GSTPAM News Bulletin January 2022

COACHING CLASS ON INCOME TAX

The Goods and Services Tax Practitioners’ Association of Maharashtra is pleased to announce its Coaching Class on The Income Tax Act, 1961 for the 1st time by way of webinar.

There will be 13 session starting from 17th January 2022 to 14th February 2022 on Monday, Wednesday and Friday.

Timing 4.00 p.m. to 7.00 p.m.

E-certificate will be provided to participants having 70% attendance Registration Fees INR 944/- (Fees 800+ GST 144)

Link for payment and registration

https://www.gstpam.org/online/event-registration.php

Aalok Mehta President, GSTPAM

Mahesh Madkholkar Chairman

Ajay Talreja, Pravin Jadhav and Pratik Satyuga Jt. Convenors

Income Tax Coaching Class Schedule 17th January 2022 to 14th February 2022

Date	Day	Timing	Topics
17-01-2022	Monday	4.00 P.M. to 7.00 P.M.	Basic Concepts, Definitions and Residential Status
19-01-2022	Wednesday	4.00 P.M. to 7.00 P.M.	Income From Salary
21-01-2022	Friday	4.00 P.M. to 7.00 P.M.	Income From House Property
24-01-2022	Monday	4.00 P.M. to 7.00 P.M.	Income From Capital Gains
26-01-2022	Wednesday	4.00 P.M. to 7.00 P.M.	Income from Business & Profession + Special Provisions 44AD, 44ADA, 44AE
28-01-2022	Friday	4.00 P.M. to 7.00 P.M.	Income from Business & Profession + Special Provisions 44AD, 44ADA, 44AE
31-01-2022	Monday	4.00 P.M. to 7.00 P.M.	Income from other sources
02-02-2022	Wednesday	4.00 P.M. to 7.00 P.M.	Deductions Under Chapter VI-A, including relief u/s 89(1)
04-02-2022	Friday	4.00 P.M. to 7.00 P.M.	TDS, TCS and advance tax provisions.
07-02-2022	Monday	4.00 P.M. to 7.00 P.M.	Brought forward and Carry forward of losses + Clubbing of Income
09-02-2022	Wednesday	4.00 P.M. to 7.00 P.M.	Filing of returns and Forms
11-02-2022	Friday	4.00 P.M. to 7.00 P.M.	Income tax authorities and Procedure of Assessment
14-02-2022	Monday	4.00 P.M. to 7.00 P.M.	Offences, Penalty and prosecutions, Interest

CIRCULAR FOR RENEWAL OF MEMBERSHIP/SUBSCRIPTION CHARGES FOR THE F.Y. 2021-22

Dear Members,

RENEWAL OF MEMBERSHIP FOR F.Y. 2021-22

The Membership Fees for the year 2021-22 are due for renewal on 01.04.2021. 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, 2021 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 2022-23 & 2023-24 (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. 2021-22 by Non-Members
Subscription fees for GST	–	–	1,000.00	1,000.00
Advance Membership / Subscription charges for subsequent two years 2022-23 & 2023-24 (Non-Refundable)
Subscription Fees -GST	0	–	2,000.00	2,000.00

MEMBERSHIP FEES RENEWAL FORM

Link for CIRCULAR FOR RENEWAL OF MEMBERSHIP/SUBSCRIPTION CHARGES

https://www.stpam.org/sites/default/files/4.gstpam_membership_form_0.pdf

SUBSCRIPTION OF GST REVIEW FORM

Link for GST Review

https://www.stpam.org/sites/default/files/1614317239625_1614317015557_subscription_renewal_form_.pdf

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 email [email protected] Payment Link : https://www.stpam.org/payonline/845

We value your continuation of the membership and look forward to your renewal to this effect.

Mahesh Madkholkar
Parth Badheka
Hon. Jt. Secretary

Dated:- 04.08.2021 

ORDER FORM FOR GSTPAM REFERENCER 2021-22

(Members are requested to take out the photocopy of the Order Form for booking)

For Office Use Only

Date

Receipt No.

Coupon No.

Amount

To

The Convenor,
GSTPAM Referencer Committee
The Goods & Services Tax Practitioners’ Association of Maharashtra
Room No. 8 & 9, Mazgaon Tower, Mhatar Pakhadi Road,
Mazgaon, Mumbai

Dear Sir,

Please book my/our order of GSTPAM Referencer for the year 2021-22 as given below.

Sr.	Particulars	Price per copy if booked prior to 31st May 2021	Price per copy if booked after 31st May 2021	Qty	Total Rs.
1	GSTPAM Referencer 2021-22 Part I & II (GST, VAT & Allied Law Referencer)	650	700
2	Courier Charges (For Outstation members only) (per set)	100	100
	Grand Total

Note :

1. Referencer will be published in Part I & II (for GST, VAT & Allied Laws Referencer).

2. The members, who subscribe for the Referencer, can also view the same online. Along with the referencer a complimentary E-compilation of GST Act, Notifications, Circulars and Press Releases will also be provided to the subscribers on our website www.gstpam.org.

   The viewing will be password protected.

3. Applicants requiring more than 5 copies of the Referencer are required to give a request on their letter head along with the order form. Tax Practitioner’s Associations can place order in bulk quantity by making request on their letterhead signed by the Association’s President and Secretary.

4. Applicants will be issued receipt and delivery card at time of placing of their order. Applicants are requested to bring receipt and delivery card together at the time of taking the delivery of the Referencer. No delivery of the Referencer shall be given, unless the receipt for payment along with the delivery cards is submitted at the counter. If the receipt for payment or the delivery cards is lost, than no delivery of the Referencer shall be given.

