AHMEDABAD ICAI NEWS LETTER FOR THE MONTH OF JUNE-2021

The Institute of Chartered Accountants of India

(Setup by an Act of Parliament)

Ahmedabad Branch of WIRC of ICAI Word
Environment
E-NEWSLETTER
Day
Volume: 08 | ISSUE NO: 04 | June -2021

Chairman Message

OFFICE BEARERS Dear Members,
Chairman
CA. Harit Ashok Dhariwal “The best preparation for tomorrow is doing your
99789 42299 best today.” – H. Jackson Brown, Jr.
Vice Chairman
CA. Bishan R. Shah This is the motto that drives our team and we all are
98250 23573 working ceaselessly to stay in touch with the times as
Secretary well as thinking out of the box to be ahead of the
CA. Anjali Choksi curve. May 2021 was an enriching month as we had
98257 73179 conducted a number of programs for professional
Treasurer development, conducted first ever Direct Tax Web
CA. Sunil Sanghvi Convention (“DTWC”), continued with our COVID
93761 50100 related measures (Food kit delivery, COVID cab service, medicines at your
doorstep, Happy Feels, etc.), lot of technical sessions on GST, RERA, IBC,
Members Income Tax, Valuation etc., first ever Women Refresher Course, sessions on
CA. Ganesh Nadar Ergonomics, happiness & mental health and also conducted special Tambola
CA. Fenil Rajendra Shah with more than 450 participants from across the country.
CA. Rahul Kalulal Maliwal
One of our prime events - DTWC - was a tremendous success with more than
Ex. Officio Members 750 Members in attendance virtually on all four days. I am grateful to Chief
CA. Aniket Talati, CCM Guest Hon'ble Shri Pramod kumarji, Vice President ITAT for inaugurating the
98255 51448 DTWC and sharing his valuable insights. Extremely grateful to all the expert
CA. Hitesh Pomal, RCM faculties of DTWC for sparing their valuable time and making this DTWC a one-
98240 49402 of-its-kind event. We are also coming up with GST refresher course and special
CA. Vikash Jain, RCM series on IBC and valuation. Ahmedabad Branch is currently focusing on
93277 15892 various workshops and intensive programs specially designed to provide
CA. Chintan Patel, RCM adequate knowledge, tools and techniques to our members. I am happy to
90999 21163 note that all such programs conducted in May 2021, which include GST, Income
Tax, Forensics, Companies Act 2013, Ind AS and others have been very
Newsletter Committee successful with good participation from members.
Chairman:
CA. Rahul Maliwal After the grand launch of MOVEMENT 73 – a Fitness Carnival on 18th April,
Co-Chairperson: 2021, the event has now become a national movement with participation of
CA. Hemlata Dewnani more than 85 ICAI branches from across the country. We had started with
Convener: participation of 1,825 members and 14 branches of ICAI. As I write, we have
CA. Mohit Tibrewal more than 2,500 registered participants with 85 branches of ICAI join us for
this mega health & fitness initiative of Ahmedabad Branch. This innovative
Members: program, which was ideated before three months and supported &
CA. Kushal Reshamwala collaborated by branches across the country, will surely make everyone
CA. Monish Shah adaptable to a new and healthy lifestyle. I am thankful to each and every
CA. Mahadev Birla chairman and MCM of the branches that have joined us for reposing their faith
CA. Mahavir Shah in us. I am also very happy to inform that the Fit India Mission Directorate has
CA. Parth Jani approved our request for using the 'FIT INDIA' logo in our communications/
CA. Nimesh Hariya outdoor media channels for the event. We can use the hashtag
CA. Jitendra Teelani #NewIndiaFitIndia and also tagline "Fitness ki Dose Aadha Ghanta Roz" on our
CA. Nancy Logar campaign flyers and participation certificates. We are proud to have

Whats Inside??? Direct Tax Update 10 Indian Economy 18
Excel in Excel 20
Editorial 02 Direct Tax Quick Connect 12 Imp Dates 21
Accounting & Co. Law Updates 03 Motivational Story 22
GST Updates 05 International Taxation 14 Event in Images 23
GST Quick Connect 07
FEMA Updates 15

RERA Updates 17

JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Red FM 93.5, FitFormance, Fitness Experts & support that you or your family members may
Nimba Nature cure as our event partners. The require.
registration for the movement is still on, so
those who want to join this unique health We would urge you to stay connected and
carnival, please register at the earliest. continue to provide your unstinting support to
all the endeavors of the Branch. We take
For the month of June, we have several sessions inspiration from our past and prepare a
planned on the skill development for members foundation at the present to ensure a strong
and students, sessions on new practice areas, future. Would end by quoting the words of
GST refresher course and many more technical Ralph Waldo Emerson, “Progress is the
sessions to help members learn, unlearn and activity of today and the assurance of
relearn the ever changing laws. In these tomorrow.”
uncertain times, let's stay connected and help
each other to the maximum extent possible. With best regards,
Ahmedabad Branch is always with you and we CA Harit Dhariwal
are all always available for any assistance / Chairman, Ahmedabad Branch of WIRC of ICAI

EDITORIAL
G r e e t i n g s t o a l l o u r Inspite of all these turbulent time our branch is

members!! constantly organizing the various webinars on

M o n t h o f M a y h a s topics like GST, Direct tax, corporate tax and

w i t n e s s e d m a n y RERA for knowledge updating. Chartered

challenges which are Accountants are the pillar of Indian economy, so

never thought before in we have to come out of comfort and forecast

t h e s e c o n d w a v e o f the new opportunities coming to us. It's now

COVID 19. The demon of globally acclaimed that India would be now an

COVID-19 spreading very international hub for multinational companies

fast. Many states are for Investment and major shift of business will

locking down the various establishments, come to India from China. So that can covert this

running of trains and flights. With Ahmedabad pandemic into a great value addition.

being the most impacted district, we need to This newsletter includes all the recent changes in

still stand strong. These are challenging times corporate law, GST, Direct & International

that we are living in. The fight against the Taxation, Rera and Theory of long term

pandemic COVID-19 has necessitated drastic investing. Members those who are willing to

measures to be taken. The situation calls for contribute for newsletter on any topic can share

maintaining mental equilibrium and we must the same with us at [email protected]

remember to motivate each other and keep the

morale of the entire family and friends up in Healthy mind lives in Healthy body, and Healthy

testing times like this. So dear Members it's the body makes Healthy India. So Ahmedabad

time to sharpen our skills and introspect in branch has started with Movement 73 on 18th

oneself. The most wonderful way to sharpen April to make you fitter and immune. So

the same is read a lot. Members are requested to take the benefit of

same also.

This is how Warren Buffett, one of the most

successful people in the business world, Formal education will make you a living; self-

describes his typical day: “I just sit in my office education will make you a fortune. —Jim Rohn

and read all day.” So this is the time to self-educate our self and

support each other.

