Bulletin: The Institute of Cost Accountants of India

DECEMBER, 2019
TAX
Bulletin
VOLUME - 53
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

(Statutory Body under an Act of Parliament)
www.icmai.in
Headquarters: CMA Bhawan, 12 Sudder Street, Kolkata - 700016

Ph: 091-33-2252 1031/34/35/1602/1492
Delhi Office: CMA Bhawan, 3 Institutional Area, Lodhi Road, New Delhi - 110003
Ph: 091-11-24666100
MISSION STATEMENT
“The CMA Professionals would ethically
drive enterprises globally by creating
value to stakeholders in the
socio-economic context through
competencies drawn from the integration
of strategy, management
and accounting.”
VISION STATEMENT
“The Institute of Cost Accountants of India
would be the preferred source of
resources and professionals for the
financial leadership of enterprises
globally.”
Objec ves of Taxa on Commi ee:
1. Prepara on of Sugges ons and Analysis of various Tax ma ers for best Management Prac ces and
for the professional development of the members of the Ins tute in the field of Taxa on.
2. Conduc ng webinars, seminars and conferences etc. on various taxa on related ma ers as per
relevance to the profession and use by various stakeholders.
3. Submit representa ons to the Ministry from me to me for the be erment and financial inclusion
of the Economy.
4. Evalua ng opportuni es for CMAs to make way for further development and sustenance of the
opportuni es.
5. Conduc ng and monitoring of Cer ficate Courses on Direct and Indirect Tax for members,
prac oners and stake holders.
DECEMBER, 2019
TAX
Bulletin
VOLUME - 53

www.icmai.in

Ph: 091-33-2252 1031/34/35/1602/1492
Ph: 091-11-24666100
FROM THE DESK OF CHAIRMAN – INDIRECT TAXATION COMMITTEE
A
t the start I would like to thank and express my gratitude to the contributors, readers, members and all
the stakeholders of the Tax Bulletin.
During the fortnight 2 webinars have conducted and in the ensuing fortnight, we are planning to release some
more webinars on GST and Customs which would be helpful for the viewers.
We have organised a seminar on 16th November 2019 at Mysore on the Topic “Direct & Indirect Taxes”.
Again, the Department jointly with Madurai Chapter and Tamilnadu Chambers of Commerce organised a
seminar on 29th November 2019 at Madurai on the Topic “GST – Moving Forward and Sabka Vishwas – A
Ray of Hope”. Both the seminars had huge participation along with the presence of Government Officials &
dignitaries.
The Department is also focussing on the Crash Course of GST for different colleges and universities and
receiving a very good response from across the country. A number of universities and colleges are interested
for such undergraduate courses and approaching the department in regards the same. The aim of the
department is to provide an understanding into the different aspects of GST to the students with an aim to
provide employment opportunities by extending hand holding support to the small and medium entrepreneurs.
I had got the opportunity to meet Mr. John Joseph, Special Secretary to Government India and Member-
CBIC, Shri Yogendra Garg, Principal Commissioner, GST Policy- CBIC, Shri L Satya Srinivas, Joint
Secretary-Customs and Shri G K Dixit, Commissioner CBIC and discussed the activities of TRD and also
appraised them about the future road map to assist the Government in serving the stake holders.
Department is launching 6th batch of GST certificate Course, 2nd batch of Advance course on GST along with
2 course on direct Tax very soon. I request the fraternity and stake holders to get the benefit of these courses.
After successfully organizing 2 National Seminars on Taxation at Bhubaneswar i.e during January 2018 and
December 2018, the Tax research department is organizing 3rd 2-day National Seminar on taxation at
Bhubaneswar on 21st and 22nd December 2019. The details about the programme can be viewed from the
Txaxation portal. I on behalf of the department cordially invite you to attend the seminar to make it grand
success.
On behalf of the Tax research department, I would thank resource persons and contributors for they continued
support and commitment for providing knowledge. The department shall work continuously for providing
necessary help and support to the readers in the areas of Indirect Taxation.
CMA Niranjan Mishra

Chairman, Indirect Taxation Committee
3rd December 2019
TAX BULLETIN DECEMBER, 2019 VOLUME - 53 -THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
FROM THE DESK OF CHAIRMAN – DIRECT TAXATION COMMITTEE
W arm wishes to all the members, resource persons and stakeholders for their continued support towards
the Tax bulletin month on month. Though the DTC Month got over but still the Taxation Team along
with the chapters is in the process of conducting more and more seminars on direct tax on different
topics which would help the members and readers on different issues.
The Taxation Team is continuously striving for the inclusion of the name of Cost Accountants in the definition
of Accountant under the new Direct Tax Code.
We are also working on releasing Handbooks on Exemptions on Direct Tax and Assessment Procedures
including E- Assessment on Direct Tax.
Further, Members have been provided with an opportunity to raise their query in Direct Tax through Taxation
helpdesk and the Taxation Portal is being regularly updated with recent amendments and notifications. Some of
the Key Amendments in direct Taxation during the period November 19 are related to notification of form
16 D (certificate of deduction of tax at source) and 26QD (challan-cum-statement) in relation to section 194
M (deduction of tax at source for contractual or professional payment by Individual or HUF), Aadhar allowed
to be used instead of PAN in income tax forms etc.
The Taxation Team is continuously working with dedication, integrity and sincerity to provide all the necessary
knowledge and information to the stakeholders and members in relation to the taxation matters.
Jai Hind…!!!
CMA Rakesh Bhalla

Chairman, Direct Taxation Committee
3rd December 2019
TAXATION COMMITTEES 2019 - 2020
Indirect Taxation Committee Direct Taxation Committee
Chairman Chairman
CMA Niranjan Mishra CMA Rakesh Bhalla
Members Members
1. CMA Rakesh Bhalla 1. CMA P. Raju Iyer
2. CMA P. Raju Iyer 2. CMA Niranjan Mishra
3. CMA V. Murali 3. CMA V. Murali
4. CMA H. Padmanabhan 4. CMA Paparao Sunkara
5. CMA (Dr.) Ashish P. Thatte 5. CMA (Dr.) Ashish P. Thatte
6. CMA B.M. Sharma (Co-Opted) 6. CMA Rakesh Sinha (Co-opted)
7. CMA (Dr.) Sanjay Bhargave (Co-Opted) 7. CMA Ajay Singh (Co-opted)
8. CMA V.S. Datey (Co-Opted) 8. CMA Rajesh Goyal (Co-opted)
Permanent Invitees Permanent Invitees

CMA Balwinder Singh - President CMA Balwinder Singh - President
CMA Biswarup Basu - Vice-President CMA Biswarup Basu - Vice-President
Secretary
CMA Rajat Kumar Basu, Addl. Director
ACKNOWLEDGEMENTS
CMA Mrityunjay Acharjee Vice-President (Accounts, Finance & Taxation), Balmer Lawrie Ltd.
CMA Amit Sarker Director Indirect Taxation, Deloitte Haskins & Sells
CMA Vishwanath Bhat Practicing Cost & Management Accountant
CMA Bhogavalli Mallikarjuna Gupta Chief Taxologist & Head of Cloud Business
CMA T K Jagannathan Practicing Cost & Management Accountant
CMA Shiba Prasad Padhi Practicing Cost & Management Accountant
CMA Arindam Goswami Practicing Cost & Management Accountant
CMA Anil Sharma Practicing Cost & Management Accountant
CMA Shivali Pradhan Practicing Cost Accountant
CMA Mosharraf Hussain Accounts Officer (EB, SM & Legal), BSNL, Patna
CA Saurabh Tibrewal Practicing Chartered Accountant
TEAM - TAX RESEARCH DEPARTMENT

CMA Rajat Kumar Basu - Additional Director - Tax Research
CA Neelesh Jain - Deputy Director - Tax Research
CMA Priyanka Roy - Assistant Director - Tax Research
Ms. Mukulika Poddar - Officer - Tax Research
CMA Debasmita Jana - Associate - Tax Research
SPECIAL ACKNOWLEDGEMENT
Mr. Dipayan Roy Chaudhuri - Graphics & Web Designer
CONTENTS
ARTICLES
01 DIGITAL ECONOMY AND ITS IMPACT ON INDIAN TAXATION
CMA Shivali Pradhan Page - 1
DIRECT TAX
02 VRS AND TAX RELIEF
CMA Mosharraf Hussain Page - 3
03 POEM-PLACE OF EFFECTIVE MANAGEMENT
CA Saurabh Tibrewal Page - 6
TAX UPDATES, NOTIFICATIONS AND CIRCULARS
Indirect Tax Page - 8
Direct Tax Page - 13
PRESS RELEASE
JUDGEMENTS
TAX COMPLIANCE CALENDAR AT A GLANCE
Courses - Tax Research Department Page - 23

Brochure - Tax Research Department Page - 24
Brochure - 2 - Day National Seminar on Taxation - “Conducive Tax Laws - Challenges &
Page - 28
Opportunities”
SNAPSHOTS
Snapshots of TRD Activities Page - 32
Articles on the Topics of Direct and Indirect Taxation are invited from readers and
authors. Along with the article please share a recent passport-sized photograph, a brief
profile and the contact details. The articles should be the author’s own original.
Please send the articles to
[email protected] / [email protected]
DIGITAL ECONOMY AND ITS IMPACT
ON INDIAN TAXATION
CMA Shivali Pradhan
Practicing Cost Accountant
D igital India, a programme to transform

