxpayer is liable to pay differential
tax, and he agrees to the discrepancy and pays the tax due on this count, he may mention the said agreed
amount paid and enter the payment particulars in its reply to notice in Form GST ASMT 11.If he is yet to
pay the admitted amount, he can pay it either by using Form DRC-03 or he may furnish the outward
supply invoice/debit note/amended invoice/amended debit note, in Form GSTR-1 or by paying tax or do
cenvat reversal, as the case may be, at the time of filing Form GSTR-3B, in reply to the notice.
Some scenarios of differences and important tips to tackle the issues –
a. Difference in liability declared in GSTR 3B and GSTR 1:
Scenario- There may a case that there is a difference between GSTR 3B and GSTR 1 with
respect to the liability amount.
Tips to tackle- Assessee first reconcile its books with respect to GSTR 3B. It may happen
that some credit note has not been considered while filing GSTR 1 or debit note, as the case
may be. It may also happen that at the time of filing GSTR 1 credit note has wrongly been
entered as debit note and as a result there is a double difference in GSTR 3B and GSTR 1.
At the time of furnishing reply to the notice, it is advisable to upload the respective credit
note/ debit note along with the reconciliation statement. A certificate from CMA may be
taken towards the reconciliation statement.
b. Difference in input tax credit declared in GSTR 3B and GSTR 2A:
Scenario- There may a case that there is a difference between GSTR 3B and GSTR 1 with
respect to the input tax credit.
Tips to tackle- This is very common matter. Till date most of the persons have taken input
tax credit based on the valid tax invoices of the suppliers as entered in their books of
accounts. There are several cases where suppliers have issued tax invoices but they have not
filed the returns in GSTR 1 or filed GSTR 3B returns but not filed GSTR 1 returns. As a
result there is a difference in 2A and 3B. There are several other cases where recipient has
availed input tax credit of the tax paid under reverse charge basis as well as IGST paid on
import of goods. These are not reflected in GSTR 2A and as a result there are differences. A
clear reconciliation, GSTN number wise, is advisable so that the main reason could be
found out. Reply to such difference should be made carefully so that any future litigation
issues will be properly dealt with.
c. Difference in e-Way bill generated and outward supply in GSTR 1:
Scenario- There may a case that there is a difference between total amount of supply
declared in GSTR 1 or 3B and the value of outward e-way bills generated.
Tips to tackle- E-way bills are generated for movement of goods and all movement of goods
may not be the supply of goods. Movement of goods may be other than supply e.g. repairing
of goods, supply for job work, returns of goods etc. Detailed reconciliation is to be uploaded
and for every e-way bill number the reason will be properly defined in order to avoid future
litigation.
Note: The above scenarios are examples only. There could have been many reasons. Assessee may reconcile its books with GSTR 1
return and 3B returns. If there are no discrepancies in books and 3B then assessee upload the suitable reply reconciling the turnover of
books with 3B and tax payable is NIL. If any difference is noticed during reconciliation then prefers to pay tax voluntarily to ignore
penalty or proceedings for tax determination under section 73 or 74, as the case may be.
DEMYSTIFYING CIRCULAR NO 129
OF CGST
CMA Bhogavalli Mallikarjuna Gupta
Chief Taxologist & Head of Cloud Business
Logo Infosoft Business Technology Private Limited
G
ST has been rolled out about 30 months back, and it is dubbed to a major tax reform post-
independence, but the reality is it is a business process reform. As it is a new tax regime and in the
initial days of implementation, the Government is lenient on the taxpayers. This is given as legroom
for the trade and industry to adapt to the new laws but some sections of the taxpayers are misusing the same as
there is not much activity happening on search, seizure and inspection. In the initial days, the Government has
instructed the officers not to make field visits and inspections but this is being continued for quite some time.
This has resulted in a lot of fraud taking place in the ecosystems. Every alternative day we see in newspapers
on ITC frauds, or fake invoices etc., All this has resulted in lower tax collections and also lower compliance in
return filing.
Return Type* Particulars Apr’19 May’19 June’19 July’19

Eligibility 57,58,955 55,64,504 1,03,58,399 51,33,194
GSTR-1 Returns Filed 27,91,052 27,01,021 61,38,878 22,30,815
Return Filing% 48.46% 48.54% 59.26% 43.46%
Eligibility 1,02,33,313 1,02,86,063 1,03,58,399 1,04,26,762
GSTR-3B Returns Filed 83,24,486 82,77,220 81,53,056 77,36,519
Return Filing% 81.36% 80.47% 78.71% 74.20%
If we see the above table, we could see a constant dip in the return filing percentage for the first four months
of the current Fiscal year.
*Source - http://gstcouncil.gov.in/sites/default/files/gst-statistics/Return-Filing-Summary-2019-20.pdf
GST Collections started with a bang in April 2019 but after that, we could observe a gradual fall in the
collections. There was a clear dip in Aug/Sep & Oct but improved during Nov 2019. All these trends are
giving a room of suspicion on the tax evasion by some unscrupulous taxpayers in the system. To ramp up the
tax collections tax evasion measures have been rolled out from time to time. As part of it, the e-invoice is
being introduced, and matching is being made mandatory and restrictions on the availing input tax credit.
GST Collections till Nov 2019

1,20,000
1,00,000
80,000
60,000
40,000
20,000
0
Apr May Jun July Aug Sep Oct Nov
2018-19 2019-20
Apart from these measures, the department is using data analytics and started issuing notices to errant
taxpayers who are not filing their returns at regular intervals. As a part of this process, notices have been
issued to such taxpayers.
GSTR - 3B Filing Status State Wise for the first Four months of
2019-20
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Sikkim
Delhi
Gujarat
Telangana
Daman and Diu
Punjab
Rajasthan
Jharkhand
Odisha
Uttar Pradesh
Bihar
Meghalaya
Maharashtra
Goa
Lakshadweep
Uttarakhand
Andaman and Nicobar Islands

Arunachal Pradesh
Karnataka
Andhra Pradesh
Nagaland
Assam
Chhattisgarh
Chandigarh
Manipur
Tripura
Kerala
Puducherry
Himachal Pradesh
Haryana
Mizoram
West Bengal
Madhya Pradesh
Dadra and Nagar Haveli
Tamil Nadu
Other Territory
Jammu and Kashmir
April May June July
As the notices are being issued form various field formations on the same, the process of issue of notices and
the subsequent steps taken are not alike across the country as it is a new law. To make the process simple and
standard across the country, in the same manner, the Central Board of Indirect Taxes and Customs has issued
Circular No 129/148/2019-GST on 24th Dec 2019 has been issued under the provisions of Section 168 of
CGST Act 2017. This Circular applies to all the central government officials or all other persons employed in
the implementation of the CGST Act. We can also expect similar circulars being issued by states and union
territories.
Every Registered taxpayer in GST has to file returns at periodic intervals and the same is as per the provisions
of Section 39 of the CGST Act 2017 as per the due dates are given below
Sl.No Section Taxpayer Type Due Date

