Reference: Central Board of Direct Taxes
Update:
TDS Surveys by Income Tax Department unearths huge defaults in deduction and deposit
The TDS wing of the Income Tax Department has unearthed default of tax deducted at source (TDS) of Rs. 324 crore in the case of a major Telecom Operator in Delhi. Inquiries during the survey revealed TDS default of Rs. 70 Crore and Rs. 20 Crore. Further, it was also revealed that the hospitals were also not making the required TDS at 10% from the maintenance charges paid for hi-tech sophisticated operation theater and diagnostic equipment. Many hospitals were not complying with the TCS norms. In another TDS survey conducted on a prominent Real Estate Group in Delhi, it was seen that the deductor having already deducted tax in earlier years, had not deposited the deducted taxes in government account.
Hence, the IT Department has stepped up enforcement action against TDS default cases as this category of revenue contributes to over 45% of the total direct tax collection in the country.
Implication:
TDS has to be paid to the credit of the Central Government within 7 days from the end of the month in which the deduction is made.
Update:
Additional evidences filed by Pabitra Mohal Samal to be admitted even if same weren\’t supported with an application
Pabitra Mohal Samal (Assessee) had filed his return of income and his case was selected for scrutiny under CASS. The CIT(A) observed that the documents were not filed before the AO nor any application of additional evidence filed by the assessee during the appellate proceedings and hence upheld the order passed by the AO.
ITAT held that the CIT(A) had gone through the confirmations along with the documents filed by the Assessee. Considering the scenario and the factual aspect of the matter, the tribunal quashed the order of CIT(A) and directed AO to delete the additions.
Reference: Central Board of Indirect Taxes & Customs
Update:
Authorities to dispose of application for rectification of shipping bills
Jindal Drugs (Assessee) filed writ petition before the High Court of Bombay to grant refund of IGST paid on the export of manufactured goods under 15 shipping bills. The honorable High Court directed the GST authorities to dispose of the application for rectification of shipping bills by following the principles of natural justice.
Update:
SC dismissed SLP filed by department against HC order which allowed assessee to file Tran-1
The assessee could not carry forwards unutilized CENVAT credit of Central Excise and Input Tax Credit (ITC) of VAT on account of non-filing or incorrect filing of Tran-1 by the prescribed last date i.e., 27/12/2017. The apex court had dismissed SLP filed by the Union of India upheld the order passed by the Punjab & Haryana High Court which allowed assessee to file Tran-1 after the prescribed due date.
Reference: Securities and Exchange board of India
Update:
Monetary penalty on Global Earth Properties and Developers Private Limited.
It was observed from the trade log that Global Earth Properties and Developers Private Limited (Noticee) had executed a total of 94 trades in 29 unique contracts wherein in 27 contracts, 100% trade were non-genuine trades. These alleged non genuine trades, executed by Noticee in above contracts, had significant differential in buy rates and sell rates considering that the trades were reversed on same day here by violating the provisions of Regulation 3(a),(b),(c),(d), 4(1) and 4(2)(a) of the PFUTP Regulations.
Hence, SEBI imposed a monetary penalty of Rs. 6,00,000/- upon Noticee viz. Global Earth Properties and Developers Private Limited.
Implication:
The Noticees shall remit / pay the said amount of penalty within 45 days of receipt of this order.
Reference: Insurance Regulatory and Development Authority in India
Update:
Modification Guidelines on Standard Individual Health Insurance Product
IRDAI has issued norms in partial modification of guidelines on standard individual health insurance product. Providing policy document in physical form is mandatory when policies are issued in electronic forms directly to the policyholders. The digital form of the policy contract may be forwarded through email or link shall be provided in the certificate of insurance.
Update:
Guidelines on handling of claims reported under Corona Virus
IRDAI has prescribed norms all claims reported under corona virus in order to alleviate the hardships that may be caused to the policyholders. Insurers shall ensure that the cases related to corona virus (COVID-19) shall be immediately handled and the costs of admissible medical expenses during the course of treatment during quarantine period shall be settled in accordance to the applicable terms and conditions of policy contact.
Implication:
These instructions shall come into force with immediate effect.
KNOWLEDGE ALERT
Insights to help you sharpen your Governance, Risk and Compliance Knowledge
Issued by: Knowledge Management Team of JHS & Associates LLP (JHS), Chartered Accountants
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