Quvisor’s refresher on Legal updates in India: October 09, 2021


Supply of manpower services to Govt. Dept. is covered under Heading No. 9985 and taxable at 18% 
GST: Where applicant is engaged in providing manpower services like drivers, peons, housekeeping and other clerical staff to Government Departments, such services are covered under Heading No. 9985 and attracts GST at rate of 18 per cent.

CBIC issued advisory for E-scrip to avail Export Incentives under RoSCTL & RoDTEP Schemes
Escrip module is developed by ICEGATE, CBIC to provide a digital service to exporters to avail benefits under various incentive schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies). Now, an advisory has been issued which is a complete step-by-step guide for the user to create an e-scrip account, generate scrips and transfer the scrips to any other IEC to avail the benefit of the schemes.

CBIC issues clarification on GST rates & classification based on recommendations of the GST Council
On the basis of recommendations of the GST Council in its 45th meeting held on 17th September 2021, at Lucknow, the CBIC has issued clarification with reference to GST rate, levy and classification of certain goods. In this regard, a circular has been issued.

Income tax:

AO can’t withhold refund after completion of assessment without assigning reasons: HC
INCOME TAX : Once a refund is declared after scrutiny proceedings and such refund is withheld, a reasoned order has to follow because assessment in such a case is done after production of materials and evidence required by Assessing Officer,

Entire turnover can’t be treated as income if there is difference in turnover as per books and TDS certificate: ITAT
INCOME TAX : Where there was difference between assessees books of account and accounts as per TDS certificate, on said difference, only embedded portion of profits was to be taken into consideration and addition was to be made thereon; there was no justification in making addition of entire turnover to income of assessee.

Sum received from letting-out building along with other amenities in industrial park taxable as business income : HC
INCOME TAX : Rental income received by assessee from letting out building along with other amenities in an industrial park would be chargeable to tax under head ‘income from business and profession’.

Corporate Laws:

Financial & non-financial transactions to be executed only if there is a service agreement between AMC and service provider: SEBI 
Based on the discussions with stakeholders and recommendations of the Mutual Fund Advisory Committee, the SEBI has decided with respect to transactions in the units of Mutual Funds undertaken through service providers/platforms other than stock exchanges. As a result, AMCs need to ensure that the transactions (financial/ non-financial) can be executed only if there is a service agreement between the AMC and the service provider / platform.

Stock Exchanges and Clearing Corporation are required to disclose data on complaints on their website: SEBI 
In order to bring about transparency in the Investor Grievance Redressal Mechanism, the SEBI has decided that all the Stock Exchanges and the Clearing Corporations shall disclose on their websites, the data on complaints received against them and redressal thereof, latest by 7th of succeeding month.

SEBI requires MFs to undertake minimum 25% in Corporate Bonds & 10% in Commercial Papers of total trades 
The SEBI has revised requirement for mutual funds to undertake on monthly basis from Minimum 10 % to 25% of total secondary market trades by value in Corporate Bonds on the Request for Quote (RFQ) platform of stock exchanges. In addition, the Mutual Funds shall now undertake minimum 10% of their total secondary market trades by value in Commercial Papers by RFQ platform of stock exchanges. This circular shall come into force with effect from December 1, 2021.

Insolvency & Bankruptcy Code:

IBBI directs IP to pay 10% of fee as penalty and undergo pre-registration course from IPA for contravening section 208 
IBC: Show cause notice issued by IBBI to applicant, Insolvency Professional, in respect of her role as a liquidator in matter of voluntary liquidation of six corporate persons alleging contravention of section 208 was to disposed of directing applicant to undergo pre-registration educational course from IPA

CIRP plea filed u/s 7 wasn’t time-barred as limitation period to be calculated from date of balance confirmation 
IBC: When date on which account was declared Non-Performing Asset (NPA) was 28-10-2016 and there was balance confirmation on 15-7-2019, limitation period was to be calculated from 15-7-2019 and, therefore, application filed under section 7 on 28-7-2020 was not time barred

Who received demand notice wasn’t concern of applicant as long as demand notice was duly served at registered address 
IBC: Where documentary evidence on record established that demand notice was served by registered post at ‘registered address’ of corporate debtor, it was not concern of applicant operational creditor as to who received it; there was satisfactory service of notice.


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