1 Section 39(1) Regular Taxpayer 20th of next month
2 Section 39((2) Composition Taxpayer 18th of day of end of each quarter
3 Section 39((3) TDS Deductor 10th day of the next month
4 Section 39(4) Input Service Distributor 13th Day of next month
5 Section 39(5) Non-resident taxable person 20th day of the next month
Regular Taxpayer for filing of Annual 31st Day of December of the following
6 Section 44(1)
Return year
Regular Taxpayers having turnover
31st Day of December of the following
7 Section 44(2) above Rs 2 crores have to file GST
year
Audit
To be filed within three months from the
date of cancellation of from three months
8 Section 45 Final Return
of issue of the order for cancellation,
whichever is later.
As per provisions of Section 46 of the CGST Act 2017 and Rule 68 of the CGST Rules 2017, taxpayers who
do not file returns under Section 39, 44 & 45 will be issued a notice in Form GSTR – 3A.
For taxpayers who do not file their returns under Section 39, 44 & 45, the assessment procedure is given in
Section 62 of the CGST Act 2017. As per the provisions of Section 62, the concerned officer can issue an
assessment order for tax liability based on the best judgment basis on the material available or gathered by
him. The assessment order can be issued within five years from the date of filing of the Annual Return
relating to the period where taxes have been not paid. The assessment order is deemed to be withdrawn if the
taxpayers file the returns and pay taxes within 30 days but the provisions related to interest under Section
50(1) and for a late fee under Section 47 will be applicable.
The Circular also provides the format of the Notice to be issued by the proper officer
Notice to return defaulter u/s 46 for not filing return
Tax Period - Type of Return –
Being a registered taxpayer, you are required to furnish return for the supplies made or received and to
discharge resultant tax liability for the aforesaid tax period by due date. It has been noticed that you have not
filed the said return till date.
1. You are, therefore, requested to furnish the said return within 15 days failing which the tax liability
may be assessed u/s 62 of the Act, based on the relevant material available with this office. Please
note that in addition to tax so assessed, you will also be liable to pay interest and penalty as per
provisions of the Act.
2. Please note that no further communication will be issued for assessing the liability.
3. The notice shall be deemed to have been withdrawn in case the return referred above, is filed by you
before issue of the assessment order.
The proper office an issue the assessment under best judgment in Form GST ASMT – 13 if the taxpayer does
not file returns within 15 days.
The following guidelines have been issued for the Officers across India
a) System-generated alerts will be sent to all the taxpayers before three days of the due date of the filing
of GSTR – 3B
b) After the due date, system-generated messages/mail will be sent to all the taxpayers who have not
filed returns as per provisions of Section 39 of the CGST Act 2017 to the authorized signatory,
directors, partners, proprietor etc.,
c) Five days after the due date of filing of returns as per provisions of Section 39, notice is sent under
Form GSTR – 3A to all the non-filers intimating them to file returns within 15 days.
d) The taxpayers who have not filed the returns within the due date, Assessment order under Section 62
of the CGST Act 2017 will be issued in Form GST ASMT – 13 under best judgment will be issued.
e) For arriving the tax liability under Section 62 (best judgment), the officer may rely on the data
available in GSTR – 1, e-waybills and purchase data from GSTR – 2A or based on inspection under
Section 71 of the CGST Act 2017.
f) If the default taxpayers file the returns within 30 days, it is deemed that the assessment order is
withdrawn as per provisions of Section 62(2) of the CGST Act 2017. In case if the default taxpayers
do not file returns within 30 days after the issue of the order, recovery proceedings under Section 78
and Section 79 will be carried out.
The proper officer may follow the above process in normal cases, but in certain cases, based on the facts, the
Commissioner may provisionally attach the properties of the default taxpayers to safeguard the revenue under
provisions of Section 83 of the CGST Act 2017 before the issue of Form GST ASMT – 13.
The proper officer may initiate the proceedings under Section 29 for the cancellation of the registration if the
taxpayers do not file returns.
GST 2019 – A QUICK GLANCE
CMA Kanchan Agarwal

Tax Consultant
T he implementation of Goods and Services Tax Act in the nation from mid 2017 is one of the most
significant landmarks in the history of Indian Tax reforms.
Since its advent, the law has effortlessly managed to be a favourite topic of discussion and thoughtful
deliberation amongst the trade, industry and the tax-consultants. Rather, everyone who forms a part of the
supply chain including the final consumer i.e. the common Indian have connected with the law to quite an
impressive level and also faced the inevitable difficulties with relentless patience.
Looking at it from the government's perspective, there have been instances where department has manifested
its authoritative powers but its comprehensive approach was to be of enormous support to the business. This is
evident from the relaxations granted time and again in terms of extended due-dates for periodic compliances,
annual reports, waiver of late-filing fees and delayed enforcement of various statutory rules.
With the passage of time, the law now seems to have been considerably absorbed both in terms of
understanding and practicality by the country. Thus, the department is now expected to be lesser lenient and
demonstrate its intrinsic role of identifying and restricting tax evasion, non-compliance, suppression of
turnover, undue claim of refunds/credits. In fact, measures by the officials in this direction are visible in form
of notices, alarming emails and departmental audits initiated for various corporates-big and small.
As we bid adieu to the year 2019, let us have a quick glance and go through the key events in the field of
GST that the year witnessed.
Major Events in GST – 2019
I. Coming into force of GST Amendment Act, 2018
- GST (Amendment) Act, 2018 came into force nation-wide from 01 February 2019.
- The Amendment Act rectified various drafting and typographical errors in the original Act, saw
insertion of explanations and notes for clarification of doubts. There were replacements,
modifications and even omissions of certain provisions from the main Act.
- Corresponding changes in rules, earlier circulars and notifications were made to align the same with
the amended Act.
Key Highlights of the Amendment Act:

 Changes in important definitions including those of ‘business’ and ‘services’
 Schedule II to be classificatory in nature (i.e. would only determine whether the supply is of goods or of
services)
 Supplies from customs bonded warehouse, high seas sales and drop shipments inserted in Schedule III i.e.
would neither be a supply of goods nor of services
 Reverse charge mechanism on procurements from unregistered persons to be applicable only on
notified supplies for notified class of persons
 Raises the turnover threshold for registration under composition scheme from 1 crore to 1.5 crores
 Section 16 amended to provide for input tax credit in case of ‘bill-to ship-to’ model in case of supply of
services
 Expands the scope of eligible credit on motor vehicles by virtue of seating capacity
 Increases threshold of turnover for registration from 10 lacs to 20 lacs in case of special category
states
 Separate registration distinct from regular registration made mandatory for SEZ units/developers
 Provides for temporary suspension of registration while cancellation application is under process
 Issuance of consolidated debit/credit notes in respect of multiple invoices
 Services to qualify as export even if consideration received in INR, subject to RBI regulations
 Transport services for goods transported outside India to qualify as export
II. Important Notifications/Rules
 Exemption from furnishing of Annual Return / Reconciliation Statement for suppliers of Online
Information Database Access and Retrieval Services (“OIDAR services”).
 The blocking and unblocking of e-way bill facility as per the provision of CGST Rules brought into force
from 21 November 2019.
 Waiver from filing of FORM GST ITC-04 for the FY 2017-18 & FY 2018-19.
 Filing of annual return for FY 2017-18 and FY 2018-19 made optional for small taxpayers whose
aggregate turnover is less than Rs 2 crores.
 Further extension of deadlines to file GSTR 9 and GSTR 9C for FY 2017-18 till 31 January 2020 and FY
2018-19 till 31 March 2020.
 Simplification of GSTR 9 and GSTR 9C forms with various fields made optional for the FY 2017-18 and
FY 2018-19.
 Restriction on availment of input tax credit on un-reconciled input invoices i.e. ITC in respect of those
invoices which are not reflecting in GSTR 2A cannot exceed 20% of matched ITC. Cap of 20% has been
further reduced to 10% by way of a superseding notification.
 Introduction of mandatory e-invoicing for registered persons with aggregate turnover exceeding 100
crores from 01 April 2020.
 Introduction of mandatory QR code on the invoice issued by a registered person exceeding turnover of
500 crores to an unregistered person from 01 April 2020.
 Waiver of late fees for non- filing of FORM GSTR-1 from July 2017 to November 2019 provided the said
returns are furnished within prescribed dates.
III. Advance Rulings
- A plethora of substantive advance rulings have been passed by respective State AAR’s to which they
were applied for.
- Though the advance ruling is applicable only to the case and to the applicant, it does have a
persuasive value and makes the taxpayers cognizant of position usually adopted by the department in
those scenarios.
All-in-all, 2019 has been quite a crucial year as far as GST is concerned with major amendments, various
notifications, and clarificatory circulars being issued through the year. Assesses and consulting firms should
be prepared to welcome GST 2020 with more of litigation and departmental co-ordination. Further,
implementation of new return mechanism and e-invoicing in 2020 could be a major challenge to cope up with
during its initial phase.
CASE LAWS ON SECTION – 54F OF
THE INCOME TAX ACT, 1961
CA Saurabh Tibrewal
Practicing Chartered Accountant
About Section 54F: Section 54Fof the Income Tax Act allows one to claim exemption from tax on long-term
capital gains, if the same is used for the purchase or construction of a house within specified time limits.
Following are the key points in respect of this section:
 Assessee is an Individual or HUF.
 Capital Gain arises from the Sale of any capital asset other than Residential House.
 Time limit of Purchase or Construction: Purchase should be made within 1 year before or 2 years
after the date of transfer; Construction should be completewithin 3 years from date of transfer.
Let’s discuss certain issues in respect of the above section using relevant judicial pronouncements as
references:
1. Issue: Can exemption under section 54F be denied solely on the ground that the new residential house is
purchased by the assessee exclusively in the name of his wife?
Reply: Reference-[2013] 30 taxmann.com 34 (Delhi) HIGH COURT OF DELHI, Commissioner of Income-

tax-XII v.Kamal Wahal
In the above case, the seller has sold a property owned by him; in order to claim the exemption u/s 54F he
made an investment in a new property in the name of his wife. However, she had not contributed any fund to
purchase the said property. In this case, the High court has clarified that a new residential house need not be
purchased exclusively in the name of the seller. Further the court held that the assessee had not purchased the
new house in the name of a stranger or somebody who is unconnected with him, but had purchased in the
name of his wife. In addition to the above, the entire investment for purchase of the new residential house had
come out of the sale proceeds of the asset of the seller.
Hence, the assessee is entitled to claim exemption under Section 54F in respect of utilization of sale proceeds
of capital asset for investment in residential house property in the name of his wife.
2. Issue: In case of a house property registered in joint names whether the exemption under Section 54F can be
allowed fully to the co-owner who has paid whole of the purchase consideration of the house property or will
it be restricted to his share in the house property?
Reply: Reference-[2011] 15 taxmann.com 307 (Delhi) HIGH COURT OF DELHI Commissioner of Income-
tax v. Ravinder Kumar Arora
In the given case, the assessee sold a land owned by him and claimed exemption of capital gainunder section
54F on account of purchase of new house.The Assessing Officer took the view that the assessee was entitled
to exemption under section 54F only to the extent of his right in the new residential house purchased jointly
with his wife thereby allowing only 50 per cent of the exemption claimed under section 54F as against total
claim.
However, the high court held that the assessee was the real owner of the residential house in question and
mere inclusion of his wife’s name in the sale deed would not make any difference. The court also observed
that Section 54F mandates that the house should be purchased by the assessee but it does not stipulate that the
house should be purchased only in the name of the assessee.
Hence, the conditions stipulated in Section 54F stand fulfilled and the entire exemption claimed in respect of
purchase price of the house property shall be allowed to the assessee.
3. Issue: Can exemption under section 54F be denied to an assessee in respect of investment made in
construction of a residential house, on the ground that the construction was not completed within 3 years after
the date on which transfer took place, on account of pendency of certain finishing work like flooring,
electrical fittings, fittings of door shutter, etc?
Reply: Reference- [2012] 19 taxmann.com 17 (Karnataka) HIGH COURT OF KARNATAKA Commissioner

of Income-tax v. Sambandam Udaykumar
In the given case, the assessee sold shares of a company and part of the proceeds of the said sale consideration
was invested in purchase of house property. Accordingly, the assessee claimed exemption under section 54F
to the extent of such investment. The Assessing Officer found that the construction activities with regard to
the residential property were stopped and the flooring work, electrical work, fitting of door shutters and
window shutters were still pending thereby concluding that construction was not complete even after lapse of
three years of time from the date of transfer of the shares on which capital gain was derived.
However, the court observed that condition for claiming the benefit u/s 54F is that capital gains realized from
sale of capital asset should have been invested either in purchasing a residential house or in constructing a
residential house within the stipulated period. Merely because the construction was not completed in all
respects and possession could not be taken within the stipulated period, would not disentitle the assessee from
claiming exemption u/s 54F
Hence, the assessee would be entitled to exemption u/s 54F in respect of the amount invested in construction
within the prescribed period.
TAX UPDATES, NOTIFICATIONS AND CIRCULARS
INDIRECT TAX
CGST Notification
Notification No. 05/2020 – Central Tax
Date – 13th January 2020
Seeks to appoint Revisional Authority under CGST Act, 2017
Central Government vide notification no.05/2020-CT- dated 13-01-2020 has appointed revisional authority for the
purpose of disposal of appeal under GST law.
Appointment of revisional authority has been tabulated as below-
Order Passed by Revisional Authority under CGST

