GSTPAM News Bulletin December 2022

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 difficulties 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 :

1. GST lectures will be in form of group discussion, which will be helpful to study the GST law.
2. If the materials are received 3 days earlier to the date of meeting, the same will be circulated through mails to the participants.
3. 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

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

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

 

Notification under Central Tax
Notification No.	Date of Issue	Subject
22/2022-Central Tax	15.11.2022	Seeks to amend Notification No 11/2017-Sales Tax (Rate) dated 29.06.2017
23/2022-Central Tax	23.11.2022	Seeks to amend Notification No 12/2017-Sales Tax (Rate) dated 29.06.2017
24/2022-Central Tax	23.11.2022	Seeks to amend Notification No 13/2017-Sales Tax (Rate) dated 29.06.2017

 

Circular under CGST Act
Notification No.	Date of Issue	Subject
181/13/2022-GST	10.11.2022	Clarification on refund related issues
181/13/2022-GST	10.11.2022	Guidelines for verifying the Transitional Credit in light of the order of the Hon’ble Supreme Court in the Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018, order dated 22.07.2022 & 02.09.2022

 

Trade Circular under Maharashtra Goods and Services Tax Act, 2017 (MGST)
Notification No.	Date of Issue	Subject
12 T of 2022	17.11.2022	Authority regarding action consequential to issuance of Show Cause Notice and for issuance of recurring SCN in case of an enforcement action initiated by the state authorities against taxpayer assigned to center and vice versa.
13 T of 2022 CBIC Circular No 181/13/2022 -GST	24.11.2022	Clarification on Refund related issues
14 T of 2022	25.11.2022	Guidelines for verifying the transitional credit in light of the order of the Hon’ble Supreme Court in the Union of India vs Filco Trade Center Pvt Ltd., SLP (‘C) No 32709 – 32710 / 2018, order dated 22.07.2022 and 02.09.2022

SUMMARY OF RECENT CASES UNDER GST By CA. Aditya Surte

1. Parallel Proceedings by different wings of the department

Petitioner filed writ petition challenging show cause notices issued by Anti-Evasion Wing as well as Range Office of the Department on the ground that the audit for the same period had been commenced by the GST Audit department and it cannot initiate parallel proceedings or initiate any action against the Petitioner. The write petition was dismissed by the single bench on the ground that the proceedings are in the nature of SCN. Aggrieved by the order of the single bench, the Petitioner filed appeal before the division bench of the Calcutta High Court.

The division bench observed that three wings of the same department are proceeding against the Petitioner for the same period, i.e., F.Y. 2017-18 to F.Y. 2019-20. The Court held that since the audit proceedings under sec. 65 of the CGST Act have already commenced, it is but appropriate that the proceedings should be taken to their logical end. Accordingly, the proceedings initiated by the

Anti-Evasion wing and Range Office for the very same period shall not be proceeded with.

(Calcutta High Court Order dated 30-09-2022 in Appeal No. M.A.T. 1595 of 2022 in the case of P. Buildcon Pvt. Ltd. v. Superintendent, CGST & Central Excise, Circle-II)

2. Payment of pre-deposit of 10% of disputed tax using electronic credit ledger

Whether, an Appellant, to comply with the requirements of sec. 107(6) of the Maharashtra Goods and Services Tax Act, 2017 of paying a sum equal to 10% of the amount of tax in dispute arising out of the impugned order, can pay the amount utilising the credit available in the Electronic Credit Ledger?

Petitioner contended that the balance available in the Electronic Credit Ledger can be utilised for making payment of 10% of disputed tax amount arising out of the impugned order at the time of preferring an appeal against such order. According to Revenue, Appellant can utilise the credit available only in the Electronic Cash Ledger. This is because sec. 49(4) restricts the usage of the amount available in the Electronic Credit Ledger only for payment of output tax under MGST or under IGST and the amount available cannot be utilised for payment of tax under sec. 107(6)(b).

Hon’ble Bombay High Court refused to agree with the submission made on behalf of the State.