Link For Referencer order form.

https://gstpam.org/sites/default/files/referencer_order_and_circular_form_21-22_0.pdf

GST, MVAT & ALLIED LAW UPDATES Compiled by Adv. Pravin Shinde

Central Tax Notifications
Notification No.	Date of Issue	Subject
37/2021	01.12.2021	Seeks to make amendments (Ninth Amendment, 2021) to the CGST Rules, 2017.
38/2021	21.12.2021	Seeks to bring sub-rule (2) and sub-rule (3), clause (i) of sub-rule (6) and sub-rule (7) of rule 2 of the CGST (Eighth Amendment) Rules, 2021 into force w.e.f. 01.01.2022.
39/2021	21.12.2021	Seeks to notify 01.01.2022 as the date on which provisions of section 108, 109 and 113 to 122 of the Finance Act, 2021 shall come into force.
40/2021	29.12.2021	Seeks to make amendments (Tenth Amendment, 2021) to the CGST Rules, 2017.

 

Central Tax (Rate) Notifications
Notification No.	Date of Issue	Subject
14/2021	18.11.2021	Seeks to further amend notification No. 01/2017-Central Tax (Rate) dated 28-06-2017
15/2021	18.11.2021	Seeks to amend Notification No 11/2017- Central Tax (Rate) dated 28.06.2017.
16/2021	18.11.2021	Seeks to amend Notification No 12/2017- Central Tax (Rate) dated 28.06.2017.
17/2021	18.11.2021	Seeks to amend Notification No 17/2017- Central Tax (Rate) dated 28.06.2017
38/2021	21.12.2021	Seeks to bring sub-rule (2) and sub-rule (3), clause (i) of sub-rule (6) and sub-rule (7) of rule 2 of the CGST (Eighth Amendment) Rules, 2021 into force w.e.f. 01.01.2022.
39/2021	21.12.2021	Seeks to notify 01.01.2022 as the date on which provisions of section 108, 109 and 113 to 122 of the Finance Act, 2021 shall come into force.
40/2021	29.12.2021	Seeks to make amendments (Tenth Amendment, 2021) to the CGST Rules, 2017.
38/2021	21.12.2021	Seeks to bring sub-rule (2) and sub-rule (3), clause (i) of sub-rule (6) and sub-rule (7) of rule 2 of the CGST (Eighth Amendment) Rules, 2021 into force w.e.f. 01.01.2022.
39/2021	21.12.2021	Seeks to notify 01.01.2022 as the date on which provisions of section 108, 109 and 113 to 122 of the Finance Act, 2021 shall come into force.

 

Integrated Tax (Rate) Notifications
Notification No.	Date of Issue	Subject
14/2021	18.11.2021	Seeks to further amend notification No. 01/2017-Integrated Tax (Rate) dated 28-06-2017
15/2021	18.11.2021	Seeks to amend Notification No 8/2017- Integrated Tax (Rate) dated 28.06.2017.
16/2021	18.11.2021	Seeks to amend Notification No 9/2017- Integrated Tax (Rate) dated 28.06.2017.
17/2021	18.11.2021	Seeks to amend Notification No 14/2017- Integrated Tax (Rate) dated 28.06.2017.
18/2021	28.12.2021	Seeks to amend Notification No 1/2017- Integrated Tax (Rate) dated 28.06.2017
19/2021	28.12.2021	Seeks to amend Notification No 2/2017- Integrated Tax (Rate) dated 28.06.2017.
20/2021	28.12.2021	Seeks to amend Notification No 22/2018- Integrated Tax (Rate) dated 26.07.2018
21/2021	31.12.2021	Seeks to supersede notification 14/2021- IT(R) dated 18.11.2021 and amend Notification No 1/2017- Integrated Tax (Rate) dated 28.06.2017.
22/2021	31.12.2021	Seeks to supersede notification 15/2021- IT(R) dated 18.11.2021 and amend Notification No 8/2017- Integrated Tax (Rate) dated 28.06.2017.

 

Union Territory Tax (Rate) Notifications
Notification No.	Date of Issue	Subject
14/2021	18.11.2021	Seeks to further amend notification No. 01/2017-Union Territory Tax (Rate) dated 28-06-2017
15/2021	18.11.2021	Seeks to amend Notification No 11/2017- Union territory Tax (Rate) dated 28.06.2017.
16/2021	18.11.2021	Seeks to amend Notification No 12/2017- Union territory Tax (Rate) dated 28.06.2017.
17/2021	18.11.2021	Seeks to amend Notification No 17/2017- Union territory Tax (Rate) dated 28.06.2017.
18/2021	28.12.2021	Seeks to amend Notification No 1/2017- Union territory Tax (Rate) dated 28.06.2017.
19/2021	28.12.2021	Seeks to amend Notification No 2/2017- Union territory Tax (Rate) dated 28.06.2017.
20/2021	28.12.2021	Seeks to amend Notification No 21/2018- Union territory Tax (Rate) dated 26.07.2018.
21/2021	31.12.2021	Seeks to supersede notification 14/2021- UTT(R) and amend Notification No 1/2017- Union territory Tax (Rate) dated 28.06.2017.
22/2021	31.12.2021	Seeks to supersede notification 15/2021- UTT(R) and amend Notification No 11/2017- Union territory Tax (Rate) dated 28.06.2017.

 

Compensation Cess (Rate) Notifications
Notification No.	Date of Issue	Subject
02/2021	28.12.2021	Seeks to amend Notification No 1/2017- Compensation Cess (Rate) dated 28.06.2017.