Sitting.Reading.Thinking.Buffett credits many of Justrememberthegoldendaysare waiting for us.

his successful decisions to his incredible reading

habit. He estimates that he spends as much as StaySafeandStayHappy!!
80 percent of his day reading and thinking. In a
2014 letter to Berkshire Happy learning!!
CA Rahul Maliwal
Chairman , Newsletter Committee

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Accounting & Company Law Updates

1. Relaxations in filing forms (Circular No. Compiled by: CA. Chintan Patel
6 and 7)
(a) Relaxation of time for filing certain related to creation or modification of
forms under the Companies Act, 2013 charges under the Companies Act, 2013
If due date of any form (except CHG-1, CHG-4 In respect of filing form CHG-1 and CHG-4,
and CHG-9) is falling between 1st April, 2021 the relaxation is provided where the date of
to 30th May, 2021 then those forms can be creation/modification of charge is before
file without additional fees till 31st July, 1.4.2021 but the timelines had not expired
2021 as on 1.4.2021 OR falls any date between
h p://www.mca.gov.in/Ministry/pdf/GeneralCircula 1.4.2021 and 31.05.2021. Please refer the
rNo6_03052021.pdf circular for details.
(b) Relaxation of time for filing forms h p://www.mca.gov.in/Ministry/pdf/GeneralCircula
rNo7_03052021.pdf
List of forms providing waiver of additional
fee as per Circular no. 06/2021 and 07/2021

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2. Gap between two board meetings under incurred towards Corporate Social
section 173 of the Companies Act, 2013 Responsibility (CSR) pursuant to the
Companies (Corporate Social Responsibility
MCA has extended the gap between two board Policy) Amendment Rules, 2021
meetings by 60 days for first two quarters of ICAI has issued FAQ on accounting of CSR
financial year 2021-22. Accordingly, the gap expenditure on 10th May 2021. The following
between two consecutive Board Meetings may recommendation of CSR accounting is given:
extend to 180 days during the Quarter of April to · CSR expenditure would be recognised as
June and Quarter of July to September '21.
h p://www.mca.gov.in/Ministry/pdf/GeneralCircular expense in the statement of profit or
No8_03052021.pdf loss as and when such expenditure is
incurred on the CSR activities undertaken
3. MCA: Clarification on offsetting the as per the Board approved CSR Policy and
excess CSR spent for FY 2019-20 CSR projects during the financial year.
It is hereby clarified that where a company has · For the “unspent amount”, a legal
contributed any amount to 'PM CARES Fund' obligation arises to transfer to specified
on 31.03.2020, which is over and above the accounts depending upon the fact whether
minimum amount as prescribed under section such unspent amount relates to ongoing
135(5) of the Companies Act, 2013 (“Act”) for projects or not. Therefore, liability needs
FY 2019-20, and such excess amount or part to be recognised for such “unspent
thereof is offset against the requirement to amount” as at the end of the financial
spend under section 135(5) for FY 2020-21 in year as per para 17(a) of Ind AS 37.
terms of the aforementioned appeal, then the · Further as per Ind AS 34, Interim Financial
same shall not be viewed as a violation subject Statements, CSR obligation will be
to the conditions that: recognised based on the principles for
i. the amount offset as such shall have recognition of the same in annual financial
factored the unspent CSR amount for statements.
previous financial years, if any; Kindly find the announcement at
ii. the Chief Financial Officer shall certify that h ps://resource.cdn.icai.org/64758asb51955.pdf.
the contribution to “PMCARES Fund”
was indeed made on 31st March 2020 in 4. Publication on Accounting Standards:
pursuance of the appeal and the same Quick Referencer for Micro Non-company
shall also be so certified by the entities
statutory auditor of the company; and ASB of ICAI has issued Publication on
iii. the details of such contribution shall be Accounting Standards: Quick Referencer for
disclosed separately in the Annual Micro Non-company entities vide
Report on CSR as well as in the Board's announcement dated 25.05.2021.
Report for FY 2020-21 in terms of The Publication has two Parts, viz, Part I and
section 134 (3) (o) of the Act Part II.
h ps://www.mca.gov.in/bin/dms/getdocument? Part I provides an overview of recognition and
mds=UsSM82fwIjCsgnzebuiang%253D%253D&typ measurement related provisions prescribed
e=open in AS applicable to MiNCE and Part II include
Disclosures Checklist under AS applicable to
4. FAQ on Accounting for amounts to be these entities. I Refer/download the
Publication from
h ps://resource.cdn.icai.org/64842asb52105.pdf

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GST Updates

1) The petitioner is entitled to the refund of the Compiled by: CA. Monish Shah
amounts paid during investigation. Merely because
an assessee has, under the stress of investigation, or the other of two benefits, namely duty draw back
signed a statement admitting tax liability and has or Input Tax Credit. Thus, an option has been
also made a few payments as per the statement, extended to an assessee engaged in zero rated sale
cannot lead to self-assessment or self- to either claim the benefit of duty drawback or the
ascertainment. Shri Nandhi Dhall Mills India Private benefit of refund of ITC. The court noted that the
Limited V/s Directorate General of Goods and petitioner, for the month of July, 2017 has opted to
Service Tax-[2021] 35 TAXLOK.COM 003 (Madras) stick with the claim of duty drawback seeing as the
amount of drawback is higher than the ITC for the
2) The AAR, Gujrat in the matter of M/S Manoj months of August and September, 2017.
Bhagwan Mansukhani (M/S. Rishi Shipping) Therefore, the court held that on a plain reading
[GUJ/GAAR/R/12/2021 dated January 27, 2021] of Section 54 (3) the claim of refund to be in order.
ruled that services provided viz. stevedoring, The orders of the appellate authority are set aside
transportation, storage, bagging, stuffing, and and the authority is directed to refund the
transportation of the goods which are temporarily sanctioned amounts within a period of six weeks.
imported into India before exporting shall not be In doing so, the contents of paragraph 2.5 of the
considered as 'Export of service' upto January 31, Circular will not stand in the way since a circular
2019, but shall be considered as 'Export of service' cannot stand in the way of a benefit offered under
w.e.f. February 01, 2019. Accordingly, it shall not be a statutory scheme. Paragraph 2.5 of the circular,
eligible for 'Zero rated Supply' under Section 16 of insofar as it is contrary to the statutory provisions
the Integrated Goods and Services Tax Act, 2017 ( of Section 54(3) is bad in law.
“IGST Act” ) upto January 31, 2019, but shall be
eligible for the same w.e.f. February 01, 2019. 5) The Applicant and the other two co-owners cannot
be treated as an association of persons and,
3) HC in Vijay Metal V/s The Deputy CTO 2021 (5) TMI therefore, as a person defined under section 2(84)(f)
166 Telengana HC did not accept the contention of of the GST Act, where their income from renting is
the officer that even if the goods meant to be separately ascertainable and assessed for income
delivered at Adoni were loaded on top of the tax individually at the hand of each co- owner.
conveyance, the said goods should have been Whether the Applicant is required to be registered
unloaded and then reloaded after unloading the under section 22(1) of the GST Act will, therefore,
goods intended for the petitioner at Hyderabad. depend on his gross turnover, ascertained separately
Such view, in their opinion, is utterly perverse and from the other co- owners, exceeding the threshold
cannot be accepted. There is no prohibition for a as provided under the Act.This Ruling is valid subject
consignor to load the consignments to two different to the provisions under Section 103(2) until and
destinations intended for two different parties in unless declared void under Section 104(1) of the GST
two different States on a single conveyance. The Act. Held By West Bengal AAR in the matter of Sri
petitioner cannot be said to have any intention to Rabi Shankar Tah
evade tax if any mistake is, for the sake of argument
without conceding it, has been committed by the 6) Where applicant is engaged in supplying and
transporter That the transaction involving the installation of robotic cleaning system for cleaning
petitioner was 'suspicious' and that the photovoltaic solar panel arrays in solar parks, since
transporter was found 'without proper said product is working on solar power, it merits
documents' is perverse and cannot be sustained in classification under heading No. 8479 and qualifies as a
these circumstances. solar power based device in terms of sub-clause (b) of
Entry No. 234 of Notification No. 1/2017 Integrated
4) The Madras High Court in the matter of tax (Rate), dated 28-6-2017 and is liable to GST at 5%.
M/s.Chaizup Beverages LLP while allowing the Further, there being two supplies, one of supply of
refund ruled that the circular cannot deny the goods, i.e., robotic cleaning system and other
benefit offered under Statutory Provisions. The erection and commissioning of same and they both
Single Judge Bench said that it is clear from a reading are being naturally bundled, it is a composite supply
of Section 54(3) that the petitioner is entitled to one under section 2(30).//AUTHORITY FOR ADVANCE
RULINGS, HARYANA//Ecoppia Scientific LLP