It observed that clause (b) of sub-section (6) of section 107 provides a precondition, “unless the appellant has paid” (not deposited) a sum equal to 10% of remaining amount of Tax in dispute. It says 10% of Tax has to be paid as a precondition. That Tax can be Integrated Tax or Central Tax or the State Tax as in the case at hand, or Union Territory Tax. The amount of ITC available in the Electronic Credit Ledger can be utilised towards payment of Integrated Tax or Central Tax or State Tax or Union Territory Tax. Therefore, Petitioner having to pay 10% of the Tax in dispute under clause (b) of sub-section (6) of section 107, can certainly utilise the amount of ITC available in the Electronic Credit Ledger. The Court further added that in view of provisions of sub-section (3) of section 49, the party may also pay this 10% of the Tax in dispute by utilising the amount available in the cash ledger.

By referring to the definition of “output tax” as given under clause (82) of sec. 2 of the MGST Act, it was held that any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the MGST Act can be made by utilisation of the amount available in the Electronic Credit Ledger. Hence, a party can pay 10% of the disputed Tax either using the amount available in the Electronic Cash Ledger or the amount available in the Electronic Credit Ledger.

(Bombay High Court Judgement dated 16/09/2022 in W. P. (ST) No. 12287, 12457 and 23507 of 2022 in the case of Oasis Realty v. Union of India)

3. Promotional items – Eligibility of ITC

Whether ITC is available on vouchers and subscription packages procured from third party vendors that are made available to eligible customers participating in loyalty program against loyalty points earned / accumulated by said customers?

Applicant is a fashion e-commerce company engaged in the business of selling fashion and lifestyle products through its online portal. In order to incentivise the customers visiting the portal, Applicant proposes to run a loyalty programme by way of issuing points to the customers on the basis of purchases. The loyalty programme is sought to be introduced with an object of increasing customer base of the Applicant’s platform which will lead to increased footfall and sales through the platform. As such, the loyalty programme will directly impact and enhance the amount of commission earned by the Applicant in the course of their business. Under the scheme of the loyalty programme, Applicant, through their portal, would make the vouchers and subscription packages available to those customers who wish to redeem the loyalty points accumulated by them and the Applicant will not receive any monetary consideration from the said customers. Further the loyalty points are non-transferable, can’t be converted into cash and can’t be used in place of cash. The applicant would be procuring the vouchers & subscription packages, on payment of applicable GST, from third party vendors who would be classifying their supply under SAC 9983 as “other professional, technical and business” service.

Applicant contended that it is entitled to claim ITC by submitting, inter-alia, that the bar on ITC under sec. 17(5)(h) is not applicable as the supply of vouchers and subscription packages by third party vendors has been classified as ‘service’ and not ‘goods’. It also submitted that the vouchers, irrespective of being goods or not, will be offered only under contractual obligation for which consideration may not be explicitly specified by the applicant as the same will not be given free of charge and hence cannot be termed as ‘gift’ to the customers.The Authority while referring to the definition of “voucher” under sec. 2(118) of CGST Act observed that the subscription packages procured by the Applicant are also ‘vouchers’ as it places an obligation on the potential supplier to accept it as consideration for supply of goods or services to the holder of the instrument or the customer. The Authority further observed that vouchers, whether printed on paper or in electronic form, qualify as ‘goods’.Regarding the contention that the vouchers are not given free of charge, the Authority observed that the loyalty points, in the Applicant’s own admission, do not have any monetary value, are non-transferable and cannot be converted to cash.

The redemption of loyalty points, admittedly involves no flow of consideration from the customer. Thus, redemption of loyalty points by the customer for receiving vouchers from the applicant implies that the vouchers are issued free of cost to the customer and amounts to disposal of vouchers(goods) by way of gift and squarely covered under sec. 17(5)(h) of CGST Act.

The Authority, therefore, ruled that the Applicant is not eligible to avail the ITC on the vouchers and subscription packages procured by the Applicant from third party vendors.