India into digital empowered society and
knowledge economy was one of the main
election manifestos of the BJP in 2014. When
launched in 2015, it was considered as an
establishment are not getting taxed effectively in
the country from where they are earning profits.
Where does India Stand?
ambitious programme of our government, with a There is a major void in India’s ability to tax
project of Rs.1,13,000 crores were to develop a offshore technology firms such as video streaming
Digital India with an aim to make every house and social media companies that have a big
digitally literate and India a Global Market hub. market presence in India. To combat this,
This is in time with the current trend growth of Equalization Levy was introduced in India in 2016,
digital economy globally. In today’s time, the Chapter VIII of the Finance Act, 2016, to give
digital industry is playing a bigger role in a effect to one of the recommendations of the BEPS
country’s economic growth. Since then, India is (Base Erosion and Profit Shifting) Action Plan.
undergoing rapid Digitalization and our time can
be marked as digital revolution. The rationale for the equalisation levy was to
create a level playing field by making
While in Indian the economy is getting digitally multinational digital entities without a permanent
revolutionized, taxation becomes an important establishment in the country liable to pay tax @
aspect for the growth.In fact, how to tax the digital 6% in India. Until June 2016, such companies
economy is one of the difficult questions to be didn't pay any tax on their income in India.
tackled by the economies of various countries Though the revenue from this tax has been
including India. growing sharply since its introduction, but it
covers only a small part of the digital economy.
Issues faced by India Companies like Amazon, Google, Netflix,
Facebook, Twitter, provide online services and
The typical direct tax issues relating to e- have large user base in India.
commerce were difficult in characterizing the
nature of payment and establishing a nexus or link India then proposed in Finance Act 2018 the
between a taxable transaction, activity and a introduction of the concept of 'Significant
taxing jurisdiction, the difficulty of locating the Economic Presence' (SEP) in the Income Tax Act
transaction, activity and identifying the taxpayer under Section 9(1)(i) for taxation of non-residents
for income tax purposes. The digital business in India by increasing the scope of the definition
fundamentally challenges physical presence-based of 'business connection'.
permanent establishment rules. If permanent
establishment (PE) principles are to remain SEP was defined to mean any transaction in
effective in the new economy, the fundamental PE respect of any goods, services or property carried
components developed for the old economy i.e. out by a non-resident in India including provision
place of business, location, and permanency must of download of data or software in India if the
be reconciled with the new digital reality. aggregate of payments arising from such
transaction or transactions during the previous
There is a need for countries to develop a year exceeds the amount as may be prescribed.
framework to regulate and to get a 'fair' share of
taxes from the revenues generated by such Also systematic and continuous soliciting of its
businesses. The business models of the companies business activities or engaging in interaction with
who are doing business through internet in the such number of users as may be prescribed, in
markets where they do not have a permanent India through digital means would also constitute
as SEP.
TAX BULLETIN DECEMBER, 2019 VOLUME - 53 - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 1
However, this needs an amendment to India’s tax
treaties, which in itself is agruelling process.
Digital economy taxation, OECD Roadmap and

suggestions for India
In March 2018, the Organisation for Economic

Cooperation and Development (OECD) released
an interim report on digitization’s tax challenges,
building on an earlier BEPS report in 2015 under
Action 1. As per the report OCED has proposed
that profits of multinational companies (MNCs)
should be available for taxation in the country
where their customers are, irrespective of any
physical presence in that market and that a
formula should be evolved for such taxation.
As per the recent report released by OECD, the

proposed solution to deal with tax aspects arising
on account of the digital economy has been
discussed. This can potentially have far-reaching
consequences for India as well.
The report lays down a roadmap to rework the

nexus and profit allocation rules. The report
discussed various options that could be considered
with a common thread of “importance of value
being created in a market jurisdiction through
remote participation” running through all of them.
Assigning taxation rights to countries based on
remote participation or value creation is currently
not recognized widely.
From an India tax perspective, the report

highlighting the ‘fractional apportionment
approach’ as one of the methods being considered
is particularly important. It is pertinent to note that
the CBDT profit attribution discussion paper,
recently released, also highlights the fractional
apportionment approach as a profit attribution
mechanism. Further, with the significant economic
presence proposal already being introduced, it
appears that the steps taken by India to address
problems of taxation of digital economy is in line
with the global approach.
What is the time line of the implementation of

new road plan?
The OECD plan for the new approach to taxation

of MNCs is likely to become a reality once
participating countries incorporate it in a
multilateral deal signed in 2017 to amend all
bilateral tax treaties of the signatory nations. This
is expected to happen by 2020-21.
VRS AND TAX RELIEF
CMA Mosharraf Hussain
Accounts Officer (EB, SM & Legal), BSNL, Patna
A] Over the years it has been advanced by the Leave may be encashed in proportionate
political economists that efficiency of the public measure up to the date of VRS.”
sector enterprises may be increased by reducing
the number of staffs on their payroll. Such C] This amount of compensation termed as ex
premises are taken for granted even if the gratia was fully exempted from Income Tax till
substantive evidences suggest otherwise, the 31.3.1993 but by amendment to Income Tax Act
reason obviously may be political; the only 1961 Sec 10(10C) wef 1.4.1993 the amount of
eyesore is that the government who is supposed to exemption was limited to Rs.5 lakh; though this
reduce unemployment favours such policy. So, in was against the common law principle that a
order to weed out surplus staff the Voluntary solatium on cessation is in the nature of capital
Retirement Scheme (VRS) is introduced with receipt hence not amenable to income tax affirmed
certain compensation as ex gratia such that the in Commissioner of Income-tax, Bengal v Shaw
cold process of retrenchment gets euphemised as Wallace & Co. AIR 1932 PC 138 in appeal from
‘Golden Handshake’. [1932] 6 ITC 178 (CAL.) = AIR 1931 CAL 676
and followed in Commissioner of Income-tax v
B] Though VRS would have been in vogue in B.J. Fletcher AIR 1937 PC 261 = [1937] 5 ITR
India but for the first time it was given a standard 428 (PC) to the effect that any sum in the nature of
legal shape by Office Memorandum (OM) No. a solatium for cessation from the service of the
2(36)/86-BPE (WC) dated 5 Oct 1988. This was government is a capital receipt in the hands of an
recast vide Department of Public Enterprises OM employee and hence not amenable to tax as
No. 2(32)/97-DPE (WC)/GL-XXII dated 5 May income. This principle was relied on in C.K.
2000 which carried the ex gratia benefits to be Karunakaran v. Union of India [1980] 4 Taxman
given on voluntary retirement as follows: 178 (Delhi) against which the appeal filed by the
revenue was dismissed by the Supreme Court.
“3. Enterprises that make marginal profits or loss-
making enterprises may adopt the revised scheme D] This injustice gets further aggravated when one
of VRS, which is modelled on the Scheme that sees that the ex gratia exempt from tax is still Rs.5
exists in the State of Gujarat. The details of the lakh which is far from being satisfactory for the
scheme are set out hereunder: simple reason that since 1.4.1993 the price index
i. The compensation will consist of salary has gone virally upward. The exemption limit,
of 35 days for every completed year of therefore, need to be revisited at least for the
service and 25 days for the balance of upward change in inflation. If one considers the
service left until superannuation. The Cost Inflation Index relied by the Income Tax
compensation will be subject to a Department for calculation of capital gain then
minimum of Rs. 25,000/- or 250 days one may observe change in index at different time
salary whichever is higher. However, this period as follows: CII 1993-94 – 244 (Base Year
compensation shall not exceed the sum of 1981-82); CII 2016-17 – 1125 (Base Year 1981-
the salary that the employee would draw 82); CII 2016-17 – 254 (Base Year 2001-02); CII
at the prevailing level for the balance of 2019-20 – 280 (Base Year 2001-02). So, 1125 /
the period left before superannuation. 244 x 280/254 x 5 Lakh = 25.41 Lakh (Say Rs.25
ii. Salary for purpose of VRS will consist of Lakh). Thus one may see that the initial sum of
basic pay and DA only. Rs.5 Lakh on 1.4.1993 is simply equal to Rs.25
iii. Arrears of wages due to revision etc. will Lakh of today.
not be included in computing the eligible
amount. E] In order to avail this limited exemption of Rs.5
iv. Payment of bonus should conform to the Lakh, however, one need to fulfil the following
provisions in the Bonus Act; Casual legal conditions:
a) The amount is received or receivable by authority or of a co-operative society, as
an employee of: (i) a public sector the case may be, excepting directors of a
company ; or (ii) any other company ; or company or of a co-operative society;
(iii) an authority established under a (iii) the scheme of voluntary retirement
Central, State or Provincial Act; or (iv) a or separation has been drawn to result in
local authority ; or (v) a co-operative overall reduction in the existing strength
society ; or (vi) a University or a Deemed of the employees; (iv) the vacancy caused
University; or (vii) an Indian Institute of by the voluntary retirement or separation
Technology; or (viia) any State is not to be filled up; (v) the retiring
Government; or (viib) the Central employee of a company shall not be
Government; or (viic) an institution, employed in another company or concern
having importance throughout India or in belonging to the same management; (vi)
any State or States, notified by the the amount receivable on account of
Central Government; or (viii) such voluntary retirement or separation of the
institute of management notified by the employee does not exceed the amount
Central Government, on his voluntary equivalent to three months’ salary for
retirement or termination of his service, each completed year of service or salary
in accordance with any scheme or at the time of retirement multiplied by the
schemes of voluntary retirement or in the balance months of service left before the
case of a public sector company, a date of his retirement on superannuation
scheme of voluntary separation [IT Sec [IT Rule 2BA].
10(10C)]. f) Requirement of completed 10 years of
b) The schemes of the said companies or service or completed 40 years of age
authorities or societies or Universities or mentioned in IT Rule 2BA(i) would not
the Institutes governing the payment of be applicable in case of an employee of a
such amount are framed in accordance public sector company under the scheme
with prescribed guidelines (including of voluntary separation framed by such
inter alia criteria of economic viability) public sector company [IT Rule 2BA
[IT Sec 10(10C) First Proviso]. First Proviso].
c) Where exemption has been allowed to an g) The term ‘salary’ includes dearness
employee under this clause for any allowance, if the terms of employment so
assessment year, no exemption provide, but excludes all other allowance
thereunder shall be allowed to him in and perquisites [IT Rule 2BA
relation to any other assessment year [IT Explanation read with IT Fourth
Sec 10(10C) Second Proviso]. Schedule Part A Rule 2 (h)].
d) Where any relief has been allowed to an
assessee under IT Sec 89 for any F] University means a University established or
assessment year in respect of any amount incorporated by or under a Central Act, a
received or receivable on his voluntary Provincial Act or a State Act, and includes any
retirement or termination of service or such institution as may, in consultation with the
voluntary separation, no exemption under University concerned, be recognised by the
this clause shall be allowed to him in Commission in accordance with the regulations
relation to such, or any other, assessment made in this behalf under this Act [University
year [IT Sec 10(10C) Third Proviso]. Grants Commission Act 1956 Sec 2 (f)].
e) The amount shall be exempt only if the
scheme of voluntary retirement framed G] Deemed university is an institution for higher
by the aforesaid company or authority or education other than a University which has been
co-operative society or University or declared so by the Central Government, on the
institute, as the case may be or if the advice of the Commission, by notification in the
scheme of voluntary separation framed Official Gazette [University Grants Commission
by a public sector company, is in Act 1956 Sec 3].
accordance with the following
requirements, namely: (i) it applies to an H] Indian Institute of Technology means any of
employee who has completed 10 years of the Institutions mentioned in Institutes of
service or completed 40 years of age; (ii) Technology Act 1961 Sec 2 and includes the
it applies to all employees (by whatever Indian Institute of Technology, Kharagpur
name called) including workers and [Institutes of Technology Act 1961 Sec 3(g)].
executives of a company or of an
I] Till AY 2001-02 prior approval of voluntary opportunity for up gradation of skills so that they
retirement scheme in case of other companies and may also add value to the national economy in a
cooperative societies was a requirement of law respectable manner, and this of course will require
and was mandatory [Jodhiraj Singh v UOI (2000) monetary support.
244 ITR 786 (Del)]; but by dint of amendment
through Finance Act 2000 in IT Sec 10(10C) First
Proviso effective from 1.4.2001 such requirement
has been omitted.
J] The provisions regarding income-tax exemption