 

CGST Circular
Circular No.	Date of Issue	Subject
165/21/2021- GST	17.11.2021	Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020
166/21/2021- GST	17.11.2021	Circular on Clarification on refund related issues
167/21/2021- GST	17.12.2021	GST on service supplied by restaurants through e-commerce operators – reg.
168/21/2021- GST	30.12.2021	Mechanism for filing of refund claim by the taxpayers registered in erstwhile Union Territory of Daman & Diu for period prior to merger with U.T. of Dadra & Nagar Haveli.

 

MVAT Circular
Circular No.	Date of Issue	Subject
27 T of 2021	04.10.2021	Clarification regarding Entry 11A of Schedule ‘B’ under the Maharashtra Value Added Tax Act, 2002

 

Maharashtra Goods and Services Tax Act, 2017 (MGST) Notification
Notification No.	Date of Issue	Subject
Notification No. 13-2021-State Tax- (Rate) EO No. 329 dated 10.11.2021	10.11.2021	Seeks to amend Notification No 01/2017 – State Tax (Rate) dated 29.06.2017
Notification No.14/2021-State Tax (Rate) EO No. 366 dt. 03.12.2021	03.12.2021	Seeks to amend Notification No 01/2017 – State Tax (Rate) dated 29.06.2017
Notification No.15/2021-State Tax (Rate) EO No. 367 dt. 03.12.2021	03.12.2021	Seeks to amend Notification No 11/2017 – State Tax (Rate) dated 29.06.2017
Notification No.16/2021-State Tax (Rate) EO No. 368 dt. 03.12.2021	03.12.2021	Seeks to amend Notification No 12/2017 – State Tax (Rate) dated 29.06.2017
Notification No.17/2021-State Tax (Rate) EO No. 369 dt. 03.12.2021	03.12.2021	Seeks to amend Notification No 17/2017 – State Tax (Rate) dated 29.06.2017
Notification No. 37/2021-State Tax, EO No. 379, Dt. 14.12.2021	14.12.2021	Maharashtra Goods & Services Tax (Ninth Amendment) Rules, 2021
33 T of 2021 (CBIC circular no Circular No. 167/23/2021-GST)	31.12.2021	GST on Service supplied by restaurant through e-commerce operators – reg.
18-2021 State tax Rate	06.01.2022	Seeks to amend Notification No. 01/2017 – State Tax (Rate), dated the 29th June, 2017
19-2021 State Tax Rate	06.01.2022	Seeks to amend Notification No. 02/2017 – State Tax (Rate), dated the 29th June, 2017

 

Maharashtra Goods and Services Tax Act, 2017 (MGST) Notification
Notification No.	Date of Issue	Subject
20-2021 State tax rate	06.01.2022	Seeks to amend Notification No. 21/2018 – State Tax (Rate), dated the 27th June, 2018
38-2021 State tax	06.01.2022	To notify 1st day of January, 2022 as the date from which the provisions of sub-rule (2), sub rule (3), clause (i) of sub-rule (6) and sub-rule (7) of rule 2 of the Goods and Services Tax (Eighth Amendment) Rules, 2021, shall come into force.
39-2021 State tax	06.01.2022	To appoints the 1st day of January, 2022 as the date on which the provisions of sections 2, 3 and 8 to 16 of the Maharashtra Goods and Services Tax (Amendment) Act, 2021 shall come into force

 

Maharashtra Goods and Services Tax Act, 2017 (MGST) Circular
Circular No.	Date of Issue	Subject
31T of 2021 (CBIC circular no Circular No. 165/21/2021-GST)	26.11.2021	Clarification in respect of applicability of Dynamic Quick Response (QR) code on B2C invoices and compliance of notification 14/2010 – State Tax dated 30 March, 2020
32 T of 2021 (CBIC circular no Circular No. 166/22/2021-GST)	26.11.2021	Clarification on certain refund related issues

 

INCOME TAX UPDATES By CA. Ajay Talreja

Marriage Gifts And Its Taxation

It is customary in Indian for families to exchange gift at the occasion of marriage. This article deals with tax implications of such gifts received.

General Provisions for taxation of Gifts in India

Before abolition of the Gift Tax Act in 1998 the donor (giver of the gift) was required to pay gift tax on the value of gift over Rs. 30,000/-. After the abolition, neither the recipient not the donor was subjected to any tax. This lacuna was grossly misused and which forced the government to bring in provisions to tax the gifts in the hands of the recipient in case the aggregate of the all the gifts during a year exceeded certain threshold limit. Presently this threshold limit is fifty thousand rupees. It is the aggregate value of all the gifts received during the year and not the value of an individual gift which is to be taken into account for determining taxability of the gifts.

Specific provisions applicable to marriage gifts

While providing for taxation of gifts in the hands of recipient, the lawmakers provided certain exceptions. Marriage gifts are one of the exceptions provided in the law. In India we have tradition where relatives as well as the bride and groom receive gifts on the occasion of marriage. Are all these gifts covered under the marriage exception, and therefore tax free? The answer is simply no. It is only the couple getting married who enjoys the exception and not all the relatives. The gifts received by the couple are fully tax free without any upper limit. These gifts need not necessarily be from the relatives only to enjoy this exemption.

So all the gifts received by the bride and groom, irrespective of value, are tax free in their hands but the other relatives have to include full value of the gifts in their income, whether received in cash or kind, in case the aggregate of value of all the gifts, including these gifts, received during the year exceeded fifty thousand rupees. However, gifts received by one relative from another relative are fully tax-free in case of certain specified relatives irrespective of any occasion.