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7) The term “input” is defined in Section 2(59) of State Tax [W.P. No. 7789 of 2021, dated March 31,
the CGST Act as follows:- 2(59) “input” means any 2021] set aside the best judgment assessment
goods other than capital goods used or intended order passed for non-compliance with the request
to be used by a supplier in the course or to file GSTR-3B return, by the Assistant
furtherance of business. With regard to the Commissioner under Section 62 of the Central
promotional items such as gondola racks, wall Goods and Services Tax Act, 2017 ( “CGST Act” ),
shelves and panels, POP items such as being prima facie arbitrary and contrary to the
mannequins and half busts, storage units, provisions of the CGST Act. Remanded back the
hangers, signages, posters, display stands, etc, matter for fresh consideration and directed the
AAAR find from the copies of the agreements Authority to pass a reasoned order w.r.t. levy of
furnished by the Appellant that there is a tax, interest and penalty, in accordance with the
contractual obligation on the part of the law.
Appellant to provide their EBO/franchisees and
distributors promotional materials. The purpose 9) The Tripura High Court ruled that the GST
of providing the EBO/franchisees and distributors applicable on Sale of Rice even if Brand name is not
with these promotional items is to enhance the registered. The Petitioner, M/S Sarvasiddhi
sales of their products. Thus, AAAR have no Agrotech Pvt. Ltd. is engaged in the supply of rice.
hesitation in concluding that these promotional According to the petitioner, the company supplies
items (referred to by the lower Authority as 'non- Non-Basmati un-branded rice. “The brand names
distributable goods') are indeed used in the under which the petitioner was selling the rice
course or furtherance of the Appellant's may not have been registered, nevertheless it
business.The Appellant has also urged before us could lead to an actionable claim in a court of law.
that these promotional items are not capitalised In order to avoid inviting liability of tax, the
in their books of accounts but are always treated petitioner had to forgo such actionable claim
as revenue expenditure and hence they cannot be which also the authorities found the petitioner
considered as 'capital goods'. This is in tune with had not done
the normal accounting practices. We therefore,
disagree with the finding of the lower Authority Notification / Circulars
and hold that the promotional items purchased by 1) Guidelines are issued on 24th May 2021 with
the Appellant and provided to the regards to Cancellation of Registration under Rule
EBOs/franchisees, distributors and retailers are 22(3) of CGST Act -2017. Vide CBEC-
not capital goods but 'inputs' which are used in the 20/16/34/2019-GST. The cancellation now has to
course or furtherance of business. Section 17(2) mandatory to be done within 30 days
provides that input tax credit shall be allowed only 2) SOP was issued for Implementation of the
when the goods and services or both are used for provisions of extension of time limit to apply for
business purposes or for making a taxable supply revocation of cancellation of registration under
(including zero-rated supply). When the goods or Sec 30 of the CGST Act 2017 and rule 23 of the
services or both are used towards making an CGST Rules 2017.Vide CBEC No 148/04/2021-GST
exempt supply, then input tax credit is not 3) Notification No 15/2021 of CGST Act dated
allowed. As per Section 2(47) of the CGST Act, the 18/05/2021
term 'exempt supply' also includes non-taxable a) Days counting from RFD 01 to RFD 03, not to be
supply. In view of the above provisions, AAAR hold counted in the period of 2 years in case of fresh
that the GST paid on the procurement of refund application after rectifying the deficiencies
promotional items supplied to the b) Form RFD -01W introduced, being refund
EBOs/franchisees and distributors free of charge withdrawal form, which can be filed before RFD 04
will not be eligible for input tax credit since the or RFD 05 or RFD 06 or RFD 07 or RFD 08
said supply is a non-taxable supply.Therefore, c) On submission of RFD 01W, amount debited from
AAAR hold that input tax credit is not eligible on ECL shall be credited back
the promotional items distributed as give away d) In REG 21 form for application for revocation of
items on the grounds that the same is blocked by cancellation of registration, within such extended
virtue of the provisions of Section 17(2) and period by AC or JC or Commissioner inserted
Section 17(5)(h) of the CGST. KAR/Appeal -5/2020- e) In E way bill rules 138E, in respect of OUTWARD
21 Page Industries MOVEMENT OF GOODS of a registered person,
shall be inserted.
8) The Hon'ble Telangana High Court in case of M/S f) In RFD 07, Part A being order for withholding
Golden Mesh Industries v. Assistant Commissioner refund and PART B being order for release of
withheld refund, inserted

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GST Quick Connect

Compiled by: CA. Parth Joshi

Can ITC be disallowed in the hands of buyer without
initiating recovery against the defaulting seller?

1. Introduction: note referred to in clause (a) has been
This article speaks about the validity of the act furnished by the supplier in the
by the Revenue for recovering of taxes from the statement of outward supplies and such
buyer without confronting the sellers and details have been communicated to the
inaction against them. recipient of such invoice or debit note in
the manner specified under section 37;
2. Issue:
Can Input Tax Credit (ITC) be disallowed in the (b) he has received the goods or services
hands of buyer without initiating recovery or both.
against the defaulting seller?
Explanation — For the purposes of this
3. Legal Background: clause, it shall be deemed that the
3.1 Eligibility and Conditions for taking registered person has received the
Input Tax Credit [Section 16 of the CGST Act]: goods or, as the case may be, services–
(1) Every registered person shall, subject to (I) where the goods are delivered by the
such conditions and restrictions as may be supplier to a recipient or any other
prescribed and in the manner specified in person on the direction of such
section 49, be entitled to take credit of input registered person, whether acting as an
tax charged on any supply of goods or services agent or otherwise, before or during
or both to him which are used or intended to be movement of goods, either by way of
used in the course or furtherance of his transfer of documents of title to goods
business and the said amount shall be credited or otherwise;
to the electronic credit ledger of such person. (ii) where the services are provided by
the supplier to any person on the
(2) Notwithstanding anything contained in direction of and on account of such
this section, no registered person shall be registered person.
entitled to the credit of any input tax in
respect of any supply of goods or services (c) subject to the provisions of section
or both to him unless, –– 41, the tax charged in respect of such
supply has been actually paid to the
(a) he is in possession of a tax invoice or Government, either in cash or through
debit note issued by a supplier utilisation of input tax credit admissible
registered under this Act, or such other in respect of the said supply; and
tax paying documents as may be
prescribed; (d) he has furnished the return under section
39.
(aa) the details of the invoice or debit

