Daily Tax & Corporate Law Digest
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Today’s newsletter analytically summarizes today’s top Tax & Corporate Law stories reported at?taxmann.com , in a unique section-wise format.
INCOME TAX
UAE introduces ‘Corporate Tax Law’; 9% corporate tax applicable from June 01, 2023
Editorial Note: The United Arab Emirates (UAE) Ministry of Finance has published Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law). It provides the legislative framework for corporate tax in the UAE on business profits. The Decree-law shall apply to Tax Periods commencing on or after 1 June 2023.
SECTION 69A OF THE INCOME-TAX ACT, 1961 - UNEXPLAINED MONEYS
Bogus trading: Where assessee was sufficiently informed that initiation of reassessment proceeding was due to the fact that the Assessing Officer had reasons to believe that assessee had earned bogus LTCG by trading in penny scrip of 'M', however, detailed report of Investigation Wing on the suspicious trading activity of 'M' was not provided to the assessee, thereby, denying assessee an effective opportunity to answer findings in the report, the impugned order passed under section 148A(d) and notice issued under section 148 was to be set aside - Kusum Gupta v. Income-tax Officer - [2022] 145 taxmann.com 231 (Delhi)
SECTION 69C OF THE INCOME-TAX ACT, 1961 - UNEXPLAINED EXPENDITURE
Bogus purchase: Where assessment in the case of the assessee was reopened on basis of information received from the Sales Tax Department that the assessee had made purchases which seemed to be accommodation entries, the entire purchase made by the assessee could not be added back as income, but only profit element embedded therein was to be treated as income of assessee - Principal Commissioner of Income-tax v. S.V. Jiwani - [2022] 145 taxmann.com 230 (Bombay)
SECTION 148A OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - CONDUCTING INQUIRY, PROVIDING OPPORTUNITY BEFORE ISSUE OF NOTICE
Opportunity of hearing: Where assessee sought an adjournment for replying to the show cause notice issued on him under section 148A(b) but the Assessing Officer without accepting or rejecting the said prayer of the assessee passed an order under section 148A(d) as impugned order was passed without granting assessee an appropriate opportunity of hearing, same was to be set aside - Poojar Nagarajappa Girijamma v. Assessing Officer, National Faceless Assessment Centre, Delhi - [2022] 145 taxmann.com 229 (Karnataka)
SECTION 149 OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - TIME LIMIT FOR ISSUANCE OF NOTICE
Time barred: Where the assessee was served with a reassessment notice for Assessment year 2013-14 within an extended period of limitation, the first proviso of section 149(1) (as amended by Finance Act, 2021) would not be attracted - Kusum Gupta v. Income-tax Officer - [2022] 145 taxmann.com 231 (Delhi)
GOODS AND SERVICES TAX LAWS
SECTION 11 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - LEVY AND COLLECTION OF TAX - EXEMPTION - POWER TO GRANT
Hiring charges for storage of agricultural produce are exempt from GST - Roorkee Cold Storage (P.) Ltd. In re - [2022] 145 taxmann.com 328 (AAR- UTTARAKHAND)
GST is applicable on storage of all goods including exempted goods @ 18% - Roorkee Cold Storage (P.) Ltd. In re - [2022] 145 taxmann.com 328 (AAR- UTTARAKHAND)
SECTION 73 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY - TAX OR INPUT TAX CREDIT DUE NOT INVOLVING FRAUD MISSTATEMENT OR SUPPRESSION
An order determining tax liability and imposing penalty only under Section 129 without taking recourse to Section 73 or Section 74 is not sustainable; High Court directs refund of the amount paid for the release of goods - Bharti Airtel Ltd. v. State of U.P - [2022] 145 taxmann.com 326 (Allahabad)
SECTION 97 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ADVANCE RULING - APPLICATION FOR
Authority for Advance Ruling has jurisdiction to decide the question of place of supply as a liability to pay tax is dependent on the same in certain cases - Myntra Designs (P.) Ltd., In re - [2022] 145 taxmann.com 327 (AAAR-KARNATAKA)
SECTION 98 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ADVANCE RULING - PROCEDURE ON RECEIPT OF APPLICATION
