GSTPAM News Bulletin February 2023
THE GOODS & SERVICES TAX PRACTITIONERS’ ASSOCIATION OF MAHARASHTRA INTENSIVE STUDY COURSE CIRCULAR FOR THE YEAR 2022-23
Respected Members,
It is 6th year of the GST act is implemented. After implementation of GST, whole fraternity of Indirect Tax Practitioners and Trade are facing various challenges with regard to implementation, transition, interpretation, practical aspects, prescribed schedule rates, AAR, Department Audit, various notices related to ITC mismatch and so on.
We all are aware about the practical diDculties we are facing while applying the rules and procedures of the GST law and the frequent amendments to the law especially due to frequent lockdown. With the view to update our fellow members on the latest development in law and to discuss the practical issues arising there from, our association has been regularly conducting Intensive Study Course. This year the Intensive Study Course is designed to enable the members to study and discuss various issues on Indirect Tax Laws mainly on GST Law, as well as on profession tax, etc.
With the same enthusiasm to discuss mainly on various aspects of GST Law, We are starting our hybrid mode Intensive Study Course for the year 2022-23 from Friday, 16-09-2022 onwards, upto June, 2023.
The Intensive Study Course is such an academic activity of our association which is designed to facilitate the members to study and discuss various issues in group. At the intensive study Course, one of the members acts as a group leader and leads the discussion on issues of the relevant subject/ topic and one of the seniors in the profession monitors the discussion. The meetings are generally arranged ON Hybrid mode on 1st 3rd and 5th Friday of the month during 3.30 p.m. to 6.00 p.m.. There are around 15-16 meetings will be arranged for the Intensive Study Circle.
1st The inaugural meeting of the Intensive Study Course is scheduled to be held on Friday, 16-09-2022 onwards, upto June, 2023. between 3.00 p.m. – 6.00 p.m. on hybride mode on the subject “Issues in Assessment and Recovery proceedings under GST” The topic will be lead by Group Leader CA Dharmen Shah and the Monitor of CA Ashit Shah.
The group strength is restricted to a limited number of members to facilitate better interaction within the group. The Intensive Study Course Fee is fixed at Rs. 1,650 – including GST for Members and Rs. 1,850 – including GST for Non members. You are requested to enroll at the earliest to avoid disappointment.
Member interested to act as group leader should inform by filling up the option in the Form of “I wish to be a group leader for the subject” and are requested to contact the Convener on the mobile numbers mentioned- on Cell No. 9552451930 / 98211 21433 / 9324541329
Note:
- GST lectures will be in form of group discussion, which will be helpful to study the GST law.
- If the materials are received 3 days earlier to the date of meeting, the same will be circulated through mails to the participants.
- Participants are requested to discuss only the points related to the particular topic of the meeting and to come prepared for the subject, which will be helpful for the discussion.
| Pravin Shinde
Chairman |
Dilip Nathani
Convenor 9821121433 |
Pravin Jadhav
Convenor 9324541329 |
Manakchand Baheti
Convenor 9552451930 |
SCHEDULE FOR 40 TH BATCH OF GST BEGINNERS COACHING CLASS FOR THE YEAR 2022-23
|
40th Coaching Class (Session Duration 1:30hrs) |
|||||
| Sr. No. | DAY & DATE | Session | TIME (in PM) | TOPICS | SPEAKERS |
|
1 |
Thursday, 16, February, 2023 |
2.00 TO 2.30 | Innauguration Session | ||
| 1 | 2.30 TO 4.00 | General concept of GST and legacy laws | Adv. Deepak Bapat | ||
| 2 | 4.15 TO 5.45 | Important Definitions under GST | CA Bharat Gosar | ||
|
2 |
Monday, 20, February, 2023 |
3 | 2.30 TO 4.00 | Over view of Registration under GST Act | Adv. Pravin Jadhav |
|
4 |
4.15 TO 5.45 |
Levy and Scope of Supply under GST Act (including Exemptions under goods and Exemptions under services) |
Adv. Parth Badheka |
||
| 3 | Wednesday, 22, February, 2023 | 5 | 2.30 TO 4.00 | Time of Supply under GST | CA Hiral Shah |
| 6 | 4.15 TO 5.45 | Value of Supply under GST | GSTP Manish Nakade | ||
| 4 | Thursday, 23, February, 2023 | 7 | 2.30 TO 4.00 | Place of Supply of Goods under GST | CA Raj Khona |
| 8 | 4.15 TO 5.45 | Place of Supply of Services under GST | Adv. Monarch Bhatt | ||
| 5 | Monday, 27, February, 2023 | 9 | 2.30 TO 4.00 | Composite Supply and Mixed Supply | CA Aditya SP (Nashik) |
| 10 | 4.15 TO 5.45 | Input Tax Credit | Nikhil Deshmukh (Nashik) | ||
|
6 |
Wednesday, 01, March, 2023 |
11 | 2.30 TO 4.00 | Tax on Reverse Charge Mechanism basis | Adv. Rahul Thakkar |
|
12 |
4.15 TO 5.45 |
Composition Schemes (Including Taxation on
Insurance Companies, Travels Agents and Forex Agents) |
Shri R P Modi |
||
|
7 |
Thursday, 02, March, 2023 |
13 | 2.30 TO 4.00 | TDS / TCS & E-Commerce | CA Tanmay Modi |
| 14 | 4.15 TO 5.45 | Type of Invoices, E Invoice, Credit / Debit Notes and
