Quvisor’s refresher on Legal updates in India: September 25, 2021

GST:

12% GST to be levied on Construction Services for affordable housing projects having infrastructure status by Govt. 
GST : If projects are affordable housing projects and are given infrastructure status as per notification of Government of India, construction service provided by applicant to developer under residential project is liable to tax at rate of 6 per cent CGST and 6 per cent KGST as provided in Sl. No. 3(v)(da) of Notification No. 11/2017 – Central Tax (Rate), dated 28-6-2017; else.

Mere suspicion is not sufficient to invoke provision of confiscation: UK HC
GST : Where revenue had completely failed to show that petitioner was given an opportunity of being heard before passing orders of confiscation in Form GST MOV-11, hence, confiscation orders not found to be passed in accordance with law, were to be quashed and set aside.

No GST on supply of goods from place in non-taxable territory to another place in non-taxable territory without entering into India: AAR
GST : Where applicant is involved in supply of guitar head books from a place outside India to another place outside India when said books are not brought into India, impugned supply of books by applicant is neither supply of goods nor supply of services in terms of Schedule III to section 7

Income tax:

Maintenance charges received from tenants for repairs of rented property is assessable as business income: ITAT
INCOME TAX : Maintenance charges received by assessee owner of a property from tenants for undertaking maintenance of common areas of property was to be assessed as income from business and profession.

Date of service of order to be taken into consideration to calculate limitation period for rectification u/s 254: ITAT
INCOME TAX : For workability of scheme of section 254(2), limitation period is to be counted from date of service of order and not from date order, hence, where, there was no delay in filing of Miscellaneous Application if counted from date of service of Order,

AO can’t continue proceedings in name of death person if legal heir informed about assessee’s death after receiving notice: HC
INCOME TAX : Notice issued under section 153C against dead person is unenforceable in law; in such case revenue cannot contend that as they have no knowledge about death of assessee, they are entitled to plead that notice is not defective

Corporate Laws:

Attachment of Charged Assets – Steps to be Taken by Charge Holders 
Recently one of the significant modes of investments that have gained momentum in India has been capital raising by companies either through debt funding through portfolio management, borrowings through different financial institutions and by other modes of borrowings.

HC refuses to entertain petition under RERA on merits applying doctrine of ‘forum non-conveniens’ 
COMPANY LAW/RERA : Where RERA authority passed an order directing developer to refund amount of consideration to flat purchaser, and instant writ petition was filed at principal bench (Mumbai) challenging an interim order of pre-deposit as a condition for hearing of appeal filed by developer before Tribunal, since no inconvenience would have been caused to developer if writ petition was presented for being heard by Nagpur Bench, and even agreement for sale stipulated that in case of dispute.

MCA directs RoCs to extend due date of AGM for F.Y. ending March 31, 2020- 2021 by two months 
The Central Govt. received representation seeking extension of Annual General Meetings for Financial Year 2020-21 due to many difficulties faced by stakeholders during the second wave of Covid-19 and consequent lockdown, accordingly, the Central Government has decided to advise Registrar of Companies (RoCs)to accord approval for extension of time for a period of two months beyond the due dates by which companies are required to conduct AGMs for the financial year 2020-21 ended on March 31, 2021.

An examination of filing of compounding application under section 441 of the Companies Act 2013 
Section 441 of the Companies Act 2013 as amended (the “Companies Act”) has the provision for filing application for the offences to be compounded. This article is trying to examine specifically, the need and procedure for filing compounding application under the provisions of section 441 of the Companies Act 2013 in respect of certain past offences / violations.

Insolvency & Bankruptcy Code:

12A: Cure for Stress or Backdoor Opportunity For Promoters 
Insolvency and Bankruptcy Code was enacted with a vision to provide creditors with a formidable law and a framework that will provide them to reorganise and revive a distressed entity or bankrupt person in a formidable and time-bound manner.

Claim of operational debt can’t be fastened on successful resolution applicant after approval of resolution plan 
IBC : Where claim of operational debt by operational creditor was not made before Resolution Professional, same could not be fastened to successful resolution applicant after approval of resolution plan

Resolution applicant can change nature of business of corporate debtor as long as objective of IBC isn’t hampered 
IBC : IB Code provides for restructuring of corporate debtor, change in portfolio of goods and services produced or rendered by corporate debtor as long as scope and objective of Code was not hampered

 

 

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