Additional or Joint Commissioner of Central Tax Principal Commissioner or Commissioner
Deputy Commissioner or Assistant Commissioner or Additional or Joint Commissioner
Superintendent
Customs - Non Tariff Notifications

Notification No. 04/2020-CUSTOMS (N.T)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seed, Areca nut,
Gold & Silver - reg.
CBIC has made amendment in 36/2001-Customs (N.T) dated the 3rd August, 2001.
In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted, namely:
“TABLE-1
Sl. Chapter/ heading/ sub- Description of goods Tariff value (US $Per Metric
No. heading/tariff item Tonne)
1 1511 10 00 Crude Palm Oil 838
2 1511 90 10 RBD Palm Oil 865
3 1511 90 90 Others – Palm Oil 852
4 1511 10 00 Crude Palmolein 869
For more details, please follow - http://cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-

2020/cs-nt2020/csnt_04.pdf
Notification No. 05/2020-CUSTOMS (N.T)

Exchange Rates Notification No.05/2020-Custom (NT) dated 16.01.2020.
CBIC has determined the rate of exchange of conversion of each of the foreign currencies, into Indian currency or
vice versa, relating to imported and export goods
SCHEDULE-I
Sl. No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent to
Indian rupees
(For Imported Goods) (For Exported Goods)
1 Australian Dollar 50.10 47.90
2 Bahraini Dinar 194.00 181.95
3 Canadian Dollar 55.30 53.30
For more details, please follow - http://cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-

2020/cs-nt2020/csnt_05.pdf;jsessionid=415E4549488644BC71A2182EFE4A0DD3
Customs Circulars
Circular No. 02/2020-Customs
Levy and Collection of Social Welfare Surcharge (SWS) on imports under various schemes such as
Merchandise Exports from India Scheme (MEIS), Services Exports from India Scheme (SEIS) etc
SWS is not exempted and has to be levied and collected on the imported goods
For more details, please follow - http://cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-

2020/Circular-No-02-2020.pdf
Circular No. 03/2020-Customs

Implementation of PGA e-SANCHIT– Paperless Processing under SWIFT Uploading of

Licenses/Permits/Certificates/Other Authorizations (LPCOs) by PGAs – reg
The objective of the E-SANCHIT’ application is to further reduce physical interface between Customs/regulatory
agencies and the trade and also to increase the speed of clearance in both imports & exports.
For more details, please follow - http://cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-

2020/Circular-No-03-2020.pdf
DIRECT TAX
Notifications and Circulars

Notification No. 02/2020
Date – 3rd January 2020
Notification in respect of MIs Indian Institute of Technology (Indian School of Mines), Dhanbad
It is hereby notified for general information that the organisation M/S Indian Institute of Technology (Indian School
of Mines), Dhanbad has been approved by the Central Government for the purpose of clause (ii)/(iii) of sub-section
(I) of sec lion 35 of the Income-tax ACI, 1961 (said Act), read with Rules 5C and 5£ of the Income-tax Rules, 1962
from Assessment year 20 19 2020 and on wards under the category of "University, College or other Institution",
subject to the following conditions, namely:-
i. The sums paid to the approved organisation shall be used for, scientific research and research in social
science statistical research;
ii. The approved organization shall carry out scientific research, research in social science or statistical
research through its faculty members or its enrolled students;
For more details, please follow –

https://www.incometaxindia.gov.in/communications/notification/notification_2_2020.pdf
Notification No. 03/2020

Amendment of rule 10DA and rule 10DB regarding furnishing of information and maintenance of
documents by Constituent Entity of an international group
CBDT has made amendments in the Income-tax Rules, 1962, namely:
In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 10 DA, with effect from the 1 st day
of April, 2020, —
(a) for the marginal heading, the following marginal heading shall be substituted, namely: - “Maintenance and
furnishing of information and document by certain person under section 92D”;
(b) for sub-rules (2), (3), (4) and (5), the following sub-rules shall be substituted, namely: -
“(2) The information and document specified under sub-rule (1) shall be furnished to the Joint Commissioner
referred to in sub-rule (1) of rule 10DB, in Form No. 3CEAA on or before the due date for furnishing the return of
income as specified under sub-section (1) of section 139.
(3) The constituent entity shall furnish Part A of Form No. 3CEAA even if the conditions specified under sub-rule
(1) are not satisfied.
(4) Where there are more than one constituent entities resident in India of an international group, the Form No.
3CEAA may be furnished by any one constituent entity, if, —
(a) the international group has designated such entity for this purpose; and
(b) the information has been conveyed in Form No. 3CEAB to the Joint Commissioner referred to in sub-rule (1) of
rule 10DB, in this behalf thirty days before the due date of furnishing the Form No. 3CEAA.”;
(c) sub-rules (6), (7) and (8) shall be re-numbered as sub-rules (5), (6) and (7) respectively.
3. In the said rules, in rule 10DB, —
(a) for sub-rules (1) and (2), the following shall be substituted, namely: - “(1) The income-tax authority for the
purposes of section 286 shall be the Joint Commissioner as may be designated by the Director General of Income-
tax (Risk Assessment). (2) The notification under sub-section (1) of section 286 shall be made in Form No. 3CEAC
two months prior to the due date for furnishing of report as specified under sub-section (2) of said section.”;
(b) in sub-rule (3), the words and brackets “to the Director General of Income-tax (Risk Assessment)” shall be
omitted;
(c) for sub-rule (5), the following sub-rule shall be substituted, namely: -
“(5) The information required to be conveyed under proviso to sub-section (4) of section 286 regarding the
designated constituent entity shall be furnished in Form No. 3CEAE.”
Circular No. 1/2020

Date – 3rd January 2020
Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of

Timeline
This circular has been issued with reference to Circular No. 2512019 F. No. 285/08/2014-TT (Inv. V)/350 dated
09.09.2019, whereby, the condition for filing of applications for compounding of offences under the Income-tax Act,
1961 (the Act), to be filed within 12 months from filing of complaint in the court, was relaxed by CBDT till
31.12.2019, as a one-time measure.
Later it has been brought to the notice of CBDT that the taxpayers could not avail the benefit of the one-time
relaxation window due to genuine hardships.
With a view to give a final opportunity to such taxpayers, and to reduce the pendency of existing prosecution cases
before the courts, the CBDT in exercise of powers u/s 119 of the Act, read with explanation below sub-section (3)
of section 279 of the Act, issues this Circular, whereby para 4. 1 i) of the Circular No. 25/2019 F. No. 285/08/20 14-
IT(Inv. V)/350 dated 09.09.2019 stands modified as under:
"Such application shall be filed before the Competent Authority i.e. the Pro CClT/CClT/Pr. DGlT/DGlT concerned,
on or before 31.01.2020.”
It is clarified that all other prescriptions/conditions of the Circular No. 25/2019 shall remain unchanged and shall
apply to all such applications.
Circular No. 4/2020

Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of

Timeline
Income-Tax deduction from salaries during the financial year 2019-20 under section 192 of the income-tax act,
1961 has been notified under this Circular
PRESS RELEASE
DIRECT TAX
CBDT grants relaxation in eligibility conditions for filing of Income-tax Return Form-1 (Sahaj) and
Form-4 (Sugam) for Assessment Year 2020-21
In order to ensure that the e-filing utility for filing of return for assessment year (A.Y) 2020-21 is available as
on 1st April, 2020, the Income-tax Return (ITR) Forms ITR-1 (Sahaj) and ITR-4 (Sugam) for the A.Y 2020-
21 were notified vide notification dated 3rd January, 2020. In the notified returns, the eligibility conditions for
filing of ITR-1 & ITR-4 Forms were modified with an intent to keep these forms short and simple with bare
minimum number of Schedules. Therefore, a person who owns a property in joint ownership was not made
eligible to file the ITR-1 or ITR-4 Forms. For the same reason, a person who is otherwise not required to file
return but is required to file return due to fulfilment of one or more conditions in the seventh proviso to
section 139(1) of the Income-tax Act, 1961 (the Act), was also not made eligible to file ITR-1 Form.
After the aforesaid notification, concerns have been raised that the changes are likely to cause hardship in the
case of individual taxpayers. The taxpayers with jointly owned property have expressed concern that they will
now need to file a detailed ITR Form instead of a simple ITR-1 and ITR-4. Similarly, persons who are
required to file return as per the seventh proviso to section 139(1) of the Act, and are otherwise eligible to file
ITR-1, have also expressed concern that they will not be able to opt for a simpler ITR-1 Form.
The matter has been examined and it has been decided to allow a person, who jointly owns a single house
property, to file his/her return of income in ITR-1 or ITR-4 Form, as may be applicable, if he/she meets the
other conditions. It has also been decided to allow a person, who is required to file return due to fulfilment of
one or more conditions specified in the seventh proviso to section 139(1) of the Act, to file his/her return in
ITR-1 Form.
JUDGEMENTS
INDIRECT TAX Fact of the Case
ITC Claim not shown in VAT Return can’t be  The appellant is carrying on business
availed through merely Filing Form 240: activities in respect of spectacle frames,
Karnataka HC sunglass lenses, contact lenses as well as
reading lenses. They procure these items
M/S MFAR Construction Pvt . Ltd. and others locally as well as by way of import.
vs. Additional Commissioner of Income tax and  The appellant has their head office in the
Deputy Commissioner of Income Tax State of Tamil Nadu and has branches in
various States outside Tamil Nadu. The goods
Writ Petition No. – 35989/2016 procured/imported are transferred to various
Date – 6th December 2019 branches for subsequent supply to customers
by those branches.
Fact of the Case  Under GST Law, supply to branches outside
the State is considered as supply between
 The petitioners are the dealers registered distinct persons and accordingly, appropriate
under the provisions of the Act. tax is to be paid.
 Based on the annual audit statement of  Since the branches of the appellant located in
accounts the assessee filed in Form VAT 240 various other States are eligible to take the
notwithstanding no claim made in the return full Input tax credit in respect of supplies
of turnover filed under Section 35 of the Act. made to them.
 The ITC claim of the petitioners based on  The appellant sought the authority for the
Form VAT 240 has been rejected by the advance ruling to determine the value to be
Authorities. adopted in respect of the transfer to branches
located outside the State.
Decision of the Case
 Justice S. Sujatha observed that all the
registered dealers are not required to file such  The Order was rendered by the bench
Form VAT 240 but only depending on the comprising of Ajith Kumar and T.V.
total turnover for the year, Form VAT 240 Somanathan.
has to be filed.  The Bench ruled that the appellant is eligible
 In cases where no such VAT 240 is filed, it to adopt the value as per Second Proviso to
would certainly result in discrimination if Rule 28 of the CGST/TNGST Rules 2OI7, at
VAT 240 has to be accepted as the basis for the time of supply of goods from the State of
determining the Input Tax Credit (ITC). VAT Tamilnadu in the terms of the scenario
From 240 cannot replace the “return”. discussed, in as much as the recipient distinct
 While dismissing the writ petition Court also person is eligible for full Input Tax credit as
said that, When the statutory provision required under the said proviso.
mandates compliance in a particular manner, ----------------------------------------------------------------
it should be done in that particular way alone No GST Exemption to Agricultural Products
not by any other method. from Foreign Markets: AAAR
 The Karnataka High Court has held that the
Input Tax Credit ITC claim not shown in the Fact of the Case
VAT Return cannot be availed through
merely filing Form 240.  The Appellant provided loading and
---------------------------------------------------------------- unloading services to imported raw whole
Head Office adopting the Value for Supply to yellow peas and there is no dispute that raw
other branches Outside State is eligible for whole yellow peas are agricultural produce
ITC: AAAR covered under serial no. 45 of the Rate
Spacemakers Opticians Pvt. Ltd. vs. Notification and are exempted goods.
Tamilnadu AAR  However, this particular consignment of raw
Appeal No. – 7/2019/AAR whole yellow peas was harvested in a foreign
Date -13th November 2019 land and the concerned primary market or the
farmers’ market is located in that foreign land.
Decision of the Case Decision of the Case
 The Appellate Tribunal comprising of A.P.S  A single-judge bench of Justice A.K.

Suri and Devi Prasad Karanam has rendered Jayasankaran Nambiar held that the findings
judgement on an appeal made by M/s T.P. as regards a composite supply are whole
Roy Chowdhury & Company Pvt’ Ltd. without jurisdiction. The matter is hence
 While dismissing the appeal the Appellate remitted back to AAR for fresh consideration.
Tribunal observes that the primary market in  It was observed that it is only open to AAR to
the instant case being, located in foreign enquire based on terms of the agreement. In
shores does not conform to the definition as the present case, the AAR went beyond the
stated above. terms of reference in embarking upon an
---------------------------------------------------------------- enquiry as to whether supplies under
AAR does not have Jurisdiction to go beyond agreement constituted a composite supply.
issue referred, rules Kerala HC ----------------------------------------------------------------
Builders Should Pass the Benefit of ITC to the
Abbott Healthcare Pvt Ltd vs. The Buyers: NAA
Commissioner of State Tax , Kerala and others
Dharmendra Gaud and Director General of
Case No. – 17012 of 2019 Anti Profiteering vs. M/S JMK Holdings Pvt.
Date – 17th January 2020 Ltd.
Fact of the Case Case No. – 80/2019