Maintainance of Accounts |
CA Dharmen Shah | ||
| 8 | Monday, 06, March, 2023 | 15 | 2.30 TO 4.00 | E-Way Bill, Confiscation and detention of goods | CA Ronak Thakkar |
| 16 | 4.15 TO 5.45 | Imports of goods and Import of services | CA Amar Shukla | ||
|
9 |
Wednesday, 08, March, 2023 |
17 | 2.30 TO 4.00 | Zero Rated Supply (Export and SEZ) and other refunds | CA Aditya Khandelwal |
| 18 | 4.15 TO 5.45 | Returns and Payment of tax and interest | CA Kiran Garkar | ||
| 10 | Friday, 10, March, 2023 | 19 | 2.30 TO 4.00 | Finalisation of Accounts | CA Avinash Lalwani |
| 20 | 4.15 TO 5.45 | Annual Return and Reconciliation (Form 9 & 9C) | CA Aditya Surte | ||
| 11 |
Monday, 13, March, 2023 |
21 | 2.30 TO 4.00 | Assessments, Business Audit, Penalties, Demand and
Recovery of dues |
CA Vikram Mehta |
| 22 | 4.15 TO 5.45 | Penal and Prosecution Provisions under GST | CA Viral Cheeda | ||
| 12 | Wednesday, 15, March, 2023 | 23 | 2.30 TO 4.00 | Appeals and Advance Ruling | Adv. Dinesh Tambde |
| 24 | 4.15 TO 5.45 | Overview of GST Website | GSTP Sachin Gandhi | ||
CIRCULAR FOR RENEWAL OF MEMBERSHIP/SUBSCRIPTION CHARGES FOR THE F.Y. 2022-23
Dear Members,
RENEWAL OF MEMBERSHIP FOR F.Y. 2022-23
The Membership Fees for the year 2022-23 are due for renewal on 01.04.2022. We appreciate your Continuing support and participation in the activities of our Association.
The timely Renewal of Membership will enable the members to continuously receive the updates on various activities of GSTPAM along with the GST Review, News Bulletin, Circulars, Messages, Webinars and online access to the website www.gstpam.org . The Life Members only need to renew the subscription charges for the GST Review. The members can also avail the benefit of discount by paying advance for subsequent two years membership fees /subscription charges.
The Membership Renewal Fees received after 30th April, 2022 will be subject to approval of the Managing Committee. If the Renewal fees for a particular year are not paid, then the member is liable to pay Admission Fees again for Renewal in the subsequent year.
Delayed Renewal Members will be provided Pre Renewal GST Review subject to availability upon payment of such additional courier charges.
The details of Membership/Subscription Fees are given below for your ready reference:
| Type of Membership | Membership Fees incl.
GST |
Admission Fees Incl.
GST |
Subscription Charges for GST Review | Total |
| New Membership Application | ||||
| Donor Member | 24,780.00 | – | 600.00 | 25,380.00 |
| Patron Member | 17,700.00 | – | 600.00 | 18,300.00 |
| Life Member | 11,800.00 | 944.00 | 600.00 | 13,344.00 |
| Life Member (Conversion from Ordinary) | 11,800.00 | 590.00 | 600.00 | 12,990.00 |
| Ordinary Local Member | 1,770.00 | 590.00 | – | 2,360.00 |
| Ordinary Outstation Member | 1,475.00 | 590.00 | – | 2,065.00 |
| New Membership Application (Firm/LLP) | ||||
| Ordinary Local Member | 1,770.00 | 944.00 | 0 | 2,714.00 |
| Ordinary Outstation Member | 1,475.00 | 944.00 | 0 | 2,419.00 |
| Patron Member | 17,700.00 | 0 | 600.00 | 18,300.00 |
| Donor Member | 24,780.00 | 0 | 600.00 | 25,380.00 |
| Advance Membership/ Subscription charges for subsequent two years 2023-24& 2024-25 (Non-Refundable) | ||||
| Ordinary Local Member | 3,186.00 | – | – | 3,186.00 |
| Ordinary Outstation Member | 2,655.00 | – | – | 2,655.00 |
| Life Member (Individual/Firm/LLP) | 0 | – | 1,200.00 | 1,200.00 |
| Patron Member | 0 | – | 1,200.00 | 1,200.00 |
| Donor Member | 0 | – | 1,200.00 | 1,200.00 |
| Subscription for GST Review for F.Y. 2022-23 by Non-Members | ||||
| Subscription fees for GSTR | – | – | 1,000.00 | 1,000.00 |
| Advance Membership / Subscription charges for subsequent two years 2023-24& 2024-25 (Non-Refundable) | ||||
| Subscription Fees -GSTR | 0 | – | 2,000.00 | 2,000.00 |
Modes of Payment:-
| Cheque | A/c Payee Cheque drawn in favor of “The Goods & Services Tax Practitioners’ Association of Maharashtra” payable at Mumbai. |
| NEFT Details | The Goods & Services Tax Practitioners’ Association of Maharashtra
Bank of India, Mazgaon Branch Current Account No. 007020100001816, IFSC Code – BKID0000070. Online generated transaction Acknowledgment should be sent by email on [email protected] along with membership and payment details Members are requested to send their physical form to the association for Approval, Issuance and Office record. |
| Cash | Renewal form along with requisite amount will be accepted between 10.30
a.m. and 5.30 p.m. on all working days except Saturday at our Office at Mazgaon Library – Mazgoan: 1st Floor, 104, GST Bhavan, Mazgaon, Mumbai – 400 010 Or Bandra Library – GST Bhavan, Ground Floor, A Wing, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Or Mazgaon Tower-8 & 9, Mazgaon Tower, 21, Mhatar Pakhadi Road, Mazgaon, Mumbai – 400 010. |
| Identity
(New Members) |
New Members should provide the following as Identity Proof : PAN, Aadhar Card, Constitution Document.