(Karnataka AAR Order No. KAR ADRG 33/2022 dated 14/09/2022 in the case of Myntra Designs Pvt. Ltd.)

INCOME TAX UPDATES By CA. Ajay Talreja

Income Tax Clarifies Time limit for Verification of Returns filed Within and After Due Date

The income tax portal for e-filing has stated that the Income Tax Returns s filed on or before 31st July 2022 need to be verified within 120 days. An advisory issued on the portal further stated that the returns filed after 31st July 2022 need tobe verified within 30 days. “ITRs filed after 31st July 2022 need to be verified within 30 days. Refer to Directorate of System’s notification no 05 of 2022 dated 29th July, 2022. ITRs filed on or before 31st July 2022 need to be verified within 120 days. Referto the Directorate of System’s notification no 05 of 2022 dated 29th July, 2022,”the income tax portal said. Earlier, a notification issued by the CBDT on 29th July stated that“in respect of any electronic transmission of return data on or after the date this Notification comes into effect, the time-limit for everification or submission of ITR-V shall now be 30 days from the date of transmitting/uploading the data of return of income electronically.” “It is clarified that where the return data is electronically transmitted before the date WOuld on which this Notification comes into effect, the earlier time limit of 120 days continue to apply in respect of such returns,” the notification added. Where ITR data is electronically transmitted and e-verified/lTR-V submitted within 30 days of transmission of data – in such cases the date of transmitting the data electrically shall be considered as the date of furnishing the return of income. Where ITR data is electronically transmitted but e-verified or ITR-V (i) submitted beyond the time-limit of 30 days of transmission of data – in such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow. Duly verified ITR-V in the prescribed format and in the prescribed manner should be sent by speed post only to 7. Centralised Processing Centre, Income Tax Department, Bengaluru – 560500, Karnataka.

Commission Income would not come under the Presumptive Taxation, not taxable: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Commission Income would not come under the presumptive taxation and is not taxable, liable to exclude from gross turnover. M/s. Euro Home, the assessee challenged the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 13-10-2021 in the matter of an intimation issued by Centralized Processing Center, Bangalore u/s 143(1) of the Income Tax Act on 18.01.2019. Ms N. V. Lakshmi (Advocate) appeared for the appellant and stated that the assessee already considered the commission income as part of business receipts and offered income u/s 44AD on a presumptive basis. The same has separately been added by CPC which amounts to double addition to a certain extent. On the other hand, Shri D.Hema Bhupal appeared for the respondent and submitted that commission income could not be offered on a presumptive basis. Having heard rival submissions, the appeal is disposed-off as under. The assessee is a partnership firm engaged in home furnishing items. Income from other sources has been taken to be Rs.4.50 Lacs as against ‘nil’ and house property income has been taken to be Rs.0.19 Lacs as against ‘nil’ submitted by the assessee. The assessee declared a turnover of Rs.114.85 Lacs and the income was offered at presumptive basis u/s 44AD. The items of Rs.5.09 Lacs as reported in Form 26AS were included as a part of the turnover of Rs.114.85 Lacs which was separately added by CPC. CIT(A) held that the provisions of Sec.44AD would not apply to commission income and the rental income received would be assessed under Income from House Property.

A Coram of Shri Manoj Kumar Aggarwal, AM observed that commission income would not come under presumptive taxation and the interest on deposits would be income from other sources. Further observed that the assessee has incurred certain expenditure which has been reimbursed and the addition of the same as a separate item is not justifiable. The Tribunal directed the AO to compute the correct income of the assessee. The interest on the deposit would be income from other sources and the commission income would be added as a separate item. Further held that both these items would be excluded from gross turnover and presumptive income would accordingly be revised. While allowing the appeal, the bench deleted the addition of reimbursement of exhibition expenses.