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Provided that where the goods against an necessitated initiation of the impugned
invoice are received in lots or instalments, proceedings. There is no doubt that the
the registered person shall be entitled to respondent had issued shows cause notices to
take credit upon receipt of the last lot or the petitioners herein.
instalment:
6. Petitioner's Contention:
Provided further that where a recipient The petitioners submitted their replies
fails to pay to the supplier of goods or specifically taking the stand that all the
services or both, other than the supplies on amounts payable by them had been paid to the
which tax is payable on reverse charge said Charles and his wife Shanthi and that
basis, the amount towards the value of therefore, those two sellers will have to be
supply along with tax payable thereon necessarily confronted during enquiry.
within a period of one hundred and eighty Unfortunately, without involving the said
days from the date of issue of invoice by Charles and his wife Shanthi, the impugned
the supplier, an amount equal to the input orders came to be passed levying the entire
tax credit availed by the recipient shall be liability on the petitioners herein.
added to his output tax liability, along with
interest thereon, in such manner as may be 7. Respondent's Contention:
prescribed: The respondent has filed a detailed counter
Provided also that the recipient shall be affidavit and contended that the impugned
entitled to avail of the credit of input tax orders, do notwarrant any interference.
on payment made by him of the amount
towards the value of supply of goods or The learned Government Advocate would point
services or both along with tax payable out that the petitioners had availed input tax
thereon. credit on the premise that tax had already been
(3) ……… remitted to the Government, by their sellers.
(4) ……… When it turned out that the sellers have not paid
any tax and the petitioners could not furnish any
4. Name of the Case: M/s. DY Beathel proof for the same, the department was
Enterprises V/s. State Tax Officer [Madras High entirely justified in proceeding to recover the
Court (2021)] same from the petitioners herein. The
respondent cannot be faulted for having
5. Facts of the Case: reversed whatever ITC that was already availed
The petitioners herein are dealers, registered by the petitioners herein.
with Nagercoil Assessment Circle. Though the
petitions are 17 in number, the issue raised in all 8. Hon'ble High Court's Observations:
these writ petitions is virtually one and the (i) The learned counsel for the petitioners would
same. The petitioners are traders in Raw Rubber draw my attention to the decision of the Madras
Sheets. According to them, they had purchased High Court made in Sri Vinayaga Agencies V/s.
goods from one Charles and his wife Shanthi. The Assistant Commissioner, CT Vadapalani,
reported in 2013 60 VST page 283. It was held
The specific case of the petitioners is that a therein that the authority does not have the
substantial portion of the sale consideration jurisdiction to reverse the input tax credit
was paid only already availed by the assesses on the ground
through banking channels. The payments made that the selling dealer has not paid the tax. I am
by the petitioners to the said Charles and his afraid that this proposition laid down in the
wife, included the tax component also. Charles context of the previous tax regime may not be
and his wife are also said to be dealers straight-away applicable to the current tax
registered with the very same assessment regime.
circle.
(ii) At this stage, the learned counsel brought to
Based on the returns filed by the sellers, the my notice that the press release issued by the
petitioners herein availed input tax credit. Later, Central Board of GST council on 4.5.2018. In the
during inspection by the respondent herein, it said press release, it has been mentioned that
came to light that Charles and his wife, did not there shall not be any automatic reversal of
pay any tax to the Government. That input tax credit from the buyer on non-

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payment of tax by the seller. In case of default 9. Held:
in payment of tax by the seller, recovery shall That apart in the enquiry in question, the
be made from the seller. However, reversal of Charles and his Wife ought to have been
credit from buyer shall also be an option examined. They should have been confronted.
available with the revenue authorities to This is all the more necessary, because the
address exceptional situations like missing respondent has taken a stand
dealer, closure of business by the supplier or that the petitioners have not even received the
the supplier not having adequate assets etc. goods and had availed input tax credits on the
strength of generated invoices.
(iii) It can be seen therefrom that the assessee
must have received the goods and the tax According to the respondent, there was no
charged in respect of its supply, must have been movement of the goods. Hence, examination of
actually paid to the Government either in cash Charles and his wife has become all the more
or through utilization of input tax credit, necessary and imperative. When the petitioners
admissible in respect of the said supply. have insisted on this, I do not understand as to
Therefore, if the tax had not reached the kitty of why the respondent did not ensure the
the Government, then the liability may have to presence of Charles and his wife Shanthi, in the
be eventually borne by one party, either the enquiry. Thus, the impugned orders suffer from
seller or the buyer. In the case on hand, the certain fundamental flaws. It has to be quashed
respondent does not appear to have taken any for more reasons than one.
recovery action against the seller / Charles and
his wife Shanthi, on the present transactions. a) Non-examination of Charles in the enquiry.
b) Non-initiation of recovery action against
(iv) The learned counsel for the petitioners Charles in the first place.
draws my attention to the order, dated
27.10.2020, Finalising the assessment of the Therefore, the impugned orders are quashed
seller by excluding the subject transactions and the matters are remitted back to the file of
alone. I am unable to appreciate the approach the respondent. The stage up to the reception
of the authorities. When it has come out that of reply from the petitioners herein will hold
the seller has collected tax from the good. Enquiry alone will have to be held afresh.
purchasing dealers, the omission on the part In the said enquiry, Charles and his wife Shanthi
of the seller to remit the tax in question must will have to be examined as witnesses.
have been viewed very seriously and strict Parallelly, the respondent will also initiate
action ought to have been initiated against recovery action against Charles and his wife
him. Shanthi.

It is a matter of immense pleasure to inform you that Past chairman of our
Ahmedabad branch CA Jainik Nautam Vakil is appointed as the Chairman of
Revenue Committee of Ahmedabad Municipal Corporation. We are very proud
of him and wish him the best for his new role as chairman of revenue committee
of AMC.

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Direct Tax Updates

1. Press Release dated 20.05.2021 – Compiled by: CA. Mohit R. Tibrewala

Government extends certain timelines of an approved superannuation fund for
the Financial Year 2020-21, required to
in light of severe pandemic be sent on or before 31st May, 2021 under
The Central Government, in continuation Rule 33 of the Rules, may be sent on or
of its commitment to address the before 30th June, 2021;
hardship being faced by various
stakeholders on account of the severe vii. The Statement of Income paid or
Covid-19 pandemic, has, on credited by an investment fund to its unit
consideration of representations holder in Form No 64D for the Previous
received from various stakeholders, Year 2020-21, required to be furnished
decided to extend timelines for on or before 15th June, 2021 under Rule
compliances under the Income-tax 12CB of the Rules, may be furnished on
Act,1961 (hereinafter referred to as “the or before 30th June, 2021;
Act”) in the following cases, as under:
viii. The Statement of Income paid or
i. T h e S t a t e m e n t o f F i n a n c i a l credited by an investment fund to its unit
Transactions(SFT) for the Financial Year holder in Form No 64C for the Previous
2020-21, required to be furnished on or Year 2020-21, required to be furnished
before 31stMay, 2021 under Rule 114E of on or before 30th June, 2021 under Rule
the Income-tax Rules, 1962 (hereinafter 12CB of the Rules, may be furnished on
referred to as “the Rules”) and various or before 15th July, 2021;
notifications issued thereunder, may be
furnished on or before 30th June, 2021; ix. The due date offurnishing of Return of
Income for the Assessment Year 2021-
ii. The Statement of Reportable Account 22, which is 31st July, 2021 under sub-
for the calendar year 2020, required to be section (1) of section 139 of the Act, is
furnished on or before 31st May, 2021 extended to 30th September, 2021;
under Rule 114G of the Rules, may be
furnished on or before 30th June, 2021; x. The due date offurnishing of Report of
Audit under any provision of the Act for
iii. The Statement of Deduction of Tax for the Previous Year 2020-21, which is 30th
the last quarter of the Financial Year September, 2021, is extended to 31st
2020-21, required to be furnished on or October, 2021;
before 31st May, 2021 under Rule 31A of
the Rules, may be furnished on or before xi. The due date of furnishing report from
30th June, 2021; an Accountant by persons entering into
international transaction or specified
iv. The Certificate of Tax Deducted at domestic transaction under section 92E
Source in Form No 16, required to be of the Act for the Previous Year 2020-
furnished to the employee by 15th June, 21,which is 31st October, 2021, is
2021 under Rule 31 of the Rules, may be extended to 30th November, 2021;
furnished on or before 15th July, 2021;
xii. The due date of furnishing of Return of
v. T h e T D S / TC S B o o k A d j u s t m e n t Income for the Assessment Year 2021-
Statement in Form No 24Gfor the 22, which is 31st October, 2021 under sub-
month of May 2021, required to be section (1) of section 139 of the Act, is
furnished on or before 15th June, 2021 extended to 30th November, 2021;
under Rule 30 and Rule 37CA of the
Rules, may be furnished on or before 30th xiii. The due date of furnishing of
June, 2021; Return of Income for the Assessment
Year 2021-22, which is 30th November,
vi. The Statement of Deduction of Tax 2021 under sub-section (1) of section 139
from contributions paid by the trustees of the Act, is extended to 31st December,
2021;