Address Proof(any one) : Electricity Bill / Passport/ Aadhar Card / Driving License/ Voter id/ Ration Card along with Membership Form |
| Identity Card
(For Renewals) |
Ordinary Local/Outstation Members should provide Two Photographs along with the Renewal Form for issue of I-cards. |
| Online Payment Link | Members can make online payment on our website www.gstpam.org. Members are requested to download Members Renewal form from website. Update the latest details in the form, scan it and mail at emailoffice@gstpam. org
Payment Link : https://www.gstpam.org/online/renew-membership.php If you are login first time? Click here for create your password |
We value your continuation of the membership and look forward to your renewal to this effect.
| Dated:-31.01.2022 | Mahesh Madkholkar
Parth Badheka Hon. Jt. Secretary |
INCOME TAX UPDATESBy CA. Ajay Talreja |
|
What is the New Tax Regime Everyone is Talking about?
Finance Minister, Mrs. Nirmala Sitharaman introduced a New Tax Regime (NTR) in 2020, and gave taxpayers the option to choose between the traditional tax system and the new one introduced. What is NTR? In the NTR, there are lower income tax rates and additional slabs however there is no option of availing tax exemptions and deductions (like house loan or HRA) are made available for taxpayers that exist with the old income tax regime.
Slab Rates under NTR Slab rate for New Tax Regime – Applicable for All Individuals & HUF irrespective of age and gender (i.e. applicable to men, women, senior citizens, super senior citizens)
New Regime Slab Rates for FY 23-24 as per Budget 2023 Up to Rs. 3 lakh – Nil
Rs. 3 lakh to Rs. 6 lakh – 5% (rebate u/s 87a available)
Rs. 6 lakh to Rs. 9 lakh – 10% (rebate u/s 87a available upto 7 lakh) Rs. 9 lakh to Rs. 12 lakh – 15%
Rs. 12 lakh to Rs. 15 lakh – 20%
Rs 15 Lakhs & above- 30%
List of common Exemptions and deductions “ not allowed” under NTR
The taxpayer can opt for concessional rates under NTR but will have to forgo certain exemptions and deductions that are available to taxpayers in the existing old tax regime. 70 deductions & exemptions that are not allowed, out of which the most important are listed below: Leave Travel Allowance (LTA) House Rent Allowance (HRA) Conveyance allowance Daily expenses in the course of employment Relocation allowance Helper allowance Children education allowance Other special allowances [Section 10(14)] Standard deduction on salary Professional tax Interest on housing loan (Section 24) Deductions available under Section 80TTA and 80TTB that is interest from Savings Account/Deposits exemption to Special Economic Zones under Section 10AA. Deductions under Section 32AD, 33AB, 33ABA, 35(1)(ii),35(1)(ii( (a), 35(1)(iii), 35(2AA), 35AD and 35CCC of the Income Tax Act. Options of additional depreciation under Section 32(ii) (a) of the Income Tax Act The option to carry forward or unabsorbed depreciation of earlier years Tax-saving investment deductions under Income Tax Act , Chapter VI-A 80C, 80D, 80E, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc. These tax-saving investment options include ELSS, NPS, PPF tax relief on medical claim insurance premium, FDR, dependents who are differently-abled, expenses for specified medical treatments, interest on education loan and many more.
List of deductions “allowed” under new Tax rate regime There are some deductions that are available to the taxpayer under NTR. The following is the list of the deductions available: Transport allowance for specially abled people
Conveyance allowance for expenditure incurred for traveling to work
Investment in Notified Pension Scheme under section 80CCD(2)
Deduction for employment of new employees under section 80JJAA
Depreciation u/s 32 of the Income-tax act except additional depreciation
Any allowance for traveling for employment or on transfer
Interest received on Post Office Savings Account under Section 10(15)(i) the maximum amount of Rs. 3,500
Gratuity received from the employer up to a maximum amount of Rs. 20 Lacs Amount received from Life Insurance Policy on maturity under Section 10(10D)
Employer contribution in NPS or EPF up to 12% of salary and interest on EPF up to 9.5% p.a
Income from Life Insurance, agricultural farming
Standard reduction on rent
Leave encashment on retirement
Retirement cum death benefit
Income from Insurances policies taxable if annual premium exceeds Rs. 500000
Clause (10D) of section 10 of the Act provides for income-tax exemption on the sum received under a life insurance policy, including bonus on such policy. There is a condition that the premium payable for any of the years during the terms of the policy should not exceed ten per cent of the actual capital sum assured. 2. It may be pertinent to note that the legislative intent of providing exemption under clause (10D) of section 10 of the Act has been to further the welfare objective by subsidising the risk premium for an individual’s life and providing benefit to small and genuine cases of life insurance coverage. However, over the years it has been observed that several high net worth individuals are misusing the exemption provided under clause (10D) of section 10 of the Act by investing in policies having large premium contributions (as it is acting as an investment policy) and claiming exemption on the sum received under such life insurance policies. 