News & Updates Archives

News & UpdatesMONTHLY NEWS & UPDATES FOR AUGUST 2024

Executive Summary

Income Tax

CBDT Issues clarification in respect of Income-Tax clearance certificate.
Section 10(46A) Exemptions – Income arising to a body or authority or Board or trust or Commission, not being a Company.
Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory body/authority/board/commission – notified body or authority.
Section 144B – Faceless Assessment – Order under proviso to sub-section (5) of Section 144B specifying circumstances for purposes of enquiries or verification functions by verification Unit.

Goods And Service Tax (GST)

Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Jammu & Kashmir and West Bengal, dated Aug 2nd, 2024
Advisory in respect of Changes in GSTR 8, dated Aug 2nd, 2024
Notification no. 16/2024 – Central Tax [S.O. 3161(E)/F.NO. CBI…Section 1 of the Finance Act, 2024 – short title and commencement – notified date of enforcement of sections 11, 12 and 13 notification no. 16/2024– Central Tax [S.O. 3161(E)/F.NO. CBIC-20006/20/2023-GST], dated 6-8-2024.
Guidelines for second special all-India drive against fake registrations instruction no. 2/2024-GST [F. NO. CBIC- 20/16/30/2020-GST], dated 12-8-2024
Circular no. 228/22/2024-GST [F. NO. CBIC-190354/94/2024-TO(TRU-II)-CBEC], dated 15-7-2024 Section 3, read with section 5, of the central goods and services tax act, 2017 – officers under the act – guidelines for CGST field formations in maintaining ease of doing business while engaging in investigation with regular taxpayers – applying para 2(G) of the Instruction No. 1/2023-24-GST (inv.), dated 30-3-2024 in audit matters.
Instruction no. 3/2024-GST [F. No. GST/INV/INSTRUCTIONS/2023 24], dated 14-8-2024
Advisory for furnishing bank account details before filing GSTR-1/IFF Notification No. 38/2023 – Central Tax New Delhi, the 4th of August 2023, dated Aug 23rd, 2024
Introduction of RCM Liability/ITC Statement dated Aug 23rd, 2024

Companies Act 2013/ Other Laws

Companies (Registration of Foreign Companies) Amendment Rules, 2024 – Amendment in Rules 3
Limited Liability Partnership (Amendment) Rules, 2024 introduces the Centre for Processing Accelerated Corporate Exit, effective from 27th August 2024.
Amendment in DIR 3 KYC
IBBI mandates Registered Valuers to provide a ‘Valuation Report Identification Number’ for each valuation

SEBI bars stock exchanges/clearing corporations from ties with unregistered security advisors

SEBI amends Intermediaries Regulations; bars intermediaries from associating with unregistered security advisors

Income Tax

CBDT Issues clarification in respect of Income-Tax clearance certificate.
Section 230(1A) of the Income-tax Act, 1961 relates to obtaining of a tax clearance certificate, in certain circumstances, by persons domiciled in India.

In this context, CBDT has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances –

where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or
where the person has direct tax arrears exceeding Rs. 10 lakhs outstanding against him which have not been stayed by any authority.

Further, a person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after taking approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax.

Section 10(46A) of the Income Tax Act, 1961 – Exemptions – Income arising to a body or authority or Board or trust or Commission, not being a Company.
The Finance Act, 2023 inserted clause (46A) in section 10 of the Income-tax Act, 1961 to exempt any income arising to a body or authority or Board or Trust or Commission, not being a company, which has been established or constituted by or under a Central or State Act with one or more of the following purposes, namely: –

dealing with and satisfying the need for housing accommodation.
planning, development or improvement of cities, towns and villages.
regulating, or regulating and developing, any activity for the benefit of the general public, or
regulating any matter, for the benefit of the general public, arising out of the object for which it has been created; and

It has also been provided that such body or authority or Board or Trust or Commission, referred to above is required to be notified by the Central Government in the official Gazette for the purposes of this Clause.
In order to standardize the manner of filing application u/s 10(46A) of the Act and to avoid procedural delays in processing the same, applicants are advised to file the applications along with requisite enclosures to the Pr. Commissioner/Commissioner of Income-tax/Pr. Director/Director of Income-tax under whose jurisdiction their cases fall.

Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory body/authority/board/commission – notified body or authority.

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961)

The Central Government notifies for the purposes of the above clause, ‘‘West Bengal Transport Workers’ Social Security Scheme’ (PAN AAALW0133G), a a body established by the Government of West Bengal, in respect of the following specified income arising to the said Society, as follows:

Amount received in the form of Government grants.
Amount received as Cess under the West Bengal Motor Transport Workers’ Welfare Cess Act, 2010 (West Bengal Act V of 2010) and rules framed thereunder.
Amount received as registration fees paid by the registered beneficiaries; and
Interest earned on bank deposits.

This notification shall be effective subject to the conditions that West Bengal Transport Workers’ Social Security Scheme –

shall not engage in any commercial activity
its activities and the nature of the specified income shall remain unchanged throughout the financial year(s); and
shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

This notification shall be applicable from AY 24-25 to AY 25-26.

AND

The Central Government notifies ‘Unique Identification Authority of India’, (PAN AAAGU0182Q), a statutory Authority established under the provisions of the AADHAAR Act, 2016 by the Government of India, in respect of the following specified income arising to the said Society, as follows:

Grants/Subsidies received from Central Government
Fees/ Subscriptions including RTI Fee, Tender Fee, Sale of Scrap, PVC card
Authentication, Enrolment and Updation service charges received
Term/Fixed Deposits; and
Interest on bank deposits

This notification shall be effective subject to the conditions that ‘Unique Identification Authority of India’ –

shall not engage in any commercial activity
its activities and the nature of the specified income shall remain unchanged throughout the financial years.
shall file return of income in accordance with the provision of section 139 of the Income-tax Act, 1961.

This notification shall be applicable from AY 24-25 to AY 28-29.

AND

The Central Government notifies ‘Karnataka State Natural Disaster Monitoring Centre’, (PAN: AAATD2434P), a body constituted by the State Government of Karnataka, in respect of the following specified income arising to the said Society, as follows:

Grant –in-aid received from State Govt. and Govt. of India,
Income received from data sharing activities, and
Interest on bank deposits

This notification shall be effective subject to the conditions that ‘Karnataka State Natural Disaster Monitoring Centre’ –

shall not engage in any commercial activity
its activities and the nature of the specified income shall remain unchanged throughout the financial years.
shall file return of income in accordance with the provision of section 139 of the Income-tax Act, 1961.

This notification shall be applicable for AY 24-25 to AY 25-26.

Section 144B of the Income Tax Act, 1961- Faceless Assessment – Order under proviso to sub section (5) of Section 144B – specifying circumstances for purpose of enquiries or verification functions by verification unit.
In pursuance of the proviso to sub-section (5) of Section 144B of the Income-tax Act, 1961 the Central Board of Direct Taxes hereby specifies the following circumstances, for the purpose of enquiry or verification functions referred to in Section 144B(3)(iii) of the Act by the Verification Unit: –

Non-availability of digital footprint in respect of the assessee or any other person.
Electronic or Online verification is not possible on account of no response to notice issued to the assessee or any other person.
Physical verification of assets or premises or persons is required, regardless of the presence of digital footprint.

This order shall come into force with immediate effect.

48th GST Council Meeting Highlights: 17th December 2022

Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Jammu & Kashmir and West Bengal, (Aug 2nd, 2024) and of Dadra and Nagar Haveli and Daman and Diu AND Chandigarh (Aug 24th, 2024)

Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
The above-said functionality has been developed by GSTN. It has been rolled out in Jammu & Kashmir and West Bengal on 02nd August 2024 and in Dadra and Nagar Haveli and Daman and Diu AND Chandigarh on 24th August 2024.
The said functionality also provides for the document verification and appointment booking process. After the submission of the application in Form GST REG-01, the applicant will receive either of the following links in the e-mail,

(a) A Link for OTP-based Aadhaar Authentication OR

(b) A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail).

If the applicant receives the link for OTP-based Aadhaar Authentication as mentioned in point 3(a), she/he can proceed with the application as per the existing process.
However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail, she/he will be able to visit the designated GSK as per the chosen schedule.
At the time of the visit to GSK, the applicant is required to carry the following details.

(a) a copy (hard/soft) of the appointment confirmation e-mail.

(b) the details of jurisdiction as mentioned in the intimation e-mail.

(d) the original documents that were uploaded with the application, as communicated by the intimation e-mail.

The biometric authentication and document verification will be done at the GSK, for all the required individuals as per the GST application Form REG-01.
The applicant is required to choose an appointment for the biometric verification during the maximum permissible period for the application as indicated in the intimation e-mail. In such cases, ARNs will be generated once the Biometric-based Aadhaar Authentication process and document verification are completed.
The feature of booking an appointment to visit a designated GSK is now available for the applicants of Jammu & Kashmir and West Bengal, Dadra and Nagar Haveli, Daman and Diu AND Chandigarh.
The operation days and hours of GSKs will be as per the guidelines provided by the administration in your respective state.

Advisory in respect of Changes in GSTR 8, Dated (Aug 2nd, 2024)

TCS rate has been reduced from the current 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) effective from 10/07/2024 vide Notification No. 15/2024 dated 10.07.2024.

Thus, the following important aspects regarding the TCS rates effective from 10.07.2024 are to be noticed:

Period from 1st July to 9th July 2024:

During this period, the old TCS rate of 1% will continue to apply. Taxpayers are required to collect & report TCS at this rate for all transactions that happened between these dates.

From 10th July 2024 onwards:

A revised TCS rate of 0.5% will come into effect from 10th July 2024. Taxpayers must ensure their systems and processes are updated to reflect this new rate for all transactions that happened from 10th July forward.

Further, as few taxpayers have reported validation error while filing GSTR-8 for the month of July 2024, it is to inform that GSTN team is working on the changes announced by GST Council in respect of GSTR 8, is expected to be complete in next couple of days, and users would be able to file returns from 06th August 2024 midnight onwards. Any inconvenience caused in this regard is regretted.

Notification no. 16/2024– Central Tax [S.O. 3161(E)/F.NO. CBI… Section 1 of the finance act, 2024 – short title and commencement – notified date of enforcement of sections 11, 12 and 13 Notification no. 16/2024–Central Tax [S.O. 3161(E)/F.NO. CBIC-20006/20/2023-GST], DATED 6-8-2024

In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2024 (8 of 2024), the Central Government hereby appoints, —

the 1st day of October 2024, as the date on which the provisions of section 13 of the said Act shall come into force.
the 1st day of April 2025, as the date on which the provisions of sections 11 and 12 of the said Act shall come into force.

Guidelines for second special all-India drive against fake registrations instruction no. 2/2024-GST [F. NO. CBIC- 20/16/30/2020-GST], Dated 12-8-2024

Attention is invited to the Instruction No. 1/2023-GST, dated 4-5-2023 vide which guidelines were issued for conducting a special All-India drive during the period from 16th May, 2023 to 15th July, 2023, for verification and detection of suspicious/ fake registrations and for taking timely remedial action to prevent any further revenue loss to the Government

A meeting of the said National Co-ordination Committee held on 11th July 2024 was found quite effective in weeding out fake registrations. The Committee felt that there may be a need for further focused and coordinated action by Central and State tax authorities, therefore, decided that a second special All-India drive against fake registrations may be conducted by all Central and State tax authorities for a period of two months starting from 16th August 2024.

In the light of above, in partial modification of the Instruction No. 1/2023-GST, dated 4-5-2023, the following guidelines are issued for such concerted action on suspicious/ fake registrations during the special All-India drive during this year: —
Period of Special Drive is from 16th August 2024 to 15th October 2024 to detect suspicious/ fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue.
Identification of fraudulent GSTINs.

GSTN, in coordination with Directorate General of Analytics and Risk Management (DGARM), CBIC, will identify suspicious/ high-risk GSTINs, based on detailed data analytics and risk parameters, for the purpose of verification by the State and Central Tax authorities during the said drive and share the details of such suspicious GSTINs, jurisdiction wise, with the concerned tax administration. In case of such suspicious GSTINs falling under the jurisdiction of Central Tax, the details will be shared with the Central Tax authorities by GSTN through DGARM. Besides, the State and Central Tax Authorities, may, at their own option, supplement this list by data analysis/ intelligence gathering at their end, using various available analytical tools like BIFA/ GAIN, ADVAIT, NIC Prime, E-Way Bill Analytics etc., as well as through human intelligence, modus operandi alerts, experience gained through the past detections, as well as the first special All-India drive.

Action to be taken by field formations:

Upon receiving data from GSTN, jurisdictional tax officers are required to promptly verify the suspicious GSTINs. If the verification confirms that the taxpayer is non-existent or fictitious, the officers must swiftly proceed with suspending and canceling the taxpayer’s registration in accordance with the provisions of section 29 of CGST Act, read with the rules thereof.
Further, the matter may also be examined for blocking of input tax credit in Electronic Credit Ledger as per the provisions of Rule 86A of CGST Rules without any delay. Additionally, the details of the recipients to whom the input tax credit has been passed by such non-existent taxpayer may be identified through the details furnished in FORM GSTR-1 by the said taxpayer.

Where the recipient GSTIN pertains to the jurisdiction of the said tax authority itself, suitable action may be initiated for demand and recovery of the input tax credit wrongly availed by such recipient on the basis of invoice issued by the said non-existent supplier, without underlying supply of goods or services or both.

In cases where the recipient GSTIN pertains to a different tax jurisdiction, the details of the case including the details of the recipient GSTIN, along with the relevant documents/ evidence, may be sent to the concerned tax authority, as early as possible, in the format mentioned in Annexure-B. For sharing such details/ information and coordination with other tax authorities, GSTN Back Office has an online functionality, ‘Initiate Enquiry’ in the Enforcement module, which is available to all tax officers who have been assigned the role of ‘Enforcement Officer’ on the Back Office (BO Portal).
For the purpose of communicating this information to the recipient tax jurisdiction, a nodal officer shall be appointed immediately by each of the Zonal CGST Zone and State. The name, designation, phone number/ mobile number and E-mail Id of such Nodal officer(s) appointed by CGST Zones and States must be shared by the concerned tax authority with GST Council Secretariat within three days of issuance of this letter. GST Council Secretariat will compile the list of the Nodal officers after procuring the details from all the tax administrations and will make the compiled list available to all the tax jurisdictions and to GSTN.
The nodal officer of the tax jurisdictions may be assigned the role of ‘Enforcement Officer’ on the BO Portal. Wherever the details of the recipient GSTIN needs to be shared to other tax jurisdiction, the same may be done through the nodal officer. The said nodal officer will accordingly share the information about the recipient GSTIN with the nodal officer of the concerned recipient tax administration, through the said functionality, attaching a pdf document in the format mentioned in Annexure-B. The nodal officer of the recipient tax administration will further share the details with the concerned jurisdictional tax officers, for necessary action.

