Contents

Amendments to Income Tax Act, 1961.

Section 2(19AA) - Demerger

Section 9(viii) – Income deemed to accrue or arise in India vis-à-vis Section 56(2)(x)

Section 9A – Extended time to achieve monthly average corpus by specified funds – FIIs.

Section 10 – Certain Incomes not to be included in Total Income – Certain Interest Payable to NRs.

Section 12AA – Amendments in Procedure for Registration of Trust or Institution.

Section 40 – Payer not be treated as Assesse in Default in case of payments to NRs.

Section 43B – Deduction of Interest on payment basis to loans extended by specified NBFCs.

Section 43D – Payment of Tax on Interest on receipt basis by specified NBFCs.

Section 47 – Securities dealt by Category III AIFs – Not to be treated as Transfer

Section 50CA – Relaxation for Notified Persons from provisions of FVC – Other than Quoted Share.

Section 54GB – Extension for Investment in Eligible Start-Up on transfer of Residential Property.

Section 56(2)(viib) – Extension of Non-Applicability to Category II AIFs & Other notified Companies.

Section 56(2)(x) – Class of Persons to which such section is not applicable.

Section 79 – Relaxation for Eligible Start-ups to carry forward and set off loss – Shareholding.

Section 80C – Contribution to Pension Scheme by Employee of Central Government

Section 80CCD – Increase of Deduction – Contribution to Pension Scheme – By Central Government

Section 80EEA – Deduction of Interest – Rs 1.5 Lakhs – New Affordable Residential Apartment

Section 80EEB – Deduction of Interest – Rs 1.5 lakhs – Purchase of Electric Vehicle.

Section 80IBA – Affordable Residential Housing – Aligned with GST laws – Hyderabad as Metro.

Section 80LA- Deduction for Unit in IFSC – Any 10 Years out of 15 Years – 100%..

Section 92CE – Clarification in Secondary Adjustments & Additional Tax @ 18% - Option of Assessee.

Section 115O – Relaxation from Payment of DDT of Unit in IFSC out of Accumulated Income. 

Section 115QA – BBT for Listed Companies too. 

Section 115R – Exemption for unit in IFSC from payment of tax on distributed income. 

Section 139 – Certain Transactions – Mandatory Filing of Return. 

Section 139A – PAN or Aadhar, anything is fine. 

Section 194IA – Consideration for Immovable Property for 1% deduction of tax. 

Section 194M – Personal Use – 5% tax deduction at source – If exceeds Rs 50 lakhs. 

Section 194N - Cash Withdrawals – 2% tax deduction at source – If exceeds Rs 1 Crore. 

Section 269SU – Provision for prescribed mode for accepting payment in electronic modes. 

Rates of Taxes – Surcharge & Domestic Companies. 

Amendments to Prohibition of Benami Property Transactions Act, 1988. 

Section 23 – Insertion of Explanation – No Investigation by IO after issuance of SCN.. 

Section 24 – SCN and Attachment of Property in Benami Transaction – IO.. 

Section 26 – Adjudication of Benami Property – Adjudicating Authority. 

Section 54A – Penalty for non-compliance with summons and furnishing of information. 

Section 55 – Prosecution to be sanctioned by Competent Authority – Not Board anymore. 

Amendment to Reserve Bank of India Act, 1934. 

Section 45IA – Enhancement of NOF – NBFC. 

Section 45ID – Power to Remove Directors from Office of NBFC. 

Section 45IE – Power to Supersession of Board of Directors of NBFC. 

Section 45MAA – Action against Auditors – Debar from Audit of Banks – 3 Years at a time. 

Section 45MBA – Resolution of NBFC. 

Section 45NAA – Power in respect of Group Companies. 

Amendments to Central Goods & Services Tax Laws. 

Section 10 –Composition Scheme – Supplier of Services. 

Section 44 – Inter-se transfer in Electronic Cash Ledger 

Section 50 – Interest to be paid on net basis. 

Section 54 – Refund – Power to CG to refund State Tax too. 

Section 101A & Others – National Appellate Authority for Advance Rulings. 

Amendments to Customs Act. 

Section 110 – Provisional Attachment of Bank Accounts. 

Section 140 – Power of Arrest – Offences Outside India. 

Amendments to Service Tax Laws. 

Retrospective Exemption – Liquor License Fee. 

Retrospective – Exemption – Premium/Salami – Long Term Lease. 

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. 

Section 121 – Indirect Tax Enactments – Applicability of Scheme.

Section 123 – Relief available under LDR. 

Section 124 – Persons Ineligible for making declaration. 

Modus Operandi 

Section 128 – Discharge Certificate – Conclusive Proof 

Section 129 – Restrictions of Scheme. 

Read more: Union Budget 2019

In this edition, we bring to you certain important articles on various aspects.

We have penned an article on ‘Interesting Issues in Arrest and Interplay of GST laws, IPC and PMLA’, which deals with the question whether completion of assessment is mandatory to initiate prosecution under GST laws, for which the Supreme Court has answered in negative. This judgment is important as it gives wide powers to the taxation authorities to tackle with the economic frauds. Further, in the article, we also discussed the interplay between GST laws, IPC and PMLA for the trending offence of circular trading.

We have also brought an article, which deals with the recent amendments made to Foreign Contribution Regulation Act and rules made thereunder. I request everyone to read the same to keep yourself updated with the changes which effect your businesses.

Read more: SBS Wiki E Journal June 2019

Key Topis:

AUDIT

• SA 701 COMMUNICATING KEY AUDIT MATTERS IN THE INDEPENDENT AUDITOR’S REPORT

INDIRECT TAX

• GST APPLICABILITY ON GTA SERVICES WHERE PLACE OF SUPPLY IS OUTSIDE INDIA

DIRECT TAX

• SECTION 56 OF INCOME TAX ACT, 1961

FEMA

• IMPORT OF GOODS BY SEZ DEVELOPER AND UNIT

The Central Board of Direct Taxes (for brevity ‘CBDT’) has released a paper for public consultation on the proposals pertaining to the amendment of rules which deal with profit attribution to Permeant Establishment (for brevity ‘PE’). The current rule does not lay down a universal approach for determination of profits attributable to PE, leaving to the discretion of Assessing Officer a wide power for such attribution. This has led to multiple rounds of litigations both by tax payer and revenue. The Courts also held in different matters, different profit attributions making this more complicated. Further, the tax payer is also burdened in absence of a concrete mechanism, which leads to tax uncertainty. Hence, the CBDT thought in the best interests of tax payers and to achieve a universality in attributions of profits to PE, brought out a paper for public consultation dealing with the amendments to such rules. The paper was published on 18^th April 2019 and CBDT has provided a window of 30 days for providing the comments on the proposed amendments. Such comments can be mailed to This email address is being protected from spambots. You need JavaScript enabled to view it.. In this write up, we have tried to concisely capture the key contents in the paper, so that reader can go through this write up and make his suggestions to the proposed amendments.

Read more: Summary of Proposal for Amendment of Rule for Profit Attribution to Permanent Establishment