3. In order to prevent the misuse of exemption under the said clause, Finance Act, 2021, amended clause (10D) of section 10 of the Act to, inter-alia, provide that the sum received under a ULIP (barring the sum received on death of a person), issued on or after the 01.02.2021 shall not be exempt if the amount of premium payable for any of the previous years during the term of such policy exceeds Rs 2,50,000. It was also provided that if premium is payable for more than one ULIPs, issued on or after the 01.02.2021, the exemption under the said clause shall be available only with respect to such policies where the aggregate premium does not exceed Rs 2,50,000 for any of the previous years during the term of any of the policy. Circular no 02 of 2022 dated 19.01.2022 was issued to explain how the exemption is to be calculated when there are more than one policies. 4. After the enactment of the above amendment, while ULIPs having premium payable exceeding Rs 2,50,000/- have been excluded from the purview of clause (10D) of section 10 of the Act, all other kinds of life insurance policies are still eligible for exemption irrespective of the amount of premium payable. 5. In order to curb such misuse, it is proposed to tax income from insurance policies (other than ULIP for which provisions already exists) having premium or aggregate of premium above Rs 5,00,000 in a year. Income is proposed to be exempt if received on the death of the insured person. This income shall be taxable under the head “income from other sources”. Deduction shall be allowed for premium paid, if such premium has not been claimed as deduction earlier. The proposed provision shall apply for policies i ssued on or after 1 st April, 2023
Change in Section 44AD & 44ADA: Both section talks about computation of Income on Presumptive Basis Benefit of Section 44AD is available to resident Individual, HUF and Partnership firms engaged in Businesses other than Commission Agent & Transport Earlier Taxpayers who had Turnover upto 2 Crores were allowed take the advantage of this section, now the Turnover limit has been revised to 3 crores with an additional condition that the cash receipts in business should not exceed 5% of total Turnover.
Benefit of Section 44ADA is available to resident Individual and Partnership firms engaged in following profession:
1.Legal 2. Medical 3. Engineering 4. Architecture 5. Accounting 6. Technical Consultancy 7. Interior decoration 8. Film Artist Earlier Taxpayers who had Gross Receipts upto 50 Lakhs were allowed take the advantage of this section, now the Gross Receipts limit has been revised to 75 Lakhs with an additional condition that the cash receipts in profession should not exceed 5% of total Turnover.
Limiting the roll over benefit claimed under section 54 and section 54F:
In Section 54(1) of the IT Act, second proviso has been inserted with effect from AY 2024-25, namely:- “Provided also that where the cost of new asset exceeds ten crore rupees, the amount exceeding ten crore rupees shall not be taken into account for the purposes of this sub-section.” It is proposed to impose a limit on the maximum deduction that can be claimed by the assessee under section 54 and 54F to rupees ten crore. It has been provided that if the cost of the new asset purchased is more than rupees ten crore, the cost of such asset shall be deemed to be ten crores. Further, it is to be noted that similar amendment is proposed under section 54F of the IT Act.
Increasing threshold limit for co-operative societies to withdraw cash without TDS:
In section 194N of the IT Act, after the second proviso, the following proviso shall be inserted with effect from AY 2023-24, namely:–– “Provided also that where the recipient is a co-operative society, the provisions of this section shall have effect, as if for the words “one crore rupees”, the words “three crore rupees” had been substituted.” It is proposed to amend section 194N of the IT Act by inserting a new proviso to provide that, the co-operative society can withdraw cash without TDS upto the limit of 3 crore.
Tax holiday extended for startups for 1 more year:
In section 80-IAC of the Income-tax Act, in the Explanation, in clause (ii), in sub-clause (a), for the figures “2023”, the figures “2024” shall be substituted. To promote the development of start-ups in India and to provide them with a competitive platform, it is proposed to amend the provisions of section 80-IAC of the IT Act so as to extend the period of incorporation of eligible start-ups to April 1, 2024.
Increase in limit for exemption on leave encashment
The limit of Rs. 3 lakh for tax exemption on leave encashment on retirement of non-government salaried employees was last fixed in the year 2002, when the highest basic pay in the government was Rs. 30,000/- per month. In line with the increase in government salaries, It is proposed to increase this limit to Rs. 25 lakh.
Increasing threshold limit for co-operative societes to withdraw cash without TDS: .
In section 194N of the IT Act, after the second proviso, the following proviso shall be inserted with effect from AY 2023-24, namely:–– “Provided also that where the recipient is a co-operative society, the provisions of this section shall have effect, as if for the words “one crore rupees”, the words “three crore rupees” had been substituted.” It is proposed to amend section 194N of the IT Act by inserting a new proviso to provide that, the co-operative society can withdraw cash without TDS upto the limit of 3 crore.
Tax on income of certain new manufacturing co-operative societies:
A new section 115BAE is inserted to provide a new manufacturing co-operative society set up on or after April 01, 2023, which commences manufacturing or production on or before March 31, 2024 and does not avail any specified incentive or deductions, may opt to pay tax at a concessional rate of 15% for assessment year 2024- 25 onwards. Surcharge would be at 10% on such tax.