GSTN will issue detailed guidelines/ advisory regarding usage of this functionality, which may be referred to.
Action may also be taken to identify the masterminds/ beneficiaries behind such fake GSTIN for further action, wherever required, and also for recovery of Government dues and/ or provisional attachment of property/ bank accounts, etc. as per provisions of section 83 of CGST Act. Further, during the investigation/ verification, if any linked suspicious GSTIN is detected, similar action may be taken/ initiated in respect of the same.

Feedback and Reporting Mechanism:

An action-taken report in the format enclosed as Annexure-A and Annexure-A1 will be uploaded by each of the State as well as CGST Zones, through the nodal officer referred to in para 2(c)(v), on the portal provided for the same, on a weekly basis on the first working day after completion of the week, for enabling the GST Council Secretariat to monitor the same.
If any novel modus operandi is detected during the verification/ investigation, the same may also be indicated in the said action taken report. On conclusion of the drive, GSTIN-wise feedback on the result of verification of the suspicious GSTINs shared by GSTN, will be provided by the field formations through the nodal officer to GSTN, as per the format enclosed in Annexure-C.

The Principal Chief Commissioner/ Chief Commissioner of the Central GST Zones and the Chief Commissioner/ Commissioner of the States/ UTs may monitor the progress of action taken in respect of list of suspicious GSTINs received from GSTN and chosen locally. The action taken in respect of the GSTINs received from other tax administrations through the ‘Initiate Enquiry’ module may also be monitored.

GST Council Secretariat will compile the reports received from various formations and make it available to the National Coordination Committee immediately. The unique modus operandi found during this special drive will be compiled by GST Council Secretariat and presented before National Coordination Committee, which will be subsequently shared with Central and State Tax administrations across the country.

Difficulties, if any, in the implementation of these instructions may be brought to the notice of the Board.

Circular no. 228/22/2024-GST [F. NO. CBIC-190354/94/2024-TO(TRU-II)-CBEC], DATED 15-7-2024 Section 3, read with section 5, of the central goods and services tax act, 2017 – officers under the act – Guidelines for CGST field formations in maintaining ease of doing business while engaging in investigation with regular taxpayers – applying para 2(G) of the instruction no. 1/2023-24-GST (INV.), Dated 30-3-2024 in audit matters instruction no. 3/2024-GST [F.NO. GST/INV/INSTRUCTIONS/2023 24], Dated 14-8-2024

“The scenario may arise in a CGST Zone where an issue investigated by one of the (Pr.) Commissioners is based on an interpretation of CGST Act/Rules, notifications, circulars etc., and it is in the direction of proposing non-payment or short payment of tax, however, the background is that the taxpayer(s) is/are following, or have followed, a prevalent trade practice based on particular interpretation on that issue in the sector/industry. This scenario results in more than one interpretation and likelihood of litigation, change in practice etc.

In such cases, it is desirable that the zonal (Pr.) Chief Commissioner make a self-contained reference to the relevant policy wing of the Board i.e. the GST Policy or TRU. The endeavor, to make such reference before concluding investigation, and as much in advance, as is feasible, of the earliest due date for issuing of show cause notice, may be useful in promoting uniformity or avoiding litigation if the matter, after being processed, is amongst those that also gets placed before the GST Council.”

The Board desires that during the process of audit, wherever the relevant CGST Audit (Pr.) Commissioner comes across the scenario described above, the Zonal (Pr.) Chief Commissioner should follow the procedure and endeavor prescribed by Board in para 2(G) of above Instruction. This applies also to on-going audit proceedings.

Advisory for furnishing bank account details before filing GSTR-1/IFF Notification No. 38/2023 – Central Tax New Delhi, the 4th of August 2023, Dated Aug 23rd, 2024

As per Rule 10A of Central Goods and Services Tax Rules, 2017 notified vide notification no. 31/2019 dated 28.06.2019, a taxpayer is required to furnish details of a valid Bank Account within a period of 30 days from the date of grant of registration, or before furnishing the details of outward supplies of goods or services or both in FORM GSTR-1or using Invoice Furnishing Facility (IFF), whichever is earlier.
Now, from 1st September 2024 this rule is being enforced. Therefore, for the Tax period August-2024 onwards, the taxpayer will not be able furnish GSTR-01/IFF as the case may be, without furnishing the details of a valid Bank Account in their registration details on GST Portal.
Therefore, all the taxpayers who have not yet furnished the details of a valid Bank Account details are hereby requested to add their bank account information in their registration details by visiting Services > Registration > Amendment of Registration Non – Core Fields tabs on GST Portal.
It is informed that in absence of a valid bank account details in GST registration, you will not be able to file GSTR-1 or IFF as the case may, be from August-2024 return period.

Introduction of RCM Liability/ITC Statement Dated Aug 23rd, 2024

To assist taxpayers in correctly reporting Reverse Charge Mechanism (RCM) transactions, a new statement called “RCM Liability/ITC Statement” has been introduced on the GST Portal. This statement will enhance accuracy and transparency for RCM transactions by capturing the RCM liability shown in Table 3.1(d) of GSTR-3B and its corresponding ITC claimed in Table 4A (2) and 4A (3) of GSTR-3B for a return period. This statement will be applicable from tax period August 2024 onwards for monthly filers and from the quarter, July-September-2024 period for quarterly filers.

The RCM Liability/ITC Statement can be accessed using the navigation: Services >> Ledger >> RCM Liability/ITC Statement.

Reporting Opening Balance in RCM ITC Statement.
RCM ITC opening balance can be reported by following below navigation:

Login >> Report RCM ITC Opening Balance or Services >> Ledger >> RCM Liability/ITC Statement >> Report RCM ITC Opening Balance

In case the taxpayers have already paid excess RCM liabilities by declaring the same in Table 3.1(d) of GSTR-3B however he hasn’t availed corresponding ITC through Table 4(A)2 or 4(A)3 of GSTR-3B, due to any reason, in such cases taxpayer need to fill Positive value of such excess paid liability as RCM ITC as opening balance in RCM statement.
In case the taxpayers have already availed excess RCM ITC through Table in Table 4(A)2 or 4(A)3 of GSTR-3B however he hasn’t paid corresponding liability by declaring the same in table 3.1(d) of GSTR-3B, in such cases taxpayer will be needed to fill a negative value of such excess claimed ITC as RCM as opening balance in RCM Statement.
In case taxpayer need to reclaim the RCM ITC, which was reversed in earlier tax periods through Table 4(B)2 of GSTR-3B, if eligible, he can reclaim such RCM ITC in Table 4A (5) of GSTR-3B. Please note that such RCM ITC shall not be reclaimed through Table 4(A)2 and 4(A)3 of GSTR-3B. Such RCM ITC reversal need not to be reported as RCM ITC opening balance.

For Opening Balance pls reconcile till tax Period:

Monthly filers: Report the opening balance considering RCM ITC till the July-2024 return period.
Quarterly filers: Report the opening balance up to Q1 of FY 2024-25, considering RCM ITC till the April-June 2024 return period.
Deadline to declare Opening Balance: Opening balance can be declared till 31.10.2024.
Amendments in Opening Balance: Taxpayers can rectify any errors committed while declaring the opening balance on or before 30.11.2024, he shall be provided three opportunities for the same.

This amendment facility shall be discontinued after 30.11.2024.

Companies (registration of foreign companies) amendment rules, 2024 – amendment in rules 3

The Ministry of Corporate Affairs (MCA) issued a notification on 12th August 2024 amending Rule 3 and Rule 8 of the Companies (Registration of Foreign Companies) Rules. These amendments will come into effect from 9th September 2024. Below is a summary of the key changes:

Rule 3 sub-rule (3) – A foreign company shall, within a period of thirty days of the establishment of its place of business in India, file with the Registrar, Central Registration Centre in Form FC-1, accompanied by a fee and documents as provided in Section 380 of Companies (Registration offices and Fees) Rules, 2014.

Rule 8 sub-rule (1) – Any document which any foreign company is required to deliver to the Registrar shall be delivered to the Registrar having jurisdiction over New Delhi, and references to the Registrar in chapter XXII of the act, i.e., Companies Incorporated outside India, and these rules shall be constructed accordingly.

Limited Liability Partnership (Amendment) Rules, 2024 introduces the Centre for Processing Accelerated Corporate Exit, effective from 27th August 2024.

On August 5, 2024, the Ministry of Corporate Affairs issued a notification amending the Limited Liability Partnership Rules, 2009, under the Limited Liability Partnership Act, 2008. The Limited Liability Partnership (Amendment) Rules, 2024, effective from August 27, 2024, incorporate several changes, particularly to rule 37. The amendments include the introduction of the Centre for Processing Accelerated Corporate Exit, established under a notification dated March 17, 2023. This Centre is now mentioned alongside the Registrar in various sub-rules, specifically in clauses and provisions related to the accelerated exit process of LLPs. The explanation added to sub-rule (1) clarifies the definition and establishment of this Centre. These changes aim to streamline and expedite the corporate exit procedures for LLPs. (Filings under section 124 and section 125 of the Companies Act).

Amendment in DIR 3 KYC

The Ministry of Corporate Affairs (MCA) has recently issued a notification on 16th July 2024 regarding amendments to the DIR-3 KYC requirements, effective from August 1, 2024, and notified Companies (Appointment and qualification of Directors) Amendment Rules, 2024. This amendment impacts how Directors Identification Number (DIN) holders can update their email IDs and mobile numbers under the Companies Act, 2013.

Impact of Amendment: If a Din holder wants to change their email ID or mobile number at any time during the financial year, there are two options:

If they want to make amendments after April 1st until September 30th, they can do so by filing the DIR-3 KYC (without any fees).
If they are making amendments after September 30 or after filing DIR-3 KYC once for that year, then they need to file DIR-3 KYC again along with fees of Rs. 500/-

IBBI mandates Registered Valuers to provide a ‘Valuation Report Identification Number’ for each valuation

The Insolvency and Bankruptcy Board of India (IBBI) has issued a circular mandating the generation of a Valuation Report Identification Number (VRIN) for each valuation report prepared by Registered Valuers (RVs) or Registered Valuers Entities (RVEs) under the Insolvency and Bankruptcy Code, 2016. This measure aims to ensure the authenticity and traceability of valuation reports.

SEBI bars stock exchanges/clearing corporations from ties with unregistered security advisors

SEBI has notified the Securities Contracts (Regulation) (Stock Exchange and Clearing Corporations) (Fourth Amendment) Regulations, 2024. A new chapter, VIA, regarding restrictions on dealing with unregulated entities has been introduced. It states that no recognised stock exchange or clearing corporation or their agent must have any association with another person who provides advice or any recommendation in respect of security unless the person is registered with or permitted by the Board.

SEBI amends Intermediaries Regulations; bars intermediaries from associating with unregistered security advisors

SEBI has notified SEBI (Intermediaries) (Amendment) Regulations, 2024. A new chapter, IIIA, regarding restrictions on dealing with other entities has been introduced. It states that a person regulated by the Board or agent of such a person must not have any direct or indirect association with another person who provides advice or recommendation directly or indirectly in respect of a security unless a person is registered with or permitted by the Board to provide such advice or recommendation.

Appointed date for SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2022

According to new modifications, the pre-open session for IPOs will be for a duration of 60 minutes i.e, from 9-10 am, out of which 45 minutes will be allowed for order entry, order modification and order cancellation and 10 minutes for order matching and trade confirmation.

Disclaimer: Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for the period 31.08.2024.

Newsletter Aug 2024

News & UpdatesMONTHLY NEWS & UPDATES FOR JULY 2024

Executive Summary

Income Tax

Section 10 (23FE) of the income-tax act, 1961 – exemption – income of specified person from an investment made in India – specified sovereign wealth fund.
Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory body/authority/board/commission – notified body or authority
Amendment as per Union Budget 2024 presented on July 23, 2024.

Goods And Service Tax (GST)

Refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports
Integrated Services from NIC-IRP e-invoice-1 and e-invoice-2 Portals
Refund of tax paid on Inward supply of goods by Canteen Store Department (FORM – GST RFD 10A)
Circular no. 228/22/2024 dated 15-7-2024 (Section 9 of the Central Goods and Services Tax Act, 2017 – levy and collection – clarifications regarding applicability of GST on certain services
Circular no. 229/23/2024 dated 15-7-2024 (Section 9 of the Central Goods and Services Tax Act, 2017 – levy and collection – clarification regarding GST rates and classification (goods).
Notification no. 3/2024, dated 12-7-2024 – Central Tax (rate) (Section 11 of the Central Goods and Services Tax Act, 2017 – Power to grant exemption from tax – list of CGST exempt goods (nil rated goods)
Notification no. 14/2024, dated 10-7-2024 – Central Tax (Section 44 of the Central Goods and Services Tax Act, 2017 – Annual Return – Exemption to registered person from filing annual return whose aggregate turnover in the Financial Year 2023-24 is up to 2 crores
Notification no. 15/2024- Central Tax, dated 10-7-2024 section 52 of the Central Goods and Services Tax Act, 2017 – Collection of tax at source – electronic commerce operator to collect 0.25 per cent of net value of intra-state taxable supplies made through it where consideration with respect to such supplies is collected by said operator.
Notification no. 4/2024, dated 12-07-2024- Central Tax (rate) (Section 11 of the Central Goods and Services Tax Act, 2017 – Power to grant exemption from tax – CGST exempt services (nil rated services)

Companies Act 2013/ Other Laws

Companies (Significant Beneficial Owners) Amendment Rules, 2024
(Companies (Management and Administration) Amendment Rules, 2024)
(Filings under section 124 and section 125 of the Companies Act)
Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2024.
Companies Nidhi (Amendment) Rules, 2024
SEBI amends AIF Regulations, 2012; introduces norms for ‘Migrated Venture Capital Funds
Appointed Date for SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2022

CBDT Notification No. 33/2023-Income Tax, Dated: 29th May, 2023

Section 10 (23FE) of the income-tax act, 1961 – exemption – income of specified person from an investment made in India – specified sovereign wealth fund.
Sedction 10(23FE) provides an exemption to sovereign wealth funds and pension funds (specified fund) on their income like dividend, interest, and long-term capital gains arising from investment in infrastructure in India made between 01.04.2020 and 31.03.2024 subject to fulfillment of certain conditions.
Through Notification dated 18-7-2024, 31^st March 2024 has been substituted with 31^st March 2025.