Consideration received on Relinquishment of Property Rights to Father of Assessee taxable as Capital Gains: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) comprising Judicial Member Beena Pillai and Accountant Member Chandra Poojari has recently held that the consideration received by the assessee on relinquishment of property rights to his father is taxable as Long Term Capital Gain under Section 45 of the Income Tax Act. As per the information from tax returns, the assessee had deposited a sum of Rs. 54,42,660/- in his bank accounts. In response to the Assessing Officer(AO)’s query regarding the source of the cash deposits, the assessee submitted that the cash deposits, comprised a sum of Rs. 50,12,500/- received from his father out of sale consideration of Rs. 2,40,50,000/- received by the latter from sale of land.

On being asked by the AO why he had not declared the amount of Rs.50,12,500/- in his return, the assessee stated that the land was agricultural land and hence exempt from taxation. The AO observed that neither the assessee nor his father had declared agricultural income for the preceding two years and added the sum of Rs.49,86,132/- to the assessee’s income. The assessee, aggrieved by the order of the Commissioner of Income Tax (Appeals) [CIT(A)], approached the ITAT and seeked for deletion of the impugned additions. The assessment order is without jurisdiction, wholly inadequate on this count and requires to be quashed, according to the submissions of the counsel for the assessee. It was observed, “It cannot be said that AO precluded in bringing the said amount into taxation on the simple reason that cash deposit was from the sale of property and assessee received his share on the relinquishment in favour of his father and the same has to be brought into tax” and held that, “that lower authorities is justified in bringing to tax the capital gain in the hands of the assessee”, denying the relief to assessee.

Levy of late fees u/s 234 prior to 1st June 2015 is unsustainable

Vivek J Thar Vs Income Tax Officer (ITAT Mumbai)

<>ITAT Mumbai held that levy of late filing fees u/s 234 of the Income Tax Act for any period prior to 01/06/2015 would not be sustainable in the eyes of law. Facts- The assessee requested for waiver of late filing fees charged u/s 234E of the Act since the same was chargeable only for returns processed on or after 1.6.2015 for the returns filed pertaining to the period after 1.6.2015. However, the ld. AO did not waive the late filing fees u/s 234E of the Act and passed the rectification order u/s 154 of the Act . Further interest u/s 220(2) of the Act was also levied for delayed payment of interest on late payment and interest u/s 234E of the Act. Now the short point that arises for our consideration is that whether late filing fee u/s 234E of the Act could be levied for TDS returns filed for the period pertaining to the period prior to 1.6.2015. We find that the issue in dispute is no longer res integra in view of the decision of Co-ordinate Bench of this Tribunal in the case of Lawmen Concepts Pvt Ltd vs DCIT CPC – TDS in ITA No. 5140 to 5143/Mum/2018 dated 10.01.2020 for Asst Year 2014-15, wherein the all the judgements on the subject has been considered. It was held that levy of fees u/s 234 for any period prior to 01/06/2015 would not be sustainable in the eyes of law. Respectfully following the decision of Hon’ble Supreme Court in the case of CIT vs
Vegetable Products Ltd reported in 88 ITR 192(SC), we prefer to follow the decision of Hon’ble Karnataka High Court in the case of Fatehraj Singhvi vs Union of India reported in 73 taxmann.com 252 and cancel the levy of late filing fees u/s 234E of the Act for both the quarters for both Form 24Q and 26Q TDS statements.

ITAT deletes Penalty Imposed for accepting Cash Payment for Sale of Land: No Sufficient Reasons to show Tax Evasion Attempt

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT), recently deleted the penalty imposed under Section 271D of the Income Tax Act, 1961 as the revenue could not show sufficient reasons to prove tax evasion attempt.

The appeal by assessee was that the Commissioner of Income Tax (Appeals) [CIT(A)] had erred in law in upholding the order of the Assessing Officer (AO), imposing penalty under Section 271D of the Income Tax Act. The assessee was an NRI. During the relevant assessment year, the assessee had sold two immovable properties on 26.12.2016 and received part sale consideration in cash. Since there was violation of provisions of Section 269SS of the Income Tax Act, the AO, initiated a penalty under Section 271D of the Income Tax Act. To the notices issued to the assessee calling for her explanation, there was no response. Since the assessee failed to offer satisfactory explanation, the AO imposed a penalty amounting to Rs.12,37,000 (the amount equal to the sum accepted by the assessee in contravention of provisions of Section 269SS of the Income Tax Act). Aggrieved by this, the assessee approached the CIT(A), who rejected the appeal of the assessee, aggrieved by which the assessee has filed the present appeal before the tribunal.

