Quvisor’s refresher on Legal updates in India: June 17, 2021

GST:

Requirement of issuance of show cause notice when only interest not paid under GST
In a case where duty, interest and penalty are demanded, without any ambiguity show cause notice (‘SCN’) has to be issued under section 73/74 of the Central Goods and Services Tax, 2017 (‘CGST Act’).

Claim of GTA credit can’t be denied without considering the evidence produced by assessee: Madras HC
EXCISE/ST/VAT : Where assessee was engaged in manufacture of cements and Adjudicating Authority vide e-mail dated 21-12-2020 called upon Jurisdictional Range Officer to verify claim of assessee in respect of GTA credit and Range Officer sent a communication dated 29-12-2020 calling upon assessee to furnish details sought for and assessee on very next day,

Income tax:

Net Direct Tax collections up to 15-06-2021 for FY 2021-22 grown by over 100%: FinMin
The Ministry of Finance has said that the figures of Direct Tax collections for the Financial Year 2021-22, as on 15.06.2021 have shown that net collections are Rs.1,85,871 crore as compared to Rs. 92,762 crore over the corresponding period of the preceding year. It represents an increase of 100.4% over the collections of the preceding year.

Understanding natural justice vis-à-vis useless formality theory
There are certain terms about which the professionals should be aware of and this opportunity is often provided by judicial authorities and one such occasion was provided by the Karnataka High Court in the case of Harish Wadhwa vs. ITO [2021] 126 taxmann.com 156 (Kar.)

Corporate Laws:

Blank – Cheque acquisition: Fad or future? 
With one of the biggest Special Purpose Acquisition Company (‘SPAC’) deal (valued at a whopping USD 40 billion) on the cards, it’s time to talk about SPACs. Over 330 blank-check firms have listed this year, majority of them in the United States, making up just over a third of global IPO activity.

Formulating Strategic Risk Management Policy (Pursuant to provisions of Companies Act 2013 & LODR regulations) 
The term Risk is used in many ways and one can have different definitions depending upon the field and context. However, the most common definition of risk is that it implies future uncertainty about deviation from expected outcome / earnings. Risk measures the uncertainly that an investor is willing to take to realize a future gain from an investment made by him.

Insolvency & Bankruptcy Code:

Foreseeing the Suitability of Bad Banks in India Against Soaring NPA Levels 
Time being a crucial consideration for corporate rescue, the Insolvency and Bankruptcy Code, 2016 (IBC) delimited a time frame for the completion of the Corporate Insolvency Resolution Process (CIRP). The advent of IBC provided a backdrop for enhanced ease of doing business as India jumped 56 places to be ranked 52nd in terms of insolvency resolution in 2019.

A Study of Resolution of NBFC under the IBC 
The Insolvency and Bankruptcy Code, 2016 (“IBC”) is an amalgamated enactment of numerous laws. The primary objective behind the code is to provide a central single contact point clearance scheme for all the earlier laws.

 

 

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