AND

The Central Government through Notification No. 93/2024/F. NO. 500/PF12/S10(23FE) FT&TR-II-PART (1), specify the pension fund, namely, AIMCo India Infrastructure Limited as the specified person for the purposes of the said clause in respect of the eligible investment made by it in India on or after the date of publication of this notification in the Official Gazette but on or before the 31st day of March, 2025 subject to the conditions.
Violation of any of the conditions shall render the assessee ineligible for the tax exemption.
This notification shall come into force from the date of its publication in the Official Gazette.
Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory body/authority/board/commission – notified body or authority
The Central Government notifies ‘Punjab Skill Development Mission Society, Chandigarh’, a Society constituted by Government of Punjab, in respect of the following specified income arising to the said Society, as follows:

Grants and contributions received from Central Government, State Government of Punjab, and other Government institutions
CSR funds received from companies/firms.
Levy of service charges or administrative charges for the schemes/projects.
Interest on bank deposits.

This notification shall be effective subject to the conditions that Punjab Skill Development Mission Society, Chandigarh –

shall not engage in any commercial activity
its activities and the nature of the specified income shall remain unchanged throughout the financial years.
shall file return of income in accordance with the provision of section 139 of the Income-tax Act, 1961.

This notification shall be deemed to be applicable for AY 21-22 to AY 23-24.

AND

The Central Government notifies ‘ Society for Applied Microwave Electronics Engineering & Research (SAMEER)’, a Society constituted by Central Government, in respect of the following specified income arising to the said Society, as follows:

Grants received from Ministry of Electronics and Information Technology
Fees received from test measurement and consultancy services.
Design and development charges for systems/subsystems in RF/Microwave and allied areas.
Revenue from Royalty and transfer of technology.
Miscellaneous income as per Memorandum of Association of the SAMEER
Interest on bank deposits.

This notification shall be effective subject to the conditions that Society for Applied Microwave Electronics Engineering & Research (SAMEER), Mumbai –

shall not engage in any commercial activity
its activities and the nature of the specified income shall remain unchanged throughout the financial years.
shall file return of income in accordance with the provision of section 139 of the Income-tax Act, 1961.

This notification shall be deemed to be applicable for AY 21-22 to AY 24-25.
Amendment in Union Budget
Amendment u/s 115BAC –

The proposed slab as per new regime u/s 115BAC is:

Income (INR)	Rate of Tax
Up to Rs. 3,00,000	NIL
Rs. 3,00,000 to Rs. 7,00,000	5%
Rs. 7,00,000 to Rs. 10,00,000	10%
Rs. 10,00,000 to Rs. 12,00,000	15%
Rs. 12,00,000 to Rs. 15,00,000	20%
More than Rs. 12,00,000	30%

Additionally, Standard deduction has been increased from Rs. 50,000 to Rs. 75,000 along with family pension will be also allowed. The family pension amount has been amended from Rs. 15,000 to Rs. 20,000.
Deduction u/s 80CCD (2) – In case of employee other than Government employee, the contribution rate has been increased to 14% from 10% of employee’s salary.

This is being increased only in the case where the employee’s salary is chargeable to tax under sub-section (1A) of section 115BAC of the Act.

Amendment for Foreign Companies –

It is proposed to reduce the tax rate from 40% to 35%. The surcharge and Health and Education Cess will remain same.

Amendment in TDS/TCS:

It is proposed to reduce the TDS rate for the following sections:

Section	Existing TDS Rate	Proposed TDS Rate	With effect from
Section 194D (Payment of insurance Commission – in case of person other company)	5%	2%	01.04.2025
Section 194DA (Payment in respect of Life Insurance Company)	5%	2%	01.10.2024
Section 194G (Commission etc. on sale of lottery of ticket)	5%	2%	01.10.2024
Section 194H (Payment of Commission or Brokerage)	5%	2%	01.10.2024
Section 194IB (Payment of Rent by certain Individual or HUF)	5%	2%	01.10.2024
Section 194M (Payment of certain sums by certain individuals or Hindu undivided Family)	5%	2%	01.10.2024
Section 194 O (Payment of certain sums by e-commerce operator to e-commerce participant)	1%	0.1%	01.10.2024
Section 194F (Relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India)	20%	Proposed to be omitted	01.10.2024
Section 194T (Insertion of new section – Payments made by Partnership Firm to partner of the firm in the nature of salary, remuneration, bonus, commission and interest to any account (including capital account) and such aggregate payment more than INR 20,000 in FY)	0%	10%	01.10.2024

Section 192(B) – Salary

The amendment has been proposed that while computing the TDS deducted by an employer on salary income, the employer shall consider the TCS collected, subject to certain conditions. This amendment shall be applicable from 01.10.2024.

Section 194IA – Transfer of Immovable Property

It is proposed to amend the sub section (2) of the section 194-IA of the Act to clarify that where there is more than one transferor or transferee in respect of an immovable property then such consideration shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property. This amendment shall be applicable from 01.10.2024.

Excluding sums paid under section 194J from section 194C (Payments to Contractors)
Clause (iv) of the Explanation of section 194C defines “work” to specify which all activities would attract TDS under section 194C
There is no explicit exclusion of assessee who are required to deduct tax under section 194J from requirement or ability to deduct tax under section 194C of the Act
It is proposed to explicitly state that any sum referred to in sub-section (1) of section 194J does not constitute “work” for the purposes of TDS under section 194C.
The amendment shall be applicable from 01.10.2024.
Increase in the Interest Rate (TCS) – Delay in payment of TCS to government.

It is proposed to increase the interest rate from 1% to 1.5% for every month or part thereof on the amount of TCS from the date such amount collected to the date tax is actually paid.

TCS on notified goods (Luxury goods specified by Central Government)

It is proposed to levy TCS u/s 206C(1F) on notified goods of value exceeding Rs. 10 lacs. It will be applicable from 01.01.2025.

Filing of correction statement in case of TDS/TCS

TDS/TCS correction statements cannot be filed beyond 6 years after the end of the financial year in which the original statements under section 200 and section 206C were filed.

Amendment in Capital Gain:

Income	Rate of Tax (For transfer taking place before 23^rd July 2024)	Rate of Tax (For transfer taking place after 23^rd July 2024
Long term capital gain u/s 115E	10%	12.5%
Long term capital gain u/s 112(1)(c)(iii)	10%	This clause is not applicable for transfer on or after 23^rd July 2024
Long term capital gain u/s 112A	10% (exceeding INR 1 lac)	12.5% (exceeding INR 1.25 lacs)
Long term capital gain (not being long term capital gain u/s 10 (33)/(36)	20%	12.5%
Short term capital gain u/s 111A	15%	20%
Listed Bonds and Debentures	20%	12.5%

The Indexation has been removed in case of Long-Term Capital Gain from 23 July 2024

Holding Period: There will be only two holding periods, 12 months and 24 months, for determining whether the capital gain is short term capital gain or long- term capital gain.

Capital Assets	Holding Period
Listed Securities	12 months
All other assets (Other than listed securities)	24 Months

Section 47: Any gift paid by the company will be subject to Capital Gain Tax. This shall be applied to Assessment year 2025-26 and subsequent years.
Amendment in Section 37

Any expenditure incurred to settle proceedings related to legal contraventions, as notified by the Central Government, shall not be allowed as deduction u/s 37.

Amendment in Section 40(b): Remuneration to partner

Existing		Proposed
Book Profit	Remuneration amount	Book Profit	Remuneration amount
a) On the first Rs. 3 lacs of the Book Profit b) or in case of Loss	Rs. 1,50,000 or at the rate of 90% of book profit, whichever is more	a) On the first Rs. 6 lacs of the Book Profit b) or in case of Loss	Rs. 3,00,000 or at the rate of 90% of book profit, whichever is more
a) On the balance amount of Book Profit	At the rate of 60%	a) On the balance amount of Book Profit	At the rate of 60%

Amendment in Section 94B(b): (Restriction on deduction of Interest expense in respect of any debt issued by non-resident, being an associate enterprise of the Borrower).

It is now proposed that the provision of this section shall not apply to finance companies located in IFSC as defined under IFSCA Regulation, 2021, which satisfy such conditions and carry on such activities as may be prescribed. This amendment shall be effective in relation to Assessment Year 2025-26 and subsequent assessment year.

Amendment: Buyback of shares

In Budget 2024, it is proposed that sum paid by domestic company for purchase of its own shares shall be treated as dividend in the hands of shareholder, who received payment from such buy-back of shares and shall be charged to income-tax at applicable rates. No deduction for expenses shall be available against such dividend income while determining the income from other sources.

The Cost of acquisition of the shares which have been bought back would generate a capital loss in the hands of the shareholder as these assets have been extinguished. Therefore, when the shareholder has any other capital gain from the sale of shares or otherwise subsequently, he would be entitled to claim his original cost of acquisition of all the shares.

GST

Refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports

GST Council has approved that application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports may also be processed by Tax Administration.

Accordingly, Notification No. 12/2024 Central Tax dt. 10 July 2024 has also been issued. GSTN is in the process of development of a separate category of refund application in FORM GST RFD-01, for filing an application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports.

However, till the time such separate category for claiming refund of additional amount of IGST paid is developed on the common portal, such exporter(s) may claim refund of the additional IGST by filing an application of refund in FORM GST RFD-01 under the category “Any other” with remarks “Refund of additional IGST paid on account of increase in price subsequent to export of goods” and uploading of Statement 9A & 9B (Refer to Notification No. 12/2024-Central Tax dt. 10 July 2024) along with the relevant documents as specified in the Circular 226/20/2024-GST dated. 11.07.2024.

The Refund application filed under this category will be processed by the officer based on the documentary proof submitted by the refund applicant. The list of documents which are required to be accompanied with the refund claim are also mentioned in Para 6 of the said Circular.

Integrated Services from NIC-IRP e-invoice-1 and e-invoice-2 Portals

GSTN wish to inform that NIC is releasing the integrated services from e-invoice-1 and e-invoice-2 portals on 18 July 2024 on sandbox portals and 01 Aug 2024 on the production portals. These portals run in parallel and now allow for seamless inter-operations. The highlights of the portal are as follows:

Both the portals (NIC-IRP 1 & 2) provide the web and API modes for e-invoice related services.
The taxpayers can use the same login credentials to operate e-invoice1 and e-invoice-2 portals.

In the case of API, the same token can be used for the services of e-invoices and e-waybills on both the portals.

The taxpayers can use the e-invoice-2 portal during technical glitches in e-invoice main portal or any other exigencies.
The Criss-Cross operations of printing, downloading and cancelling can be carried out on these portals. That is, printing, downloading and cancelling of e-invoices of portal 1 can be done at portal 2 and vice versa.
In case e-invoice-1 is non-operational because of technical reasons, then the e-invoice-2 portal can be used for all the services of the e-invoices.

Please visit the sandbox portal (einv-apisandbox.nic.in) for URLs of APIs and other details.
Please test all the APIs in the sandbox environment before rolling on the production environment.

In addition to NIC-IRP, four other e-invoice portals are operated for the convenience of the taxpayer. The users can avail similar e-invoicing services on IRP-3/IRP-4/IRP-5 and IRP-6 portals also.

Refund of tax paid on Inward supply of goods by Canteen Store Department (FORM – GST RFD 10A)

In reference to Circular No. 227/21/2024-GST issued by GST policy wing, CBIC on 11 July for online processing of refund applications filed by Canteen Stores Department (CSD), GSTN has developed an online functionality to enable CSDs to file an application for refund in FORM GST RFD-10A in GST common portal.

The pre-requisites & relevant date for filing refund application under this category are mentioned in Para 4, 5 & 6 of the said Circular. The applicants are advised to refer to the same for details in this regard.

The process to be followed for filing refund application under the said category is as below:

Login into the GST portal. Click on Services -> Refund -> Application for Refund.
Select “Refund of tax paid on Inward supply of goods by Canteen Store Department (CSD)”.
Select Period for which refund is to be applied, by selecting from & To Period and then clicking on “Create Refund” application.
The refund applications on GST portal are to be filed sequentially with respect to tax periods. If there is no refund to be claimed for a particular period, CSD needs to file a NIL refund claim for that period. Once a refund is filed or NIL refund claim is filed for a particular period, the system will not allow filing for the same period again. Similarly, it will not allow the taxpayer to file for any previous periods.
In the GST portal, the Select Period is available from July 2017. If a taxpayer has already filed manual refund claims for the earlier periods or no refund claim is required to be filed for the earlier periods, they are advised to file NIL refund claim for such earlier periods.
The details of invoices for which a refund is to be claimed shall be uploaded in the Statement. After successful validation of the statement, click on the Proceed button.
The total tax paid on Inward supply of goods will be auto populated. Enter the value of IGST, CGST and SGST in “Total Refund applied for” table.
While filing refund application, the applicant has to Select the “Bank Account number” in which the refund is to be disbursed.
Before submitting the refund application, the applicant can Save & Preview the refund application. If any correction/addition or rectification is to be done in the refund application, it can be done only before submission. Once the application is submitted using the Submit button, the system will not allow any change in the refund application.

Circular no. 228/22/2024 dated 15-7-2024 (Section 9 of the Central Goods and Services Tax Act, 2017 – levy and collection – clarifications regarding applicability of GST on certain services

In exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017 and on the recommendations of the 53rd GST Council in its meeting held on 22 June 2024, at New Delhi, clarifications, related to the following issues are being issued through this circular: —

GST exemption on the outward supplies made by the Ministry of Railways (Indian Railways).
GST exemption on the transactions between Special Purpose Vehicles (SPVs) and Ministry of Railways (Indian Railways).

Applicability of GST on the statutory collections made by the Real Estate Regulatory Authority (RERA) in accordance with the Real Estate (Regulation and Development) Act, 2016.

Applicability of GST on the incentive amount shared by acquiring bank with other stakeholders in the digital payment ecosystem under the notified Incentive Scheme for promotion of Ru Pay with Debit Cards and low value BHIM-UPI transactions.
GST liability on the reinsurance of specified general and life insurance schemes.
GST liability on the reinsurance of insurance schemes for which total premium is paid by the Government.

Applicability of GST on retrocession services.
GST Liability on certain accommodation services.

Circular no. 229/23/2024 dated 15-7-2024 (Section 9 of the Central Goods and Services Tax Act, 2017 – levy and collection – clarification regarding GST rates and classification (goods).

Based on the recommendations of the GST Council in its 53rd meeting held on 22nd June 2024, at New Delhi, in exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017, clarifications on the following issues are being issued through this Circular as under: —

Clarification regarding GST rate on Solar Cookers:

Representations have been received seeking clarification regarding appropriate classification and applicable GST rate on supply of solar cookers that work on dual energy source.
On the recommendations of GST Council, it is hereby clarified that solar cookers that work on dual energy of solar energy and grid electricity are appropriately classifiable under heading 8516 and already attract a GST rate of 12% vide SI. No. 201A of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated the 28th of June 2017.

Clarification regarding GST rate on Fire Water Sprinklers:

Representations have been received seeking clarification as to whether the existing entry covering sprinkles at 12% GST rate also cover Fire Water Sprinklers.
On the recommendations of the Council, it is hereby clarified that all types of sprinklers, including fire water sprinklers attract GST at the rate of 12% vide SI. No. 195 B of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated the 28of June 2017.
Further, on the basis of the recommendation of the GST Council, in view of the prevailing genuine doubts, the issues for the past period are regularized on “as is where is basis”.