The learned Departmental Representative, submitted that the assessee has not made out a case of reasonable cause as mandated in the Act for the waiver of penalty. It was observed by the Tribunal comprising Judicial Member George George K and Accountant Member Laxmi Prasad Sahu that, “the intention of the assessee was not to defraud the revenue by violating the provisions of the Act or by evading taxes. The same is evident from the fact that the cash receipts have been duly disclosed in the sale deed as well as the income tax returns. The copies of the sale deeds are enclosed in the paper book filed by the assessee”, and in favour of the appellant-assessee, it was held that the penalty was unjustified in law and deleted the penalty.

Verification of Cash Deposits without considering Repayment and Submissions of Assessee: ITAT cancels Confirmation of Additions

The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench cancelled the confirmation of additional amount without verifying the repayment and submission of the assessee in case of Cash deposit.

Assessee Rajeshkumar Baldevbhai Patel is engaged in agricultural activities and had not filed the Returns of Income. The Assessing Officer (AO) found that assessee has made cash deposits of Forty Lakh Fifty Thousand and Five Hundred Rupees in his savings bank account with Bank of India. After that AO issued a letter to assessee for verifying the transaction of the assessee’s savings account. But the assessee did not respond to that letter. Thereafter the AO issued notice under Section 148 of the Income Tax Act to reopen the assessment and collected the bank details of the assessee and made order without considering the assessee’s submission. Against the order, the assessee filed an appeal before the ITAT. The observation of VivekChavda, A.R. for assessee was that, Assessee provided all the documents required by the Assessing Officer for verifying the creditor’s loan transactions on his account. But the AO partially accepted loan transactions and then added the remainder as unexplained income of the assessee. V.K. Singh, for Revenue, strongly supported the decision of the CIT (A) and argued that the additions confirmed by the CIT (A) did not require any interference.

The Division Bench of Annapurna Gupta, Accountant Member and T.R. Senthil Kumar, Judicial Member allowed the appeal filed by the assessee, held that addition made by the Assessing Officer not correct and deleted the addition confirmed by the CIT (A).

DGFT & CUSTOMS UPDATE By CA. Ashit Shah

 

1. Notifications issued under Customs Tariff:

N. No.	Remark	Date
57/2022 – Customs	Basic Custom Duty (BCD) is exempted if imported or purchased out of bond by the Governor of any State on appointment or during their tenure in the office.	17-11-2022
58/2022 – Customs	Withdrawal of Export duty on Steel and Iron – a. exports of iron ore lumps and fines with ‘less than 58 per cent Fe’ will attract NIL export duty. b. In the case of iron ore lumps and fines with more than ’58 per cent Fe’, the rate of duty will be 30 per cent. c. Exports of iron ore pellets will attract NIL export duty. d. Similarly, exports of pig iron and steel products (classified under Harmonised System or HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222 & 7227) will attract NIL export duty.	18-11-2022
59/2022 – Customs	Basic Custom Duty (BCD) is withdrawn on Anthracite and PCI Coal, Coke & Semi coke and ferronickel.	18-11-2022
60/2022 – Customs	Agriculture Infrastructure & Development Cess (AIDC) is withdrawn on Anthracite and PCI Coal, Coke & Semi coke and ferronickel.	18-11-2022
61/2022 – Customs	Amends of 5 Customs Notifications w.r.t imports of Flat panels, Display modules, or Control circuits into India from Singapore.	25-11-2022
30/2022 – Customs (ADD)	Anit Dumping Duty (ADD) on imports of “Cast Aluminum Alloy Wheels or Alloy Road Wheels (ARW) used in motor vehicles, whether or not attached with their accessories, of a size in diameters ranging from 12 inches to 24 inches”, falling under the sub-heading 8708 70, originating in, or exported from China PR, Korea RP and Thailand.	28-11-2022