Date – 26th December 2019
 Abbott Healthcare Pvt Ltd is the petitioner in
the present case and The petitioner company Fact of the Case
is engaged in the sale of pharmaceutical
products, diagnostic kits, etc.  Dharmendra Gaud is the applicant in the
 It places its diagnostic instruments at the present case
premises of unrelated hospitals/laboratories  The Applicant had purchased a flat in the
for their use for a specified period without Respondent’s project “Grand IV A” situated
any consideration. at Haryana and he alleged that the
 The petitioner also enters into Agreements Respondent had increased the price of the flat
with various hospitals, laboratories, etc., after the introduction of GST and had not
where under the arrangement between parties passed on the benefit of the input tax credit by
is for supply of medical instruments to the way of commensurate reduction in the price.
hospital/laboratory concerned, for their use,  The Haryana State Screening Committee on
without any consideration for a specified Anti-profiteering having satisfied that the
period and for the supply of specified Respondent had not passed on the appropriate
quantities at prices specified in agreement, benefit of input tax credit to the Applicant and
through its distributors on payment of the said application was forwarded to the
applicable GST. DGAP for detailed investigation.
 The petitioner had sought a ruling before the
respondents Kerala AAR and AAAR on the Decision of the Case
issue of – whether in the facts of the present
case, the provision of specified medical  The DGAP submitted that the respondent had
instruments by the Applicant to unrelated benefited from the additional ITC 2.51% of
parties like hospital(s), Lab (s), for uses the total turnover which he was required to
without any consideration, constitutes a pass on to the flat buyers of this project.
“supply” or whether it constitutes “movement  The respondent not submitted evidence to
of goods otherwise than by way of supply” as prove that CENVAT credit of the pre-GST
per provisions of the CGST/SGST Act, 2017?” period, pertaining to unsold units was not
 In the opinion of the AAR was that the carried forward to the post-GST period. The
petitioner was effecting two supplies, namely, respondent denying them a benefit for more
of medical instruments and of than 4 years and use the additional ITC in his
reagents/calibrators/disposables to be used business at the same time.
along with the instrument and it is to be  The Respondent submitted that the DGAP’S
treated as composite supply report had made incorrect finding that he had
benefited from additional ITC of the turnover
and the above finding was based on the  Thus the court upon being satisfied that the
average Method applied by the DGAP on his amalgamation under the scheme resulted in
own accord. three companies.
 The provisions of Section 171 of the CGST  Thereafter Income Tax Department issued a
Act, 2017 have been contravened by the notice indicating that the department has
Respondent as he has profiteered an amount reason to believe that income chargeable to
of which includes GST from all the flat tax.
buyers. He has committed an offense under
section 171(3A) of the Act. Decision of the Case
 This Authority under Rule 133 (3) (a) of the
CGST Rules, 2017 orders that the respondent  The division bench comprising of Justice
shall reduce the prices to be realized from the Harsha Devani and Justice Sangeeta K.
buyers of the flats commensurate with the Vishen on a writ petition filed by Gayatri
benefit of ITC received by him. And also as Microns Ltd.
per Rule 136 of CGST Rules 2017 directs the  Relying on the decisions on other cases the
commissioners of CGST/SGST to monitor division bench stated that once the assessee
this order for ensuring that the amount company gets amalgamated with the
profiteered by the respondent is passed on to transferee company, its independent existence
all the eligible buyers. does not survive
 It is well-settled proposition of law that upon
DIRECT TAX its amalgamation the transferor company
ceases to exist and becomes extinct, and it
Gujarat HC sets aside Reassessment Notice would no longer be amenable to the
issued to Amalgamated Company which ceased assessment proceedings considering the fact
to exist after Approval of Composite Scheme of that the extinct entity would not be covered
Arrangement within the ambit of the provisions of the Act.
 The Court also observed that the notice dated
Gayatri Microns Ltd. vs. The Assistant 25th March 2019 issued by the respondent
Commissioner of Income Tax under the provisions of section 148 of the Act
for the assessment year 2012-13, being
Civil Application No. – 13871 of 2019 without jurisdiction, is not sustainable.
Date – 24th December 2019 ----------------------------------------------------------------
Financial Stringency would not justify
Fact of the Case Non-Remittance of TDS amount to Govt:
Karnataka HC
 The petitioner filed before this court by the
petitioner company Gayatri Mine-Chem M/S KBR Infratech Ltd vs. Assistant
Private Limited as well as by three companies Commissioner of Income Tax
viz. Gayatri Mine-Chem Private Limited,
Gayatri Integrated Services Private Limited I.T.A No. – 117 of 2017
and Gayatri Fillers Private Limited inter alia Date – 18th December 2019
praying for sanction of the composite scheme
of arrangement in the nature of amalgamation Fact of the Case
with the petitioner company under the
provisions of the Companies Act.  M/S KBR Infratech Ltd. Is the applicant in
 During the said proceedings before this court, the present case
the Regional Director, North-Western Region,  Assessee collected TDS but did not remit the
Ministry of Corporate Affairs, had filed his same to the Govt. due to acute financial
affidavit dated 13th May 2015. stringency.
 As per one of the explanations, an objection  The A.O and subsequently ITAT issued
was invited from the Income Tax Department; demand notice and later issued show cause
however, within the statutory period of 15 notice to the assessee and levied penalty of Rs.
days, no objection was raised by the Income 77,95,195
Tax Department and it was presumed that the  The Assessee has preferred this appeal
Income Tax Department had no objection to questioning the correctness and legality of the
the proposed scheme of arrangement. order dated 07.10.2016 passed by Income Tax
Appellate Tribunal (ITAT)
Decision of the Case Delay in Furnishing Audit Reports is mere
Technical Breach, No Penalty: ITAT
 Bangalore Bench (for the assessment year
2013-14) where under order passed by Arka Eduserve Pvt. Ltd vs. The Income Tax
Commissioner of Income Tax (Appeals)-13, Officer
Bangalore dated 14.08.2015 setting aside the
levy of penalty of Rs.77,95,155/- came to be ITA No. – 718/Bang/2018
modified by restricting the quantum of Date -13th December 2019
penalty to Rs.20,55,573/-
 The division Bench of the Karnataka High Fact of the Case
Court has observed that financial stringency
would not justify the non-remittance of TDS  In the present case Arka Eduserve Pvt. Ltd is
to the Government, in as much as, it would the applicant
amount to the utilization of money payable to  The assessee filed its return of income and the
the appropriate government. tax audit report for AY 2014-15 on 30-03-
---------------------------------------------------------------- 2015. As per the provisions of Sec.44AB of
TDS Benefit is to be given for Assessment Year the Act, the tax audit report should have been
for which Corresponding Income is Assessable: furnished to the AO before the due date for
ITAT filing return of income prescribed u/s 139(1)
of the Act. In the instant year, the due date
M/s. Mahesh Software Systems vs. ACIT was 30.11.2014. In view of the above-said
failure, the AO initiated penalty proceedings
I.T.A No. – 1288/Pun/2017 u/s 271B of the Act.
Date – 20th September 2019  The assessee submitted that it was under the
impression that the tax audit report could be
Fact of the Case filed any time before 31.3.2015 and the major
source of income of the assessee was rental
 M/s. Mahesh Software Systems is the income and the TDS deducted by the tenants
applicant in the present case were not fully reflected in Form No.26AS,
 The assessee is engaged in the business of which resulted in delay in filing return of
providing software services. It claimed credit income as well as tax audit report.
for TDS amounting to Rs.8,41,050/- which  Not satisfied with the explanations of the
was not appearing in Form No.26AS. assessee, the AO levied a penalty of Rs.1.50
 On being called upon to explain as to how the lakhs u/s 271B of the Act. The Ld CIT(A)
benefit of this TDS was claimed, the assessee also confirmed the penalty.
submitted that it raised invoice on Ashoka
Leyland, Chennai, for Rs.84,10,500/- in Decision of the Case
March, 2011.
 But Askoa Leyland deposited TDS in April  The assessee has stated that it was under
2011.So the A.O did not accept the contention bonafide belief that the audit report could also
of the assessee be filed before 31.3.2015.
 Hence the view taken by the Cochin bench of
Decision of the Case Tribunal that the delay in furnishing audit
report has resulted only in the technical venial
 The Tribunal noted that the benefit of TDS to breach which does not cause any loss to
be given to the assessee for the assessment exchequer could be applied here also.
year for which such income is assessable  Accordingly, set aside the order passed by Ld
 In the present case Rs. 8,41,050 was decucted CIT(A) and direct the AO to delete the
at source is patently assessable in the year penalty levied u/s 271B of the Act.
under consideration ----------------------------------------------------------------
 It was held that the benefit of the TDS should No TDS on Purchase of Copyrighted Software
also be allowed in the same year, namely, the Licenses: ITAT
year under consideration. We, therefore,
overturn the impugned order and direct Tetra Pack India Pvt. Ltd. vs. The Deputy
accordingly. Director of Income Tax
----------------------------------------------------------------
ITA No. – 1857 to 1859/PUN/2014
Date – 9th September 2019
Fact of the Case
 Here the assessee has purchased internally