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xiv.T h e d u e d a t e o f f u r n i s h i n g o f 3. N o t i fi ca t i o n N o. 4 1 / 2 0 2 1 d a te d
belated/revised Return of Income for 03.05.2021 – Income Tax (13th
the Assessment Year 2021-22, which is Amendment) Rules, 2021
31st December, 2021 under sub-section
(4)/sub-section (5) of section 139 of the In the Income-tax Rules, 1962, after rule
Act, is extended to 31st January, 2022. 11UC, the following rule shall be
It is clarified that the extension of the inserted, namely:-
dates as referred to in clauses (ix), (xii)
and (xiii) above shall not apply to “11UD. Thresholds for the purposes of
Explanation 1 to section 234A of the Act, significant economic presence. —
in cases where the amount of tax on the
total income as reduced by the amount as (1) For the purposes of clause (a) of
specified in clauses (i) to (vi) of sub- Explanation 2A to clause (i) of sub-
section (1) of that section exceeds section (1) of section 9, the amount of
rupees one lakh. Further, in case of an aggregate of payments arising from
individual resident in India referred to in transaction or transactions in respect of
sub-section (2) of section 207 of the Act, any goods, services or property carried
the tax paid by him under section 140A of out by a nonresident with any person in
the Act within the due date (without India, including provision of download of
extension ) provided in that Act, shall be data or software in India during the
deemed to be the advance tax. previous year, shall be two crore rupees;
CBDT Circular No.9/2021 in
F.No.225/49/2021/ITA-II dated (2) For the purposes of clause (b) of
20.05.2021 issued. The said Circular is Explanation 2A to clause (i) of sub-
available on www.incometaxindia.gov.in. section (1) of section 9, the number of
h ps://pib.gov.in/PressReleasePage.aspx?PRID= users with whom systematic and
continuous business activities are
1720357 solicited or who are engaged in
interaction shall be three lakhs. ”.
2. Press Release dated 20.05.2021 –
https://www.incometaxindia.gov.in/communi
Launch of new e-filing Portal of the Income cations/notification/notification_41_2021.pdf

Tax Department - Non-availability of e-filing 4. N o t i fi ca t i o n N o. 5 6 / 2 0 2 1 d a te d
07.05.2021 – Amendment in section
services from 01.06.2021 to 06.06.2021 269ST

The Income Tax Department is going to The Central Government, in exercise of
launch its new e-filing portal powers conferred by clause (iii) of
www.incometax.gov.in on 7th June, 2021. Proviso to Section 269ST of the Income-
The new e-filing portal tax Act, 1961, hereby specifies Hospitals,
(www.incometax.gov.in) is aimed at Dispensaries, Nursing Homes, Covid Care
providing taxpayer convenience and a Centres or similar other medical facilities
modern, seamless experience to providing Covid treatment to patients
taxpayers: for the purpose of Section 269ST of the
Income-tax Act,1961 for payment
In preparation for this launch and for received in cash during 01.04.2021 to
migration activities, the existing portal 31.05.2021, on obtaining the PAN or
of the Department at AADHAAR of the patient and the payee
www.incometaxindiaefiling.gov.in would and the relationship between the patient
not be available to taxpayers as well as and the payee by such Hospitals,
other external stakeholders for a brief Dispensaries, Nursing Homes, Covid Care
period of 6 days i.e. from1st June, 2021 Centres or similar other medical
to 6th June, 2021. facilities.

https://pib.gov.in/PressReleasePage.aspx?PR https://www.incometaxindia.gov.in/communi
ID=1720352 cations/notification/notification_56_2021.pdf

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Direct Tax Quick Connect

Compiled by: CA. Kushal Reshamwala

Article explains Basic concept of Stock 2. Investing in Stock market – F&O Trading
Market Trading and its impact on taxation, C. Business
Taxation for Investing in Stock market –
Equity Trading as Business and as Investment, o Normal business considers as Non
Taxation for Investing in Stock market – F&O – Speculative.
Trading as Non Speculation Business, How to
compute turnover limit in F&O, carry forward Basic concept for better understanding
of Loss in F&O. Derivatives are the instruments whose value is
derived from an underlying asset. Its value is
1. Investing in Stock market – Equity Trading based on an underlying asset. The most popular
A. Business derivatives are futures and options.

o Speculative (Intra-day Trading) Futures is a contract to buy or sale an
o Non-Speculative (Frequent underlying asset on a specified date at a pre-
determined price. On expiry of contract, futures
Delivery based Trading) are executed by delivering the underlying asset
B. Investment or through payment.

o Short Term
o Long term

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Options is a contract same as future, except in investment holding for more than 1 years
option, one party of the contract has an option 1. Tax rate -10% (gain upto Rs. 1 lakh not
(right). chargeable to tax)
2. Long term capital loss can be set off only
Intra-day trading deals with buying and selling against long term capital gain
of stocks on the same day, during the trading 3. Can be carried forward for 8 assessment year
hours such that all positions are closed before (subject to return filled within time limit as per
the market closes for the trading day. section 139(1))

“Profits & Gains from Business or Profession” Short term capital gain /loss- holding period
(section 43(5) of the Income Tax Act) “Profit” is more than 1 day and less than 1 year
from Intraday Trading will be considered as 1. Tax rate -15%
Speculation Gain “Loss” from Intraday Trading 2. Short term capital loss can be set off against any
will be considered as Speculation Loss capital gain (long term / short term)
3. Can be carried forward for 8 assessment year
Speculative income– (Intraday “Equity” (subject to return filled within time limit as per
Trading) Profits made from intraday trading of section 139(1))
equity shares are classified as speculative
income. This is so because those investing in a Taxation for Investing in Stock market – F&O
stock for less than a day are presumably not Trading as Non Speculation Business
investing in the company but only keen on Section 43 subsection 5 has excluded
speculating its price volatility to turn a profit transaction of future and options as speculative
transaction. However exemption is available
Non-speculative income- (Intraday “F&O” only for equity. Thus if F&O for commodities are
trades) Profits made from intraday or overnight done the same will be termed as Speculative in
trading of Futures and Options are considered Nature. Other then commodity trading profit or
to be non-speculative income. This is so because loss arising out of transaction is treated as
certain F&O contracts still have a delivery clause Business Loss or profit in nature.
whereby the underlying shares/commodities
exchange hands between traders on the expiry How to compute turnover limit in F&O?
of contracts. Ans: In normal business turnover is based on
sales and thus reaching the limit takes time. But
Taxation for Investing in Stock market – in F&O it reached easily as each lot is valued
Equity Trading as Business high, Limit is reached easily. Therefore
computation method need be different. Thus
· Speculative business income/loss for computing turnover limit Following things
(intra-day equity trading) should be added:
a. Profits from the trade
1. Tax rate- normal rate of tax as per slabs b. Loss from the trade
2. Loss in speculation business can be set off c. Premium received from sale of Options
only against profit in speculation business d. In case of Reverse Trade, difference should
3. Can be carried forward for 4 assessment year also be added
(subject to return filled within time limit as per For computation of turnover of futures, the
section 139(1)) total of positive and negative or favorable and
· Non-speculative business income/loss unfavorable differences shall be taken as
1. Tax rate- normal rate of tax as per slabs turnover.
2. Loss from a non-speculation business can be
set off against income from speculation or non- Conclusion: Based on the above discussion it
speculation business (except salary income) can be said that F&O profit/loss consider as
3. Can be carried forward for 8 assessment year Normal business profit/loss and Equity
(no time limit for unabsorbed depreciation, exp. Profit/loss differ as per case to case on basis
on scientific research, loss from specified maintaining books of accounts & separation of
business u/s 35AD) (subject to return filled Trading equity and investment equity. However
within time limit as per section 139(1)) computation needs to be done carefully in order
to avoid the litigation.
Taxation for Investing in Stock market –
Equity Trading as Investment
Long term capital gain /loss- equity