Clubbing provisions

Though gifts received by bride and groom are fully tax free in their hands on the occasion of their marriage but some clubbing provisions will come into play if these gifts are received from certain specified relatives. Income arising from the gift received by a daughter in law from her father in law or mother in law is required to be added to the income of the in-law who had given the gift. However, in case of gifts given to daughter in law before marriage are outside of the clubbing provisions but the threshold of fifty thousand rupees will apply as she is a non-relative till she gets married so gift to daughter in law by parents in law is not advised. It may be noted that the clubbing provisions will continue to apply on the value of the gift even after the asset gifted changes its form. So for example in case jewellery is gifted to daughter in law by parents in law, though fully tax free in the hands of the bride at the time of marriage but the capital gains if any realised at the time of sale will have to be clubbed with the income of the donor as and when the jewellery is sold in future.

Precautions while accepting marriage gifts

Though gifts received at the occasion of one’s marriage is fully tax free but you need to take certain precaution before you record these gift in your records specially in case the gifts are of high value.

So in case you have shown some amounts or assets as having been received at the occasion of your marriage, you will have to furnish the details of all the persons from whom you have received the gifts. Moreover, the tax official may call the person to appear before him and may try to find about genuineness of the gift. The tax law provides that in case you are not able to give a satisfactory explanation in respect of any asset found credited in your books of accounts, the tax department will levy a flat tax @ 60%+surcharge instead of the same being taxed at the slab rate applicable to you. You will have to pay interest and penalty as bonus in such a situation.

In case you are planning to use the occasion of marriage in your family for money laundering, please be careful. In case the gifts received and recorded in the books come to the notice of the tax official during assessment proceeding the tax officials can ask you to furnish the details of marriage expenses incurred with the details of the person who had footed the bill. Moreover, in order to gauge the scale of marriage ceremony, the officer can ask for the video recording and photograph of various functions of the marriage. So look before you leap.

Most Commonly Used Legal terms in Income Tax Judgments

Sometimes we go through the entire judgement but there we find many legal words and we do not know the meaning of those legal words and terms. But we should know the meaning of such words which are used in a judgement to understand a Judgment properly. I have tried here to compile most common words which occur in the judgements and which help readers under understand meaning of legal terms used in Judgments.

1. Conjectures: The formation or expression of an opinion or theory without sufficient evidence for proof. Inference formed without proof or sufficient evidence. A conclusion drawn by surmise or surmises, a thought or idea based on scanty evidence.

2. Impugned: An impugned order is an order which has been challenged. If an order is not final it is not an impugned order unless it is challenged. It is an interim order. An interim order is an order passed partially before a final order is passed in the entire matter.

3. Notwithstanding: Basics of Understanding of Income Tax Act. “Notwithstanding anything contained in” It is a ‘non obstante’ (Notwithstanding) clause, and it means ‘in spite of’/ ‘even if’ / ‘although’.

4. Ipso-Facto: Ipso facto literally means “by that very fact” in Latin, and it’s often used in legal documents, although writers, philosophers, and scientists use it too. The writer Norman Mailer once said, “If you grow up in Brooklyn, you’re a New Yorker ipso facto.” In other words, the fact that you live in a borough of New York automatically means you’re a citizen of that city.

5. Supra: [Latin, Above; beyond.] A term used in legal research to indicate that the matter under current consideration has appeared in the preceding paragraph pages of the text in which the reference is made.

6. Prima Facie : Prima facie is a legal claim having enough evidence to proceed to trial or judgment. Prima facie, in Latin, means “at first sight”. … A judge may conclude, after an initial review of the accusation during a pre-trial hearing, that there is enough evidence to support a case. Thus, the situation is called Prima Facie.

7. Surmises: a thought or idea based on scanty evidence

8. Fair Market Value (FMV): The fair market value (FMV) is the price settled between a buyer and a seller for a specific asset. Both the parties should be aware of the asset’s condition and must be willing to participate in the transaction with no force or conditions.

9. Proviso: A condition, stipulation, or limitation inserted in a document. A condition or a provision in a deed, lease, mortgage, or contract, the performance or nonperformance of which affects the validity of the instrument. It generally begins with the word provided. A proviso clause in a statute excepts something from statutory requirements, qualifies the statute, or excludes some potential area of misinterpretation.

10. Provision : a statement in an agreement or a law that a particular thing must happen or be done

11. Under section : one of the parts that a document or law is divided into, each of which has its own number:

12. Mutatis Mutandis: ‘Mutatis mutandis’ translates to ‘all necessary changes having been made’ or ‘with the necessary changes’. The phrase mutatis mutandis indicates that whilst it may be necessary to make some changes to take account of different situations, the main point remains the same.

13. Ultra-virus: Ultra virus translates to ‘beyond the powers’. It is used to describe an act which requires legal authority or power but is then completed outside of or without the requisite authority. In relation to corporations ‘ultra virus’ denotes some act or transaction on the part of a corporation which, although not unlawful or contrary to public policy if done by an individual, is yet beyond the corporation’s legitimate powers as defined by the statute under which it is formed, or the statutes which are applicable to it, or by its constitution, although the scope of the ultra vires doctrine as it applies to companies and corporations is now restricted by statute.

14. Attributable to the Assessee: the degree to which something can be attributed to someone or something (=saying or believing that something is the result or work of a particular person or thing)

15. Attributable to the Department: the degree to which something can be attributed to someone or something (=saying or believing that something is the result or work of a particular person or thing)

16. Ad-hoc: This phrases mean “for this purpose only.” Its literal translation from the Latin is “to this.” Common examples are an ad hoc committee or an ad hoc commission created for a specific or one-time purpose to address issues that fall outside the scope of other existing committees or commissions. Ad hoc committees are formed on a temporary basis. In Schmidt

17. Contra Costa County, the Ninth Circuit wrote, “An ad hoc decision is one taken based on the circumstances of a particular case. An ‘ad hoc’ decision is made ‘with a particular end or purpose,’ as distinguished from ‘a coordinated policy.’ ”

18. Adveloram: Ad valorem is a Latin term meaning, “according to value”. This phrase is used in reference to the method of levying duties (i.e. tax) on a transaction or property, which is payable based proportionally on the value of the transaction or property, rather than on its quantity.