on the amount receivable on account of voluntary
retirement are separate from the provisions which
govern taxation of provident fund, gratuity,
pension, etc. [Circular No. 640 dated 26.11.1992].
Thus income tax exemption on the ex gratia
amount of voluntary retirement is available even
when the amount payable is in addition to normal
retirement benefits such as provident fund,
gratuity, commuted pension etc. payable under the
terms of employment. These terminal benefits
cannot be brought within scope of ‘amount
received’ under IT Sec 10(10C) [SAIL DSP VR
Employees Association 1998 v Union of India
(2003) 262 ITR 638 (Cal)].
K] Where an assessee fails to claim exemption on

the compensation received on voluntary retirement
it may be treated as mistake apparent from the
record and may be rectified by the assessing
officer [Koshti v CIT (2005) 276 ITR 165 (Guj)].
L] The amount of ex gratia under IT 10(10C) may

be received in different years in instalments.
Exemption is for the amount receivable and not
what is received in any single year. Total
exemption, however, shall be limited to Rs.5 Lakh
[ITO v Dhan Sai Srivas (2009) 315 ITR 318
(Chhattisgarh)].
M] The exemption will be available even when

the scheme of voluntary retirement impliedly
satisfies the conditions laid out in IT Rule 2BA
[Chandra Ranganathan v CIT (2010) 15 SCC 395].
N] As an epilogue it may be submitted that the

behaviour of the revenue in allowing even this
small exemption has been discouraging. The point
that such income is a capital one finds no
prominence in the eye of the revenue in view of
the explicit statutory provision. It is highly
desirable, therefore, on the part of the legislature
to enhance the amount of exemption to the current
rate of inflation at least because the fast pace of
economic adjustments will force the public as well
as private enterprises to downsize the redundant
manpower and hire the competitive ones and
justice requires that such redundant ones shall not
be left to the mercy of the nature but be given an
POEM-PLACE OF EFFECTIVE
MANAGEMENT
CA Saurabh Tibrewal
Practicing Chartered Accountant
Introduction Clarification for determination of Place of Effective

Management (POEM) of a company, other than an
s per Section 6 of the Income Tax Act’1961
A
Indian Company-Requirement dated 23rd February,
(As amended), it specifies that the company 2017 (Circular No. 8/2017 of Ministry of Finance)
will be said to be resident in India, if it has stated that the POEM guidelines shall not apply
satisfies the following condition: to a company having Turnover or Gross Receipts of
Rs.50 Crores or less in a Financial Year.
 It is an Indian company or
 Place of effective management is in India Guiding principles in determination of POEM
Two major criteria have been laid down for  Passive Income
deciding the place of effective management and the
criteria are as follows:  Passive income of a company shall be
aggregate of:
 Key commercial & managerial decisions  Income from the transactions where
are taken from that place both the purchase & Sale of goods is
 It is taken in substance from/ to its associated enterprises.
 Income by way of royalty, dividend,
The Finance Act 2015 has been amended for the test capital gains, interest or rental income
of residence for foreigncompanies to provide that a
company would be treated as resident in India if its  A company should be engaged in active
place of effective management in the previous year business outside India if the passive
is in India. income is not more than 50% of its total
income.
“Place of effective management” has been defined  less than 50% of its total assets are
to mean a place where key management & situated in India
commercial decisions that are necessary for the  Less than 50% of total number of
conduct of the business of an entity as a whole are employees are situated in India or are
in substance made. resident in India
 The payroll expenses incurred on such
The place where these management decisions are employees is less than 50% of its total
taken would be more important than the place where payroll expenditure.
such decisions are implemented. For the purpose of
determination of POEM, it is the substance which  POEM in case of a company engaged in
would be conclusive rather than the form. active business outside India shall be
presumed to be outside India if the
Applicability majority meetings of the board of directors
of the company are held outside India.
POEM came into effect w.e.f. 1st April 2018 (as per  Determination of whether the
Budget Announcement of 2017). company is engaged in active business
outside India - the average of the data
Guiding Principles for determination of Place of of the previous year & two years prior
Effective Management (POEM) of a company was to that shall be taken into account. In
issued on 24th January 2017 (Circular No. 6/2017 of case the company has been in
Ministry of Finance). existence for a shorter period, then
data of such period shall be considered.
 Place where main and substantial activity
of the company is carried out; or
Place where the accounting records of the
company are kept.
Assessment based on POEM
The Assessing officer proposes to hold a company

incorporated outside India, on the basis of its POEM,
as being resident in India then any such finding shall
be given by the assessing officer after seeking prior
approval of the principle commissioner or the
commissioner, as the case may be, in this regard.
The principal commissioner or the commissioner
shall provide an opportunity of being heard to the
company before deciding the matter.
Who is affected by the Legislation?
 Subsidiary Companies / Joint Ventures of

Indian Parent Company established
overseas (including companies
incorporated in Singapore)
 Software companies having parent
companies in India & operate in various
overseas jurisdiction.
 Investment companies established overseas
by Indian Companies to enjoy tax treaty
shopping.
 Shell companies incorporated overseas but
managed & operated from India.
TAX UPDATES, NOTIFICATIONS AND CIRCULARS
GOODS AND SERVICES TAX
Central Tax Notifications
Notification No. 57/2019 – Central Tax

Date – 26th November 2019
Seeks to extend the due date for furnishing of return in FORM GSTR-1 for registered persons in
Jammu and Kashmir having aggregate turnover more than 1.5 crore rupees for the months of July,
2019 to September, 2019
CBIC has made further amendments in Notification No.28/2019 – Central Tax, dated the 28th June, 2019.
In the said notification, for the proviso to the first paragraph, the following proviso shall be substituted,
namely: –
“Provided that for registered persons whose principal place of business is in the State of Jammu and Kashmir,
the time limit for furnishing FORM GSTR-1 by registered persons having aggregate turnover of more than 1.5
crore rupees in the preceding financial year or current financial year, for each of the months from July, 2019
to September, 2019 till 30th November, 2019.”
This notification has been effective from the 15th November, 2019

Jammu and Kashmir having aggregate turnover more than 1.5 crore rupees for the month of October,
2019
CBIC has made further amendments in Notification No. 46/2019 – Central Tax, dated the 9th October, 2019.
In the said notification, in the first paragraph, the following proviso shall be inserted, namely: –
“Provided that for registered persons whose principal place of business is in the State of Jammu and Kashmir,
the time limit for furnishing FORM GSTR-1 by registered persons having aggregate turnover of more than
1.5 crore rupees in the preceding financial year or current financial year, for the month of October, 2019 till
30th November, 2019.”
This notification has been effective from 11th November, 2019.

Jammu and Kashmir for the months of July, 2019 to October, 2019
CBIC has made further amendments in Notification No. 26/2019 – Central Tax, dated the 28th June, 2019
In the said notification, in the first paragraph, for the third proviso, the following proviso shall be substituted,
namely: –
“Provided also that the return by a registered person, required to deduct tax at source under the provisions of
section 51 of the said Act in FORM GSTR-7 for the months of July, 2019 to October,2019, whose principal
place of business is in the State of Jammu and Kashmir shall be furnished electronically through the common
portal, on or before the 30th November, 2019.”
This notification has been effective from 10th November, 2019.
Seeks to extend the due date for furnishing of return in FORM GSTR-3B for registered persons in
Jammu and Kashmir for the months of July, 2019 to September, 2019
CBIC has made further amendments in Notification No. 29/2019 – Central Tax, dated the 28th June, 2019
In the said notification, in the first paragraph, for the fourth proviso, the following proviso shall be substituted,
namely: –
“Provided also that the return in FORM GSTR-3B for the months of July to September, 2019 for registered
persons whose principal place of business is in the State of Jammu and Kashmir, shall be furnished
electronically through the common portal, on or before the 30th November, 2019.”
This notification has been effective from 20th November, 2019

Seeks to extend the due date for furnishing of return in FORM GSTR-3B for registered persons in
Jammu and Kashmir for the month of October, 2019
CBIC has made further amendments in Notification No. 44/2019 – Central Tax, dated the 09th October, 2019
In the said notification, in the first paragraph, the following proviso shall be inserted, namely: –
“Provided that the return in FORM GSTR-3B for the month of October, 2019 for registered persons whose
principal place of business is in the State of Jammu and Kashmir, shall be furnished electronically through the
common portal, on or before the 30th November, 2019.”
This notification has been effective from 20th Day of November, 2019

Seeks to notify the transition plan with respect to J&K reorganization w.e.f. 31.10.2019
CBIC has notified those persons whose principal place of business or place of business lies in the erstwhile
State of Jammu and Kashmir till 30th October, 2019; and lies in the Union territory of Jammu and Kashmir or
in the Union territory of Ladakh from 31st October, 2019 onwards, as the class of persons who shall follow
some special procedure till 31st December, 2019.
For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-62-central-tax-

english-2019.pdf
Central Tax Rate Notifications

Notification No. 26/2019 – Central Tax (Rate)
Seeks to insert explanation regarding Bus Body Building in Notification No. 11/2017-Central Tax (Rate)
date 28.06.2017
CBIC has made further amendments in the Notification No.11/2017- Central Tax (Rate), dated the 28th June,
2017.
In the said notification, in the Table, against serial number 26, in column (3), in item (ic), the following
Explanation shall be inserted, namely: -
“Explanation- For the purposes of this entry, the term “bus body building” shall include building of body on
chassis of any vehicle falling under chapter 87 in the First Schedule to the Customs Tariff Act, 1975.”
Integrated Tax Rate Notifications
Notification No. 25/2019 – Integrated Tax (Rate)

Date – 22nd November 2019
Seeks to insert explanation regarding Bus Body Building in Notification No. 8/2017-Integrated Tax
(Rate) date 28.06.2017
CBIC has made further amendments in the Notification No. 8/2017- Integrated Tax (Rate), dated the 28th
June, 2017
Union Territory Tax Rate Notifications
Notification No. 26/2019 – Union Territory Tax (Rate)

Seeks to insert explanation regarding Bus Body Building in Notification No. 11/2017-Union Territory
Tax (Rate) date 28.06.2017
CBIC has made further amendments in the Notification No. 11/2017- Union Territory Tax (Rate), dated the
28th June, 2017
CGST CIRCULARS
Circular No. 124/43/2019