Clarification regarding GST rate on parts of Poultry-keeping machinery:

Representations have been received seeking clarification regarding appropriate classification and applicable GST rate on supply of ‘parts’ of Poultry-keeping machinery.
Parts of Poultry-keeping machinery are classifiable under tariff item 8436 91 00 and attract GST at the rate of 12% vide Sl. No. 199 of Schedule II of Notification No. 1/2017-Central Tax (Rate), dated the 28 June 2017. On the recommendations of the Council, to bring clarity on the issue, the relevant entry at Sl. No. 199 of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated the 28 June 2017, has been amended vide Notification No. 2/2024-Central Tax (Rate), dated the 12 July 2024 to specifically include ‘parts’ of Poultry-keeping machinery.
Further, on the basis of the recommendation of the GST Council, in view of the prevailing genuine doubts, the issues for the past period are regularized on “as is where is basis”.

Clarification regarding the scope of expression ‘pre-packaged and labelled’ for supply of agricultural farm produce:

Representations have been received seeking clarification regarding the scope of expression ‘pre-packaged and labelled’ for the purposes of levy of GST on supply of agricultural farm produce in view of amendment made in Legal Metrology (Packaged Commodities) Rules, 2011.
On the basis of the recommendation of the GST Council, the definition of ‘pre-packaged and labelled’ in Notification No. 1/2017-Central Tax (Rate) and Notification No. 2/2017-Central Tax (Rate), both dated the 28 June 2017, has been amended vide Notification No. 2/2024-Central Tax (Rate) dated 12 July 2024 and Notification No. 3/2024-Central Tax (Rate) dated 12 July, 2024, respectively, to exclude the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litre from the scope of ‘pre-packaged and labelled’. Consequently, supply of agricultural farm produce in package (s) containing quantity of more than 25 kilogram or 25 litre will not attract GST levy of 5%.
Further, on the basis of the recommendation of the GST Council, in view of the prevailing genuine doubts, the issues for the past period are hereby regularized on “as is where is” basis.

Clarification regarding supplies of goods made to or by agency engaged by Government

Prior to 17 July 2022, supplies of pulses and cereals attracted GST at rate of 5%, wherein the said goods were put up in a unit container and bearing a registered brand name and/or bearing a brand name on which an actionable claim or enforceable right in a court of law is available.
On the basis of the recommendation of the GST Council, in view of the genuine interpretational issues, the issues for the past period from 1-7-2017 up to 17-7-2022 are hereby regularized on “as is where is” basis for supplies made to or by any agency engaged by Union Government or State Government/Union Territory for procurement and sale of such goods under any programme/scheme duly approved by the Central Government or any State Government intended to distribute such goods at free of cost or at subsidized rate to the eligible beneficiaries like economically weaker sections of the society subject to following conditions, namely:–

– the concerned supplier furnishes a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union Territory concerned recommending that supplies have been made to or by an agency engaged by Union Government or State Government/Union Territory for procurement and sale of such goods under any programme/scheme duly approved by the Central Government or any State Government intended to distribute such goods at free of cost or at subsidized rate to the eligible beneficiaries like economically weaker sections of the society, within a period of 180 days from the date of issuance of this Circular to the jurisdictional commissioner of the Central Tax or jurisdictional commissioner of the State Tax, or jurisdictional officer of the Union Territory Tax, as the case maybe; and

– Input Tax Credit shall not be allowed on such inputs and, if availed on such inputs, it shall be reversed within a period of 180 days from the date of issuance of this Circular, if the supplier intends to take the benefit under the proposed regularisation.

Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board.

Notification no. 3/2024, dated 12-7-2024 – Central Tax (rate) (Section 11 of the Central Goods and Services Tax Act, 2017 – Power to grant exemption from tax – list of CGST exempt goods (nil rated goods)

In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 2/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28 June, 2017, namely:-

In the said notification, after the Schedule, in the Explanation, in clause (ii), after the entries relating thereto, the following proviso shall be inserted, namely:

“Provided that notwithstanding anything contained in the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder, as amended from time to time, the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litres shall not be considered as a supply made within the scope of expression ‘pre-packaged and labelled’.”

This notification shall come into force from the 15 July 2024.

Notification no. 14/2024, dated 10-7-2024 – Central Tax (Section 44 of the Central Goods and Services Tax Act, 2017 – Annual Return – Exemption to registered person from filing annual return whose aggregate turnover in the Financial Year 2023-24 is up to 2 crores

In exercise of the powers conferred by the first proviso to section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby exempts the registered person whose aggregate turnover in the financial year 2023-24 is up to two crore rupees, from filing annual return for the said financial year

Notification no. 15/2024- Central Tax, dated 10-7-2024 section 52 of the Central Goods and Services Tax Act, 2017 – Collection of tax at source – electronic commerce operator to collect 0.25 per cent of net value of intra-state taxable supplies made through it where consideration with respect to such supplies is collected by said operator

In exercise of the powers conferred by sub-section (1) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 52/2018-Central Tax, dated the 20th September, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 900(E), dated the 20 September, 2018, namely:-In the said notification, for the words “half per cent.”, the figure and word “0.25 per cent.” shall be substituted.
This notification shall come into force from the date of its publication in official gazette.

Notification no. 4/2024, dated 12-07-2024- Central Tax (rate) (Section 11 of the Central Goods and Services Tax Act, 2017 – Power to grant exemption from tax – CGST exempt services (nil rated services)

As per No. 12/2017-Central Tax (Rate), dated the 28 June 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely: —

In the said notification, after serial number 12 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

Supply of accommodation services having value of supply less than or equal to twenty thousand rupees per person per month provided that the accommodation service is supplied for a minimum continuous period of ninety days.

This notification shall come into force with effect from the 15 July 2024.

Companies (Significant Beneficial Owners) Amendment Rules, 2024

Ministry of Corporate Affairs has amended the Companies (Significant Beneficial Owners) Rules, 2018 wherein Form No BEN-2 (Return to the Registrar in respect of declaration under section 90) has been substituted as specified therein and such rules shall be called Companies (Significant Beneficial Owners) Amendment Rules, 2024.

(Companies (Management and Administration) Amendment Rules, 2024)

Ministry of Corporate Affairs has amended the Companies (Management and Administration) Rules, 2014 wherein Form No MGT-6 (Return to the Registrar in respect of declaration under section 89 received by company) has been subsituted as specified therein and such rules shall be called Companies (Management and Administration) Amendment Rules, 2024.

(Filings under section 124 and section 125 of the Companies Act)

The Ministry of Corporate Affairs (MCA) has notified waiver for making compliances thereof, additional fee on filing of various IEPF e-forms (IEPF -1, IEPF-1A, IEPF-2, IEPF-4) and e- verification of claims filed in e-form IEPF-5, till 16 August 2024. Also, one time relaxation for filing of e-verification under third proviso to sub-rule (3) of rule 7 of IEPFA (Accounting, Audit, Transfer and Refund) Rules has also been provided till 16 August 2024.

Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2024.

The amendment provides that if a director intends to update his personal mobile number or email address again at any time during the financial, he shall update the same by submitting e-form DIR-3 KYC on payment of fees of five hundred rupees.

They shall come into force from the 01 August 2024.

Companies Nidhi (Amendment) Rules, 2024

The Ministry of Corporate Affairs on 16 July 2024 has issued the Nidhi (Amendment) Rules, 2024. They shall come into force immediately. The amendment mandates that a company shall not use the words “Nidhi Limited” in its name unless it is declared as a Nidhi company under sub-section (1) of section 406 of the Companies Act, 2013.

SEBI amends AIF Regulations, 2012; introduces norms for ‘Migrated Venture Capital Funds

Securities and Exchange Board of India (SEBI) has issued the Securities and Exchange Board of India (Alternative Investment Funds) (Third Amendment) Regulations, 2024, which amend the existing regulations for Alternative Investment Funds (AIFs). The amendment introduces a new category called “migrated venture capital fund” for funds previously registered under the Venture Capital Funds Regulations, 1996. It provides guidelines for the registration, operation, and reporting requirements for these migrated funds. Key changes include new definitions, eligibility criteria, private placement restrictions, and investment conditions. The regulations also address the procedures for fund registration and the prohibition on public solicitations for subscriptions. These amendments are effective from the date of their publication in the Official Gazette.

Appointed date for SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2022

News & UpdatesUnion Budget_2024

Budget_Compilation_FY_2024-25

News & UpdatesMONTHLY NEWS & UPDATES FOR JUNE 2024

Executive Summary

Income Tax

Section 10(46) Of the Income-Tax Act, 1961-Exemptions–Statutory body/Authority/Board /Commission – Notified Body or Authority.
Amendment in Form No. 27Q.
Special provision for collection of Tax at Source for Non-Filer of Income Tax Returns u/s 206CCA
Special provision for Deduction of Tax at Source for Non-Filer of Income Tax Return u/s 206AB

Goods And Service Tax (GST)

Filing of information by manufacturers of Pan Masala and Tobacco taxpayers

Companies Act 2013/ Other Laws

Clarification Regarding Notification Pertaining to Restricting Import of Specific Items

Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees Recommendation Guidelines 2024
SEBI amends Insider Trading norms, mandates Compliance Officer to approve/reject trading plan within 2 days of receipt
SEBI modifies duration for call auction in pre-open session for IPOs and relisted scrips

Section 10(46) of the Income Tax Act, 1961- Exemption- Statutory body/ Authority/ Board/ Commission – Notified Body or Authority.

The Central Government hereby notifies the Mathura Vrindavan Development Authority, an authority constituted under the Uttar Pradesh Urban Planning Development Act, 1973 (President’s Act 11 of 1973), for the purposes of the (46) clause of Section 10.

This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee continues to be an authority constituted under the Uttar Pradesh Urban Planning Development Act, 1973 with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act

AND

The Central Government hereby notifies for the purposes of the said clause, ‘Real Estate Appellate Tribunal, Punjab’ (PAN AAALR2230D), a body constituted by the Government of Punjab, in respect of the following specified income arising to that body, namely: —

Levy of fees/charges/fines collected under The Real Estate (Regulation and Development) Act, 2016 (Central Act No. 16 of 2016) and Punjab State Real Estate (Regulation and Development) Rules, 2017.
Government Grants
Interest on Bank Deposits

This notification shall be effective subject to the conditions that Real Estate Appellate Tribunal, Punjab –

shall not engage in any commercial activity
its activities and the nature of the specified income shall remain unchanged throughout the financial years
shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

This notification shall be deemed to be applicable for Assessment Year 2023-2024 to Assessment Year 2027-2028.
Amendment in Form 27Q

In exercise of the powers conferred by section 295, read with sub-section (3) of section 200 of the Income-tax Act, 1961, The Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: –

These rules may be called the Income-tax (Sixth Amendment) Rules, 2024.
They shall come into force on the 1st day of July 2024.

In the Income-tax Rules, 1962, the following note shall be inserted in Form No. 27Q in the Annexure, under the heading “Verification” in the Notes, after Note No. 7 ––

‘7A. Write “P” if lower deduction or no deduction is in view of notification issued under sub-section (1F) of section 197A.’.
Special provision for Collection of Tax at Source for Non-Filer of Income Tax Returns u/s 206CCA

Through Notification No. 46/2024/F.NO. 370142/8/2024-TPL dated 27.05.2024, Central Government notifies Reserve Bank of India to be a specified person to whom higher collection of Tax at Source will not be applicable as per Clause (ii) of the proviso to sub section (3) of Section 206CCA of Income Tax Act.
This notification shall come into force from the date of its publication in the Official Gazette.

Special provision for Deduction of Tax at Source for Non-Filer of Income Tax Returns u/s 206AB
Through Notification No. 46/2024/F.NO. 370142/8/2024-TPL dated 27.05.2024, Central Government notifies Reserve Bank of India to be a specified person to whom higher collection of Tax at Source will not be applicable as per Clause (ii) of the proviso to sub section (3) of Section 206AB of Income Tax Act.
This notification shall come into force from the date of its publication in the Official Gazette.

Filing of information by manufacturers of Pan Masala and Tobacco taxpayers

Referring to the Notification No. 04/2024 – Central Tax dated 05-01-2024 to seek information from taxpayers dealing in the goods mentioned therein. Two forms have been notified vide this notification namely GST SRM-I and GST SRM-II. The former pertains to the registration and disposal of machines while the latter asks for information on inputs and outputs for a month.

Form GST SRM-I meant for registration of machines, has already been made available on the portal w.e.f. 15-05-2024. Concerned taxpayers are using the same for the registration of machines and other information asked therein.

Now, the second form namely, Form GST SRM-II is also available on the portal. Taxpayers dealing in the manufacture of Pan Masala and Tobacco products can now report the details of inputs and outputs procured and consumed for the relevant month.

Clarification Regarding Notification Pertaining to Restricting Import of Specific Items

Directorate General of Foreign Trade has issued a policy circular for clarification regarding Notification No. 17/2024-25 dated June 11, 2024 pertaining to restricting import of specific items under ITC (HS) Codes 71131912, 71131913, 71131914, 71131915 and 71131960, Representations have been received from SEZ wherein it is clarified that import made by SEZ units (Other than FTWZ units) under the ITC (HS) Codes 71131912, 71131913, 71131914, 71131915 and 71131960 are outside the purview of this notification.

Insolvency and Bankruptcy Code

Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees Recommendation Guidelines 2024

Insolvency and Bankruptcy Board of India has issued guidelines to provide the procedure for preparing panel of Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees:

These guidelines may be called the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2024
The panel of IPs prepared as per these guidelines will be effective from 1st July 2024 to 31st December 2024.

SEBI amends Insider Trading norms, mandates Compliance Officer to approve/reject trading plan within 2 days of receipt

SEBI has notified the SEBI (Prohibition of Insider Trading) (Second Amendment) Regulations, 2024. As per the amended norms, the compliance officer must approve or reject the trading plan within 2 trading days of receiving it. Further, the compliance officer must notify the approved plan to the stock exchanges on which the securities are listed, on the day of approval. These regulations are effective from the 90th day of publication in the Official Gazette.