INCOME TAX CIRCULARS & NOTIFICATIONSCompiled By CA. Aloke R. Singh |
|
- Income Tax Circulars
Circular No Date of Issue Subject 01/2023 06/01/2023 Extension of time limit for compliance to be made for claiming any exemption under Section 54 to 54GB of the Income-tax Act,1961, in view of the then-Covid-19 pandemic. 02/2023 06/02/2023 corrigendum to Circular no. 23 of 2022 dated 03.11.2022 – Explanatory notes to Finance Act, 2022 - Income Tax Notifications
Notifications No Date of Issue Subject 01/2023 05/01/2023 Addendum to Notification 2 of 2021: Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Interest income (Abolishing of limit of Rs 5,000/-.) 02/2023 25/01/2023 In exercise of powers conferred by u/s Explanation 1 of section 10(23FE) (iv)(c) of the Income-tax Act, 1961, the Central Government specifies the pension fund, namely, the California Public Employees Retirement System (PAN:AAATC6038J), as the specified person for the purposes of the said clause in respect of the eligible investment made by it in India on or after the date of publication of this notification in the Official Gazette but on or before the 31st day of March, 2024, subject to the fulfillment of the conditions as per this notification.
DGFT & CUSTOMS UPDATEBy CA. Ashit Shah |
|
Custom Tariff Rate Changes
| A | Increase in Tariff rate (to be effective from 02.02.2023) * [Clause 126(a)] of the Finance Bill, 2023]
*Will come into effect immediately through a declaration under Provisional Collection of Taxes Act,1931 |
Rate of Duty | ||
| S.No | Heading, sub-heading tariff item | Commodity | From | To |
| Chemicals | ||||
| 1 | 2902 50 00 | Styrene | 2% | 2.5% |
| 2 | 2903 21 00 | Vinyl Chloride Monomer | 2% | 2.5% |
| Rubber | ||||
| 3 | 4005 | Compounded Rubber | 10% | 25% or Rs. 30
per kg., whichever is lower |
| Gems and Jewellery Sector | ||||
| 4 | 7113, 7114 | Articles of precious metals | 20% | 25% |
| 5 | 7117 | Imitation Jewellery | 20% or Rs.400
per, kg.,whichever is higher |
25% or Rs.600
per, kg.,whichever is higher |
| Electrical Goods | ||||
| 6 | 8414 60 00 | Electric Kitchen Chimney | 7.5% | 15% |
| Automobiles and Toys | ||||
| 7 | 8712 00 10 | Bicycles | 30% | 35% |
| 8 | 9503 | Toys and parts of toys (other than parts of electronic toys) | 60% | 70% |
| B | Tariff rate changes (without any changes to the effective rate of Customs Duty) [Clause 126(b)] of the Finance Bill, 2023]
Note : In order to simplify the tax structure, number of BCD rates are being reduced. This rationalization of BCD rate structure is being carried out in a manner so as to maintain the existing incidence of duty in certain items. These changes need to be read with appropriate changes in AIDC/SWS rates |
Rate of Duty | ||
| S.No | Heading, sub-heading tariff item | Commodity | From | To |
| 1 | 4011 30 00 | New or retreaded pneumatic tyres, of rubber , of a kind on aircraft of heading 8802 | 3% | 2.5% |
| 2 | 7107 00 00 | Base metals clad with silver, not further worked than semi- manufactured | 12.5% | 10% |
| 3 | 7108 | Gold (including gold plated with platinum) unwrought or in semi- manufactured forms, or in powder form | 12.5% | 10% |
| 4 | 7109 00 00 | Base metals or silver, clad with gold, not further worked than semi- manufactured | 12.5% | 10% |
| 5 | 7110 11 10
7110 11 20 7110 19 00 7110 21 00 7110 29 00 7110 41 00 7110 49 00 |
Platinum, unwrought or in semi- manufactured form, or in powder form | 12.5% | 10% |
| 6 | 7111 00 00 | Base metals, silver or gold, clad with platinum, not further worked than semi- manufactured | 12.5% | 10% |
| 7 | 7112 | Waste and scrap of precious metal or of metal clad with precious metal; other waste and scrap containing precious metal or precious metal compounds, of a kind used principally for the recovery of precious metal other than goods of heading 8549 | 12.5% | 10% |
| 8 | 7118 | Coin | 12.5% | 10% |
| 9 | 8802 20 00
8802 30 00 8802 40 00 |
Aero planes and other aircrafts | 3% | 2.5% |
| C | Tariff rate changes (with changes to the effective rate of Customs Duty) [Clause 126(b)] of the Finance Bill, 2023] | Rate of Duty | ||
| S.No | Heading, sub-heading tariff item | Commodity | From | To |
| 1 | 7106 | Silver (including silver plated with gold or platinum), unwrought or in semi- manufactured forms, or in powder form | 12.5% | 10% |
OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY
RATES IN NOTIFICATIONS
AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS (AIDC)
Notification No. 11/2021 – Customs, dated 01.02.2021 is being amended to revise the AIDC
rates on the following goods (w.e.f. 02.02.2023):
| A | AIDC rate changes (with changes to the effective rate of Customs Duty)
Note – |
Rate of Duty | ||
| S.No | Heading, sub-heading tariff item | Commodity | From | To |
| 1 | 7106,98 | Silver (including silver plated
with gold or platinum), unwrought or in semi- manufactured forms, or in powder form |
2.5% | 5% |
| 2 | 71 | Silver Dore | 2.5% | 4.35% |
| B | Changes to AIDC (without any change to the effective rate of Customs Duty)
Note – |
Rate of Duty | ||
| S.No | Heading, sub-heading tariff item | Commodity | From | To |
| 1 | 2701, 2702,
2703 |
Coal, peat, lignite | 1.5% | Nil |
| 2 | 40113000 | New pneumatic tyres, of rubber , of a kind used on aircraft as mentioned in Entry 280 A of Notification No. 50/2017-Cus | Nil | 4.35% |
| 3 | 7108 or 98 | Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form | 2.5% | 5% |
| 4 | 71 | Gold Dore | 2.5% | 4.35% |
| 5 | 7110 | Platinum other than rhodium and goods covered under S. Nos. 415(a) and 415A of the Table in notification No. 50/2017- Customs, dated the 30 th June, 2017. | 1.5% | 5.4% |
| 6 | 8802 20 00
8802 30 00 8802 40 00 |
Aero planes and other
aircraft covered under S.No. 543A of Notification No. 50/2017-Cus |
Nil | 0.5% |
SOCIAL WELFARE SURCHARGE (SWS)
| B | RESCINDING OF NOTIFICATION RELATING TO SWS |
| These notifications are being rescinded on account of being redundant due to basic customs duty rate structure rationalization: | |
| 1 | No. 13/2021-Customs, dated the 1st February, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.71(E), dated the 1st February, 2021 |