Appellate Authority for Advance Ruling is not empowered to pronounce a ruling on a question which has not been answered/decided by Authority for Advance Ruling - Myntra Designs (P.) Ltd., In re - [2022] 145 taxmann.com 327 (AAAR-KARNATAKA)
COMPANY AND SEBI LAWS
SECTION 15Z OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 - APPEAL TO SUPREME COURT
Where Whole Time Member of SEBI restrained the appellant from accessing the securities market for a period of two years and the order of SEBI was confirmed by Securities Appellate Tribunal (SAT), in view of the fact that an appeal against the order of SAT was instituted before instant Court but no steps were taken for a listing of appeal and period of two years was to come to an end shortly, there was no reason to entertain the appeal, at a stage when the order had virtually worked itself out - Yashovardhan Birla v. Securities and Exchange Board of India - [2022] 145 taxmann.com 241 (SC)
FEMA BANKING AND INSURANCE LAWS
NOTIFICATION F. NO. IRDAI/REG/9/188/2022, DATED 05-12-2022
IRDA simplifies the process of registration of Indian Insurance Cos to promote ease of doing business
Editorial Note: The IRDAI has notified the IRDAI (Registration of Indian Insurance Companies) Regulations, 2022. The amendment has been made with a view to promoting the growth of the insurance sector by simplifying the process of registration of Indian insurance companies and promoting ease of doing business. Accordingly, the IRDAI prescribed Permissible Classes of Insurance Business, Disqualifications for Applicants, Procedures for registration, etc.
CIRCULAR NO. RBI/2022-23/150 DOR.MRG.REC.89/21.04.141/2022-23, DATED 08-12-2022
RBI decides to further extend the dispensation of enhanced HTM limit of 23 per cent of NDTL up to 31.03.2024
领英推荐
Editorial Note: At present, banks have been granted a special dispensation of enhanced Held to Maturity (HTM) limit of 23 per cent of Net Demand and Time Liabilities (NDTL), for Statutory Liquidity Ratio (SLR) eligible securities acquired between September 1, 2020 and March 31, 2023, until March 31, 2023. Now, RBI has decided to further extend the dispensation of enhanced HTM limit up to 31.03.2024 and allow banks to include securities acquired from 01.09.2020 under the enhanced limit of 23 per cent.
PRESS RELEASE: 2022-2023/1331, DATED 08-12-2022
Sovereign Gold Bond 2017-18 Series XI can be redeemed prematurely at Rs. 5366/- per unit: RBI
Editorial Note: The RBI has notified that the redemption price of SGB for the first premature redemption due on December 09, 2022, shall be Rs 5366/- per unit of SGB based on the simple average of closing gold price for three business days i.e., December 06, December 07 and December 08, 2022. Further, the redemption price of SGB shall be based on the simple average of the closing gold price of 999 purity of the previous three business days from the date of redemption as published by the IBJA.
NOTIFICATION F. NO. IRDAI/REG/8/187/2022, DATED 05-12-2022
Preference Share Capital or Subordinated Debt shall now qualify as “Other Forms of Capital” for Insurance companies
Editorial Note: IRDA notifies IRDAI (Other Forms of Capital) Regulations, 2022. Now, Preference Share Capital or Subordinated Debt shall qualify as “Other Forms of Capital” subject to qualifying criteria. Further, all instruments shall be non-convertible, fully paid up and unsecured. Also, IRDA prescribed conditions for Investment in such instruments by Foreign Investors including Foreign Institutional Investors (FIIs) or Foreign Portfolio Investors (FPIs).
ACCOUNTS AND AUDIT
Disclosure requirements under Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors
Editorial Note: Ind AS 8 prescribes the criteria for selecting and changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, accounting estimates and corrections of errors. The intention of Ind AS is to enhance the relevance, reliability and comparability of entities’ Financial Statements. In this write up we tried to cover the detailed disclosure requirement for accounting policies, except those which are set out in Ind AS 1
OPINIONS
RBI Digital Currency (CBDC) - A Tax Perspective - Mayank Mohanka, Senior Partner in M/s. S M Mohanka & Associates & Founder Director in Tax Aaram India Pvt. Ltd. - [2022] 145 taxmann.com 343 (Article)
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
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