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International Taxation Updates

Compiled by: CA. Nancy Logar

1. CBDT notifies threshold for the prescribed under Section 115-O of the
provisions of Significant Economic Income tax Act.
Presence
Facts of the case:
Recently, CBDT has issued a notification · Taxpayer had distributed dividends to its
prescribing following thresholds for the
purposes of Significant Economic Presence, non-resident shareholder, a Malaysian
effective from 1 April 2022: company during AY 2013-14 and 2014-15.
· During appellate proceedings, taxpayer
· Amount of aggregate of payments raised an additional ground and
arising from transactions in respect of contended that DDT rate
any goods, services or property carried on dividend distributed to non-resident
out by a non-resident with any person in shareholder should be restricted to 5%
India, including provision of download of being the rate tax of dividend tax in tax
data or software in India during the treaty.
previous year, shall be INR 20 million.
Tribunal decision:
· Number of users with whom systematic · Tribunal further concluded that the
and continuous business activities are
solicited or who are engaged in obligation shifted to the company for
interaction shall be 300,000. paying the dividend tax only for
administrative convenience.
2. Beneficial tax treaty rate will apply on · Taxability to be considered from the
dividends distributed to non-resident perspective of the recipient.
shareholders · Relying on other Tribunal decision, the
Recently, Kolkata Tribunal in case of Oil Tribunal held that DDT rate would be
Petronas Pvt Ltd (taxpayer) held that rate restricted to 5% rate prescribed under
specified in India – Malaysia tax treaty (tax tax treaty and remitted the matter to the
treaty) would apply to dividend distributed file of tax officer for fresh adjudication
to non-resident shareholders and not the and examination of relevant articles of
Dividend Distribution Tax (DDT) rate tax treaty.
Source: Kolkata Tribunal ruling in ITA No. 1884
& 1885/Kol/2019

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FEMA Updates

1. P r e s s N o t e t o c l a r i f y a b o u t Compiled by: CA. Nehal Sheth
downstream investment made by Indian
entity controlled by NRI The borrowers can now park unutilized ECB
proceeds drawn down on or before 01.03.2020
The Department for Promotion of Industry and in term deposits with AD Category-I banks in
Internal Trade (hereinafter referred to as DPIIT) India prospectively for an additional period
issued Consolidated FDI Policy 2020 up to 01.03.2022.
(hereinafter referred to as Policy). As per para
Para 3.8.1 of the Policy, the details regarding 3. Sponsor contribution to be considered
guidelines for calculation of total foreign as ODI in certain cases
investment, both direct and indirect, including
downstream investment were provided in Regulation 7 of the Notification No. FEMA
Annexure-4 of the Policy. Such guidelines were 120/2004 dt. 07-07-2004 contains provisions for
provided in para 1.2 of Annexure-4. investment by Indian Party in the financial
services sector.
DPIIT vide Press Note No. 1 (2021 Series) dt.
19.03.2021 inserted clause (c) under para 1.2(ii) RBI has issued Notification vide A.P. (DIR Series)
of Annexure-4 to clarify that the 'investments Circular No. 04 dt. 12.05.2021 whereby any
made by NRIs on a non-repatriation basis as sponsor contribution by sponsor Indian Party
stipulated under Schedule IV of Foreign (IP) to an Alternate Investment Fund (AIF) set
Exchange Management (Non-Debt Instrument) up in an overseas jurisdiction, including
Rules, 2019 are deemed to be domestic International Financial Services Centre (IFSC)
investments at par with the investments made in India, as per the laws of the host
by residents.' jurisdiction, shall be considered as Overseas
Direct Investment (ODI) and as a consequence,
As a consequence, any investment made by an IP can set up AIF in overseas jurisdictions,
Indian entity which is owned and controlled including IFSC, under the automatic route
by NRIs on non-repatriation basis shall not be subject to compliance of Regulation 7 of the
considered for calculation of indirect foreign Notification No. FEMA 120/2004 dt. 07-07-2004
investment. as under:
(i) IP has earned net profit during preceding
However, above decision is currently not
effective as any notification is yet not issued in three financial years from the financial
this regard. services activities
(ii) IP is registered with regulatory authority
2. Relaxation in parking unutilized ECB in India for conducting financial services
proceeds in term deposits activities
(iii) IP has obtained approval from concerned
As per the present Master Directions on regulatory authorities both in India and
External Commercial Borrowings (ECB), the abroad, for venturing into such financial
borrowers are allowed to park the proceeds of sector activity
ECB in term deposits with AD Category-I banks (iv) IP has fulfilled prudential norms relating
in India for a maximum period of 12 months to capital adequacy as prescribed by the
cumulatively. concerned regulatory authority in India

However, owing to COVID-19 pandemic, several 4. Investment Limits for FY 2021-22
requests were received from stakeholders to applicable to FPIs
relax this time period. As a one-time measure,
RBI has vide A.P. (DIR Series) Circular No. 01 dt. RBI has issued A.P. (DIR Series) Circular No. 14
07.04.2021 relaxed the stipulated time period dt. 31.03.2021 prescribing Investment Limits for
of 12 months in the Master Directions on ECB. FY 2021-22 applicable to Foreign Portfolio
Investors (FPIs)

(a) FPI Investment Limit in Corporate
Bonds

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FPI investment limits in Corporate Bonds have been kept unchanged at 15% of outstanding stock
of securities for FY 2021-22. Accordingly, the revised limits are as under:

(b) FPI Investment Limit in G-secs and SDL

FPI investment limits in Central Government securities (G-secs) and State Development Loans (SDL)
are yet to be announced. Till then, current limits shall be applicable as under:

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RERA Updates

Compiled by: CA. Mahadev Birla

DIRECTION FOR SUBMISSION OF PROPER DOCUMENTS AT
THE TIME OF PROJECT REGISTRATION APPLICATION

GujRERA has issued the order no. (A) Only in such cases wherein the all
GujRERA/Order-50 dated 21.05.2021, wherein the aforesaid 3 conditions are fulfilled
it is directed to provide some and when the permanent entry is not
information/documents while filing the made in the Revenue Record in regard
application for registration of real estate to the ownership of the land in the
project under RERA, 2016. Further, it is stated name of Promoter/land owner, and
that the application for registration of the where only temporary entry is made at
project will not be approved unless the required that time, the application shall require
documents are produced and if promoter failed to be made, by the new land
to produce the documents within specific time, owner/persons making the claim of
the application fees paid shall be refunded after the ownership, with the affidavit.
retaining the processing fess of Rs. 5,000/-
The affidavit shall contain the
The following documents are to be provided: following information and
1. R a j a - c h i t t h i ( C o m m e n c e m e n t undertaking:
Certificate) , lay-out plan, construction a. Date of application for RERA
plan together with section plan and all
maps of real estate project Registration along with the name
given/approved by the local Authority and location of the project.
and in case where the time period of the b. Date along with the registration
Raja-chitthi (Commencement number of sale deed executed for
Certificate) for construction has purchase of land of project.
completed/lapsed then new/re- c. Temporar y entr y number in
validated Raja chitthi (Commencement revenue record along with the
Certificate) along with the details of the acknowledgement.
progress of the project shall require to be d. U n d e r t a k i n g t h a t r e c o r d i n
produced. respect of the final entry will be
submitted by the promoter.
2. Details is to be provided in respect of the e. Promoter shall not demand the
RERA Bank account opened as per RERA registration certificate until
Circular/Direction 2018/1 dated the final entry is not made in
19/02/2018 issued by RERA Authority. Revenue record.

