Latest Blogs from SBS and Company LLP

    Background

    1. Years of pending litigation in various IDE1 has become a huge burden to the Central Government, assessee and tax positions involved therein. As per the Economic Survey Report of 2019, the cases pending with CESTAT2, High Courts and Supreme Court as on 31.03.2017 are 1,00,4253. Apart from the burden on the eco-system, such huge pending litigation also effects the foreign investment, since lack of tax certainty has a significant effect on foreign investment.

    2. The Honorable Finance Minister during her maiden budget speech has mentioned that more than Rs. 3.75 lakh crores were blocked in litigations under IDE. Certainly, pending litigation of the erstwhile regime has become also become baggage for Central Government and assessees which has to be offloaded to concentrate on the new legislation and way forward.

    3. In order to unload the burden of huge pending litigation and to liquidate the amounts blocked in litigation, Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 is introduced in Finance (No.2) Act, 2019. The objective of the scheme is twofold. One is dispute resolution by liquidating a portion of the amounts blocked in litigations and the other one is amnesty where an opportunity is given to taxpayers to voluntarily disclose and discharge their actual tax liability. This paper broadly summarizes the scheme, the clarifications provided so far and highlights some of the important questions which are to be answered for effective implementation of the scheme. At the end of the paper, we also share the modus operandi which has to be adopted to choose among the normal route of litigation or the scheme.

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    1. Rate Change – Goods

    1.1 Rate Changes for Specified Goods:

    NN 1/2017-CT(R) dated 28.06.2017 is amended to provide for the following rate changes:

    i. The rate of tax on Marine Fuel 0.5% is reduced from 18% to 5% with effect from 01st October 2019.
    ii. The rate of tax on wet grinders consisting stone as grinder has been reduced from 12% to 5% with effect from 01st October 2019.
    iii. The rate of tax on railway wagons, coaches and other locomotives including maintenance or service vehicles that fall under chapter 86 has been increased from 5% to 12% with effect from 01st October 2019.
    iv. Slide Fasteners falling under chapter 96 are subject to GST at 12% while their parts were subject to GST at 18%. With effect from 01st October 2019, even the parts of slide fasteners are also subject to GST at the rate of 12%.
    v. Caffeinated beverages falling under chapter 22 were subject to GST at 18%. The rate of these beverages is increased to 28% with effect from 01st October 2019. In addition to this, these are subject to GST Compensation Cess at 12%. Thus, with effect from 01st October 2019, caffeinated beverages are subject to a total tax of 40%.
    vi. The rate of tax on semi-precious stones falling under chapter 71 has been reduced from 3% to 0.25% with effect from 01st October 2019.

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    Key Topics:

    FEMA

    • FEM (IMMOVABLE PROPERTY IN INDIA) REGULATIONS, 2018

    AUDIT

    • KEY DIFFERENCE_ DIVISION I AND DIVISION II-SCHEDULE III

    DIRECT TAX

    • TCS
    SBS Wiki E Journal Sept 2019

    In this edition, we bring you to quite a few interesting articles.

    The article on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 deals with the entire scheme, the modus operandi, the reliefs available for declarant opting for the scheme. Apart from the said aspects, the article also deals on various range of issues which requires clarification from CBIC for better implementation of the scheme. I would urge all the clients to do an analysis on their current positions on litigation matters in indirect taxes and accordingly decide on the aspect of opting for the said scheme.

    The article on ‘Audit Committee – An Overview’ deals with the role, significance, purpose and global challenges faced by audit committees.

    The article on ‘Admissibility of Embezzlement Loss’ deals with allowance of loss arising from embezzlement fraud under the Income Tax laws.

    The presentation on ‘Code on Wages, 2019’ contributed by our associate Mr S V Ramachandra Rao, Managing Director, M/s HR Chambers Outsourcing Private Limited, gives the readers a detailed view on the important aspects of Code when compared with previous legislations.

    I hope that you will have good time reading this edition and please do share your feedback. I will also urge clients to mail us topics or issues on which you want us to deliberate in our future editions, so that we can contribute to the same.

    I am also glad to announce that we have launched our mobile app ‘SBS Connect’ on the eve of completion of 10 years. Now, Wiki and other resources can be accessed through ‘SBS Connect’. Please use ‘SBS Connect’ to stay connected with us.

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    In this edition, we bring you to quite a few interesting articles.
    The article on Resident Welfare Associations – Income Tax & GST Perspective’ deals with taxation of certain issues from the income tax and GST provisions faced by Resident Welfare Associations.

    The article on ‘Corporate Social Responsibility – Boon or Bane’ deals with the recent changes brought under the Companies Act to such provisions.

    The presentation on ‘Practical Issues in GSTR 9 and GSTR 9C’ focuses on certain issues which impact the reconciliation and probable solutions to fix.

    I hope that you will have good time reading this edition and please do share your feedback. I will also urge clients to mail us topics or issues on which you want us to deliberate in our future editions, so that we can contribute to the same.

    I am also glad to announce that we have launched our mobile app ‘SBS Connect’ on the eve of completion of 10 years. Now, Wiki and other resources can be accessed through ‘SBS Connect’. Please use ‘SBS Connect’ to stay connected with us.

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