Date -18th November 2019
Seeks to clarify optional filing of annual return under notification No. 47/2019-Central Tax dated 9th
October, 2019.
Vide Notification No. 47/2019-Central Tax dated 9th October, 2019 it is provided that the annual return shall
be deemed to be furnished on the due date if it has not been furnished before the due date for the financial
year 2017-18 and 2018-19, in respect of those registered persons whose aggregate turnover in a financial year
does not exceed Rs. 2 crores.
In order to clarify the issue and to ensure uniformity in the implementation of the provisions of the law across
field formations, the Board has clarified some issues
.
For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-124.pdf
Seeks to clarify the fully electronic refund process through FORM GST RFD-01 and single
disbursement
After roll out of GST w.e.f. 01.07.2017, on account of the unavailability of electronic refund module on the
common portal, a temporary mechanism had to be devised and implemented wherein applicants were required
to file the refund application in FORM GST RFD-01A through a long time taking process.
The necessary capabilities for making the refund procedure fully electronic, in which all steps of submission
and processing shall be undertaken electronically, have been deployed on the common portal with effect from
26.09.2019. Accordingly, the Circulars issued earlier laying down the guidelines for manual submission and
processing of refund claims need to be suitably modified and a fresh set of guidelines needs to be issued for
electronic submission and processing of refund claims.
With this objective and in order to ensure uniformity in the implementation of the provisions of law across
field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and
Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby lays down the procedure for
electronic submission and processing of refund applications in supersession of earlier Circulars viz. Circular
No. 17/17/2017-GST dated 15.11.2017, 24/24/2017-GST dated 21.12.2017, 37/11/2018-GST dated
15.03.2018, 45/19/2018-GST dated 30.05.2018 (including corrigendum dated 18.07.2019), 59/33/2018-GST
dated 04.09.2018, 70/44/2018-GST dated 26.10.2018, 79/53/2018-GST dated 31.12.2018 and 94/13/2019-
GST dated 28.03.2019. However, the provisions of the said Circulars shall continue to apply for all refund
applications filed on the common portal before 26.09.2019 and the said applications shall continue to be
processed manually as prior to deployment of new system.
For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-125.pdf

Date -22nd November 2019
Clarification on scope of the notification entry at item (id), related to job work, under heading 9988 of
Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017-reg
This circular has been issued with regard to scope of the entry at item (id) under heading 9988 of Notification
No. 11/2017-Central Tax (Rate) dated 28- 06-2017 inserted with effect from 01-10-2019 to implement the
recommendation of the GST Council to reduce rate of GST on all job work services, which earlier attracted
18 % rate, to 12%.
It has been stated that the entry at item (id) under heading 9988 of Notification No. 11/2017-Central Tax
(Rate) dated 28-06-2017 inserted with effect from 01-10-2019, prescribes 12% GST rate for all services by
way of job work. This makes the entry at item (iv) which covers “manufacturing services on physical inputs
owned by others” with GST rate of 18%, redundant.
For More details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-126.pdf
CUSTOMS - NON TARIFF

Notification No 85/2019 - Customs (N.T)
Date -21st November 2019
Exchange Rates Notification No.85/2019-Custom (NT) dated 21.11.2019 –Reg
CBIC has determined the rate of exchange of conversion of each of the foreign currencies into Indian
currency or vice versa, relating to imported and export goods.
SCHEDULE-I
Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian
rupees
(For Imported Goods) (For Exported Goods)
Australian Dollar 50.05 47.85
Bahraini Dinar 196.90 184.75
Canadian Dollar 55.00 53.05
Chinese Yuan 10.35 10.05
For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2019/cs-nt2019/csnt85-2019.pdf
Notification No 86/2019 - Customs (N.T)

Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds,
Areca Nut, Gold and Silver- Reg.
CBIC has made following amendments in the Notification No. 36/2001-Customs (N.T.), dated the 3rd August,
2001.
In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted,
namely: -
“TABLE-1
Chapter/ heading/ sub- Description of goods Tariff value (US $Per Metric
heading/tariff item Tonne)
1511 10 00 Crude Palm Oil 650
1511 90 10 RBD Palm Oil 683
1511 90 90 Others – Palm Oil 667
1511 10 00 Crude Palmolein 687
For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2019/cs-nt2019/csnt86-2019.pdf
CIRCULARS
Circular No. 38/2019-Customs

Date -21st November 2019
Amendment in Import policy of Iron & Steel and incorporation of policy condition in Chapter 72, 73
and 86 of ITC(HS), 2017 Schedule-1 –reg
The DGFT Notification No. 17/2015-2020 dated 05.09.2019 amends the import policy for certain goods
falling under Chapter 72, 73 and 86 of ITC (HS), 2017 as annexed to the said notification from ‘free’ to ‘free
subject to compulsory registration under Steel Import Monitoring System (SIMS)’. The Steel Import
Monitoring System (SIMS) shall require importers to submit an advance information on an online system for
import of items in the Annex and obtain an advance automatic registration number by paying the prescribed
registration fee.
For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-

circulars-2019/Circular-No-38-2019.pdf
Auto Out of Charge under Express Cargo Clearance System (ECCS) – reg
Briefly, courier Bills of Entry (CBE) filed for clearance of imported cargo under ECCS are subjected to Risk
Management System. The Risk Management Server either facilitates or interdicts a Courier Bill of Entry
(CBE). The facilitated CBEs after payment of duty, if any are diverted for X-ray screening before final out of
charge.
The X-ray screening of goods may either 'clear' the goods or mark them as 'suspicious'. The goods marked
'suspicious' have to undergo examination by the proper officer. However, CBEs in respect of X-ray cleared
goods are sent to the Shed Superintendent or Appraiser for Out Of Charge (OOC) order.

circulars-2019/Circular-No-40-2019-new.pdf

Clearance of Import of metal scrap - Procedure – reg
As per Circular No. 48/2016-Cus., dated 26-10-2016 it was specified that all the designated sea ports as
specified in the DGFT Public Notice No. 38/2015- 2020, dated 6-10-2016 are expected to install and
operationalize Radiation Portal Monitors and Container Scanners by 31-3-2017 and till such time, the
consignments of un-shredded, compressed or loose scrap shall be subjected to scanning based on risk
assessment at those ports where such facilities for scanning are currently existing.
DGFT has been extending the deadline to install the said facilities from time to time and vide Public Notice
34/2015-2020 dated 25.9.19 has extended the time limit further upto 31.12.19.

circulars-2019/Circular-No-41-2019.pdf
DIRECT TAX
NOTIFICATION
Notification No. 98/2019
Amendment of Income-tax Rules, 1962 for notifying Challan-cum statement for the purposes of section
194M of the Income-tax Act, 1961
In the Income tax Rules, 1962, in rule 30, -
(a) after sub-rule (2B), the following sub-rule shall be inserted, namely:- “
(2C) Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section
194M shall be paid to the credit of the Central Government within a period of thirty days from the end of the
month in which the deduction is made and shall be accompanied by a challan-cum statement in Form No.
26QD.”;
(b) after sub-rule (6B), the following sub-rule shall be inserted, namely:—
“(6C) Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QD, the
amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it
electronically within the time specified in sub-rule (2C) into the Reserve Bank of India or the State Bank of
India or any authorised bank.”
In the principal rules, in rule 31, after sub-rule (3B), the following sub-rule shall be inserted , namely:— "
“(3C) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person
responsible for deduction of tax under section 194M shall furnish the certificate of deduction of tax at source
in Form No.16D to the payee within fifteen days from the due date for furnishing the challan-cum-statement
in Form No.26QD under rule 31A after generating and downloading the same from the web portal specified
by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or
the person authorised by him.”
For more details, please follow –

https://www.incometaxindia.gov.in/communications/notification/notification_98_2019.pdf

Notification regarding M/s International Centre for Research in Agro-forestry, South Asia Regional
Programme, NASC Complex, Delhi (ICRAF)
It is hereby notified for general information that the organization M/s International Centre for Research in
Agro-forestry, South Asia Regional Programme, NASC Complex, Delhi (ICRAF) (PAN:- AAATI4803K) has
been approved by the Central Government for the purpose of clause (ii) of sub-section (I) of section 35 of the
Income-tax Act, 1961 (said Act), read with Rules 5C and 5D of the Income-tax Rules, 1962 (said Rules), from
Assessment year 2019- 2020 onwards in the category of 'Scientific Research Association' , subject to few
conditions.

https://www.incometaxindia.gov.in/communications/notification/notification_no_99_2019.pdf

Notification regarding M/s National Stock Exchange of India Limited, Mumbai
The Central Government has notified M/s National Stock Exchange of India Limited, Mumbai (PAN:
AAACN1797L) as a 'recognised association' for the purpose of said clause with effect from the date of,
publication of this notification in the official gazette subject to fulfilment of few conditions.

https://www.incometaxindia.gov.in/communications/notification/notification_no_100_2019.pdf
PRESS RELEASE
INDIRECT TAX  Greater communication and connectivity
within the region
 Harness technology advancements
Press Release  Inclusive approach
Date – 18th November 2019  Consensus on core issues
Press Release for 29th Regional Contact Point As regional priorities, he also emphasized on the
of the WCO A/P key focus areas namely Performance
Measurement, Security and Enforcement, Inter-
The 29th Regional Contact Points (RCP) meeting
Agency cooperation for Trade Facilitation,
of Asia Pacific (A/P) region of the World Customs
Customs Single Window, Small Island Economies,
Organization (WCO) is being organized by the
leveraging Disruptive Technologies and Border
Central Board of Indirect Taxes and Customs
clearances for Cruise Ships.
(CBIC) at Puducherry from 18th to 20th
November, 2019.
Keynote speaker from the WCO Brussels, Mr.
Takashi SATO, elaborated on progress being
WCO is the only inter-governmental international
made in WCO on various issues of importance
organisation engaged in setting up and
such as Capacity Building, Trade Facilitation,
implementation of principles and standards for
Compliance and Enforcement activities etc and
cross border procedures and Customs. It is
talked about the thrust areas for the region.
headquartered in Brussels and has more than 180
countries as its members. Globally, WCO consist
Earlier, Sh. Ajit Kumar, Chief Commissioner
of six regions, each headed by a member country
welcomed all the delegates for the meeting to
as Vice Chair of that region of WCO. India is
Puducherry and highlighted cultural importance of
member of Asia Pacific region of WCO and is
the area. He mentioned that in addition to
also currently the Vice Chair since July 2018.
discussing issues of importane for the region and
ideas put forth by the member countries, the
As a mandate of the Vice Chair office, India is
meeting also have international organisations like
organizing the current RCP meeting in Puducherry.
UNCTAD, GS1, Global Alliance on Trade
The last RCP was organized in Nov 2018 in Jaipur.
Facilitation (GATF) etc presenting the best
This is an important annual meeting in the region
practices on customs procedures. He laid special
and is designed to address regional development
emphasis on use of technology to bring compliant
in a number of areas, to discuss on various issues
facilitation.
linked to cross border trade procedures and to
enhance communication and experience sharing
The meeting will also have discussions on the
between the member countries.
results achieved for key focus areas for the region
(which include enforcement, security, facilitation,
Customs delegations from more than twenty five
capacity building etc), progress made on different
countries of the A/P region, the representatives of
areas of customs procedures and capacity building
regional bodies of the WCO; the Regional Office
activities done by WCO and its regional bodies
for Capacity Building (ROCB), and the Regional
like ROCB, Thailand, RILO Korea, RTCs of the
Intelligence Liaison Office (RILO) have arrived in
region etc. In addition, various experts from
Puducherry to attend this important meeting. The
private sector has also been invited to deliberate
meeting was inaugurated and is being chaired by
on technological innovations to strengthen the
Sh. Raj Kumar Barthwal, Member (Customs)
procedures for compliant facilitation.
CBIC, India. Sh. M. Ajit Kumar, Chief
Commissioner, Chennai & Sh. L. Satya Srinivas,
The three day meeting will strengthen the
Joint Secretary, Customs, CBIC are also present
leadership role of our country in the region, give
from Indian side as a part of Vice Chair team in
wider recognition to CBIC on international
the meeting.
platform and also, help in improving bilateral ties
with these countries of the Asia Pacific region.
In his opening remarks, Sh. Barthwal highlighted
the four strategic guiding principles which are
adhered to while working as the Vice Chair of the
A/P region, which are:
DIRECT TAX
Press Release
Income Tax Department creates Exchange of