19. Onus: It means “burden of proof”—that is, the obligation of proving a disputed assertion in a court of law.

20. ab initio : From the beginning.

21. Abatement : a deduction from the full amount of a tax.

 

INCOME TAX CIRCULARS & NOTIFICATIONS Compiled by CA. Aloke R. Singh

Income Tax Circulars
Circular No	Date of Issue	Subject
21/2021	28/12/2021	One-time relaxation for verification of all income tax-returns e-filed for the Assessment Year 2020-21 which are pending for verification and processing of such returns

 

Income Tax Notifications
Notification No.	Date of Issue	Subject
134/2021	06.12.2021	The Central Government hereby specifies the Jeevan Akshay-VII Plan of the LIC of India, as filed by that Corporation with the IRDA, as the annuity plan of the LIC of India for the purposes of section 80(2) (xii) of the Income-tax Act, 196, for the assessment year 2021-22 and subsequent years.
135/2021	08.12.2021	The Central Government hereby notifies u/s 90(1) of the Income-tax Act, that all the provisions of the Protocol of the Agreement between the Government of the Republic of India and the Government of the Kyrgyz Republic for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income as amended by this notification, shall have effect in the Union of India.
136/2021	10.12.2021	Income-tax (33rd Amendment) Rules, 2021, notified. Rule 21AK inserted after the Rule 21AJ.
137/2021	13/12/2021	The Central Government introduces the e-Verification Scheme, 2021u/s 135A(1) and 134A(2) of the Income-tax Act, 1961.
138/2021	27/12/2021	Income-tax (34th Amendment) Rules, 2021, notified. Rule 2DC inserted after the Rule 2DD.
139/2021	28/12/2021	In supersession of the Faceless Appeal Scheme, 2020, the Central Government hereby makes the following Scheme, namely the Faceless Appeal Scheme, 2021.
140/2021	29/12/2021	Income-tax (35th Amendment) Rules, 2021, notified. Rule 16DD inserted after the Rule 16D. w.e.f. 29.07.2021, retrospectively.
141/2021	29/12/2021	In supersession of the notification No. 81/2020 under the Faceless Appeal Scheme 2020, the CBDT hereby directs that the Income-tax authorities as specified in this notification, shall exercise the powers and perform functions, in order to facilitate the conduct of e-appeal Proceedings, in respect of such territorial area or persons or class of persons or incomes or class of incomes or cases or class of cases as specified by the Board in paragraph 3 of the Scheme, with respect to appeals filed under section 246A or 248 of the Act, pending or instituted on or after 29th December, 2021.
142/2021	31/12/2021	For the purposes of clause 10(46) of the Income Tax Act, 1961, the Central Government hereby notifies ‘the Bureau of Indian Standards (BIS)(PAN:AAATB0431G), set up by the Bureau of Indian Standards Act, 1986 in respect of the income arising to that Bureau, as specified in this notification.

 

DGFT & CUSTOMS UPDATE By CA. Ashit Shah

1. Reduction in the rate of Basic Custom Duty on Oils

Sr. No.	HSN	Name of Goods	Rates till 20-08-2021	Rates from 20-08-2021 to 30-09-2021	Rates from 14-10-2021 to 31-03-2022	Rates from 21-12-2021 to 31-03-2022
1	1507 10 00	Crude Soya Oil	15%	7.50%	Nil	Nil
2	1512 11 10	Crude Sunflower Oil	15%	7.50%	Nil	Nil
3	1507 90 10	Refined Soya Oil	45%	37.50%	17.50%	17.50%
4	1512 19 10	Refined Sunflower Oil	45%	37.50%	17.50%	12.50%
5	1511 10 00	Crude Palm Oil	–	–	Nil	Nil
6	1511 90	Refined bleached deodorized( RBD) palm oil, RBD palmolein, RBD palm stearin and any palm oil other than crude palm oil	–	–	17.50%	17.50%

[N. No. 53/2021 – Customs, dated 21-11-2021 & 48/2021]

2. Anti-dumping Duty on certain flat rolled products of Aluminium

Anti-dumping Duty (ADD) is imposed on import of “‘Certain Flat Rolled Products of Aluminum” falling under the heading 7607 or 7607 of the First Schedule to the Customs Tariff Act, 1975, originating in or exported from Republic of China and Korea RP and imported in to India for a period of 5 years. However, following products are excluded from the scope of the subject goods:

1. Can-body Stock – also includes Can End Stock (CES) used to make aluminium cans

2. Aluminium Foil up to 80 microns.

[N. No. 68/2021 – Customs (ADD), dated 06-12-2021]

3. Anti-dumping Duty on Axle for Trailers

Anti-dumping Duty (ADD) is levied on “Axle for Trailers in completely knock down / semi knock down condition, falling under tariff items 8716 90 10 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) originating in or exported from the People’s Republic of China and imported into India.

The anti-dumping duty imposed under this notification shall be effective from the date of publication of this notification in the Official Gazette and will be co-terminus with the anti- dumping duty on Axle for Trailers as levied vide aforesaid notification No. 54/2016-Customs (ADD), dated the 29th November, 2016, published vide number G.S.R. 1101(E), dated the 29th November, 2016.