SEBI modifies duration for call auction in pre-open session for IPOs and relisted scrips

Disclaimer: Information in this note is intended to provide only a general update on the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates are for the period 01.06.2024 to 30.06.2024

News & UpdatesMONTHLY NEWS & UPDATES FOR MAY 2024

Executive Summary

Income Tax

Cost inflation Index (CII) under section 48 for financial year 2024-25
Exemption under section 10 (46) of Income of Tamil Nadu Water Supply and Drainage Board subject to few conditions.
CBDT releases new functionality in AIS For Taxpayers.
CBDT issues guidelines for compulsory selection of Income-tax Returns (ITRs) for complete scrutiny during FY 2024-25

Goods And Service Tax (GST)

Advisory on launch of E-Way Bill 2 Portal
Information from manufacturers of Pan Masala and Tobacco taxpayer

Companies Act 2013/ Other Laws

Relaxation of Additional Fees and Extension of Last Date of Filing of Form No. LLP BEN 2 and LLP Form No. 4D under the Limited Liability Partnership Act, 2008
RBI decides to regularize prior issuance of partly paid units by AIFs to non-residents via compounding under FEMA
SEBI strengthens risk management framework for Clearing Corporations (CCs);
SEBI updates Investor Charter for stock exchanges and depositories to include new services and guidelines
Master Circular for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper

Income Tax

Cost inflation Index under section 48 For Financial Year 2024-25
In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961, the Central Government hereby makes the following further amendments in the notification published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) number O. 1790(E), dated the 5th June, 2017, namely: —
In the said notification, in the Table, after serial number 23 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

TABLE

Sl. No.	Financial Year	Cost Inflation Index
(1)	(2)	(3)
“24	2024-25	363″

This notification shall come into force with effect from the assessment year 2025-26 and subsequent assessment years.

Exemption under section 10 (46) of Income of Tamil Nadu Water Supply and Drainage Board subject to few conditions.

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Tamil Nadu Water Supply and Drainage Board, Chennai’ (PAN: AAALT0834F), a Board constituted under the Tamil Nadu Water Supply and Drainage Board Act, 1970 (Tamil Nadu Act of 1971), in respect of the following specified income arising to the said Board, namely: —
Water charges for supply of water to recover the maintenance cost.
Centage charges received from local bodies work like water supply scheme and sewerage scheme to compensate for establishment charges.
Investigation and Detailed Project Report preparation charges for water supply and drainage scheme for establishment charges.
Interest earned on Bank Deposits.
This notification shall be effective subject to the conditions that Tamil Nadu Water Supply and Drainage Board, Chennai-

shall not engage in any commercial activity.
its activities and the nature of the specified income shall remain unchanged throughout the financial year(s); and
shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
This notification shall be applicable from AY 2024-25 to AY 2028-29.

CBDT Releases new functionality in AIS For Taxpayers

In AIS, taxpayers have been provided with a functionality to furnish feedback on every transaction displayed therein. This feedback helps the taxpayer to comment on the accuracy of the information provided by the Source of such information. In case of wrong reporting, the same is taken up with the Source for their confirmation, in an automated manner. It may be noted that information confirmation is currently made functional with regard to information furnished by Tax Deductors /Collectors and Reporting Entities.

The Central Board of Direct Taxes (CBDT) has now rolled out a new functionality in AIS to display the status of information confirmation process. This will display whether the feedback of the taxpayer has been acted upon by the Source, by either partially or fully accepting or rejecting the same. In case of partial or full acceptance, the information is required to be corrected by filing a correction statement by the Source. The following attributes shall be visible to the taxpayer for status of Feedback confirmation from Source.

Whether Feedback is shared for confirmation: – This will let the taxpayer know if the feedback has been shared with the Reporting Source for confirmation or not.
Feedback Shared on: – This will let the taxpayer know the date on which the feedback has been shared with the Reporting Source for confirmation.
Source responded on: – This will let the taxpayer know the date on which the Reporting Source has responded on the feedback shared with it for confirmation.
Source response: – This will let the taxpayer know the response provided by the Source on the taxpayer’s feedback.

The CBDT has issued parameters and procedures for compulsory selection of ITRs during FY 2024-25, in below cases.

Cases pertaining to Survey u/s 133A of the Income-tax Act
Cases pertaining to Search & Seizure
Cases in which notice u/s 142(1) of the Income-tax Act has been issued, but no ITR has been furnished
Cases in which notice u/s 148 has been issued,
Cases relating to to registration / approval of charitable trusts / institutions claiming tax exemption
Cases involving addition in an earlier Assessment Year on a recurring issue of law / fact
Cases relating to specific information regarding tax evasion

GST

Advisory on launch of E0way Bill 2 Portal:

GSTN is pleased to inform that NIC is releasing the E-Way Bill 2 Portal (https://ewaybill2.gst.gov.in) on 1st June 2024. This portal ensures high availability and runs in parallel to the e-way Bill main portal. The e-way bill 2 portal synchronizes the e-way bill details with main portal within a few seconds. The highlights of the portal are as follows-:

Presently, E-Way Bill 2 Portal provides the critical services of E-Way Bill system, and gradually it will be extended with other services of e-way bill system.
E-Way Bills can be generated and updated on the E-Way Bill 2 Portal independently.
E-Way Bill 2 portal provides the web and API modes of operations for e-way bill services.
The taxpayers and logistic operators can use the E-Way Bill 2 portal with the login credentials of the main portal.
The taxpayers and logistic operators can use the E-Way Bill 2 portal during technical glitches in e-way bill main portal or any other exigencies.
The Criss-Cross operations of printing and updating of Part-B of E-Way Bills can be carried out on these portals. That is, updating of Part-B of the E-Way bills of portal 1 can be done at portal 2 and vice versa.
In case E-Way Bill main portal is non-operational because of technical reasons, the Part-B can be updated to the E-Way Bills, generated at Portal 1, at portal 2 and carry both the E-way Bill slips.
For further details, please visit the e-way bill portals.

Information from manufacturers of Pan Masala and Tobacco taxpayers:

The government had issued a notification to seek information from taxpayers dealing in the goods mentioned therein vide Notification No. 04/2024 – Central Tax dated 05-01-2024. Two forms have been notified vide this notification namely GST SRM-I and GST SRM-II. The former pertains to registration and disposal of machines while the later asks information on inputs and outputs during a month.

To begin with, facility to register the machines have been made available on the GST Portal to file the information in Form GST SRM-I. All taxpayers dealing in the items mentioned in the said notification may use the facility to file the information about machines. Form GST SRM-II will also be made available on the portal shortly.

Relaxation of additional fees and extension of last date of Filing of Form No. LLP Ben 2 and LLP form no. 4D under The Limited Liability Partnership Act, 2008

The Ministry of Corporate Affairs (MCA) has notifed that relaxation of additional fees and extension of last date of filing of Form No. LLP BEN-2 and LLP Form No. 4 under the Limited Liability Partnership Act, 2008 in the view of transition of MCA-21 from version- to version-3. These forms shall be filed without any addition fees upto July 01, 2024.

RBI decides to regularize prior issuance of partly paid units by AIFs to non-residents via compounding under FEMA

The Reserve Bank of India (“RBI”) vide its circular dated May 21, 2024 (“Circular”) has required that issuance of partly paid-up units by Alternative Investment Funds (“AIFs”) to foreign investors prior to March 14, 2024, should be regularised through compounding under Foreign Exchange Management Act, 1999 (“FEMA”). Compounding by RBI is prescribed for the contravention of foreign exchange regulations as per Foreign Exchange (Compounding Proceedings) Rules, 2000, and involve payment of a fees. In many instances, compounding requires payment of a monetary penalty to RBI.

SEBI strengthens risk management framework for Clearing Corporations (CCs)

SEBI has reviewed the existing collaterals accepted by CCs and specified the prudential norms for exposure of CCs. As per the amended norms units of growth plan of overnight mutual fund schemes shall be accepted as Cash Equivalent by CCs with a haircut of 5%. Earlier, a limit of 10% was specified. The 10% haircut remains unchanged for other overnight mutual fund plans. Further, the Prudential Norms for Exposure of CCs has also been specified. The circular shall be effective from 01st Aug, 2024.

SEBI updates Investor Charter for stock exchanges and depositories to include new services and guidelines

In November 2021, SEBI formulated the Investor Charter for Depositories/ Depository Participants (DPs) and Stock exchanges. It contains information on services provided to investors, such as grievance redressal mechanisms, rights and obligations of investors, etc. With the recent introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0 by SEBI, the Investor Charter has been updated to incorporate these new services.

Master Circular for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper

The Securities and Exchange Board of India has consolidated all the applicable circulars/ directions at one place which are applicable for for Issue and Listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper, till May 21, 2024.

Monthly Compliance Calendar

News & UpdatesMONTHLY NEWS & UPDATES FOR APRIL 2024

Executive Summary

Income Tax

Clarification on Time Limit for verification of return of income after uploading.
Notification of Donations to certain funds, charitable institutions, etc under Section 80G of Income Tax Act, 1961
Partial Modification of Circular No. 3 Of 2023, Dated 28-3-2023 regarding consequences of PAN becoming inoperative as per Rule 114AAA of the Income-Tax Rules, 1962
Section 10(46) of The Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority
Extension of Due Date for filing of Form 10A/10AB.

Goods And Service Tax (GST)

Advisory Self Enablement For E-Invoicing
Advisory on Reset and Re-filing of GSTR-3B of some taxpayers
Advisory: Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1
Section 148 of the Central Goods and Services Tax Act, 2017 – Special Procedure for certain processes – Special Procedure to be followed by Registered Person engaged in manufacturing Notified Goods

Companies Act 2013/ Other Laws

RBI issues revised master circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)

SEBI Amends Alternative Investment Funds Regulations, 2012 | Introduces a New Regulation w.r.t ‘dissolution Period’.

SEBI has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders.

Income Tax

Clarification Time limit for verification of return of Income after uploading.

The notification was issued by the DGIT(Systems) specifying the time limit for verification of Income Tax Return (ITR) as 30 days from the date of transmitting the data of ITR electronically.

It is clarified that:

Where the return of income is uploaded and e-verification/ITR-V is submitted within 30 days of uploading – In such cases the date of uploading the return of income shall be considered as the date of furnishing the return of income.
- Where the return of is uploaded but e-verification or ITR-V is submitted after 30 days of uploading – In such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow, as applicable.
1. The duly verifed ITR-V in prescribed format and in the prescribed manner shall be sent either through ordinary or speed post or in any other mode to the following address only:
Centralised Processing Centre,

Income Tax Department,

Bengaluru – 560500, Karnataka.
1. The date on which the duly verified ITR-V is received at CPC shall be considered for the purpose of determination of the 30 days period from the date of uploading of return of income.
1. It is further clarified that where the return of income is not verified within 30 days from the date of uploading or till the due date for furnishing the return of income as per the Income-tax Act, 1961 – whichever is later – such return shall be treated as invalid due to non-verification.
2. This notification will come into effect from 1-4-2024.
- Section 80G of Income Tax Act, 1961- Deductions- Donations to certain funds, charitable institutions, etc.
In the exercise of the powers conferred by clause (b) of sub-section (2) of section 80G of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies “Shree Ramanuj Kot Laxmi Venkatesh Mandir” managed by Shree Ramanuj Kot Trust, Indore, Madhya Pradesh (PAN: AAATR0970L) to be place of historic importance and a place of public worship of renown throughout the state of Madhya Pradesh for the purposes of the said section.

The Notification will be valid only for the renovation or repair of the “Shree Ramanuj Kot Laxmi Venkatesh Mandir” to the extent of Rs. 1,63,06,311/-(Rupees One Crore Sixty-Three Lakhs Six Thousand Three Hundred and Eleven only) and will cease to be effective after the said amount has been collected or on 31-3-2029, whichever is earlier
- Partial Modification of Circular No. 3 of 2023, Dated 28-03-2023 in regard to consequences of PAN become in operative as per Rule 114AAA of the Income Tax Rules
In partial modification and in continuation of circular no. 3 of 2023 hereby specifies that for the transactions entered into upto 31-03-2024 and in cases where the PAN becomes operative (as a result of linkage with Aadhaar) on or before 31-05-2024, there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC, as the case maybe, and the deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act, shall be applicable.
- Section 10(46) of The Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority
1. In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Kerala Autorickshaw Workers Welfare Fund Scheme, Kollam’ (PAN: AAATK3080E), a Board constituted by the Government of Kerala, in respect of the following specified income arising to the said Authority, namely: —
- Grant received from the State Government of Kerala.
- Contribution received from the workers registered as members in the Scheme.
- Contribution received from self-employed persons and employers for workers, registering as members of the Scheme.
- Registration Fees
- Interest earned on Bank Deposits.
1. This notification shall be effective subject to the conditions that Kerala Autorickshaw Workers Welfare Fund Scheme, Kollam, –
- shall not engage in any commercial activity.
- activities and the nature of the specified income shall remain unchanged throughout the financial years.
- shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
1. This notification shall be applied from assessment year 2024-25 to 2028-29.
- Extension of Due Date for filing of Form 10A/10AB.
CBDT extends the due date for filing of Form 10A/10AB under the Income Tax Act, 1961 up to 30^th June 2024 in respect of certain provisions of section 10(23C)/ section 12A/ section 80G/ and section 35 of the Act.

GST

Self-Enablement For E- Invoicing:

The Central Government, on the recommendations of the Council, introduced that if your turnover exceeds INR 5 crores in the financial year 2023-2024, you will be required to start e-Invoicing from the next financial year, i.e., from 1st April 2024 onwards. It may also be noted that the same is applicable if the threshold is crossed in any of the proceeding financial years too.

For those who meet the notification criteria but have not yet been enabled on the portal, you can self-enable for e-Invoicing by visiting https://einvoice.gst.gov.in and start reporting through any of the 4 new Invoice Registration Portals (IRPs) – from e-Invoice IRP 3 to e-Invoice IRP 6.

Reset and Re-filing of GSTR-3B of some taxpayers:

This has reference to the facility for re-filing of GSTR-3B for some of the taxpayers. It was noticed that there were discrepancies in the returns of some taxpayers during the filing process between the saved data in the GST system and filed data in the fields of ITC availment and payment of tax liabilities. The matter was examined and deliberated by the Grievance Redressal Committee of the GST Council and as a facilitation measure the Committee decided that these returns shall be reset, to give opportunity to such taxpayers to correct the discrepancy.

Accordingly, only the affected taxpayers have been communicated on their registered email-ids and the affected returns are visible on their respective dashboards for the purpose of refiling with the correct data. The taxpayers who have received such communication are requested to visit their dashboard and re-file their GSTR-3B within 15 days of receipt of such communication.

Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1

There is a new feature to auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 is now available on the GST portal. This allows for direct auto-drafting of HSN data into Table 12 based on e-Invoice data. The HSN-wise summary data auto-populated into Table 12 is intended for your convenience. Before its submission, kindly ensure to reconcile the data with records.

Any discrepancies or errors should be manually corrected or added to Table 12 before final submission.

Section 148 of the Central Goods and Services Tax Act, 2017 – Special Procedure for certain processes – Special Procedure to be followed by Registered Person engaged in manufacturing Notified Goods

In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017, the Central Government, on the recommendations of the Council, hereby makes the following amendments in the Notification No. 4/2024-Central Tax, dated the 5th January, 2024 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), namely: —

In the said notification, in para 4, for the words and letters “1st day of April, 2024”, the words and letters “15th day of May, 2024” shall be substituted.