Information Portal for dissemination of
information to all stakeholders
India is committed to exchange financial account

information automatically from 2017 under the
Common Reporting Standard (CRS) on Automatic
Exchange of Information (AEOI). Information is
reported annually by financial institutions which
are then exchanged by India under the standard.
To implement the AEOI standard, necessary

domestic legal framework was put in place in
2015. A comprehensive Guidance Note was
released on 31st August 2015 to provide guidance
to the financial institutions, sectoral regulators and
officers of the Income Tax Department for
ensuring compliance with the reporting
requirements under the Income-tax Act and Rules.
The sectoral regulators have also issued necessary
notifications and circulars for compliance by the
financial institutions. Stakeholder consultations
are also carried out by CBDT to educate financial
institutions about their reporting obligations. In its
persistent endeavour to reach out to the financial
institutions and account holders, CBDT has
created an Exchange of Information portal on the
Income-tax Department website for dissemination
of information to all stakeholders. The Chairman,
CBDT today, inaugurated the portal which
consolidates all the relevant AEOI related
information at one place for convenient access by
financial institutions, Departmental officers as
well as public at large.
This portal would be a repository of policy and

technical circulars /guidance/notifications issued
by the CBDT, and provide links to relevant
circulars/guidance issued by the regulatory
authorities in India and other international bodies.
The portal would not only be useful for the
domestic financial institutions but will also help
the foreign tax authorities and financial
institutions to get information about the Indian
laws, rules and procedures related to AEOI under
CRS.
JUDGEMENTS
INDIRECT TAX Case No. - 57/2019
Date -19.11.2019
Builder held Guilty of Profiteering by NAA
Fact of the Case
Sh. Paval Antony v. M/s Shree Mahalakshmi
Enterprises  In this case Ms. Santosh Kumari is the
applicant and M/s Aster Infrastructure is the
Case No. - 58/2019 respondent
Date - 20.11.2019  The report alleged profiteering by the
respondent in respect of the purchase of
Fact of the Case flats in respondent’s project the ‘Green
Court’. It had been alleged that the
 Sh. Paval Antony is the applicant and M/s respondent had not passed on the benefit of
Shree Mahalakshmi Enterprises is the the Input Tax Credit to them by way of
respondent. reduction of the price of flats.
 The respondent had started construction of  The respondent submitted that he was under
the project ‘Risington’ in the year 2014 for the normal scheme of VAT in Haryana and
building 1228 apartments out of which 161 availed the VAT credit under the same.
flats have been sold.  He further submitted that service of
 It has been alleged that the respondent had construction of affordable housing provided
not passed on the benefit of Input Tax by the respondent was exempt from service
Credit by the reduction in the price of the tax under the relevant notification and was
flat after coming into force of the GST to also not eligible for CENVAT credit under
him. He clearly stated that 18% GST is the same.
demanded on the cost of land which is the  Furthermore, the credit of central excise
wrong application of the law. duty was also not available with the
developers in the pre-GST regime and the
Decision of the Case respondent was ready to pass on the post
GST.
The bench constituting of BN Sharma, JC
Chauhan, R Bhagyadevi and Amand Shah stated Decision of the Case
the following-
 Whether there was a reduction in the rate of  The bench constituting of Members S.
tax on the service provided by the Prabhakar, Akshat Aggarwal and Narendra
Respondent w.e.f. 01.07.2017 Kumar held that the methodology adopted
 Whether there was any net additional by the DGAP to compute credit of central
benefit of ITC to the Respondent which excise after the imposition of GST appeared
was required to be passed on by him to his more rational.
recipients  Also, the respondent’s computation of 50%
 Whether there was any violation of the of the credit to be passed on the customers
provisions of Section 171 of the CGST Act for the reason of non-availability of central
by not passing the above benefits by the excise credit was rejected.
Respondent. ----------------------------------------------------------------
Denial of Benefit of Rate Reduction to Buyers
After considering the computational aspects of the is resorted to Profiteering: NAA finds Johnson
rate paid in the pre-GST regime by the respondent and Johnson guilty
with to that paid after GST and other aspects the
bench ruled the Respondent liable to profiteering. Fact of the Case
----------------------------------------------------------------
NAA Finds Builder guilty of not passing ITC  The facts of the case that an application was
Benefits to Flat Buyers filed by the appellants before standing
committee on anti-profiteering for
Ms. Santosh Kumari vs. M/s Aster reduction of GST rate of sanitary napkins.
Infrastructure The respondents alleged that they have not
availed the benefit of reduction on the
supply of it under section 17 of the CGST Rs.53,28,645/- from the account maintained
Act 2017 by the petitioner on the reason that the said
 The DGAP stated that the respondents were sum on account of tax, cess, interest and
immediately given effect to the reduction of penalty is payable by the petitioner under
GST rate from 12% to Nil on sanitary the provisions of the GST Act and that the
napkins appears to be correct, but based on petitioner had failed to make such payment.
the invoice issued by the distributors to the  The grievance of the petitioner against the
ultimate consumers it was observed that the impugned proceedings is that the same was
base price of the product has been increased issued straightaway, even before making an
and the final selling price had remained the assessment or at least initiating proceedings
same despite the GST rate reduction. for making the assessment.
 On account of the reduction in GST rate  It is the specific case of the petitioner that
from 12% to nil the ITC reversed on the no proceedings whatsoever was issued
closing stock had become a cost to the against the petitioner for determining either
respondent and no ITC was available as the tax, cess or interest or penalty totally
sanitary napkins were exempted. amounting to Rs.53,28,645/- as claimed in
 The respondent stated that by virtue of the impugned proceedings.
section 17 (3) of the CGST Act of 2017 the
authority shall exercise such powers and Decision of the Case
discharge such functions as may be
prescribed. In the absence of such method  Allowing the petition of the petitioner ,
prescribed in CGST the DGAP had applied Justice Ravichandra Babu observed that, “It
his own method to conclude that and which is seen that except issuing the proceedings
resulted in profiteering and he was never under Section 79, no other proceedings was
afforded the opportunity to present his own ever issued against the petitioner
method as the same is the violation of determining their tax etc., liability,
natural justice. amounting to Rs.53,28,645/- as claimed in
the impugned proceedings”.
Decision of the Case  The Court also said that, Section 79 of the
CGST Act, 2017 contemplates that any
The NAA has held that the respondent has denied amount payable by a person to the
the benefit of rate reduction to the buyers of the Government under any of the provisions of
product of sanitary napkin, he had increased the the said Act or the Rules made thereunder
base price more than what he was entitled to is not paid, the proper officer shall proceed
increase in contravention of section 171(1) of to recover the amount by one or more of the
CGST Act 2017 and has thus resorted to modes referred to therein.
profiteering which is an offence under section  Therefore, it is evident that the term
171(3a) of the act and therefore he liable for “amount payable by a person” is to mean
imposition of penalty under the act. that such liability arises only after the
---------------------------------------------------------------- determination of such amount in a manner
Mere admitted liability does not attract Section known to law.
79 of CGST Act: Madras HC quashes GST  The Madras High Court has quashed GST
Department proceedings to Recovery of Tax department’s proceedings against the
petitioner to the recovery of Tax.
M/S V.N Mehta & Co. vs. The Assistant ----------------------------------------------------------------
Commissioner, Superintendent of GST & Land Development does not constitute Sale,
Central Excise & others Taxable at Transaction Value actually Paid:
AAR
W.P No. - 26187 of 2019 Applicant - M/s. Maarq Spaces Pvt. Ltd
Date - 8.11.2019
Advance Ruling No. – KAR/ADRG/119/2019
Fact of the Case Date – 30th September 2019
 The Petitioner has challenged the Fact of the Case

proceedings of the first respondent dated
07.08.2019 addressed to the fourth  In the present case M/s. Maarq Spaces Pvt.
respondent through which, the fourth Ltd. is the applicant.
respondent was directed to recover a sum of
 The applicant entered into a joint  AO disallowed the claim without due
development agreement with landowners of application of mind.
properties to develop plots.  The assessee claimed depreciation on a part
 The applicant contended that they are of building i.e. 84% which become
primarily engaged in the sale of land and disallowable for the relevant period, due to
the said activity is not liable to be taxed in the reason it was disallowed by the ITAT.
terms of the provisions contained in serial  The AO did not allow the depreciation to
number 5 of Schedule III of the CGST Act, the assessee on higher revised opening
2O17. WDV of the building.
 The applicant further contended that the  CIT ruled in favour of the assessee, the AO
activity of development work carried out in disputed the direction of the CIT(A).
respect of the land is an activity incidental
to the sale of land. Decision of the Case
Decision of the Case The bench consisting of members Rajesh Khanna