developed software from Sweden and
payment had been done without TDS
 The A.O held that the assessee is liable to be
deducted tax @20% and without doing the
same he was defaulted
 The assessee submitted that no requirement to
deduct tax out of such payments and hence,
the assessee had not defaulted.
 In relation of tax deduction at source (TDS)
out of training charges paid, he referred to the
provisions of section 9(1)(vii) of the Act
pointed out that it refers to managerial
services and once it is not covered by DTAA,
then it would become business income in the
hands of assessee.
 He further pointed out that since all these
concerns had no Permanent Establishment
(PE), then there no business income arises in
India and in the absence of any PE, there was
no question of any taxability under Article 7
of DTAA.
 The division bench held that the assessee had

only purchased internally developed software
by the Sweden entity and it had not passed the
copyright and only ‘right to use’ had been
given to the assessee and in the absence of
purchase of any copyright in the article, the
assessee cannot be held liable to deduct tax at
source out of such payments.
 Hence, the assessee has not defaulted in not
deducting the tax at source. So no TDS is
required to be deducted on purchases of
copyrighted software licenses.
 Considering the training charges paid by the
assessee to Tetra Pak group companies,
payments made to the entities residents of
countries of category III i.e. Singapore, USA,
Switzerland and Sweden are not exigible to
tax deduction at source.
 The assessee in such circumstances cannot be
held to be in default for not deducting tax out
of said payments. The Assessing Officer is
directed to apply the said decision and re-
compute the demand, if any, under section
201(1) and 201(1A) of the Income Tax Act.
TAX COMPLIANCE CALENDAR AT A GLANCE
GST CALENDAR
Date Return Type

CMP – 08:- Statement-cum- challan to declare the details or summary by Composition dealer for tax
18.01.2020
payable for October-December 2019 quarter
GSTR-5 & 5A for the month of December 2019- to be filed by the Non-Resident taxable person &
20.01.2020
OIDAR
20.01.2020 GSTR 3B - for the month of December 2019.
GSTR-1 for Dec 2019 Quarter - Applicable for taxpayers with Annual Aggregate turnover below
31.01.2020
Rs. 1.50- Crore
GSTR 9 for the financial year 2017-18- Annual return in GST for regular taxpayers for F.Y 2017-
31.01.2020
18 to be filed (Turnover up to Rs. 2 crores –it is not compulsory)
GSTR 9C for the financial year 2017-18- GST Audit for F.Y 2017-18 to be filed whose Turnover
31.01.2020
more than Rs. 2 crores
DIRECT TAX CALENDAR - JANUARY, 2020
30.01.2020
 Quarterly TCS certificate in respect of tax collected for the quarter ending December 31, 2019
 Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA and section 194-IB in
the month of December, 2019
 Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of
December, 2019
31.01.2020
 Quarterly statement of TDS deposited for the quarter ending December 31, 2019
 Quarterly return of non-deduction at source by a banking company from interest on time deposit in respect of the
quarter ending December 31, 2019
Intimation under section 286(1) in Form No. 3CEAC, by a resident constituent entity of an international group whose
parent is non-resident
DIRECT TAX CALENDAR - FEBRUARY, 2020
07.02.2020
 Due date for deposit of Tax deducted/collected for the month of January, 2020. However, all the sum deducted/collected
by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid
without production of an Income-tax Challan
14.02.2020
 Due date for issue of TDS Certificate for tax deducted under section 194-IA and section 194-IB in the month of
December, 2019
 Due date for issue of TDS Certificate for tax deducted under section 194M in the month of December, 2019
15.02.2020
 Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of January, 2020
has been paid without the production of a challan
 Quarterly TDS certificate (in respect of tax deducted for payments other than salary) for the quarter ending December
31, 2019
COURSES OFFERED BY TAX RESEARCH DEPARTMENT
Eligibility criterion for admission in TRD Courses

 Qualified Cost & Management Accountants
 Other Professionals (CS, CA, MBA, M.Com, Lawyers)
 Executives from Industries and Tax Practitioners
 Students who are either CMA qualified or CMA pursuing
CERTIFICATE COURSE ON GST ADVANCED CERTIFICATE COURSE ON

GST
Course Fee - Rs. 10,000+18% GST
20% Discount for Members, CMA Course Fee - Rs. 14,000+18% GST
Final Passed Candidates and CMA 20% Discount for Members, CMA
Final pursuing Students Final Passed Candidates and
CMA Final pursuing Students
Exam Fees - Rs. 1, 000+18% GST
Duration – 72 Hours Exam Fees - Rs. 1, 000+18% GST
Mode of Class – Offline and Online Duration – 40Hours
* Special Discount for Corporate Mode of Class – Online
CERTIFICATE COURSE ON TDS CERTIFICATE COURSE ON INCOME