This notification shall come into force from the 1st day of April 2024.

RBI issues revised master circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)

RBI has issued the revised Master Circular on ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’. This circular consolidates all instructions issued up to 23.04.2024. The purpose is to outline the RBI’s regulatory policy regarding the financing of NBFCs by banks. This circular applies to all Scheduled Commercial Banks (excluding RRBs). It highlights norms regarding bank finance to NBFCs registered with RBI, NBFCs not requiring registration and activities not eligible for bank credit.

SEBI Amends Alternative Investment Funds Regulations, 2012 | Introduces a New Regulation w.r.t ‘dissolution Period.’

SEBI has notified the SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2024. As per the amended norms, a new regulation 29B relating to the dissolution period has been inserted. It states that a scheme of an Alternative Investment Fund may enter a dissolution period in the manner and subject to the conditions specified by the Board. Further, SEBI has introduced definitions of ‘dissolution period’ and ‘encumbrance’ under Regulation 2 of existing regulations.

SEBI has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders.

SEBI vide circular dated April 24, 2024, in order to promote ease of doing business has removed the requirement to publish text on Contract Note with respect to Fit and Proper status of shareholders. In lieu of text only a reference of the applicable regulation regarding fit and proper status of shareholders needs to be made part of the contract note.

Monthly Compliance Calendar

News & UpdatesMONTHLY NEWS & UPDATES FOR MARCH 2024

Executive Summary

Income Tax

Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority.
Opening Of Income Tax Offices on Holidays to Facilitate Pending Departmental Work
Section 35(1)(ii) of the Income Tax Act 1961- Scientific Research expenditure – approved scientific research association/institution.
Section 194S of the Income Tax Act, 1961- Deduction of Tax at Source- payment on transfer of virtual digital asset.
Section 10(22B) of the Income tax Act, 1961- Exemptions – News Agency.
Revision of Interest rates for small savings scheme.
DTAA between the Republic of India and Kingdom of Spain.
No deduction of tax under section 80LA

Goods And Service Tax (GST)

Advisory on GSTR-1/IFF Introduction of New 14A and 15A tables.
Advisory on Integration of E-Waybill system with New IRP Portal.
Instances of Delay in registration reported by some Taxpayers despite successful Aadhar Authentication.

Companies Act 2013/ Other Laws.

SEBI issues safeguards to address investors’ concerns regarding transfer of securities in demat mode.

Master Direction on NBFC – Housing Finance Company (Reserve Bank) Directions, 2021

Section 10(46) of the Income-Tax Act, 1961 – Exemptions – Statutory Body/Authority/Board/Commission – Notified Body or Authority.

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Uttar Pradesh Real Estate Regulatory Authority’ (PAN AAAGU0671E), an Authority constituted by the State Government of Uttar Pradesh, in respect of the following specified income arising to that Authority, namely: —

(a) Amount received as Grant-in-aid or loan/advance from Government

(b) Fee/penalty received from builders/developers, agents or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016

(d) Interest earned on bank deposits.

This notification shall be effective subject to the conditions that Uttar Pradesh Real Estate Regulatory Authority, –

(a) shall not engage in any commercial activity.s

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

This notification shall be deemed to have been applied from the Assessment Year 2021-2022.

And

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Karnataka Urban Water Supply and Drainage Board’ (PAN: AAATK5837F), a Board constituted under the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974), in respect of the following specified income arising to that Board, namely:—

(a) Establishment, administrative, supervision, water charges and rent collected as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974)

(b) Forfeiture of earnest money deposit as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974);

(c) Penalty, Sale of Scrap, Storage charges and Survey charges as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974) and

(d) Interest earned on bank deposits.

This notification shall be effective subject to the conditions that Karnataka Urban Water Supply and Drainage Board-

(a) shall not engage in any commercial activity

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

This notification shall be deemed to have been applied from Assessment Year 2021-2022.

And

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘National Mission for Clean Ganga’, New Delhi (PAN AABAN3769K), an Authority constituted under the River Ganga (Rejuvenation, Protection and Management) Authority Order, 2016, in respect of the following specified income arising to that Authority, namely:

(a) Grants-in-Aid received from Government of India; and

(b) Interest earned on bank deposits.

This notification shall be effective subject to the conditions that National Mission for Clean Ganga, New Delhi –

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

This notification shall be deemed to have been applied from Assessment Year 2021-2022.

Opening of Income Tax offices on holidays to facilitate pending departmental work.

The Financial Year 2023-24 closes on 31st March 2024, which is Sunday. Further, 30th March 2024 is a Saturday and 29th March 2024 is a closed holiday. Therefore, to facilitate completion of pending departmental work, all the Income Tax Offices throughout India shall remain open on 29th, 30th and 31st March 2024. This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income-tax Act, 1961.

Section 35(1)(ii) of the Income Tax Act 1961- Scientific Research expenditure – approved scientific research association/institution.

In exercise of the powers conferred by clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961), read with Rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby approves ‘National Forensic Sciences University, Gandhinagar‘ (PAN: AAALN3742Q), ‘Sardar Vallabhbhai National Institute of Technology’, Surat (PAN: AAAJS1184P) and ‘Indian Institute of Technology, Kharagpur’ (PAN: AAAJI0323G) under the category of ‘University, college or other institution’ for ‘Scientific Research’ for the purposes of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961, read with rules 5C and 5E of the Income-tax Rules, 1962.
This Notification shall be applicable from Assessment Years 2024-25 to 2028-29.

Section 194S of the Income Tax Act, 1961- Deduction of Tax at Source-payment on transfer of virtual digital asset.

As per section 194S of the Income-tax Act, 1961, any person responsible for paying to any resident person any sum by way of consideration for the transfer of a virtual digital asset is required to deduct an amount equal to 1% of such sum as income tax thereon. Further, as per sub-rule (4D) of rule 31A, a specified person’ is required to report such deductions in a challan-cum-statement electronically in Form No. 26QE within thirty days from the end of the month in which such deduction is made.

It has come to the notice of the Central Board of Direct Taxes (‘the Board’) that specified persons who deducted tax under section 194S of the Act during the period from 1-7-2022 to 31-1- 2023, could not file Form No. 26QE and pay corresponding TDS on or before the due date, due to unavailability of Form No. 26QE. This has resulted in consequential levy of fee under section 234E and interest under clause (ii) of sub-section (1A) of section 201 of the Act. Further, the specified persons who deducted tax under section 194S during the period from 1-2-2023 to 28-2-2023 had insufficient time to file Form No. 26QE and pay corresponding TDS thereon.

To address the grievances of such specified persons, the Board has decided to extend the due date of filing of Form No. 26QE for specified persons who deducted tax under section 194S but failed to file Form No. 26QE. The due date is hereby extended to 30-5-2023 in those cases where the tax was deducted by specified persons under section 194S of the Act during the period from 1-7-2022 to 28-2-2023. Fee levied under section 234E and/or interest charged under section 201(1A) (ii) of the Act in such cases for the period up to 30-5-2023, shall be waived.

Section 10(22B) of the Income tax Act, 1961- Exemptions – News Agency.

In exercise of the powers conferred by the clause (22B) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the “The Press Trust of India Limited, New Delhi” as a news agency set up in India solely for collection and distribution of news, for the purpose of the said clause for two assessment years 2022-23 to 2023-24.
The notification is subject to the condition that the news agency applies its income or accumulates it for application solely for collection and distribution of news and does not distribute its income in any manner to its members.

Revision of Interest rates for small savings scheme.

The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1st April 2024 and ending on 30th June 2024 shall remain unchanged from those notified for the fourth quarter (1st January 2024 to 31st March, 2024) of FY 2023-24.

Modification made in DTAA between Republic of India and Kingdom of Spain

In the said notification, in the Convention annexed therewith between the Republic of India and Kingdom of Spain, in Article 13 relating to Royalties and Fees for Technical Services, for paragraph 2, the following paragraph shall be substituted, namely: –

“2. However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the law of that State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed ten per cent of the gross amount of royalties or fees for technical services.”.

Paragraph 2 of Article 13 of the said Convention, as amended by this notification, shall be applicable with effect from the assessment year 2024-25.

No deduction of tax under section 80LA:

In exercise of the powers conferred by sub-section (1F) of section 197A read with subsection (1A) and sub-section (2) of section 80LA of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred as the Income-tax Act), the Central Government hereby notifies that no deduction of tax shall be made under the provisions of the Income-tax Act in respect of the payments made by any ‘payer’ to a person being a Unit of International Financial Services Centre, (hereinafter referred as ‘payee’), as specified in the notification.

GSTN Issues advisory on GSTR-1/IFF:

(Introduction of New 14A and 15A tables)

The Central Government, on the recommendations of the Council, as per notification No. 26/2022 introduced two new Table 14A and Table 15A in GSTR-1 to capture the amendment details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 or liable to pay tax u/s 9(5) of the CGST Act, 2017.

Now, these tables have been made live on the GST common portal and will be available in GSTR-1/IFF from February 2024 tax period onwards. These amendment tables are relevant for those taxpayers who have reported the supplies in Table 14 or Table 15 in earlier tax periods.

GSTN Issues advisory on Integration of E-Waybill system with New IRP Portals –

GSTN announced the successful integration of E-Waybill services with four new IRP portals via NIC, enabling taxpayers to generate E-Waybills alongside E-Invoicing on these four IRPs across all six IRPs.

This new facility complements the existing services available on the NIC-IRP portal, making E-Waybill services, along with E-Invoicing, available across all six IRPs.

Instances of Delay in registration reported by some Taxpayers despite successful Aadhar Authentication in accordance with Rule 8 and 9 CGST, Rules, 2017

The Central Government In accordance with Rule 9 of the Central Goods and Services Tax (CGST) Rules, 2017, pertaining to the verification and approval of registration applications, following is informed:

Where a person has undergone Aadhaar authentication as per sub-rule (4A) of rule 8 but has been identified in terms of Rule 9(aa) by the common portal for detailed verification based on risk profile, your application for registration would be processed within thirty days of application submission.

Necessary changes would also be made to reflect the same in the online tracking module vis-à-vis processing of registration application.

Master Direction on NBFC – Housing Finance Company (Reserve Bank) Directions, 2021

The Reserve Bank of India (the Bank), having considered it necessary in the public interest, and being satisfied that, for the purpose of enabling the Bank to regulate the financial system to the advantage of the country and to prevent the affairs of any Housing Finance Company (HFCs) from being conducted in a manner detrimental to the interest of investors and depositors or in any manner prejudicial to the interest of such HFCs, and in exercise of the powers conferred under sections 45L and 45MA of the Reserve Bank of India Act, 1934

SEBI issues safeguards to address investors’ concerns regarding transfer of securities in demat mode.

Market regulator Securities and Exchange Board of India (SEBI) has announced new safeguards on March 20, 2024, to address the concerns of the investors on transfer of securities in dematerialized (demat) mode. As per people privy to the matter, this has been done in order to prevent fraud by means of transferring shares from inactive demat account/accounts.

News & UpdatesMONTHLY NEWS & UPDATES FOR FEBRUARY 2024

Executive Summary

Income Tax

Implementation of E-verification Scheme- 2021.
National savings Time Deposit (Amendment) scheme 2024
Sukanya Samriddhi Account (Amendment) Scheme 2024
The returns for AY 2020-21 which were not processed electronically can be processed by 31-01-2024, to claim refunds.
CBDT notifies income tax return forms for the Assessment Year 2024-25 well in
Section 90 of the Income tax Act, 1961- Double Taxation Relief- Agreement between Government of Republic of India and Government of Samoa for exchange of Information with respect of taxes.
Scientific Research Institution/Association approved Scientific Research Expenditure under Section 35(1)(ii) of the Income Tax Act, 1961.
Order has been passed regarding Remission and extinguishment of Tax Demand under Income Tax Act, 1961. Waiver of Income Tax Demands as per Interim Budget 2024 has been Capped at Rs.100,000.

Goods And Service Tax (GST)

Introduction of Consent Based Sharing of Information Furnished by Taxable Person through Notified System

Companies Act 2013/ Other Laws.

MCA operationalizes Central Processing Centre (CPC) for the Centralized Processing of Corporate Filings

Companies (Registration Offices and Fees) Amendment Rules, 2024 – Insertion Of Rule 10A

Relaxation of additional fees and extension of last date of filing of form no. LLP BEN-2 and LLP Form no. 4D under Limited Liability Partnership Act, 2008

Action against Paytm Payments Bank Ltd. under section 35A of the Banking Regulation Act, 1949

Insolvency and Bankruptcy Board of India amends The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Enhancing Transparency and Stakeholder Engagement in Liquidation Process

SEBI has issued an advisory against Fraudulent Trading Schemes claiming to be offered to Indian residents by FPI’s.

Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2024 – Amendment in Regulation 6 And Schedule

Implementation Of E-Verification Scheme- 2021

The income tax Department has identified certain mismatches between third-party information on interest and dividend income, and the income tax Return (ITR) filed by taxpayers. In many cases, taxpayers have not even filed their ITR.

To reconcile the mismatch, an on-screen functionality has been made available in the Compliance portal of the e-filing website https://eportal.incometax.gov.in for taxpayers to provide their response. At present, the information mismatches relating to Financial Years 2021-22 and 2022- 23 have been displayed on the Compliance portal. The taxpayers are also being made aware of the mismatch through SMS and emails as per details available from the Department.

It is clarified that the said communication is not a notice.

In case the taxpayer has disclosed the interest income in the ITR under the line item ‘Others’ in the Schedule OS, she/he need not respond to the mismatch pertaining to the interest income. The said mismatch shall be resolved on its own and will be reflected in the portal as ‘Completed’.

CBDT Introduced National Savings Time Deposit (Amendment) Scheme, 2024

In exercise of the powers conferred by section 3A of the government savings Promotion Act, 1873 (5 of 1873), the central government hereby makes the following scheme further to amend the national savings time deposit scheme, 2019, namely: –

This Scheme may be called the National Savings Time Deposit (Amendments) Scheme, 2024.

It shall be deemed to have come into force on the 1st day of January 2024.
In the National savings time deposit scheme, 2019 (hereinafter referred to as the said scheme), in paragraph 7: –

(a) in sub-paragraph 1(E), for the words, figures and letters, “on or after 1st day of July, 2023”, the words, figures, letters and brackets “between the 1st day of July 2023 and 31st day of December 2023 (both days inclusive)” shall be substituted;

(b) The rate of interest as specified in the Table below shall be applicable to the deposit made on or after the 1st day of January 2024 under the Scheme.