and A.D. Jain held that
 The authority that since the applicant has  The AO ought to have allowed the higher
no right over the land and consequently the depreciation on the direction issued by the
applicant cannot claim to be engaged in the ld. CIT (A)
activity of the sale of land as envisaged in  The A.O is directed to revise the figure.
the provisions of entry at Serial number 5  It is for the reason that the assessee was not
of said Schedule III in a position to claim a higher depreciation
 The Authority also added that the activities in return of income by adjusting the
are undertaken by the applicant amount to a opening WDV.
supply of service to the landowners and is  The Mumbai Bench of the Income Tax
liable to be taxed appropriately under the Appellate Tribunal in the case of ACIT v
provisions of the CGST/KSGST Acts. M/s Crompton Greaves Ltd. held that
 The Authority on Advance Rulings (AAR) deduction of Scientific Research
in Karnataka held that land development Expenditure disallowed without application
does not constitute a sale and is hence of mind was allowed.
taxable at the transaction value actually ----------------------------------------------------------------
paid of payable of the service as under Period of Holding computed from the Original
section 31 and 15 of the Act. date of Acquisition of Property: ITAT
---------------------------------------------------------------- Adi D Vachha vs. I.T.O
DIRECT TAX
ITA No. – 2755/Mum/2011
ITAT allows Deduction u/s 35(2)(AB) which Date – 09.08.2019
was disallowed by CIT on the Ground of Non- Fact of the Case
Application of Mind
 In the present case Adi D Vachha is the
M/s Crompton Greaves Ltd. Vs. Asst. CIT applicant
 The AO noticed that the assessee has
ITA No. – 5295/Mum/2017 computed Long Term Capital Gain from
Date – 27.09.2019 the sale of TDR. The assessee in response
submitted that he had to right to acquire
Fact of the Case TDR in view of land acquired by Pune
Municipal Authority and the same has been
 In the present case M/s Crompton Greaves transferred to the third party for a
Ltd. Is the applicant consideration of Rs 50 lakh.
 The assessee/applicant had incurred in-  The timelines for the transactions are: The
house Scientific Research expenditure assessee had sold his right in TDR by way
(capital and revenue) wherein it had of an MoU on 17/08/1996. The MoU was
claimed weighted deduction u/s 35(2)(AB) cancelled by the way of cancellation deed
of the Income Tax Act in computing the dated 14/06/2004 and the right In TDR was
total income @ 150% of the actual sold by agreement dated 14/06/2006 for a
expenditure on another unit then the unit consideration of Rs 50 lakh.
approved by DSIR.  The assessee contended that the holding
period of the TDR is less than 36 months
and accordingly, gain received from the  The Tribunal stressed that “the assessee be
transfer of TDRs is assessable under the given the opportunity of hearing by
head Short Term Capital Gain. Hence, the following principles of natural justice”
present appeal. while reconsidering the matter.
----------------------------------------------------------------
Decision of the Case Difference in Accounting Policy can be
Reasonable Explanation for TDS differential:
 The Bench constituting of members Ram ITAT
Lal Negi and G. Manjunatha held that if the
date of acquisition of property originally is TUV India Pvt. Ltd vs. DCIT
taken, then the period of holding the asset is
more than 36 months and hence, surplus ITA No. – 6628/Mum/2015
from the transfer of the asset is rightly Date – 20.08.2019
assessable under the head long term capital
gains. Fact of the Case
 Hence, the period of holding the asset has
to be computed not from the date when  In the present case TUV India Pvt. Ltd is
MoU was cancelled in the year 2004 but the applicant
from the original date of acquisition of  The appellant here is a service provider
property. engaged in the certification work.
----------------------------------------------------------------  The assessing officer noted an additional
Disallowance of Interest on TDS upheld: ITAT amount in the income of the assessee on
M/S. Bhardwaj Construction vs. ACIT account of mismatch of TDS between the
books of accounts maintained by the
ITA No. – 3562/Del/2015 assessee and Form No. 26AS per income
Date – 30.10.2019 tax department database.
Fact of the Case Decision of the Case
 In the present case M/S. Bhardwaj  The tribunal ruled that the differences in the
Construction is the applicant accounting policy as well wrong
 The Assessee firm was engaged in the mention/punching of the PAN number of
business civil contractor and deals in the taxpayers by clients while filing TDS
contract line from various years. returns with the department could reason
 During scrutiny, the Assessing Officer for the difference.
made various additions including  The Tribunal further noted that, “One of the
disallowed of Salary and Wages, Telephone reasons for differential could be that clients
Expenses, Interest on TDS, Donation, etc. have deducted TDS on the gross amount
The aggrieved assessee hence moved to the inclusive of service tax while income is
Tribunal. reflected by tax-payers exclusive of service
tax”.
Decision of the Case  The Tribunal stressed that since the
assessee has no control over the database of
 However, the ITAT held that Disallowance the Income-tax department, at best the
of Vehicle Depreciation was not right assessee could do is to offer bonafide
stressing that “the vehicles have been used explanations for the differential.
for business purposes and are business  The court also pointed out that the
assets of the assessee”. authorities failed to dislodge/rebut the
 While considering the case, the tribunal contentions of the assessee
however considered the Disallowance u/s  The tribunal ruled that, “The learned
40A(3) and finding that the factual part was CIT(A)/AO ought to have conducted
never questioned by the AO or CIT(A), necessary enquiries to unravel the truth but
remanded back the issue to the file of the asking the assessee to do impossible is not
Assessing Officer. warranted”.
 The Tribunal also remanded back the issues ----------------------------------------------------------------
of disallowance of travelling and
conveyance expenses to the file of the AO.
Compensation in lieu of ‘Right to Sue’ of
Capital Nature, not chargeable to Tax: ITAT
Fact of the Case
 M/s Chedda Housing Development

Corporation is the applicant in the
present case
 The assessee is a partnership firm
engaged in the business of financing,
construction and development. The
assessee filed its return of income
declaring Nil income and claimed the
refund of tax paid in advance.
 The AO noted that assessee claimed an
amount to be a capital receipt not
chargeable to tax which he received as
compensation under agreement for
relinquishing his right to sue in a
development agreement.
 The Bench constituting of members S.S.
Pannu and Pawan Singh held that receipt
towards compensation in lieu of ‘right to
sue’ is of capital nature which is not
chargeable to tax under Section 45 of the
Act.
Decision of the Case
 The Bench elaborated that the assessee

executed a development agreement to
facilitate the assessee to construct and to
share the profits from the transaction.
 When the assessee sold his land, the
advantage which accrued from the
agreement was also taken away.
Similarly, when the assessee in the
agreement came across a threat of filing
suit by the developer he paid the amount
of compensation in consideration of
turning down the suit by the developer.
 This payment of the amount to avoid
litigation was held to be enough evidence
for the existence of the ‘right to sue’,
holding against the contention of the
revenue.
TAX COMPLIANCE CALENDAR AT A GLANCE
GST CALENDAR
Date Return Type
GSTR-7 for the month of November 2019 - to be filed by the by the to be filed by the
10.12.2019
person who is required to deduct TDS under GST
GSTR-8 for the month of November 2019 - to be filed by the by the e-commerce
10.12.2019
operators required to deduct TDS under GST
GSTR-1 for the month of November 2019 - Applicable for taxpayers with Annual
11.12.2019 Aggregate turnover Above Rs. 1.50 Crore or opted to file monthly Return (Rs. 1.50
Crores)
13.12.2019 GSTR-6 for the month of November 2019 - to be filed by Input Service Distributor
GSTR-5 & 5A for the month of November 2019 - to be filed by the Non-Resident
20.12.2019
taxable person & OIDAR
20.12.2019 GSTR 3B - for the month of November 2019..
GSTR 9 for the financial year 2017-18 - Annual return in GST for regular taxpayers for
31.12.2019
F.Y 2017-18 to be filed (Turnover up to Rs. 2 crores –it is not compulsory)
GSTR 9C for the financial year 2017-18 - GST Audit for F.Y 2017-18 to be filed whose
31.12.2019
Turnover more than Rs. 2 crores
DIRECT TAX CALENDAR - DECEMBER, 2019
07.12.2019
 Due date for deposit of Tax deducted/collected for the month of November, 2019. However, all sum
deducted/collected by an office of the government shall be paid to the credit of the Central Government on
the same day where tax is paid without production of an Income-tax Challan
15.12.2019
 Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of
November, 2019 has been paid without the production of a challan
 Third instalment of advance tax for the assessment year 2020-21
 Due date for issue of TDS Certificate for tax deducted under section 194-IA and section 194-IB in the month
of October, 2019
 Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which
client codes been modified after registering in the system for the month of November, 2019
30.12.2019
 Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA and
section 194-IB in the month of November, 2019
 Furnishing of report in Form No. 3CEAD for a reporting accounting year (assuming reporting accounting
year is January 1, 2018 to December 31, 2018) by a constituent entity, resident in India, in respect of the
international group of which it is a constituent if the parent entity is not obliged to file report u/s 286(2) or
the parent entity is resident of a country with which India does not have an agreement for exchange of the
report etc.
COURSES OFFERED BY TAX RESEARCH DEPARTMENT
Eligibility criterion for admission in TRD Courses

 Qualified Cost & Management Accountants
 Other Professionals (CS, CA, MBA, M.Com, Lawyers)
 Executives from Industries and Tax Practitioners
 Students who are either CMA qualified or CMA pursuing
CERTIFICATE COURSE ON TDS CERTIFICATE COURSE ON INCOME

TAX RETURN FILLING
Course Fee - Rs. 10,000+18% GST
20% Discount for Members, CMA Course Fee - Rs. 10,000+18% GST
Final Passed Candidates and 20% Discount for Members, CMA
CMA Final pursuing Students Final Passed Candidates and
CMA Final pursuing Students
Exam Fees - Rs. 1, 000+18% GST Exam Fees - Rs. 1, 000+18% GST
Duration – 30Hours Duration – 30Hours
Mode of Class – Online Mode of Class – Online
CERTIFICATE COURSE ON GST ADVANCED CERTIFICATE COURSE ON

GST
Course Fee - Rs. 10,000+18% GST
20% Discount for Members, CMA Course Fee - Rs. 14,000+18% GST
Final Passed Candidates and CMA 20% Discount for Members, CMA
Final pursuing Students Final Passed Candidates and
CMA Final pursuing Students
Exam Fees - Rs. 1, 000+18% GST
Duration – 72 Hours Exam Fees - Rs. 1, 000+18% GST
Mode of Class – Offline and Online Duration – 40Hours
* Special Discount for Corporate Mode of Class – Online
CRASH COURSE ON GST FOR COLLEGE AND UNIVERSITY
Batch Size – 50(Minimum)
Eligibility criterion - B.COM/B.B.A pursuing or completed

M.COM/M.B.A pursuing or completed
Course Fee - Rs. 1,000+ 18% GST
Exam Fees - Rs. 200+18% GST

Course Duration - 32 Hours
For enquiry about courses, mail at – [email protected]
Tax Research Department (TRD)
A JOURNEY TOWARDS EXCELLENCE
T he Tax Research Department is working under guidance of the Taxation Committees (both Direct and
Indirect Tax) of the Council of the Institute of Cost Accountants of India. The Taxation Committees
formulates the policies for both Direct & Indirect Tax which in turn are implemented by the Tax
Research Department. TRD is working as the arms of the Taxation Committees.
TRD has come a long way in the past two years and developing day by day in years to come. From a nascent
stage now the department is spreading its wings with a perfect blend of dedicated employees supported by
over 50 Resource Persons pan India both from Industry & Practice, who are the experts in both Direct &
Indirect Taxes.
and moving towards its vision and objectives to provide tax knowledge and guidance to all Members, Non
Members and Industries.
Let’s have a bird’s eye view of the activities of the Tax Research Department:
Webinars
Representations to the Government

ACTIVITIES
Top Stories
Workshop for Corporate & Seminars
GST Help Desk
Fortnightly Tax Bulletin
Indirect Tax - Certificate Course on

GST & Advance GST Course
Direct Tax – Certificate Course on TDS &

Filing of Return
Releasing Publications in Direct Tax &

Indirect Tax
In order to measure the progress and achievements of TRD, we found some amazing statistics which is given
below in nutshell for understanding:
Webinars
The Webinars conducted by the department are highly appreciated by the members of the institute.
 Number of Webinars conducted – 80-100 per year (Both in Direct and Indirect Tax)
 Average Participation – 450 – 500 attendees
The aim of these webinars is to provide awareness and knowledge to professionals, students, members and public at
large. Recorded versions of webinar are also available for view of the Members and Students.
List of Webinars – https://icmai.in/TaxationPortal/Webinar/index.php
Workshops for Corporate & Seminars

The department is organising workshops and seminars for knowledge enrichment of Members, Stakeholders,
Corporates and general public. Many PSU, Corporates & MSME have been benefitted from these workshops.
 Seminars
In the past two years around 200-250 Seminars have been conducted per year throughout India. Two National
Seminars conducted by the department deserves a special mention here.
National Seminar on GST: The Sustainability Imperative in January 2018.