 

2. Notifications under Customs Tariff:

N. No.	Remark	Date
42/2015-2020	Amendment in Export Policy of broken rice under HS code 1006 4000 so as to provide clearance to such rice consignments held up in CFS which had been handed over to the CFS before this Notification.	07-11-2022
41/2015-2020	Amendment in Policy Condition No. 7(ii) of Chapter 27 of ITC (HS), 2022, Schedule – I (Import Policy) – Implementation of Coal Import Monitoring System (CIMS)	07-11-2022
43/2015-2020	Amendments under the Foreign Trade Policy in sync with RBI A.P. (DIR Series), so as to permit export benefits / fulfilment of Export obligations for Invoicing, Payments and Settlement of exports and imports in INR.	09-11-2022
44/2015-2020	Forest Environment & Climate Change Department, Government of Odisha has been allowed time up to 06.10.2023 to finalize the modalities for export of the Red Sanders Heart Wood in log form.	17-11-2022
45/2015-2020	Exports of Organic Non-basmati rice, including Organic Non-basmati broken rice, will be governed as per the provisions under N. No. 03/2015-2020 dated 19-04-2017.

UPDATES ON FINANCE Compiled by CA. Pratik B. Satyuga

Highest 1 Year FD Rates (As on 01st November 2022) < 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 December 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.

*The Amount was mentioned as 1,50,000/- in the Previous Editions. Kindly read it as 15,00,000/-

 

Lowest Home loan Rates for Self Employed Professionals (As on 01st November 2022).

Institution	Rate
HSBC Bank	7.35% onwards
Kotak Mahindra Bank	7.50% onwards
Indian Bank	7.90% onwards
Union Bank of India	8.25% onwards
HDFC Bank	8.60% onwards

 

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

Fund Name	Current NAV	1 Year Returns
Kotak India EQ Contra Fund – Direct (G)	103.384	13.3%
JM Flexi Cap Fund- Direct (G)	63.009	13.0%
JM Flexi Cap Fund – Regular (G)	57.265	12.1%
BOI AXA M & I Fund – Direct (G)	35.290	11.9%

 

Major Currency Rates (As on 01st December 2022).

Country	Rate on 01/04/22	Rate on 01/04/22	Rate on 01/04/22	Rate on 01/04/22	Rate on 01/04/22
United States of America (USA) – USD($)	75.54	81.65	81.16	-1.80%	7.44%
United Kingdom (UK) – GBP (₤)	98.96	94.97	99.30	4.56%	0.34%
European Union (EU) – Euro (€)	83.05	81.66	83.35	2.07%	0.36%

 

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

Commodity	Rate on 01/04/22	Rate on 01/11/22	Rate on 01/12/22	MoM Return	YTD Returns
Gold (MCX) – 10 Gms	51,290.00	50120.00	50840	6.42%	3.99%
Silver (MCX) – 1 Kg	66,820.00	57700.00	58295	1.03%	2.17%
Crude Oil (MCX) – 1 Unit (BBL)	7,726.00	8495.59	9187.45	8.14%	11.34%

 

Indian Indices

Index	1st April 2022	1st November 2022	1st December 2022	MoM Returns	YTD Returns
Sensex (BSE)	59,276.69	61065.58	63284.19	3.63%	6.76%
Nifty 50 (NSE)	17,436.90	18130.70	18812.50	3.76%	7.89%
Bank Nifty	37,148.50	41552.40	43260.65	4.11%	16.45%

 

Global Indices

Index	1st April 2022	1st November 2022	1st December 2022	MoM Returns	YTD Returns
Dow Jones (USA)	34,818.27	32862.79	34395.01	4.66%	-1.22%
Nasdaq (USA)	14261.50	11571.52	11482.45	-0.77%	-19.49%

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.

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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.