[N. No. 69/2021 – Customs (ADD), dated 13-12-2021]

4. Anti-dumping Duty on Sodium Hydrosulphite

Anti-dumping Duty (ADD) is levied on “Sodium Hydrosulphite, falling under tariff items 2831 and 2832 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) originating in or exported from the People’s Republic of China & Korea RP and imported into India for a period of 5 years.

[N. No. 71/2021 – Customs (ADD), dated 17-12-2021]

5. Anti-dumping Duty on ‘Hydrogen Peroxide’

Anti-dumping Duty (ADD) is levied on “‘Hydrogen Peroxide’, falling under tariff items 2847 00 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) originating in or exported from the Bangladesh, Taiwan, Korea RP, Indonesia, Pakistan and Thailand and imported into India shall be subjected to provisional assessment till the review is completed.

The provisional assessment may be subject to such security or guarantee as the proper officer of customs deems fit for payment of the deficiency, if any, in case a definitive antidumping duty is imposed retrospectively, on completion of investigation by the designated authority.

[N. No. 72/2021 – Customs (ADD), dated 17-12-2021]

6. Anti-dumping Duty on ‘Calcined Gypsum Powder’

Anti-dumping Duty (ADD) is levied on ‘Calcined Gypsum Powder’, falling under tariff items 2520 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) originating in or exported from Iran, Oman, Saudi Arabia and United Arab Emirates (UAE) and imported into India for a period of 5 years.

[N. No. 73/2021 – Customs (ADD), dated 17-12-2021]

7. Anti-dumping Duty on ‘Silicone Sealants’

Anti-dumping Duty (ADD) is levied on ‘Silicone Sealants excluding silicon sealants used in manufacturing of solar photovoltaic modules, and thermal power applications’, falling under Chapter 32 and 35 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) originating in or exported from China PR and imported into India for a period of 5 years. However, certain products are specifically excluded and provided in the notification.

[N. No. 74/2021 – Customs (ADD), dated 21-12-2021]

8. Anti-dumping Duty on ‘Hydrofluorocarbon (HFC) Component R-32’

Anti-dumping Duty (ADD) is levied on ‘Hydrofluorocarbon (HFC) Component R-32’, falling under tariff item 2903 39 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) originating in or exported from China PR and imported into India for a period of 5 years.

[N. No. 75/2021 – Customs (ADD), dated 21-12-2021]

9. Anti-dumping Duty on ‘Décor Paper’

Anti-dumping Duty (ADD) is levied on ‘Décor Paper, falling under tariff item 4805 20 90 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) originating in or exported from China PR and imported into India for a period of 5 years. However, printed ready-to-use décor paper are excluded.

The product under consideration includes various types of decor paper, such as surfacing paper (white/off-white), liner (white / off-white), barrier paper, shuttering base, overlay paper and print base paper (color / white). It may be imported as base paper for waxing, coating and impregnation; base paper for printing; base paper for use in decorative industry and barrier paper, and may come in various sizes as 95 cm, 96 cm, 102 cm, 123 cm, 123.5 cm, 124 cm, 124.5 cm, 125 cm, 131 cm, 132 cm, 183 cm, 184 cm and 185 c.m

[N. No. 77/2021 – Customs (ADD), dated 27-12-2021]

10. Extension of last date for submission of application for Scrip based FTP Schemes

The last date for submission of application under MEIS, SEIS, ROSCTL, ROSCL and 2% additional ad hoc incentive (under para 3.25 of FTP) which was earlier notified to be 31st December, 2021 has been extended till 31st January, 2022.

[N. No. 48/2015-2020, DGFT, dated 31-12-2021]

 

CHARITABLE TRUSTS UPDATES By Adv. Hemant Gandhi & CA Premal Gandhi

TAXATION FOR ANONYMOUS DONATION – PART III

SUB-SECTION (1) OF SECTION 115BBC PROVIDES

Where the total income of an assessee, being a person in receipt of income on behalf of any university or other educational institution referred to in sub-clause (iiiad) or sub-clause (vi) or any hospital or other institution referred in sub-clause (iiiae) or sub-clause (via) or any fund or institution referred to in sub-clause (iv) or any trust or institution referred to in sub-clause

(v) of clause (23C) of section 10 or any trust or institution referred to in section 11, includes any income by way of any anonymous donation, the income-tax payable shall be aggregate of –

1. the amount of income-tax calculated at the rate of thirty per cent higher of the following namely:

   1. five percent of the total donations received by the assessee, or

   2. one lakh rupees, and

2. the amount of income tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received in excess of the amount referred to in sub-clause (A) or sub-clause (B) of clause (i), as the case may be.

Hence Section 115BBC covers the following organizations:

1. Organizations covered under section 11.

2. Any University or other educational institution referred to in section 10(23C) (iiiad) and (vi).

3. Any hospital or other institution referred to in section 10(23C) (via).

4. Any fund or institution referred to in section 10(23C) (iv).

5. Any trust or institution referred to in section 10(23) (v).

6. Hence, organizations, other than those mentioned above, are not covered under this section. Hence, education/ medical institutions substantially financed by government [section 10(23C) (iiiab) & (iliac) or institutions notified under section 10(46) of the Income-tax Act, 1961 are not subject to section 115BBC].

Exclusion from Taxability

1. Anonymous donation received by holly religious institutions shall remain exempt from tax.

2. In case of partly religious and partly charitable institutions, anonymous donations directed towards a medical or educational institution run by such entities shall be covered as anonymous donation though taxable only to the extend such donation exceed 5 per cent of total income of such trust or institution or a sum of ₹1lakh, whichever is more. Other donations to partly religious and partly charitable institutions shall remain exempt purview of the provision.