3. I n t h e c a s e s o f p r o j e c t w h e r e (B) The Promoter shall require to
Development Agreement is there then make the final (Regular) Entry in the
details of registered development revenue record of the project land
agreement is to be produced according within 30 days. The project
to points mentioned in conditions No.1 registration shall be granted after final
to 5 of the Circular No.20 dated entry in the revenue record.
13/02/2020 issued by the RERA
Authority. Important Part of this order is that
promoter has to submit the copy of form
4. With regard to noting in Revenue record 7/12 which shows the name of land
for the land under project: owner/promoter who is holding the legal
title of the land on which the project is
going to be developed.

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Study of Inflation in Indian Economy

Compiled by: CA. Homesh Mulchandani Jointly with CA. Jaykishan Pamnani

Most of us daily hear some news here or there Both the equity and bond markets get impacted

about the inflation. Those who are active in due to a rise in inflation. In recent times, Indian

Stock Market or interested in economics might and global equities saw a sharp correction, and

know the importance of inflation and they the 10-year US treasury yield has moved up.

might hear daily about some news relating to Rising bond yields make the cost of money

inflation. expensive, making bonds attractive relative to

equities.

Too much money chasing too few goods is one

classic definition of inflation The Indian market is impacted by the behavior

Inflation is a highly debated phenomenon in of both domestic and foreign investors. Investor

economics. Even the use of the word "inflation" behaviour so far is on expected lines. The assets

has different meanings in different contexts. of foreign investors in the Indian equity market
Many economists, businessmen, and politicians are significant and any reallocation by them

maintain that moderate inflation levels are generally impacts equity prices. Any pull out of

needed to drive consumption, assuming that dollars will weaken the rupee, and any

higher levels of spending are crucial for investments by foreign investors (wherein they

economic growth. Others, however, argue that bring dollars) will strengthen the local currency.

inflation is less important. Rising prices make

savings harder, driving individuals to engage in The trend in asset prices depends on the

riskier investment strategies to increase or even macroeconomic position wherein inflation plays

maintain their wealth. Some claim that inflation a pivotal role. Interestingly, Consumer Price

benefits some businesses or individuals at the Index (CPI) in India, may remain dovish while

expense of most others. global inflation heads upward. The macro

parameters in India may move differently from
Why investors should keep an eye on rising the global macro parameters as India grapples

inflation? with a weak health care system, slowing

If any foreign investors starts selling Indian economic activity, the onslaught of the second

bonds then it will be absorbed by the domestic COVID wave and delayed availability of

investors; but for equities the situation is vaccines. The direction of domestic inflation is

different. When easy money was finding its way influenced by both aggregate demand and

into the asset markets and driving up prices supply. Overall, the prices are expected to

across both bonds and equities, no investor remain low due to lack of demand however

worried about inflation. Investors were supply chain disruptions due to lockdown in

delighted as they benefited from high doses of certain states pushes up the prices in certain

easy liquidity injected time and again by the items.

central bankers over the last several quarters.

This easy liquidity pushed up the prices of The after effects of the rise in global inflation

almost all assets in stages. will be felt only if foreign investors feel the need

to reallocate their investments. Suppose US

RBI governor Mr. Shaktikanta Das jumped into rates move higher due to US CPI going higher,

action from early 2020 and extended a helping the interest rate differential between India and

hand to bankers, market participants, and the the US will narrow. From a risk-return

entire credit market. After a few large credit perspective, investments into US bonds will
busts in the year of 2018 and 2019, credit become favorable relative to investments into

defaults were avoided due to multiple Indian bonds. But any selling by foreign

measures including the extended credit investors of Indian bonds will be absorbed by

moratorium (wherein the banks were not domestic investors.

required to recognize delays in debt

repayments) offered by RBI. However, there could be repercussions in the

Indian equity market, since foreign investor

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holdings are significant. That could happen in case inflation rate is good for the economy. Inflation
the global investors feel the need to reallocate from needs to be regulated at intervals. RBI hikes the
Emerging Market (EM) to Developed Market (DM) interest rates to curb the inflation and when
due to a) Narrowing interest rate differential b) inflation is at desirable rate, it lowers the interest
Falling price-earnings multiple in international rate to boost the economy.
markets and c) Strong US dollar. When the economy is not running at capacity, which
indicates unused labor or resources, inflation
The market will continue to track the central banks' theoretically helps increase production. More
policy measures. The level of interest rates will dollars translates to more spending, which equates
determine whether any investments need to shift to more aggregated demand. More demand, in turn,
between equity, bonds and cash, or between EMs triggers more production to meet that demand.
and DMs.
Key Takeaways
A recent study titling “Threshold Level of Inflation – · Inflation is the rate at which the value of a
Concept and Measurement” undertaken by Reserve currency is falling and consequently the
Bank of India (RBI) emphasized that lower inflation is general level of prices for goods and services
beneficial for the financial stability in the economy is rising
and will have favorable redistribution effects on · Inflation is sometimes classified into three
the economically poorer sections of the society. types: Demand-Pull inflation, Cost-Push
These costs and benefits of fixing a long-term inflation, Wage Push Inflation and Built-In
inflation target will thus have to be considered inflation
while making the choice. · Most commonly used inflation indexes are
the Consumer Price Index (CPI) and the
The study examined the concept of threshold Wholesale Price Index (WPI)
inflation and defined it as the long run equilibrium · Inflation can be viewed positively or
rate of inflation that maximizes the steady state negatively depending on the individual
growth within the relevant range of values. The retail viewpoint and rate of change
inflation, which is used by the monetary policy · Those with tangible assets, like property or
committee (MPC) for policy formulation, has stocked commodities, may like to see some
stayed at an elevated level for a prolonged period inflation as that raises the value of their
causing a policy dilemma to the central bank, assets
before showing signs of easing in the recent · People holding cash may not like inflation, as
months. With the growth yet to recover from the it erodes the value of their cash holdings
Covid impact and inflation staying close to the · Ideally, an optimum level of inflation is
upper band, the MPC has been on a pause mode. required to promote spending to a certain
With the Covid resurgence in the second wave, extent instead of saving, thereby nurturing
there is a fear that inflation may spike yet again in economic growth
the approaching months.

Inflation Chart of India over last 20 years The Impact of Inflation on Your Portfolio
Should you be concerned about inflation and your
investments? If you have a substantial portion of
your portfolio in fixed income securities, the answer
is a definite yes.

(Source: Inflation erodes your purchasing power, and retirees
h ps://www.macrotrends.net/countries/IND/india/infla on fixed incomes suffer each passing year. This is why
on-rate-cpi financial advisers caution even retirees to keep some
percentage of their assets in the stock market as a
When Inflation Is Good or Bad for any economy? hedge against inflation.
It is not true that inflation is bad for economy. A very
high or very low inflation is bad for economy. 3-4% The more cash or cash equivalents you hold, the
worse inflation will punish you. A Rs. 100 under
the mattress will only buy Rs. 96 worth of goods
after a year of 4 percent inflation. Investors
should keep an eye on interest-rate sensitive
stocks.)