Chief Guest – Shri Shashi Bhusan Behara, Minister of Finance & Excise, Odisha
Reformed Taxation System – Catalyst to Sustained Economic Growth in December 2019.

Chief Guest – Shri Ganeshi Lal, Hon’ble Governor of Odisha.
GST Helpdesk
'GST Helpdesk' has been launched in a new digitized environment as a complimentary facility for all the
stakeholders, to achieve a seamless transition in GST. The helpdesk worked as a ready reckoner for all GST related
queries since the early stage of implementation of GST. Thousands of queries have been answered through the GST
Helpdesk to the stakeholders. Link of GST Helpdesk is:
Link of GST Helpdesk - https://icmai.in/TaxationPortal/GSTHelpDesk/index.php
Representations to the Government

The Department in its endeavour to work in lines with the Government regulations have submitted various
representations to Government some of which have already been considered and some are in follow up. A few of
them is presented for perusal
Direct Tax
 Inclusion of Cost Accountants in “Accountant” Definition of Income Tax Act, 1961, U/Sec 288(2)
 Representation on Fair Market Value - Empowering the members of the Institute of Cost Accountants of
India (ICAI) for Valuation and certification thereof – Proposal for amendment in Income Tax Rules
 Representation to the Ministry of Commerce
 Tax Return Preparer (Amendment) Scheme, 2018 – request to amend the name of the Institute in the
Scheme.
 Representation on Inclusion of name of CMA in My CA/ERI Portal in website of
incometaxindiaefiling.gov.in
 Suggestions submitted on DTC
 Representation as regards non intimation of extension of due date for Income Tax Return
 Suggestions for amendments in Sec 139(9) Defective Return and Sec 145A Method of Accounting under
Direct tax Law
Indirect Tax
 Modification and simplification of GST Returns under GST regime.
 Valuation Rules for Anti Profiteering and developing Guidance note with suitable formats.
 Simplification of GST for MSME/SME sector.
 Representation to the Custom Authorities for Inclusion of Cost Accountants for undertakings/submission
of
Certificates to the exporters to overcome the problem of refund blockage and post audit scrutiny
 Representation to CBIC on extending the due date of Filing GSTR 3B for the month of September, 2018
from 20th October 2018 to 31st October 2018
 Representation Letter for Inclusion of Cost Accountants for authorizing the certificate of claiming ITC in
case of exports have already been made after availing ITC on inputs used in manufacture of such exports
shall be used in manufacture and supply of taxable goods.
 Inclusion of Cost Accountants for providing Certification for GST liability on Existing Works Contracts.
 Input for the working of Tax Litigation Management Committee
 Pre Budget Memorandum 2018-19 (Direct & Indirect Tax Both)
 Representation on E – invoicing system under GST
 Representation to Letter from OSD Duty Drawback CBIC MOF dated 15.4.19
 Request for inclusion of CMA on the labels of Forms under point no C of GSTR – 10 (Final Return)
 Representation on the matter “Resolve technical glitches and to simplify filing of Goods and Services Tax
(GST) forms”
Fortnightly Tax Bulletin

Launching of “Fortnightly Tax bulletin” is another feather in cap for the Department. Since October, 2017, 24 Tax
Bulletins in every year have been successfully launched. The Tax Bulletins have been widely appreciated by Govt.
Departments, Trade Associations, Industry Houses, members of the Institute and other Tax Professionals. The Tax
Bulletin has become a one stop solution for all taxation related information including Articles, Notifications,
Circulars, Press Release, Advance Rulings etc both on direct and Indirect Taxation.
First fortnightly tax bulletin launched on the auspicious day of 2 nd October 2017.
The Tax Bulletins are available at the link: https://icmai.in/TaxationPortal/Publication/TaxBulletin.php
Various Publications
In order to enrich the knowledge base of the stakeholders, the department had launched several books during the
year which have been appreciated by the professionals and responsing to the changing taxation environment of the
country, the publications are also being updated on a regular to include the latest developments on taxation front.
Publications that have already been released are:
Direct Tax
 Handbook on International Taxation and Transfer Pricing
 Handbook on TDS
Indirect Tax & GST

 Guidance Note on Anti Profiteering
 Handbook on E-way Bill
 Handbook on Works Contract
 Guidance Note on GST Annual Return
 Handbook on Impact of GST on MSME Sector
 Guidance Note on GST Audit
 Compilation of GST Notification and Circular
 Handbook on GST on Export
 Input Tax Credit & In depth Discussion
 Impact on GST on Education Sector
 Sabka Vishwas-Legacy Dispute Resolution Scheme 2019
 Taxation on Co-operative Sector
The Department is continuously working on publishing the revised editions and notification Compilations of many
of the above books
Top Stories
Updating oneself with the latest developments is a primary condition for knowledge enhancement. Looking at the
frequently changing scenario in the country’s taxation front, Tax Research Department has introduced “Top Stories”
section in the Taxation Portal. Updates on Notifications, Circulars, and Judgements etc. are being uploaded under
this section with a narrative gist on real time basis to enable the stakeholders to get updates on taxation matters.
This will work as a regular knowledge enhancer for the stake-holders.
Link of Top Stories - https://icmai.in/TaxationPortal/Top_Stories/
Courses on Direct Tax

Certificate Course on Filing of Returns and Certificate Course on TDS
Tax Research Department started two new courses both in Direct Taxes in April 2019. These courses give more
importance to the practical aspects to ensure the advanced level of learning which will help in day to day
professional world.
Courses on Indirect Tax

Certificate Course on GST and Advanced Certificate Course on GST
Certificate Course on GST was launched in February 2018, has become a great success. We have successfully
completed First, Second, Third Batch and Fourth Batch of Certificate Course on GST in both online and offline
mode on Pan India basis. Fifth Batch is also on the verge of completion. A huge number of students have registered
for the courses in the first five batches. Online Examination for first four batches has been conducted with success
rate has been more than 80%. Successful candidates have been awarded the pass certificates.
The Course has been popular among the members and non-members too including tax practitioners and corporate.
Link for admission- https://icmai.in/TaxationPortal/OnlineCourses/index.php
Crash Courses for Colleges and Universities

The department has started conducting Crash Course on GST all across India in various Colleges and Universities,
to make the graduate and under-graduate students aware of the Basics of GST.
The department is also in the process to start more such crash courses in Basic GST and also in Direct Tax with
different colleges and universities country wise.
Taxation Portal
Today’s world can’t be thought of without technology. In order to utilize the technology to its maximum extent, Tax
Research Department has come up with an exhaustive Taxation Portal in the institute’s website.
One can get almost all the updates in taxation front of the country in form of Publications, Webinars, Courses,
Bulletin, updates, Link to CBIC and CBDT, Access to Act, Rules etc. through this portal. The Taxation Portal has
been designed in such a way and it is so informative that it can be used as “Made Easy” for taxation matters by the
users.
Link of Taxation Portal - https://icmai.in/TaxationPortal/
Development and Improvement is a continuous process. We learn as we grow and we grow as we learn.
2 - Day National Seminar on Taxation
Organized by
(Statutory Body under an act of Parliament)
TAX RESEARCH DEPARTMENT

&
BHUBANESWAR CHAPTER
Theme - “Conducive Tax Laws - Challenges & Opportunities”