| 2 | No. 34/2022-Customs, dated the 30thJune, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 487(E), dated the 30thJune, 2022 |
CHARITABLE TRUSTS UPDATESBy Adv. Hemant Gandhi & CA Premal Gandhi |
|
Proposed provisions relating to Charitable Trust and Institutions
1. Depositing back of corpus and repayment of loans or borrowings
| Existing Provisions | Proposed Provisions |
| As per section 10(23C) and section 11 when loan or borrowing is repaid from income of the previous year ,such repayment shall be allowed as application in the previous year in which it is repaid to the extent of such repayment. | As per section 10(23C) and section 11 application out of corpus or loan or borrowing before 01.04.2021 should not be allowed as application for charitable or religious purpose. |
| As per section 10(23C) and section 11 if the expenditure is made from a corpus fund it shall not be treated as application for charitable purpose in the year of expenditure. However, it shall be allowed as an application in the year such amount is replenished back to the corpus of such trust/institution. | As per section 10(23C) and section 11 if the expenditure is made from a corpus fund, it shall be treated as application for charitable purpose in the year of replenishment only if such investment or deposit is made back within a period of five years to the corpus from the end of previous year in which such application was made from the corpus. |
| if the expenditure is made by taking a loan or borrowing by the trust/institution it shall not be treated as application for charitable purpose in the year of expenditure. However, it shall be allowed as an application in the year such amount is loan or borrowing is returned to such trust/institution. | As per section 10(23C) and section 11 if or borrowing by the trust/institution, it shall be treated as application for charitable purpose in the year of repayment only if such loan or borrowing is the expenditure is made by taking a loan repaid back within a period of five years from the end of previous year in which such loan or borrowing was taken. |
2. Treatment of Donation to Other Trusts
| Existing Provisions | Proposed Provisions |
| Currently any voluntary contribution by registered fund or institution under 10(23)(c) or under section 11 to any other such similar fund or trust or institution is allowed as an application of income fully | Any voluntary contribution by registered fund or institution under 10(23)(c) or under section 11 to any other such similar fund or trust or institution is allowed as an application only to the extent of 85% of the voluntary contribution made by it. |
Section 10(46) of the act provides exemption to any specified income arising to a body or authority or board or trust or commission or a class thereof which -:
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This section shall apply to all cases except those which are specifically excluded by a new proposed section 10 (46)A, which is reproduced herein:
-: a) Has been established or constituted by or under a Central, State or provincial Act or constituted by Central Government or State Government, with the object of regulating or administering any of the following activity for the benefit of General Public.
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3. Combining provisional and regular registration in some cases
| Existing Provisions | Proposed Provisions |
| New trusts under both regimes and under 80G need to apply for provisional registration
/approval at least one month prior to the commencement of the previous year which will be valid for 3 years Provisionally registered/approved trust under both regimes and 80G will again need to apply for regular registration at least 6 months prior to the expiry of the provisional registration which will be |
The trust are now allowed to make provisional application only before the commencement of activities under 10(23C), 12A and 80G. commenced their activities before making the application. |
| Provisionally registered/approved trust under both regimes and 80G will again need to apply for regular registration at least 6 months prior to the expiry of the provisional registration which will be valid for 5 years. | commenced their activities before making the application. |
4. Specified violations under section 12AB and fifteenth proviso to clause (23C) of section 10
| Existing Provisions | Proposed Provisions |
| Currently the approval of the application for registration under section 12AB of the act vide form no 10A is an automated process. | The provision is being amended to ensure that if any documents or information submitted during the application is found to be inaccurate or false, then the Principal Officer may cancel the registration. |
5. Trusts or institutions not filing the application in certain cases
| Existing Provisions | Proposed Provisions |
| All existing trusts are required to apply for re-registration/approval on or before 31-01-2021 (which was extended to 25-11-2022). Such registration shall be applicable for a period of 5 years.
new trusts under first/second regime are required to apply for registration one month prior to commencement of PY of the relevant FY, such registration will be valid for 3 years, the time limit in the case of provisionally registered/approved trusts is six months before the six months before the expiry of registration gets expired or within 6 months from the commencement of activities whichever is lower Currently the approval of the application for registration under section 12AB of the act vide form no 10A is an automated process. |
If any trust fails to make an application for renewal in accordance with Sec. 10(23C) or under section 12 AB within the specified period i.e six months prior to the completion of 5 years in case of regular registration or 3 years in case of provisionally registered trust, then, it shall be deemed to have been converted into any form not eligible for registration or approval in the previous year in which such period expires, and the penal provisions as mentioned in section 115TD,TE,TF shall be applicable.