TAX RETURN FILLING
Course Fee - Rs. 10,000+18% GST
20% Discount for Members, CMA Course Fee - Rs. 10,000+18% GST
Final Passed Candidates and 20% Discount for Members, CMA
CMA Final pursuing Students Final Passed Candidates and
CMA Final pursuing Students
Exam Fees - Rs. 1, 000+18% GST Exam Fees - Rs. 1, 000+18% GST
Duration – 30Hours Duration – 30Hours
Mode of Class – Online Mode of Class – Online
CRASH COURSE ON GST FOR COLLEGE AND UNIVERSITY
Batch Size – 50 (Minimum)
Eligibility criterion - B.COM/B.B.A pursuing or completed

M.COM/M.B.A pursuing or completed
Course Fee - Rs. 1,000+ 18% GST
Exam Fees - Rs. 200+18% GST

Course Duration - 32 Hours
For enquiry about courses, mail at – trd@icmai.in
SNAPSHOTS OF MOU ENTERED BETWEEN ICAI
AND UMESCHANDRA COLLEGE, KOLKATA
In presence of CMA Biswarup Basu, Vice President of ICAI, CMA Niranjan Mishra, Chairman Indirect Taxation
Committee, ICAI signing the MOU with the Principal of Umeschandra College, Kolkata for the crash course on GST
on 16.01.2020.
Students & Teachers being part of the valedictory session at Umeschandra College on 16.01.2020 at the college
premises.
OTHER SNAPSHOTS
CMA Niranjan Mishra, Chairman of Indirect Taxation Committee and CMA Saktidhar Singh Chairman Bhubaneswar
Chapter meeting with Dr Rajashree Mallick MP Loksabha from Jagatsinghpur constituency on the role of inclusion
of Cost Accountants in Direct Taxation.
CMA Niranjan Mishra, Chairman of Indirect Taxation Committee and CMA Saktidhar Singh Chairman Bhubaneswar
Chapter meeting with Shri Bhartruhari Mahatab MP Loksabha from Cuttack constituency to appraise him regards the
role of Cost Accountants in Direct Taxation.
TAXATION COMMITTEE - PLAN OF ACTION
Proposed Ac on Plan:
1. Successful conduct of Cer ficate Course on GST.

2. Publica on and Circula on of Tax bulle n (both in electronic and printed formats) for the awareness
and knowledge upda on of stakeholders, members, traders, Chambers of Commerce, Universi es.
3. Publica on of Handbooks on Taxa on related topics helping stakeholders in their job delibera ons.
4. Carry out webinars for the Capacity building of Members - Trainers in the locality to facilitate the
traders/ registered dealers.
5. Conduc ng Seminars and workshops on industry specific issues, in associa on with the Trade
associa ons/ Traders/ Chamber of commerce in different loca on on prac cal issues/aspects
associated with GST.
6. Tendering representa on to the Government on prac cal difficul es faced by the stakeholders in
Taxa on related ma ers.
7. Upda ng Government about the steps taken by the Ins tute in removing the prac cal difficul es in
implemen ng various Tax Laws including GST.
8. Facilita ng general public other than members through GST Help-Desk opened at Head quarter of
the Ins tute and other places of country.
9. Introducing advance level courses for the professionals on GST and Income Tax.
10. Extending Crash Courses on Taxa on to Corporates, Universi es, Trade Associa ons etc.
Disclaimer:
The Tax Bulletin is an informational document designed to provide general guidance in simplified language on
a topic of interest to taxpayers. It is accurate as of the date issued. However, users should be aware that
subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The
information provided in these documents does not cover every situation and is not intended to replace the law
or change its meaning.
The opinion expressed in Article is fully based on the views of the experts. This information is provided for
public services only and is neither an advertisement nor to be considered as legal and professional advice and
in no way constitutes an attorney-client relationship between the Institute and the User. Institute is not
responsible or liable in any way for the consequences of using the information given.
© The Institute of Cost Accountants of India

Contact Details:
Tax Research Department

12, Sudder Street, KolKata - 700016
Phone: +91 33 40364747/ +91 33 40364798/ +91 33 40364711
E-mail: trd@icmai.in

www.icmai.in

Ph: 091-33-2252 1031/34/35/1602/1492
Ph: 091-11-24666100
Behind every successful business decision, there is always a CMA

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JANUARY, 2020

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

Headquarters: CMA Bhawan, 12 Sudder Street, Kolkata - 700016

Objec ves of Taxa on Commi ee:

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

Headquarters: CMA Bhawan, 12 Sudder Street, Kolkata - 700016

FROM THE DESK OF CHAIRMAN

CMA Rakesh Bhalla CMA Niranjan Mishra

Indirect Taxation Committee Direct Taxation Committee

Permanent Invitees Permanent Invitees

TEAM - TAX RESEARCH DEPARTMENT

Courses - Tax Research Department Page - 20

Analysis of section 61 read with rules 99 –

Some important FAQ issued by GSTN in this matter are as follows:

Some scenarios of differences and important tips to tackle the issues –

a. Difference in liability declared in GSTR 3B and GSTR 1:

b. Difference in input tax credit declared in GSTR 3B and GSTR 2A:

c. Difference in e-Way bill generated and outward supply in GSTR 1:

Return Type* Particulars Apr’19 May’19 June’19 July’19

GST Collections till Nov 2019

Andaman and Nicobar Islands

Dadra and Nagar Haveli

April May June July

Sl.No Section Taxpayer Type Due Date

Notice to return defaulter u/s 46 for not filing return

Tax Period - Type of Return –

CMA Kanchan Agarwal

Major Events in GST – 2019

I. Coming into force of GST Amendment Act, 2018

Key Highlights of the Amendment Act:

II. Important Notifications/Rules

III. Advance Rulings

Reply: Reference-[2013] 30 taxmann.com 34 (Delhi) HIGH COURT OF DELHI, Commissioner of Income-

Reply: Reference- [2012] 19 taxmann.com 17 (Karnataka) HIGH COURT OF KARNATAKA Commissioner

Seeks to appoint Revisional Authority under CGST Act, 2017

Appointment of revisional authority has been tabulated as below-

Order Passed by Revisional Authority under CGST

Customs - Non Tariff Notifications

For more details, please follow - http://cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-

Notification No. 05/2020-CUSTOMS (N.T)

Exchange Rates Notification No.05/2020-Custom (NT) dated 16.01.2020.

For more details, please follow - http://cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-

For more details, please follow - http://cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-

Circular No. 03/2020-Customs

Implementation of PGA e-SANCHIT– Paperless Processing under SWIFT Uploading of

For more details, please follow - http://cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-

Notifications and Circulars

For more details, please follow –

Notification No. 03/2020

CBDT has made amendments in the Income-tax Rules, 1962, namely:

Circular No. 1/2020

Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of

Circular No. 4/2020

Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of

 The Appellate Tribunal comprising of A.P.S  A single-judge bench of Justice A.K.

Fact of the Case Case No. – 80/2019

 Here the assessee has purchased internally

Decision of the Case

 The division bench held that the assessee had