S.No.	Category of Account	Rate of Interest (per cent. Per annum)
1.	One-Year	6.9
2.	Two-Years	7.0
3.	Three-Years	7.1
4.	Five-Years	7.5

Sukanya Samriddhi Account (Amendment) Scheme 2024

In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme further to amend the Sukanya Samriddhi Account Scheme, 2019, namely: –

a) This Scheme may be called the Sukanya Samridhi account (Amendment) Scheme, 2024.
b) It shall be deemed to have come into force on the 1st day of January 2024.
In the Sukanya Samriddhi Account Scheme, 2019, in paragraph 5: –
in sub-paragraph (1B), for the words, figures and letters, “on or after the 1st day of April, 2023”, the following words, figures, letters and brackets “between 1st day of April 2023 to 31st day of December 2023 (both days inclusive)” shall be substituted;
The deposits made in the account on or after the 1st day of January 2024 and the balances at the credit of the account shall earn interest at the rate of 8.2 per cent. per annum.

The returns for AY 2020-21 which were not processed electronically can be processed by 31-01-2024, in order to claim refunds.

The Central Board of Direct Taxes (Board) vide its orders under section 119 of the Income-tax Act, 1961 (Act), dated 16-10-2023 and 1-12-2023 on the captioned subject relaxed the time prescribed in second proviso to sub-section (1) of Section 143 of the Act. It was directed that all returns of income validly filed electronically up to Assessment Year 2020-21 with refund claims, which could not be processed under sub-section (1) of the Section 143 of the Act, and which had become time barred, should be processed by 31-1-2024, subject to the conditions/ exceptions specified therein.

The matter has been re-considered by the Board in view of pending taxpayer grievances related to the issue of refunds. To mitigate the genuine hardship being faced by the taxpayers on this issue, Board, by virtue of its earlier orders under section 119 of the Act dated 16-10-2023 and 1-12-2023, supra, hereby further extends the time mentioned in the para no. 2 of these orders till 30-4-2024 in respect of returns of income validly filed electronically up to AY 2020-21. All other contents of the said orders u/s 119 of the Act will remain unchanged.

This may be brought to the notice of all necessary compliance.

CBDT notifies income tax return forms for the Assessment Year 2024-25 well in

For AY 2024-25 Income Tax Forms (ITR Forms)-2, 3 and 5 have been notified. In addition to this ITR Form-6 has been notified for AY 2024-25. Earlier, ITR-1 and ITR-4 for the A.Y. 2024-25 were notified vide Notification No. 105 of 2023 dated 22.12.2023. All ITR Forms 1 to 6 have since been notified and will come into effect from 1st April 2024.

Section 90 of the Income tax Act, 1961- Double Taxation Relief- Agreement between Government of Republic of India and Government of Samoa for exchange of Information with respect of taxes.

Whereas an agreement between the Government of Republic of India and Government of Samoa for exchange of information with respect to taxes, was signed at Apia, Samoa on 12th day of March, 2020, the said Agreement came into force on the 12th day of September, 2023, being the date of the later of the notifications of the completion of the procedures required by the respective laws of the contracting states for entry into force of the said Agreement, in accordance with paragraphs 1 and 2 of Article 12 of the said Agreement,

Paragraph 2 of Article 12 of the said Agreement provides that the Agreement shall have effect forthwith after the date of entry into force.

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the said Agreement, as annexed hereto, shall be given effect to in the Union of India

Scientific Research Institution/Association approved Scientific Research Expenditure Under Section 35(1)(Ii) of the Income Tax Act, 1961.

In exercise of the powers conferred by clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961), read with Rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby approves ‘M/s Prayoga, Bengaluru (PAN: AACTP9202D) as ‘Other Institution’ and Panjab University, Chandigarh under the category of ‘University, College or Other Institution’ for ‘Scientific Research’ for the purposes of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961, read with rules 5C and 5E of the Income-tax Rules, 1962.

This Notification shall apply with effect for Assessment Years 2024-25 to 2028-29.

Order has been passed regarding Remission and Extinguishment of Tax Demand Under Income Tax Act, 1961.

In Budget, there is a proposal to remit and extinguish the following claims to revenue, being tax -demands under which are outstanding as on 31st January, 2024 in respect of taxpayers/ assessee

Assessment Year/s (A.Y.) to which the entries of outstanding tax demands as on 31st January 2024 pertain

Monetary limit of entries of outstanding tax demands which are to be remitted and extinguished.

(in Rupees)

Upto A.Y. 2010-11

Each demand entry up to Rs. 25,000/-

A.Y. 2011-12 to A.Y. 2015-16

Each demand entry up to Rs. 10,000/-

This is expected to give relief to 10 million taxpayers. However, the total waiver is limited to a maximum of Rs. 1,00,000 per taxpayer (PAN). If the aggregate of all outstanding demands exceeds Rs. 1,00,000 for a taxpayer or entity, the waiver will be limited to eligible demands totalling ₹1,00,000 or less, with the remaining demands still applicable. No refunds can be claimed against the demands being waived off.

Introduction of Consent Based Sharing of Information Furnished by Taxable Person through Notified System (Notification No. 6/2024 Date:22-2-24)

The Central Government, on the recommendations of the Council, hereby notifies: “Public Tech Platform for Frictionless Credit” as the system with which information may be shared by the common portal based on consent under

sub-section (2) of Section 158A of the Central Goods and Services Tax Act, 2017 (12 of 2017).

“Public Tech Platform for Frictionless Credit” means an enterprise-grade open architecture information technology platform, conceptualized by the Reserve

Bank of India as part of its “Statement on Developmental and Regulatory Policies” dated the 10th August, 2023 and developed by its wholly owned subsidiary, Reserve Bank Innovation Hub, for the operations of a large ecosystem of credit, to ensure access of information from various data sources digitally and where the financial service providers and multiple data service providers converge on the platform using standard and protocol driven architecture, open and shared Application Programming Interface (API) framework.

MCA operationalizes Central Processing Centre (CPC) for Centralized Processing of Corporate Filings

12 forms/applications will be processed at CPC from 16.02.2024; followed by other forms from 01.04.2024 onward. CPC will process applications in time-bound and faceless manner on the lines of Central Registration Centre (CRC) and Centralized Processing for Accelerated Corporate Exit (C-PACE).

Companies (Registration Offices And Fees) Amendment Rules, 2024 – Insertion Of Rule 10a

The Ministry of Corporate Affairs vide Notification No. G.S.R. 107(E) dated February 15, 2024 notified the Companies (Registration Offices and Fees) Amendment Rules, 2024, effective from February 16, 2024. A new rule, 10A, is added to the Companies (Registration Offices and Fees) Rules, 2014, establishing a Central Processing Center. This Center, under section 396 of the Companies Act, 2013, is tasked with examining all applications, e-Forms, or documents for approval or registration by the Registrar.

The Registrar at the Central Processing Center must make decisions within 30 days of filing, excluding cases requiring approval from higher authorities. This rule grants the Central Processing Center jurisdiction over various filings, including resolutions, share capital alterations, name change applications, and conversions of company types.

Multiple filings at once will be handled collectively by the Center, ensuring uniformity in processing. However, the rule clarifies that it does not grant the Center authority under section 399 of the Companies Act, leaving the Registrar with territorial jurisdiction to exercise those powers. This amendment aims to streamline the registration process and centralize decision-making for specified filings across India.

Relaxation of additional fees and extension of last date of filing of form no. LLP BEN-2 and LLP Form no. 4D under Limited Liability Partnership Act, 2008

LLPs may file Form No. LLP BEN-2 and LLP Form No.4D without paying any additional fees up to 15.05.2024.

The two forms shall be made available in version -3 for the filing purpose w.e.f 15.04.2024

Action against Paytm Payments Bank Ltd. under section 35A of the Banking Regulation Act, 1949

The Reserve Bank of India, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, had put certain business restrictions on Paytm Payments Bank Ltd (PPBL or the bank), vide Press Releases dated March 11, 2022 and January 31, 2024. Keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and the larger public interest, the Reserve Bank of India under section 35A of the Banking Regulation Act, 1949 in partial modification of the earlier Directions dated January 31, 2024 has issued certain directions.

Insolvency and Bankruptcy Board of India amends The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process fr Corporate Persons) Regulations, 2016

The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2024 (Amendment Regulations) on 15th February, 2024 to streamline the corporate insolvency resolution process.

Enhancing Transparency and Stakeholder Engagement in Liquidation Process

Circulation of progress reports to stakeholders is hereby directed that the liquidator shall also share the progress reports with the members of the Stakeholders’ Consultation Committee (SCC) after receiving a confidential undertaking.

Preparation of preliminary report

It is hereby directed that the liquidator shall seek suggestions/observations of the members of the SCC while preparing the Preliminary Report under regulation 13 and finalise the Preliminary Report after considering such suggestions/observations, and after that, submit it to the AA, Board and members of SCC.

Sharing of the final report, Form H, and process closure/dissolution order with IBBI

It is hereby directed that the liquidator shall submit a copy of Form H along with the final report filed before the Adjudicating Authority as per Regulation 45, and the order for process.

SEBI has issued an advisory against Fraudulent Trading Schemes claiming to be offered to Indian residents by FPI’s.

SEBI has cautioned investors of some fraudulent entities that were offering resident Indian investors trading opportunities that would be on a par with foreign funds. This is not possible under current rules and investors should be careful of such offers, as fraudsters were enticing victims through online trading courses, seminars, and mentorship programs in the stock market through messaging platforms like WhatsApp and Telegram, as well as live broadcasts. These fraudsters are “Posing as employees or affiliates of Sebi-registered FPIs, they coax individuals into downloading applications that purportedly allow them to purchase shares, subscribe to IPOs, and enjoy ‘institutional account benefits’, all without the need for an official trading or demat account. There is no provision for an ‘institutional account’ in trading, and direct access to the equities market requires investors to have a trading and demat account with a Sebi-registered broker/trading member and DP respectively. Sebi has not granted any relaxations to FPIs regarding securities market investments by Indian investors.” Sebi urged investors to exercise caution and to steer clear of any social media messages, WhatsApp groups, Telegram channels or apps claiming to facilitate stock market access through FPIs or FIIs registered with it.

Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2024 – Amendment in Regulation 6 And Schedule

Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2023 modifies the Securities and Exchange Board of India (Employees’ Service) Regulations, 2001. In the Schedule of the 2001 regulations, in the Table, column 3, there is an insertion of additional qualification requirements for officers in the Legal Stream in Grade ‘A.’ The new requirement specifies that, in addition to the qualifications already specified for the Legal Stream, two years of post-qualification experience as an Advocate (including as an associate in an Advocate’s or Solicitor’s Office or Law Firm) after being enrolled under the Advocates Act, 1961, is a desirable qualification.

News & UpdatesIndia Budget 2024

Download the PDF

Government Reliefs News & UpdatesCBDT extends the Time Limit for Processing Validly filed Income Tax Returns with refund claims up to Assessment Year 2017-18 until January 31, 2024

Executive Summary

Income Tax

CBDT extends the Time Limit for processing validly filed income tax returns with refund claims up to assessment year 2017-18 until January 31, 2024.
➢ Guidelines Prescribed by CBDT for withholding Tax u/s 194-O.
➢ CBDT has notified ITR-1 and ITR-4 for Assessment Year 2024-25
➢ Central Government notifies Godavari River Management Board of Hyderabad for exemption in exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961.
➢ Sovereign Gold Bond Scheme 2023-24 (Series III) will be opened for subscription during the period December 18-22, 2023.
➢ PowerGrid Infrastructure Investment Trust to be recognized as a mode for continuity of tax exemption for Charitable Trust and Institution
➢ The CBDT vide Notification No. 106/2023 dated December 27, 2023, notified an exemption to Ravenna Investments Holding B.V for pension funds under section 10(23FE) of the Income Tax Act, 1961.
➢ The government has revised the rate of Interest for the Small Savings Scheme with the approval of the competent authority.
➢ CBDT has notified the Income-tax (Twenty-Ninth Amendment) Rules, 2023, to amend Rules 10TA and 10TD for revising the definition of intra-group loans and circumstances in which they are treated as Safe Harbour.

Goods And Service Tax (GST)

➢ Extension of due date of GSTR 3B for the month of November 2023.
➢ Government issued time limit for issuing order under sec 73.
➢ GSTN issues advisory for pilot project of biometric-based Aadhaar authentication and document verification
➢ Advisory related to amnesty for taxpayer who missed to file appeal for the order passed on or before 31st march 2023.
➢ GSTN has given advisory on Two factor authentication (2FA).

Companies Act 2013/ Other Laws

➢ Mandatory Pre-Requisite For E-filing Matters in NCLT
➢ Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023
➢ RBI modifies MSME lending norms
➢ RBI issues revised instructions for inoperative accounts/unclaimed deposits in Banks
➢ Employees’ State Insurance (Central) Amendment Rules, 2023
➢ Filing of Announcements Related to Loss of Share Certificate, Issue of Duplicate Share, Certificate Closure of Trading Window and CIRP- NSE
➢ SEBI (Listing Obligations and Disclosure Requirements) (Seventh Amendment) Regulations, 2023
➢ SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2023

INCOME TAX

➢ CBDT extends the Time Limit for Processing Validly Filed Income Tax Returns with Refund Claims up to Assessment Year 2017-18 until January 31, 2024

Central Board of Direct Taxes (Board) vide its order under section 119 of the Income-tax Act,1961 dated July 05, 2021 and September 30, 2021 on the captioned subject relaxed the timeframe prescribed in second proviso to subsection (1) of Section 143 of the Act. It was directed that all validly filed returns up to Assessment Year 2017-18 with refund claims, which could not be processed under section 143(1) of the Act and which had become time barred, should be processed by November 30, 2021, subject to the conditions exceptions specified therein.
The matter has been re-considered by Board in view of pending taxpayer grievances related to issue of refund. To mitigate the genuine hardship being faced by the taxpayers on this issue, Board, by virtue of its power under section 119 of the Act and in partial modification of its earlier order under section 119 of the Act dated July 05, 2021 and September 30, 2021, supra, hereby further extends the time frame mentioned in the para no. 2 of the order dated September 30, 2021 till January 31, 2024 in respect of returns of income validly filed electronically. All other contents of the said order u/s 119 of the Act dated July 05, 2021 will remain unchanged.

Above relaxation shall not be applicable to the following returns:
(i) returns selected in scrutiny
(ii) returns remain unprocessed, where either demand is shown as payable in the return or is likely to arise after processing it
(iii) returns remain unprocessed for any reason attributable to the assessee.

➢ Guidelines Prescribed by CBDT for withholding Tax u/s 194-O.