Moreover, it is further provided that principal officer or the trustee of the trust shall also be liable to pay tax on accreted income within 14 days from the end of relevant previous year. Further, it is provided that the date of conversion shall be deemed to be last date of making an application for registration under Sec. 12AB and Sec. 10(23C). The provision is being amended to ensure that if any documents or information submitted during the application is found to be inaccurate or false, then the Principal Officer may cancel the registration. Moreover, it is further provided that principal officer or the trustee of the trust shall also be liable to pay tax on accreted income within 14 days from the end of relevant previous year. Further, it is provided that the date of conversion shall be deemed to be last date of making an application for registration under Sec. 12AB and Sec. 10(23C). |
6. Alignment of the time limit for furnishing the form for accumulation of income and tax
audit report
| Existing Provisions | Proposed Provisions |
| Accumulation of income for a period of 5 years (form 10) and application of income in any other cases (form 9A) are required to be filed at least one month prior to the due date as specified by section 139(1) i.e by 30th September. |
IT is now proposed that accumulation of income for a period of 5 years (form 10) and application of income in any other cases (form 9A) are required to be filed at least one month prior to the due date as specified by section 139 (1) i.e by 31st August. |
7. Denial of exemption where return of income is not furnished within time
| Existing Provisions | Proposed Provisions |
| As per the existing provision if return of Income is not furnished by trust under first regime within time specified under section 139 of the Act exemption under section 10(23C) (iv)/(v)/(vi)/(via), Section 11 and 12 shall not be available to such trust. |
It is proposed that above exemption shall be available if return of Income has been furnished up to due date as mentioned under section 139(1) and 139(4) only. |
PROTECT YOUR HEALTH AGAINST CANCERBy Mr. Tushar P. Joshi |
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We celebrate 04th Feb. as WORLD CANCER DAY. Many of us does not know why we celebrate WORLD CANCER DAY.
WORLD CANCER DAY was declared for the first time on 04th Feb. 2020 at the summit against cancer for the New Millennium in Paris. Cancer is a complex disease that is caused by mutations in the DNA of cells. Such mutations can occur spontaneously or can be inherited, and can lead to uncontrolled growth and division of cells, which can ultimately lead to the formation of tumours.
What is making it worse is that cancer is no longer attributed to, Habits or behaviours such as Chewing Tobacco, Smoking Cigarette or staying in highly polluted zones. As per the research, the role of Plastics, Pesticide, residue in food, cosmetics that comes loaded with chemicals and how a day’s even mobile radiations, do have its adverse impact on the status of an individual. In short, it is no longer a guarantee, that people with less or no risky habits are completely safe.
CANCER DISTROYEYS FINANACE:
The disease does not attack just the body; it can also affect the finances of the patient and his/her family. This is not just the end but it also affects loss of regular earnings or monthly income. Cancer patient are unable to continue work as actively as in the past, resulting in loss of regular income. Such a situation in the family can lead to most pathetic, if primary bread earner is diagnosed with the deadly disease. Our Prime Minister SHRI. NARENDRA MODIJI, also have publicly pointed out repeatedly in the past about the heavy impact of cancer while talking about SWACHHA BHARAT ABHIYAN.
There is also a critical question of meeting with the unexpected heavy finance needed for funding the treatment of the disease. The cancer treatment require finance instantly to start the long duration treatment. There are ways to face the situation comfortably, through insurance policies specifically dedicated to critical illness. Such policies will be literally a life saver.
No doubt, adequate mediclaim policy also will timely assist & help the treatment, but there are multiple number of uncontrollable expenses like regular consultations, travelling expenses, Day care reports and medicines. Many of such expenses will not be allowed because of the terms and conditions of the policy or if it doesn’t fall within the period of 30 days prior to hospitalization or 60 days thereafter.
My suggestion is one should have LIC cancer cover policy into their portfolio, as the premium for the same is hardly equal to or not more than one weekend party cost. The great thing for such a policy is that it is being issued without any medical check-up by LIC. There is difference between early stage and major stage cancer and accordingly the claims are being settled. In case of early stage cancer, the policy pays out a lump sum amount of 25% of the sum insured; even though, one may not have incurred that much cost for e.g. If Mr. “X” has taken the policy of 50 lakhs, the sum of Rs. 12.5 Lakhs will be paid by LIC. This I feel is a big pay out amount which will be available immediately before the treatment and the best part is that the future premiums are waived off for next 3 years from the date of diagnosis.
In case it is at a major stage cancer, as per the terms and conditions of the policy 100% of the sum insured will be paid to the policy holder.
In continuation of the above example Mr. “X” will get 50 lakhs immediately. But if Mr. X has already received claim amount of Rs. 12.5 Lakhs then the balance amount of Rs. 37.5 Lakhs will be paid from the policy for, major stage of cancer. Over and above benefits, to compensate the loss of income, LIC pays 1% of the sum insured i.e 5000/- every month for next 10 years, irrespective of policy Terms, a person between the age 20 to 60 years, can take this policy and the premium paid will be eligible for Section 80 D deductions, under Income Tax Act, under the old regime.