Date: 21st & 22nd December, 2019
Venue: KIMS Auditorium, Campus-5, KIIT Deemed University Bhubaneswar, Odisha
“There is only one thing that makes a dream impossible to achieve: the fear of failure.”
- Paulo Coelho
Sir/Madam,
Greetings from the Institute of Cost Accountants of India-Tax Research Department & Bhubaneswar Chapter
Every proud Indian has now reason to believe that India will be a 5 trillion economy by 024. A new India
which is in making with the governement's mantra of "Sabka Saath, Sabka Vikas Aur Sabka Viswash” can
make this dream possible.
The government of India is making all out efforts to accelerate economic growth, promote investment,
creation of employment and bringing efficiency and transparency to the taxation system. Keeping this in mind,
Corporation Tax rates were brought down for domestic companies, Minimum Alternate Tax rate was
rationalized, enhanced surcharge from certain incomes arising from investment in capital markets were
withdrawn, e-assessment scheme-2019 has been effected and lot of other measures were initiated by the law
makers and policy makers.
Taxpayers in general are gradually getting acquainted with the biggest ever tax reforms in form of Goods and
Services Tax with its robust, simple and convenient system. The GST portal has almost become stable and
number of return filers have been considerably increased. Level of compliance has gone up. Suggestions,
representations and requests made by the stakeholders have been favourably considered by the GST Council
in many cases which resulted to waiver of filing of Annual Returns for 2017-18 and 2018-19 for small
taxpayers, gradual restructuring of tax rates, augmentation of refund process etc. During the last two years,
GST revenue showed very good growth. There are over 20 states that recorded over 14% annual revenue
growth during last two years in collection of GST. However, to protect revenue and prevent evasion, a new
return filing system is about to be implemented from April, 2020 and notifications have been made to amend
the provisions of ITC in case of nonappearance of the same in GSTR 2A. The Legacy Dispute Resolution
Scheme, 2019 – “Sabka Vishwas” will be of great help in settling the dispute relating the Service Tax and
Excise Duty.
Considering the framework and recent developments in mind, the 2-day National Seminar on the title
“Conducive Tax Laws-Challenges & Opportunities” to be held on 21st & 22nd December, 2019 at
Bhubaneswar having following sub-themes:
a) Income Tax Act and Direct Tax Code – Expectations and Way ahead
b) Beneficial provisions and recent Amendments under Income Tax Laws for domestic companies and
value creation
c) E-Invoicing and Reconciliation of credits
d) ITC under GST law – Provisions, Advance Rulings and critical issues
e) Readiness for the New Return Filing System
f) Provisions and situation analysis – Deposit Work, Turnkey/EPC Contracts, Tolerance of an act,
RCM and Export
We are confident that critical analysis of the above mentioned aptly chosen theme will be of relevance to
executives, professionals, students, learners and practitioners in the functional domain of Finance,
Procurement, Contract and Strategy formulation.
Let's learn, de-learn and re-learn with all agility so as to contribute towards Nation building.
Looking forward to have your participation and active support.
With sincere regards.
(CMA Saktidhar Singh) (CMA P Bhattacharya) (CMA Rakesh Bhalla) (CMA Niranjan Mishra)
Co- Chairman Co- Chairman Chairman Chairman
Conference Committee Conference Committee Conference Committee Conference Committee
Programme Schedule
DAY -01: 21st December, 2019 (Saturday) DAY -02: 22nd December, 2019 (Sunday)
09.00 A.M - 10.00 A.M Registration & Breakfast 08.30 A.M – 09:00 AM Registration & Breakfast
10.00 A.M - 11.00 A.M Inaugural Session 09.00 A.M - 10.00 A.M Motivational Session
11.15 A.M - 01.15 P.M Technical Session - I 10.00 A.M - 11.00 A.M Inaugural Session
01.15 P.M - 02.30 P.M Lunch Break 11.00 A.M – 01.15 P.M Technical Session –III
02.30 P.M - 04.30 P.M Technical Session-II 01.15 P.M – 02.30 P.M Lunch Break
04.30 P.M - 06.00 P.M CFO's Meet 02.30 P.M – 04.30 P.M Technical Session-IV
07.00 P.M Onwards Conference Dinner & 04.30 P.M – 05.30 P.M Valedictory Session &
Cultural Programme Lucky Draw
N.B: CEP Credit: 08 Hours to the Participating CMAs.
Registration Fees
Corporate Delegate Rs.3,500/-
Self-Sponsor / Cost Accountants-in-Practice/Chapter Delegate Rs.1,500/-
CMA Student Rs.1,000/-
Accompanying Spouse Rs.1,000/-
N.B: Above Tariff is exclusive of GST
Advertisement Tariff for Souvenir
Advertisement Space Tariff
Back Cover (Colour) Rs.75,000/-
Front Inside Cover (Colour) Rs.50,000/-
Back Inside Cover (Colour) Rs.50,000/-
Center Spread (Colour) Rs.40,000/-
Special Full Page Inner (Colour) Rs.25,000/-
Ordinary Full Page Inner (Colour) Rs.20,000/-
Special Full Page (Black & White) Rs.15,000/-
Ordinary Full Page (Black & White) Rs.10,000/-
Ordinary Half Page (Black & White) Rs. 7,500/-
Ordinary Quarter Page (Black & White) Rs. 5,000/-
N.B: Above Tariff is exclusive of GST
Sponsorship Details
Type Amount (Rs.) Benefits
Platinum 5,00,000 1. Five free Delegates

2. Display on the Conference Backdrop as Platinum Sponsor
3. Full page Color coverage in Souvenir
Gold 4,00,000 1. Four free Delegates
2. Display on the Conference Backdrop as Gold Sponsor
Silver 3,00,000 1. Four free Delegates
2. Display on the Conference Backdrop as Silver Sponsor
3. Full page Black & White coverage in Souvenir
Lunch 3,00,000 1. Four free Delegates
2. Display at conference lunch and on the Conference Backdrop as
Sponsor
Memento 2,50,000 1. Three free Delegates
2. Sponsor name to be printed in Memento and Display on the
Conference Backdrop as Sponsor
Conference Kits 1,50,000 1. Two free Delegates
2. Sponsor Name printed in Conference Kit and Display on the
Conference Backdrop as Sponsor
High Tea 1,00,000 1. One free Delegate
2. Sponsor Name Display at Conference High Tea (Banner &
Standy)
3. Half page Black & White coverage in Souvenir
Tea 50,000 1. One free Delegate
2. Sponsor Name Display at Conference Tea
3. Quarter Page B & W Coverage in Souvenir
Stationary 40,000 1. One free Delegate
2. Display on the Conference Backdrop as Sponsor
3. Quarter Page B&W Coverage in Souvenir
Other (banner /Stall 25,000 1. One free Delegate
/Publicity / Material 2. Display on the Conference Backdrop as Sponsor
on request
Glimpses of 1st National Seminar
Glimpses of 2nd National Seminar
SNAPSHOTS – OF TRD ACTIVITIES
CMA Niranjan Mishra – Chairman of Indirect Taxation Committee discussed with Dr. John Joseph -
Special Secretary to Govt. of India and Member of CBIC, Mr. L. Satyaprakash - Joint Secretary
(Customs), Department of Revenue, Ministry of Finance, Shri Yogendra Garg - Principal Commissioner
of GST Policy Wing, CBIC regarding the ongoing activities on Indirect Tax of The Institute of Cost
Accountants of India and future road map to assist the Government to help the stakeholders
CMA Niranjan Mishra – Chairman of Indirect CMA Niranjan Mishra – Chairman of Indirect
Taxation Committee with Dr. John Joseph, Taxation Committee with Shri Yogendra Garg,
Special Secretary to Govt. of India and Member Principal Commissioner of GST Policy Wing,
of CBIC CBIC
CMA Niranjan Mishra – Chairman of Indirect

Taxation Committee with Mr. L. Satya Srinivas,
Joint Secretary (Customs), Department of
Revenue, Ministry of Finance
Tax Research Department and Madurai Chapter in association with Tamilnadu Chambers of Commerce
organized a seminar on 29th November 2019
Theme of the Seminar- GST moving Forward and Sabka Vishwas - A Ray of Hope
CMA Niranjan Mishra – Chairman of Indirect Taxation Committee , CMA H Padmanabhan - Chairman
Region - Chapter Coordination Committee, CMA Vishwanath Bhat - Treasurer of SIRC and other dignitaries
graced the seminar graced the seminar
Notes
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TAXATION COMMITTEE - PLAN OF ACTION
Proposed Ac on Plan:
1. Successful conduct of Cer ficate Course on GST.

2. Publica on and Circula on of Tax bulle n (both in electronic and printed formats) for the awareness
and knowledge upda on of stakeholders, members, traders, Chambers of Commerce, Universi es.
3. Publica on of Handbooks on Taxa on related topics helping stakeholders in their job delibera ons.
4. Carry out webinars for the Capacity building of Members - Trainers in the locality to facilitate the
traders/ registered dealers.
5. Conduc ng Seminars and workshops on industry specific issues, in associa on with the Trade
associa ons/ Traders/ Chamber of commerce in different loca on on prac cal issues/aspects
associated with GST.
6. Tendering representa on to the Government on prac cal difficul es faced by the stakeholders in
Taxa on related ma ers.
7. Upda ng Government about the steps taken by the Ins tute in removing the prac cal difficul es in
implemen ng various Tax Laws including GST.
8. Facilita ng general public other than members through GST Help-Desk opened at Head quarter of
the Ins tute and other places of country.
9. Introducing advance level courses for the professionals on GST and Income Tax.
10. Extending Crash Courses on Taxa on to Corporates, Universi es, Trade Associa ons etc.
Disclaimer:
The Tax Bulletin is an informational document designed to provide general guidance in simplified language on
a topic of interest to taxpayers. It is accurate as of the date issued. However, users should be aware that
subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The
information provided in these documents does not cover every situation and is not intended to replace the law
or change its meaning.
The opinion expressed in Article is fully based on the views of the experts. This information is provided for
public services only and is neither an advertisement nor to be considered as legal and professional advice and
in no way constitutes an attorney-client relationship between the Institute and the User. Institute is not
responsible or liable in any way for the consequences of using the information given.
© The Institute of Cost Accountants of India

Contact Details:
Tax Research Department

12, Sudder Street, KolKata - 700016
Phone: +91 33 40364747/ +91 33 40364798/ +91 33 40364711
E-mail: [email protected]

www.icmai.in

Ph: 091-33-2252 1031/34/35/1602/1492
Ph: 091-11-24666100
Behind every successful business decision, there is always a CMA

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DECEMBER, 2019

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

Headquarters: CMA Bhawan, 12 Sudder Street, Kolkata - 700016

Objec ves of Taxa on Commi ee:

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

Headquarters: CMA Bhawan, 12 Sudder Street, Kolkata - 700016

CMA Niranjan Mishra

CMA Rakesh Bhalla

Indirect Taxation Committee Direct Taxation Committee

Permanent Invitees Permanent Invitees

TEAM - TAX RESEARCH DEPARTMENT

Courses - Tax Research Department Page - 23

D igital India, a programme to transform

Where does India Stand?

Digital economy taxation, OECD Roadmap and

In March 2018, the Organisation for Economic

As per the recent report released by OECD, the

The report lays down a roadmap to rework the

From an India tax perspective, the report

What is the time line of the implementation of

The OECD plan for the new approach to taxation

J] The provisions regarding income-tax exemption

K] Where an assessee fails to claim exemption on

L] The amount of ex gratia under IT 10(10C) may

M] The exemption will be available even when

N] As an epilogue it may be submitted that the

Introduction Clarification for determination of Place of Effective

Assessment based on POEM

The Assessing officer proposes to hold a company

Who is affected by the Legislation?

 Subsidiary Companies / Joint Ventures of

Central Tax Notifications

Notification No. 57/2019 – Central Tax

Notification No. 58/2019 – Central Tax

This notification has been effective from 11th November, 2019.

Notification No. 59/2019 – Central Tax

This notification has been effective from 10th November, 2019.

This notification has been effective from 20th November, 2019

Notification No. 61/2019 – Central Tax

Notification No. 62/2019 – Central Tax

For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-62-central-tax-

Central Tax Rate Notifications

Integrated Tax Rate Notifications

Notification No. 25/2019 – Integrated Tax (Rate)

Union Territory Tax Rate Notifications

Notification No. 26/2019 – Union Territory Tax (Rate)

Circular No. 124/43/2019

For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-124.pdf

For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-125.pdf

Circular No. 126/45/2019

For More details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-126.pdf

CUSTOMS - NON TARIFF

Exchange Rates Notification No.85/2019-Custom (NT) dated 21.11.2019 –Reg

For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

Notification No 86/2019 - Customs (N.T)

For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

Circular No. 38/2019-Customs

For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-

For more details, please follow - http://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-