The guidelines contemplate following situations and explains in detail how section 194- O would operate in such cases, including illustrations.
• In case of a platform or network ( e.g., the open network for digital commerce) wherein multiple ECOs are participating in a single transaction of sale of goods / services through the platform / network. For example, there could be a buyer side ECO involved in buyer side functions and a seller side ECO involved in seller side functions.
Example 1 – Where the seller-side ECO is not the actual seller of goods / services. In this situation, withholding of tax u/s 194-O is required to be done by the seller side ECO who finally makes the payment to the seller. The seller-side ECO would file the requisite withholding tax return in Form 26Q and issue certificate to the seller in Form 16A.
Example 2 – Where the seller-side ECO is the actual seller of goods / services. In this situation, withholding of tax u/s 194-O is required to be done by the ECO which finally makes the payment to the seller for goods / services sold, which in the case mentioned below is ECO-2. The ECO 2 would file the requisite withholding tax return in Form 26Q and issue certificate to the seller in Form 16.
• ECOs may be levying convenience fees or charging commission for each transaction and seller might levy logistics and delivery fees for the transaction. Payments may also be made to the platform or network provider for facilitating the transaction. Whether these would form part of ‘gross amount’ for the purpose of withholding tax u/s 194-O of the Act?
• How will GST, various state levies and taxes other than GST (such as Value Added Tax / Sales tax / Excise duty / Central Sales Tax) be treated when calculating ‘gross amount’ of sale for the purpose of section 194-O?
• How will adjustment for purchase -returns take place?
• How will discounts given by seller as an E -Commerce Participant or by any of the multiple ECOs be treated while calculating ‘gross amount’ for the purpose of section 194-O?

➢ CBDT has notified ITR-1 and ITR-4 for Assessment Year 2024-25
CBDT has notified ITR1 SAHAJ and ITR4 SUGAM for Assessment Year 2024-25 for filing return for Financial Year 2023-24.

➢ Central Government notifies Godavari River Management Board of Hyderabad for exemption in exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961.
Central Government in pursuance of section 85 of the Andhra Pradesh Re-Organization Act, 2014, in respect of the following specified income arising to the said Authority, as follows:
(a) Grants/Subsidies received from CG and from the SG of Andhra Pradesh and Telangana and
(b) Interest from bank deposits, including savings account.

Above notification shall be effective subject to the conditions that Godavari River Management Board, Hyderabad-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
(c) shall file return of income in accordance with the provision of clause (g) of sub- section (4C) of section 139 of the Income-tax Act, 1961.
This notification shall be deemed to have been applied for assessment years 2020-21 to 2023-2024.

➢ Sovereign Gold Bond Scheme 2023-24 (Series III) will be opened for subscription during the period December 18-22, 2023.
The Gold Bonds issued under this Scheme may be held by a Trust, HUFs, Charitable Institution, University or by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual.

The issue price of the Bond during the subscription period shall be ₹6,199 per gram . The Government of India in consultation with the Reserve Bank of India has decided to allow discount of ₹50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be ₹6,149 per gram of gold.

Interest on the Gold Bonds shall commence from the date of issue and shall be paid at a
fixed rate of 2.50 percent per annum on the nominal value of the bond and the interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity and these Gold Bonds shall be repayable on the expiration of eight years from the date of the issue of the Bonds.

➢ PowerGrid Infrastructure Investment Trust to be recognized as a mode for continuity of tax exemption for Charitable Trust and Institution

Charitable Trusts / Institutions enjoying Income-tax exemption u/s 11(5) of the Income- tax Act are required to invest their surplus funds in prescribed modes, such as savings certificates, post office savings, deposit in an account with a scheduled bank or co- operative society, units of Unit Trust of India, deposit in any public sector company of India, etc. the CBDT has added investment in units of PowerGrid Infrastructure Investment Trust as one of the recognised modes for continuity of tax exemption for such trusts / institutions.

➢ The CBDT vide Notification No. 106/2023 dated December 27, 2023, notified an exemption to Ravenna Investments Holding B.V for pension funds under section 10(23FE) of the Income Tax Act, 1961.

The notified funds are eligible to claim an exemption for eligible investments made in India on or before March 31, 2024, subject to following conditions.

i. The assessee shall file a return of income, for all the relevant previous years falling within the period beginning from the date in which the said investment has been made and ending on the date on which such investment is liquidated.

ii. the assessee shall furnish along with such return a certificate in Form No. 10BBC in respect of compliance with the provisions of clause (23FE) of section 10 of the Act.

iii. the assessee shall intimate the details in respect of each investment made by it in India during the quarter within a period of one month from the end of the quarter in Form No. 10BBB.

iv. the assessee shall maintain a segmented account of income and expenditure in respect of such investment which qualifies for exemption under clause (23FE) of section 10 of the Act;

v. the assessee shall continue to be regulated under the laws of the Government of the Netherlands;

vi. the assessee shall not have any loans or borrowings directly or indirectly, for the purposes of making investment in India and

vii. the assessee shall not participate in the day-to-day operations of investee but the monitoring mechanism to protect the investment with the investee shall not be considered as participation in the day-to-day operations of the investee and

viii. any other conditions as may be prescribed.
Violation of any of the conditions as stipulated in clause (23FE) of section 10 of the Act and this notification shall render the assessee ineligible for the tax exemption.

➢ Government has revised the rate of Interest for Small Savings Scheme with the approval of competent authority.
The rates of interest on various Small Savings Schemes for the fourth quarter of financial year 2023-24 starting from 1 st January, 2024 and ending on 31 st March, 2024 have been revised as detailed below:

➢ CBDT has notified the Income-tax (Twenty-Ninth Amendment) Rules, 2023, to amend Rules 10TA and 10TD for revising the definition of intra-group loans and circumstances in which they are treated as Safe Harbour.

Intra-group loan definition has been revised to include loans extended to “Associate Enterprise” rather than wholly owned subsidiaries and the condition for the loans to be advanced must be sourced in Indian Rupees has been omitted. The updated definition of intra-group loan is now stated as follows:

Intra-group loan means a loan advanced to an associated enterprise being a non-resident, where the loan

(i) is not advanced by an enterprise, being a financial company including a bank or a financial institution or an enterprise engaged in lending or borrowing in the normal course of business, and

(ii) does not include a credit line or any other loan facility which has no fixed term for repayment;
Rule 10TD has been amended to replace the conditions for safe harbor in the event of the advancement of intra-group loans denominated in a foreign currency. The reference to “CRISIL” credit rating has been omitted from Rule 10TD. Thus, the credit rating of any other entities can be used while determining Safe Harbour.

➢ As per Notification No. 56/2023 Dated 28 th December, 2023 – The Government, on the recommendations of the Council, hereby, extends the time limit specified under sub- section (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized, relating to the period as specified below, namely: –

• For the financial year 2018-19, up to the 30th day of April, 2024;
• For the financial year 2019-20, up to the 31st day of August, 2024

➢ As per Notification NO. 55/2023 Dated 20 th December, 2023
The Commissioner, on the recommendations of the Council, hereby extends the due date for furnishing the return in FORM GSTR-3B for the month of November, 2023 till the twenty-seventh day of December, 2023, for the registered persons whose principal place of business is in the districts of Chennai, Tiruvallur, Chengalpattu and Kancheepuram in the state of Tamil Nadu

.
➢ The GSTN on has issued an advisory 1 st December 2023 for applicants of GST registration in the state of Andhra Pradesh, for pilot project of biometric-based Aadhaar authentication and document verification.
The functionality now also provides for the document verification and appointment booking process Once the applicant has applied to Form GST REG- 01, it will receive an email either of the following:

• A link for OTP based Aadhaar authentication, or
• A link for booking an appointment with GST Suvidha Kendra (GSK) for authentication/verification
If the applicant receives the link for OTP-based Aadhaar authentication as per above,

He/she can proceed with the application as per the existing process. however, If the applicant receives the link for booking appointment with GSK, he / she will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail, he / she will be able to visit the designated GSK as per the chosen schedule.

At the time of the visit of GSK, the applicant is required to carry the following details.
• Copy of confirmation e -mail (for booking of appointment)
• Details of jurisdiction as mentioned in the e -mail
• Aadhaar number
• Original documents that were uploaded with the application. The biometric authentication and document verification will be done at the GSK, for the individuals as per the GST application Form REG-01.

➢ The GSTN has issued the following advisory on 28 November 2023 the GST Council, in its 52nd meeting held in October 2023, recommended granting amnesty to taxpayers who could not file an appeal (u/s 107 of the CGST Act, 2017), against the demand order (u/s 73 or 74 of the CGST Act, 2017) passed on or before March 31, 2023, or whose appeal against the said order was rejected due to not being filed within the specified time limit.

• In compliance with this recommendation the government has issued notification No. 53/2023 on November 2, 2023.

• Considering the pre-requisite to deposit the admitted amount of tax, interest and penalty, it is the responsibility of the taxpayer to select the appropriate ledgers and make the payment correctly (the GST portal allows taxpayers to choose the correct mode of payment – electronic credit / cash ledger). An appeal filed without proper payment of tax, interest or penalty, may be rejected or dealt with as per the legal provisions

• In case taxpayer has already filed an appeal and wants it to be covered by the benefit of amnesty scheme, it would be required to make the differential payment to comply with Notification no. 53/2023. The payment should be made against the demand order using the ‘Payment towards demand’ facility available on the GST portal. The navigation step for making this payment is: Login >> Services >> Ledgers >> Payment towards Demand.

• Taxpayers who have previously filed an appeal, but it was rejected as time barred in APL-02 by the appellate authority, are entitled to refile the appeal. In case taxpayer faces any issue in re-filing of appeal, a ticket shall be raised on the grievance redressal portal (https://selfservice.gstsystem.in). The taxpayer shall select the category ‘Amnesty Scheme’ and the sub-category ‘Amnesty scheme- Issue in appeal filing’ while raising a ticket.

• If the appellate authority has issued a rejection order in APL-04 due to the application for appeal being time-barred, the taxpayer has to approach the respective appellate authority office well in advance to comply with the dates in the said notification. The appellate authority after checking the eligibility of the taxpayer for the amnesty scheme will forward the case to GSTN through the state nodal officer.

• For the APL 04 issued cases, no direct representations will be entertained by GSTN or through the grievance redressal portal. APL 04-issued cases have to be compulsorily forwarded through the state nodal officer.

• Post receiving the case from the state nodal officer, GSTN will enable the taxpayer to file an appeal against the concerned order.

➢ GSTN has issued an advisory on 1 December 2023 for implementation of 2FA on the GST portal nationwide starting 1 December 2023 onwards.
The 2FA helps in strengthening the login security in the GST portal. The initial rollout of 2FA has been successfully conducted in Haryana. In the 1st phase, 2FA will be implemented in Punjab, Chandigarh, Uttarakhand, Rajasthan and Delhi. The 2nd phase will include the remaining states across India. Taxpayers would need to provide a one-time password (OTP) post entering user ID and password. The OTP will be delivered to the primary authorized signatory’s mobile phone number and email address. Accordingly, taxpayers have been advised to keep their email addresses and mobile numbers of authorized signatories updated on the GST portal for receiving the OTP communication.

Companies Act, 2013/LLP Act, 2008

➢ Mandatory Pre-Requisite For E-filing Matters in NCLT

The National Company Law Tribunal has informed that all Litigants/Advocates/parties have to follow the pre-requisite outline on formatting, proper book marking Petition/Applications/Pleadings/Documents, electronic signature using e-sign, retention of originals, etc. at the time of e-filing in NCLT portal with effect from January 01, 2024.

RBI

➢ Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023

The Reserve Bank of India has introduced Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 in supersession of Notification No. FEMA 14(R)/2016-RB dated May 02, 2016.
The core of the regulations addresses how residents in India can make or receive payments from individuals outside the country. It emphasizes the role of Authorised Banks and Authorised Persons. The provision allows residents to seek the Reserve Bank’s permission for specific transactions under the Act.

➢ RBI modifies MSME lending norms

The RBI has notified amendment in Paragraph 2.2 of the Master Direction- Lending to Micro, Small & Medium Enterprises (MSME) Sector. Now, it has been directed that for Priority Sector Lending (PSL) purposes, banks shall be guided by the classification recorded in the Udyam Registration Certificate (URC). All the MSMEs are required to register online on the Udyam Registration portal and obtain a ‘Udyam Registration Certificate’.

➢ RBI issues revised instructions for inoperative accounts/unclaimed deposits in Banks

The RBI issued revised guidelines w.r.t. inoperative accounts /unclaimed deposits in banks. The central banks called for steps to trace the customers of inoperative accounts or unclaimed deposits including their nominees or legal heirs for re-activation of accounts, settlement of claims, or closure. RBI also stressed a periodic review and measures to prevent fraud in such accounts. No charges must be levied for the activation of inoperative accounts.

LABOUR LAW

➢ Employees’ State Insurance (Central) Amendment Rules, 2023

The Ministry of Labour of Employment has issued a notification to further amend Employees’ State Insurance (Central) Rules, 1950 wherein, in Rule 29(2) Proviso, for the words “rupees five crores”, the words “rupees twenty–five crores” shall be substituted.

SEBI
➢ Filing of Announcements Related to Loss of Share Certificate, Issue of Duplicate Share, Certificate Closure of Trading Window, and CIRP- NSE

The National Stock Exchange of India has advised the listed entity to file the disclosures intimating the following announcements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’) will be made available in XBRL format. with from December 09, 2023:

1. Loss of Share Certificate/Issue of Duplicate Share Certificate
2. Closure of Trading Window
3. Corporate Insolvency Resolution Process.

➢ SEBI (Listing Obligations and Disclosure Requirements) (Seventh Amendment) Regulations, 2023

The Securities and Exchange Board of India has amended the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

➢ SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2023

The Securities and Exchange Board of India has amended the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Monthly Compliance Calendar

Older Posts

News & UpdatesMONTHLY NEWS & UPDATES FOR AUGUST 2024

News & UpdatesMONTHLY NEWS & UPDATES FOR JULY 2024

News & UpdatesUnion Budget_2024

News & UpdatesMONTHLY NEWS & UPDATES FOR JUNE 2024

News & UpdatesMONTHLY NEWS & UPDATES FOR MAY 2024

News & UpdatesMONTHLY NEWS & UPDATES FOR APRIL 2024

News & UpdatesMONTHLY NEWS & UPDATES FOR MARCH 2024

News & UpdatesMONTHLY NEWS & UPDATES FOR FEBRUARY 2024

News & UpdatesIndia Budget 2024

Download the PDF

Government Reliefs News & UpdatesCBDT extends the Time Limit for Processing Validly filed Income Tax Returns with refund claims up to Assessment Year 2017-18 until January 31, 2024

Executive Summary

Income Tax

Goods And Service Tax (GST)

Companies Act 2013/ Other Laws

INCOME TAX

Companies Act, 2013/LLP Act, 2008

RBI

LABOUR LAW

Monthly Compliance Calendar

KNM Management Advisory Services Pvt. Ltd.Corporate Office

Our LocationsWhere to find us?

Connect With UsKNM Social Links

KNM Management Advisory Services Pvt. Ltd.Corporate Office

OUR LOCATIONSWhere to find us?

CONNECT WITH USKNM Social Links