I strongly recommend you to gift this policy to your loved ones. It is well said “THERE IS ALWAYS HELP BEYOND WHAT YOU SEE”
UPDATES ON FINANCECompiled by
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Highest 1 Year FD Rates (As on 01st February 2023) < Rs 2 Crore.
| Institution | 1 Year FD Rate |
| Yes Bank | 6.25% |
| Indusind Bank | 6.25% |
| RBL Finance Bank | 6.50% |
| Jana Small Finance Bank | 7.00% |
| Equitas Small Finance Bank | 7.10% |
Note : Senior Citizens would generally get 0.50% more than the above mentioned rates.
Post Office Deposit Rates (As on 01st February 2023).
| Particulars | Rate of Interest | Maximum Deposit (Rs) |
| Post Office Saving Account | 4.00% p.a. | No Limit |
| National Saving Recurring Deposit Account | 5.8% p.a.
(QuarterlyCompounded) |
No Limit |
| National Saving Time Deposit Account | 5.5% p.a. (Upto 3 Yrs) | No Limit |
| Senior Citizen Saving Scheme Account (SCSS) | 7.40% p.a. | 15,00,000/- p.a.* |
| Public Provident Fund (PPF) | 7.1% p.a. (Annually Compounded) | 1,50,000/- p.a. |
| National Savings Certificates (NSC) | 6.8% p.a. (Annually Compounded) | No Limit |
| Kisan Vikas Patra (KVP) | 6.9% p.a. (Annually Compounded) | No Limit |
| Sukanya Samriddhi Accounts | 7.6% p.a. (Annually Compounded) | 1,50,000/- p.a. |
Lowest Home loan Rates for Self Employed Professionals (As on 01st February 2023).
| Institution | Rate |
| HSBC Bank | 8.50% onwards |
| Kotak Mahindra Bank | 8.60% onwards |
| Indian Bank | 8.60% onwards |
| Union Bank of India | 8.65% onwards |
| HDFC Bank | 8.75% onwards |
Top Performing Mutual Funds (As on 01st February 2023).
| Fund Name | Current NAV | 1 Year Returns |
| Invesco India Mid Cap Fund (G) | 89.21 | 21.59% |
| Edelweiss Flexi Cap Fund (G) | 25.663 | 16.74% |
| ICICI Prudential Multicap Fund Direct (G) | 506.50 | 16.13% |
| UTI Nifty 50 Index Fund (G) | 120.012 | 15.07% |
Major Currency Rates (As on 01st February 2023).
| Country | In Rs. on 01/04/22 | In Rs. on 01/01/23 | In Rs. on 01/02/23 | Change MoM (Rs) | YTD Returns |
| United States of America (USA) – USD($) | 75.54 | 82.45 | 81.79 | -0.80% | 8.27% |
| United Kingdom (UK) –
GBP (₤) |
98.96 | 98.41 | 101.15 | 2.78% | 2.21% |
| European Union (EU) – Euro (€) | 83.05 | 86.35 | 90.03 | 4.26% | 8.40% |
Major Commodity Rates
| Commodity | Rate on 01/04/22 | Rate on 01/01/23 | Rate on 01/02/23 | Change MoM | YTD Returns |
| Gold (MCX) – 10 Gms | 51,290.00 | 54,110.00 | 56,360.00 | 4.16% | 9.88% |
| Silver (MCX) – 1 Kg | 66,820.00 | 74,300.00 | 70,090.00 | -5.76% | 4.89% |
| Crude Oil (MCX) – 1 Unit (BBL) | 7,726.00 | 6,140.00 | 7,681.00 | 25.10% | -0.58% |
Indian Indices
| Index | 1st April 2022 | 1st January 2023 | 1st February 2023 | MoM Returns | YTD Returns |
| Sensex (BSE) | 59,276.69 | 60,840.74 | 60,840.74 | -1.86% | 0.73% |
| Nifty 50 (NSE) | 17,436.90 | 18,105.30 | 18,105.30 | -2.70% | 1.03% |
| Bank Nifty | 37,148.50 | 43,203.10 | 43,203.10 | -6.23% | 9.06% |
Global Indices
| Index | 1st April 2022 | 1st January 2023 | 1st February 2023 | MoM Returns | YTD Returns |
| Dow Jones (USA) | 34,818.27 | 33,147.25 | 34,092.96 | -2.85% | -2.08% |
| Nasdaq (USA) | 14261.50 | 10,466.48 | 11,816.32 | -12.90% | -17.15% |
Disclaimer : Utmost care has been taken to present accurate figures. However, the reader is advised to verify the same and consult a Financial Advisor before taking any financial decision.
OUR PUBLICATIONS AVAILABLE FOR SALE
| S. No | Name | Price (Rs.) |
| 1 | FMCG & Pharmaceutical Industry – GST Issues & Challenges | 150/- |
| 2 | Transitional Provision | 50/- |
| 3 | 46th RRC Book | 175/- |
| 4 | Referencer 2022-23 | 750/- |
| 5 | Mega Full Day Seminar Booklet 2.7.2022 | 130/- |
| 6 | Half Day Seminar Booklet 17.11.2022 | 100/- |
| 7 | Maharashtra Goods & Service Tax Act along with Rules (MGST Bare Act) | 850/- |
| 8 | Short Publication GST practical guides (5 Book Series) | 555/- |
GSTPAM News Bulletin Committee for Year 2022-23
 Ashit C. Shah Chairman |
 Sunil D. Joshi Jt. Convenor |
 Aloke R. Singh Jt. Convenor |
| The opinions and views expressed in this Bulletin are those of the contributors. The Association does not necessarily concur with the opinions/views expressed in this Bulletin. |