Requirement to dematerialize shares of private limited companies

 The Ministry of Corporate Affairs in October 2023 had mandated private companies and their shareholders to dematerialize their shareholdings by 30 September 2024.

 

GST Input credit on construction of Immovable property.

Section 17(5)(c) and (d) of the Central Goods and Services Tax Act, 2017, blocks input tax credit for works contract services, goods or services that are used for the construction of an immovable property. Whereas, the explanation below the said provisions state that "construction" includes re-construction, renovation, addition or alterations, or repairs, to the extent of capitalization.

Tax Due Date - May 2024.

 

Sr No	Due Date	Related to	Compliance to be made
1	10.05.2024	GST	Filing of GST 1 for the month of April, 2024
2	20.05.2024	GST	Payment of GST for the month of April, 2024 Filing of GSTR 3B for the month of April, 2024
3	07.05.2024	TDS/TCS (Income Tax)	Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of April 2024. Deposit TDS from Salaries deducted during the month of April 2024 Deposit TCS for collections made under section 206C including sale of scrap during the month of April 2024, if any
4	31.05.2024	TDS/TCS (Income Tax)	Furnish quarterly statement of tax deducted at source (TDS) and tax collected at source (TCS) for the quarter ended Jan-March 2024 in Form 24Q / 26Q / 27Q / 27EQ.
5	31.05.2024	Income Tax	Filing of Annual Information Return u/s 285BA

Whether Pre-deposit can be made post filing of Appeal

 Recently, the Hon’ble Punjab & Haryana High Court, in the case of Sumat Gupta & CO. v. UOI, 2024-VIL-416-P&H, held that pre-deposit under Central Excise can be made post filing of Appeal.

 

Consequence of not filing Income tax returns

Filing income tax returns (ITR) within the specified timelines under the Income-tax Act is not just a legal obligation but also crucial for financial prudence. Failure to comply with these regulations can lead to a cascade of consequences, ranging from financial penalties to legal repercussions imposed by the government. In this article, we will delve into the various ramifications of non-filing or delayed filing of ITR and their implications for taxpayers.

List of Blocked Credits under Section 17(5) (Clause by Clause Analysis with examples)

 

 

 

 

Clause of Section 17(5)

Taxation of Intangible assets acquired through business restructuring.

1.    Background   

1.1        When a company aims to acquire another company's business through amalgamation or demerger, assets or liabilities may be acquired at fair value or book value, contingent upon the application of Indian Accounting Standards (Ind AS) or accounting standards. During business acquisition, intangible assets can be acquired or recognized in three ways:   

All about Form 10AB in the context of Charitable Trusts:

1. Introduction:

Every trust/charitable society/ NGO that wishes to claim the tax exemption benefits has to file Form 10A to seek fresh registration under 80G and 12A and this form can be filed by the assessee once in their whole lifetime to obtain a registration or approval order.
Finance Act 2000 introduced the concept of permanent and provisional registrations, so the Form 10AB has come into play for subsequent compliance with the Income Tax Department, i.e., for renewal or permanent registration.
Charitable trusts, institutions, NPOs/ NGOs that are exempted under the Sections 10 (23C), 12A, 12AA, 35 or 80G of the Income-tax Act, 1961 are required to reapply for the same and obtain a registration under a new Section 12AB.

2. Applicability:
All trusts and institutions with permanent registration or approval must make an application in Form 10AB after five years, which is the approval period of initial registration.
All trusts and institutions with provisional registration for a period of three years will have to apply with Form 10AB within 6 months after the commencement of their activities. These organisations can get permanent registration only after making an application with Form 10AB.
In case of modification in Memorandum of the Society/Trust Deed, Form 10AB has to be filed within a period of 30 days from the date of such modification.
In case of activation of inoperative registration, Form 10AB has to be filed at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative.

3. Documents required:
Self-certified copy of the Memorandum of the Society/ Trust Deed.
The latest Audited financial statements of trusts/charitable societies/ NGO of last 3 years.
KYC of all the trustees or members, as the case may be.
Details of the activities of the trust/charitable societies/ NGO.
Self-certified copy of an existing order granting registration or approval under Section 12A or 80G of the Income-tax Act.
Self-certified copy of the documents evidencing adoption or modification of the objects.

4. Process of filing:
Log on to the official e-filing portal of the Income Tax Department through its websites
Check the e-file tab to access ‘File Income Tax Forms’ and choose ‘Form 10AB’ and the relevant assessment year
Fill in the requisite details in the form and attach the necessary documents (which are similar to that of Form No. 10A)
Provide digital signatures or EVC as required during the furnishing of the return and submit the form

Department of Commerce issues clarification on newly inserted Rule 11B of SEZ Rules

 This Tax Alert summarizes a recent instruction issued by the SEZ Division, Department of Commerce, clarifying various concerns relating to Rule 11B of the Special Economic Zone (SEZ) Rules, 2006. The said rule provides for setting up of non-SEZ Information Technology (IT)/ IT Enabled Services (ITES) units in IT/ITES SEZs.