3. In the case of wholly charitable institutions, anonymous donations shall be taxable to the extent such donations exceed 5 per cent of total income of such trusts/ institutions or a sum of Rupees 1 lakh, whichever is more.

The above clause provides that anonymous donations received by religious as well as charitable trust would be taxable if it is received with a specific direction that such donation is for any university, educational institution or medical institutions.

CBDT’S EXPLANATORY CIRCULAR NO. 5/2010, DATED 3-6-2010 ON SECTION 115BBC

CBDT has issued an explanatory circular regarding section 115bbc No. 5/2010, dated 3-6-2010. The scope and effect of the amendments [w.e.f. 1-4-2010] made to section 115BBC have been explained as follows:–

“Tax relief on anonymous donations in certain cases: Under the provisions of section 115BBC, wholly religious entities are outside the purview of taxation of anonymous donations. Partly religious and partly charitable entities had also been exempted from the taxation of anonymous donations, except where the anonymous donation is made to an educational or medical institution run by such entity in which case such donations were taxed at the rate of 30%. In the case of wholly charitable entities, all anonymous donations are taxed at the rate of 30%.

It was observed that in the case of some such institutions, there are practical difficulties to maintain complete records of donation received. In order to mitigate the compliance burden, the above section was amended and some relief was provided to such organization by exempting a part of the anonymous donations from being taxed. The amendment has resulted in the following scheme:-

Anonymous donations received from wholly religious institution shall remain exempt from tax.

In the case of partly religious and partly charitable institutions, anonymous donation directed towards a medical or educational institution run by such entities shall be taxable only to the extend such donations only exceed 5% of total donations received by such trust or institution or a sum of ₹1 lakh, whichever is more. Other donations to partly religious and partly charitable institution shall remain exempt from taxation.

In the case of wholly charitable institution, anonymous donation shall be taxable only to the extent such donations exceed 5% of total donations received by such trust or institution or a sum of ₹1 lakh, whichever is more,”

In the above circular, it has been provided that donations to partly religious and partly charitable institutions shall remain exempt from taxation except anonymous donations directed towards a medical or educational institution run by such entities.

DEFINITION OF ANONYMOUS DONATION

Sub section (3) of section 115BBC provides that for the purposes of this section, “anonymous donations” means any voluntary contribution referred to in sub clause (iia) of clause (24) of section 2, where a person receiving such contribution does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed’.

In the case of Hans Raj Samarak Society v. Asstt. DIT [2011] 16 taxmann.com 103/133 ITD 530 (Delhi- Trib.), it was held that the assessee was not required to maintain anything more than the name and address of the donor as it prescribed in section 115BBC (3). This ruling is very significant as it clarifies the limitations of the AO to call for information or additional evidence in case of anonymous donation. Section 115BBC (3) provides that the receiver has an obligation to maintain the identity indicating the name and address of donor and such other particulars as may be prescribed. No other particulars have been prescribed under the provisions or elsewhere in the Act or Rules.

In that case of M/s Ramadevi Memorial Charitable Trust v. The ACIT (E) Jaipur [ITA No. 1023/ Jp /2016, dated 7-2-2020]- ITAT Jaipur held that where proper name and address were not available and the donations were of identical amount of ₹5000 the Assessing Officer was justified in taxing it as

WHETHER THE CAPACITY OF THE DONAR TO BE PROVED?

As discussed in the case of Kalyan Memorial and Charitable Trust, the Assessing Officer suspected the capacity of the creditor or the donor. In this regard it is pertinent to refer principles laid down by the Hon’ble Supreme Court and other High Court in this regard. The judgment of CIT v. Daulat Ram Raut Mull (1973) 87 ITR 349 (SC) is the authority for the proposition that the assessee cannot be required to prove the source of the source.

The Rajasthan High Court held that establishing that capacity of the lender was not the responsibility of the Assessee, kindly refer Labh Chand Bohra v. ITO (2010) 189 Taxman 141. The brief observations of the Court are as under:

“So far capacity of the lender was concerned, on the face of the judgment of the Supreme Court in CIT v. Daulat Ram Raut Mull (973) 87 ITR 349 and other judgments, capacity of the lender to advance money to the assessee was not a matter which would require the assessee to establish, as that would amount to calling upon him to establish the source of the source.”

Burden of proof is entirely on the assesse to establish identity of the donors

The ITAT Bombay Bench in the case of Madhavi Raksha Sankalp Nirmal Niketan v. Dy. CIT (2017) 83 taxman.com 316165 ITD 627 (Mum. – Trib) that the onus as well burden of proof is entirely on the assessee to provide to the AO all relevant details as contemplated u/s 115BBC to the satisfaction of the AO as to compliance of section 115BBC and as to genuineness of the said donation and if the assessee failed to do so the entire transaction was hit by provisions of section 115BBC.

AMOUNT RECEIVED FROM SALE OF LAND OVER AND ABOVE THE REGISTRATION VALUE

In the case of Asst. CIT (Exemptions) Vijayawada v. Diocese of Guntur Society, Guntur and (Vice Versa) (ITA Nos.390/Viz/2016 and 151/Viz/2016, dated 18-12-2019)- ITAT Vishakhapatnam held that any amount received from sale of land over and above the registration value can be treated as anonymous donation exempt for a partly religious and partly charitable trust.

