Merely payment of part of canteen bill on behalf of employees to contractor does not amount to supply: AAR
GST: Where applicant sought advance ruling on classification of stainless steel (SS) cans of 40 liters capacity, however, it was found that applicant was not supplier of said SS cans but was recipient, no advance ruling could have been given,
Service of printing of lottery tickets supplied to State Government is taxable at 18%: AAR
GST: Where applicant is engaged in printing of textbooks, lottery tickets and stationery items like Diary and Calendars etc. for State Government and entire content and its features that are to be printed are designed and given by State Government and applicant only arranges paper and prints said content on paper and does not own usage rights to said content given to them.
Levy of VAT on Extra Neutral Alcohol, Rectified Spirit etc. after GST implementation is ultra vires: Allahabad HC
GST: State legislature (of Uttar Pradesh) lost its legislative competence to impose or levy tax on sale of Extra Neutral Alcohol (ENA), after enactment of the 101st Constitution Amendment, with effect from 1-7-20217. Consequently, and upon considering section 174(1)(i) of UPGST Act, 2017, the impugned Notification No. KA.NI-2-1793, dated 17-12-2019, insofar as it seeks to impose UPVAT on ENA, Rectified Spirit and SDS, is ultra vires,
SEZ unit is eligible to claim refund of unutilized Input Tax Credit: Madras HC
GST: Statutory scheme for refund under CGST and SGST Acts, permits any entity to seek a refund of taxes or other amounts paid under provisions of Act, subject to satisfaction that it is so entitled, and that there is no double claim as against same amount. Thus, Special Economic Zone (SEZ) which effected purchases from several suppliers/vendors for development of SEZ is eligible to claim refund of unutilized Input Tax Credit,
Credit received from supplier for choosing its engines in aircraft to be purchased is capital receipt : ITAT
INCOME TAX : Where assesses-company engaged in business of operating airlines in India, entered into a purchase agreement with AIRBUS SAS, France for supply of aircrafts – Assesses was given option to choose engines to be fitted in aircrafts and it chose engines manufactured by IAE – In return, IAE agreed to give certain amount of credit to assesses for choosing its engines – Whether since credits were received for selection of engines for purpose of support for aircraft acquisition.
Purchase of property by Co. with share capital money cannot be said to be a Benami Transaction: HC
INCOME TAX/BENAMI ACT: Purchase of property by a company in its own name with share capital money cannot be said to be a benami transaction on the basis that it is a purchase of property in company’s name with consideration provided by others(shareholders) since share capital contributions received by a company from its shareholders are company’s own funds and assets; hence company cannot be treated as benamidar of its shareholders in respect of property held in its name,
Additions towards share application money valid as no evidence furnished to prove applicant’s creditworthiness: ITAT
INCOME TAX: Where assesses raised share application money from share applicants, however, in confirmation of share applicants filed by assesses it was not mentioned whether share application money had been given in cash or through bank account and no evidence of share applicants’ creditworthiness had been filed, addition made for unexplained share capital was justified.
SEBI restricts NCDEX from launching new mustard seed contracts till further orders
The SEBI has issued Directions to NCDEX debarring it from launching new mustard seeds contracts till further orders with a view to curb rising prices of mustard oil. In respect of running contracts, no new position will be allowed to be taken. Only squaring up of position will be allowed, SEBI said. The directions will be implemented with immediate effect.
SEBI issues revised formats for limited review/ audit report for issuers of non-convertible Securities
SEBI has issued the revised formats of limited review/ audit reports (to be submitted to Stock Exchanges and placed on listed entity’s website). Regulation 52 of the SEBI (LODR), Regulations 2015 requires entities that have listed nonconvertible securities to disclose financial results on a quarterly basis, including assets & liabilities and cash flows as well as requiring certain changes in the line items in the financial results.
SEBI introduces online system to obtain SCORES credentials of Cos intending to list their securities on exchanges
The SEBI has decided to introduce an online mechanism for obtaining SCORES credentials for all “companies intending to list their securities on SEBI recognized stock exchanges”. The online form can be accessed on the SCORES website www.scores.gov.in . This has been done as part of SEBI’s green initiative and to streamline the redressal of investor grievances against companies before listing.
Insolvency & Bankruptcy Code:
Financial creditor to get the benefit of exclusion of time spent in recovery proceeding before DRT: NCLT
IBC : Where appeal against recovery proceedings against corporate debtor was pending in DRAT, application filed by financial creditor under section 7 for initiation of CIRP against corporate debtor in 2018 for default that took place in 2014 was maintainable and was not time barred as financial creditor got benefit of exclusion of time spent in recovery proceedings against corporate debtor before DRT.
CIRP plea admitted as corporate debtor committed default in repayment of loan facility disbursed by financial creditor
IBC: Dr. Vishnu Kumar Agarwal v. Piramal Enterprises Ltd.  101 464/151 SCL 555 (NCL-AT) holding that CIRP against corporate guarantor and borrower cannot commence simultaneously is no more a precedent
Amount deposited with corporate debtor under investment scheme would come under definition of ‘financial debt’
IBC : Where corporate debtor had accepted certain amount from appellant under two investment schemes and assured them that on maturity of said schemes they would either be allotted plots of land or be paid multi-fold return on their investment, but corporate debtor failed in its commitment, amount deposited by appellants would come under definition of ‘financial debt’ and CIRP was to be admitted against corporate debtor