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Excel in Excel

Compiled by: CA. CS. Hemlata Dewnani

STOCK

Traditionally in Excel, one cell could only Type a field name in the header row. For
contain one piece of data. You can now example, type Change in the header row for
have multiple data fields inside one cell. stocks, and the change in price column will
The new data types which Excel has introduced appear. Or type other field names like Last
are really connections to an online data source Trade Time, Previous Close, and Exchange.
that provides more information about the data.
At present, there are two data types available in Tips: 
Excel: Stocks and Geography. To see all of the fields available for a company or
1. Type some text in cells. For example, type a fund, click the stock icon (  ) or select the cell and
ticker symbol, company name, or fund name press Ctrl+Shift+F5.
into each cell. If you see:  instead of an icon, then Excel is
2. Then select the cells. having a hard time matching your text with data
3. Although it's not required, we recommend in our online sources. Correct any spelling
creating an Excel table. Later on, this will make mistakes and when you press Enter, Excel will do
extracting online information easier. To create a its best to find matching information. Or,
table, go to Insert > Table. click  and a selector pane will appear. Search for
4. With the cells still selected, go to data using a keyword or two, choose the data
the Data tab, and then click Stocks. you want, and then click Select.
You can also write formulas that reference data
5. If Excel finds a match between the text in the types or use the STOCKHISTORY function.
cells, and our online sources, it will convert your Stock information is delayed, provided "as-is",
text to the Stocks data type. You'll know they're and is not for trading purposes or advice.
converted if they have this icon for stocks:  S e e  A b o u t o u r d a t a s o u r c e s  f o r m o r e
6. Select one or more cells with the data type, information.
and the Add Column button  will appear. Click With the stock data type, you can not only
that button, and then click a field name to obtain stocks from a company name but can also
extract more information. For example, for be used for currency and cryptocurrency
stocks you might pick Price. conversions.
7. Click the Add Column button again to add
more fields. If you're using a table, here's a tip:

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Important Due Dates

Compiled by: CA. Mahavir Shah
FOR COMPLIANCE FOR JUNE- 2021

Sr. No. Act Compliance Due Date

1 GST Payment of GST & Filing of GSTR-3B for the month of Apr-21, without 04-Jun-21
Interest & late fees, for Taxpayers having turnover upto Rs.5 Crore
2 GST Payment of GST without interest in form GST PMT-06 for taxpayers who 04-Jun-21
opted for Quarterly Return Monthly Payment (QRMP) option fot the
3 Income Tax month of April-21 07-Jun-21
Tax Deducted / Tax Collected at Source (TDS / TCS) during the month of
4 GST May-21 to be deposited 10-Jun-21
GSTR-7 for the month of May-21 for persons required to deduct TDS under
5 GST GST 10-Jun-21
GSTR-8 for the month of May-21 for e-commerce operator required to
6 GST collect TCS under GST 13-Jun-21
7 Income Tax GSTR-6 for the month of May-21 for Input Service Distributor (ISD) 15-Jun-21
8 PF / ESIC First Installment of Advance Tax for F.Y. 2021-22 15-Jun-21
9 PF / ESIC Extended due date for Payment of ESIC for the month of Apr-21 15-Jun-21
10 GST Payment of PF / ESIC for the month of May-21 17-Jun-21
Quarterly GST Return CMP-08 for Composition Dealer to be furnished for
11 GST quarter ended on March-21, with reduced rate of Interest 19-Jun-21
Payment of GST & Filing of GSTR-3B for the month of Mar-21, with reduced
12 GST rate of Interest & without late fees, for Taxpayers having turnover upto 19-Jun-21
Rs.5 Crore
13 GST Payment of GST with reduced rate of interest in form GST PMT-06 for 20-Jun-21
taxpayers who opted for Quarterly Return Monthly Payment (QRMP)
14 GST option fot the month of Mar-21 20-Jun-21
GSTR-5 & 5A by Non-resident taxable person & OIDAR for the month of
15 GST May-21 26-Jun-21
16 GST Payment of GST without Interest & Filing of GSTR-3B for the month of May- 28-Jun-21
21 for taxpayers having turnover morethan Rs.5 Crore
17 GST GSTR-1 for the month of May-21 30-Jun-21
18 GujRERA Filling of Invoice Furnishing Facility (IFF) for May-21 for taxpayers who 30-Jun-21
opted for Quarterly Return Monthly Payment (QRMP) option
19 Income Tax Filing of ITC-04 for the Q-4 (Jan-Mar) of F.Y. 2020-21 30-Jun-21
In case of Agents : Half Yearly Return for the sales made during Oct-20 to
20 Income Tax Mar-21 30-Jun-21
21 Income Tax Due date for furnishing of Statement of Financial Transactions (SFT) u/s 30-Jun-21
22 Income Tax 285BA for F.Y. 2020-21 30-Jun-21
Due Date for linking of Aadhar with PAN
23 Income Tax Filling of Quarterly TDS Return for F.Y. 2020-21 Q-4 30-Jun-21
Furnishing of Challan-cum-Return for Tax Deducted (TDS) u/s 194IA, 194IB
24 Income Tax and 194M during the month of May-21 30-Jun-21
Last date for payment of Tax without additional amount under Vivad Se
Vishwas Scheme (VSVS)
Re-registration of Trusts u/s 12AB

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Motivational Story

Compiled by: CA. CS. Hemlata Dewnani

Save our Environment

If you want to live Happy and Healthy . Take a pledge You will be helpful in Reimagine. Recreate.
Restore the Environment . Here are Some of initatives taken by Some of great person.
Happy Environment Day

#1 Volunteers Remove 55 Tonnes Of Waste Organizations like Greenpeace are doing their
From The Ganga River best to educate society on the problems of
Bachendri Pal, the first Indian woman to climb water pollution and single-use plastic. If you are
Mount Everest, managed to organize a interested, you can help Greenpeace by
volunteer initiative which resulted in 55 tonnes donating to them.
of waste removed from the Ganga river. A 40-
member team, including Premlata Agarwal, a #3 Volunteers Pick Up 5,3 Million Kilograms
first Indian woman to climb all seven summits of Of Trash On A Beach In Mumbai
the world, managed to clean this massive To this day this incredible initiative is called
amount of trash in only one month. While this “world’s largest beach clean-up project”.
initiative is nothing but amazing, Ganga river is Environmentalist Afroz Shaz started picking up
in a desperate need of cleaning, with tons of the trash from the beach back in 2015, with
waste entering the river every single day. This more and more people joining him, volunteers
sacred river is not only a place for religious managed to pick up 5,3 million kilograms of
cleanses it also stores tons of human and trash. Versova beach in Mumbai was polluted
industrial waste. Bored Panda has contacted mainly because of the direction of the wind.
National Mission for Clean Ganga and they are Since the territory itself was not a popular
yet to comment about the current state of tourist attraction, there was no action taken to
Ganga river. take care of the beach. Now, with the help of
1,000 volunteers, the beach is open for the
#2 Australian Town Comes Up With A Genius public to enjoy. There are over 8 billion tons of
Way Of Stopping Pollution By Simply Using A plastic thrown into our ocean every year. If you
Net wish to reduce your plastic waste try avoiding
In 2018, the city of Kwinana in Australia installed single-use cutlery, take away coffee cups, use
two drainage nets in Henley Reserve. Before your own grocery bag instead of plastic one, and
these nets were installed, workers would pick buy as many plastic-free products as you can.
up these trash by hand. The total cost of these
nets came to be around $20,000 which is way
more cost-effective compared to paying for
manual labor. This simple invention turned out
to be way more useful than anyone expected. In
just four months the nets caught around 815lbs
(370kg) of trash. If you are inspired to reduce
the amount of plastic that ends up in our waters,
we encourage to learn more about plastic
pollution, and how it affects our earth.

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Movement 73 Updates

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Direct Tax Web Convention

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Ahmedabad Branch’s Initiatives

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Ahmedabad Branch’s Initiatives

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JUNE-2021 AHMEDABAD BRANCH OF WIRC OF ICAI

Blood Donation

29