AFFIDAVIT AND VIDEO FOOTAGE ADMISSIBLE AS EVIDENCE FOR DONATION

The High Court of Delhi in the case of The Commissioner of Income Tax (Exemptions) v. Patanjali Yogpeeth (NYAS) ITA 886/2017 held that donations collected through sale of coupon from various yoga camp shall not be treated as anonymous based on the affidavits of the President of the camp and the video footage available. In other words, even in the absence of the name and address of the donor as affidavit by the organization and corroborative evidence shall be admissible.

 

BE CAUTIOUS By Mr. Tushar P. Joshi

I wish you all a very Happy and Prosperous New Year, I hope you all enjoyed a fruitful 2021, and are ready for an excellent 2022.

Year end is neither an end in reality nor a beginning of New Year but a part of perpetuity, with the gain of all the wisdom that experience can instill in us.

When you made New Year’s resolution, you would have thought about fresh starts for the year. What you might not have realised is that, with proper financial planning you also could have saved a larger amount than actual net saving.

Nothing takes the stress out of unexpected sudden financial requirements. When you have cash in hand, you do not have to use more expensive options like credit cards, short-term loans and payday loans but preserve them for emergencies. If this is a priority, it means that you’ve already recognized your life would be better without the stress of debt. Hence it is rightly said “CASH IS KING”.

You’ll save money in several ways with regular exercise. With exercise alone, patients (with their doctor’s guidance), are able to go off medications entirely or at least cut it to half.

A healthy eating plan can be as – or more economical than fast food. It’s a total myth that eating healthy is expensive; it’s the cheapest way to eat.

Last but not the least, please make a resolution to adequately insure yourself and your family members, have a cover of mediclaim and also have in hand emergency fund. Try and implement this resolution as soon as possible. Manage your personal finances first.

Again, I would like to mention that always be careful when it comes to your personal finance. Take advice from the person you trust frequently for a secured life.

Recently, you must have noticed that LIC while issuing shares on privatization would be reserving some portion thereof for policy holders. Therefore, you may also consider investing in LIC shares as a long run investment.

I wish you all the best for your future decisions in regards to future investments.

 

UPDATES ON FINANCE Compiled by CA. Pratik B. Satyuga

Highest 1 Year FD Rates (As on 01st December 2021) < Rs 2 Crore.

Institution	1 Year FD Rate
Equitas Small Finance Bank	6.35%
Yes Bank	6.25%
Jana Small Finance Bank Bank	6.25%
RBL Finance Bank	6.10%
Indusind Bank	6.00%

Note : Senior Citizens would generally get 0.50% more than the above mentioned rates.

Post Office Deposit Rates (As on 01st January 2022).

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 January 2022).

Institution	Rate
Union Bank of India	6.40% onwards
Kotak Mahindra Bank	6.50% onwards
Saraswat Co-op Bank	6.45% onwards
HDFC Bank	6.75% onwards
HSBC Bank	6.80% onwards

Top Performing Mutual Funds (As on 01st January 2022).

Fund Name	Current NAV	1 Year Returns
Invesco India Infra – Direct (G)	36.12	61.8%
Axis Small Cap Fund – Direct (G)	66.4	61.6%
Invesco India Infra –(G)	33.77	59.8%
Axis Small Cap Fund (G)	58.59	60.6%

Major Currency Rates (As on 01st January 2021).

Country	In Rs. on 01/04/21	In Rs. on 01/12/21	In Rs. on 01/01/22	Change MoM (Rs)	YTD Returns
United States of America (USA) – USD($)	73.13	74.90	74.40	-0.67%	1.71%
United Kingdom (UK) – GBP (₤)	101.34	99.68	100.32	0.67%	-1.02%
European Union (EU) – Euro (€)	86.30	84.86	84.75	-0.13%	-1.83%

Major Commodity Rates (As on 01st January 2022).

Commodity	Rate on 01/04/21	Rate on 01/12/21	Rate on 03/01/22	Change MoM	YTD Returns
Gold (MCX) – 10 Gms	45,420.00	47,783.00	47,908.00	0.26%	5.19%
Silver (MCX) – 1 Kg	65,092.00	60,772.00	62,144.00	2.26%	-4.74%
Crude Oil (MCX) – 1 Unit (BBL)	4,515.00	5,013.00	5,681.00	13.34%	20.53%

Indian Indices

Index	1st April 2021	1st December 2021	3rd January 2022	MoM Returns	YTD Returns
Sensex (BSE)	50,029.83	57,684.79	59,183.22	2.59%	15.46%
Nifty 50 (NSE)	14,867.35	17,166.90	17,625.70	2.67%	15.65%
Bank Nifty	33,858.00	36,364.90	36,421.90	0.16%	7.04%

Global Indices

Index	1st April 2021	1st December 2021	3rd January 2022	MoM Returns	YTD Returns
Dow Jones (USA)	33,153.21	34,022.04	36,585.06	7.53%	9.38%
Nasdaq (USA)	13,480.11	15,254.05	15,832.80	3.79%	14.86%

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
Sr. No.	Name		Price ₹
1	Export of Goods and Services & Supplies to & form Special economic zones under the GST Laws		60/-
2	Import of Goods and Services under the Goods & Services Tax Laws		50/-
3	Transitional Provision		50/-
4	MSTT Case Law Digest 2009-14		400/-
5	GST Referencer 2021-22		700/-
6	E Way Bill under GST		100/-
7	GST Refunds- Law, Procedure Practice (Practical Guide)		200/-

Payment Link for Publication on Sales : https://gstpam.org/payonline1/847

GSTPAM News Bulletin Committee for Year 2021-22

Parth Badheka Chairman

Jatin N. Chheda Jt. Convenor

Aloke R. Singh Jt. Convenor

This News Bulletin is available on GSTPAM website www.gstpam.org/news