Latest Blogs from SBS and Company LLP

    SBS wiki E Journal Feb 2020

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

    The article on ‘Mohit Minerals – Recipient of Service – To be Revisited?’ deals with the decision of recent Honourable High Court of Gujarat in the matter of Mohit Minerals, where in the Honourable High Court has struck the levy of tax under reverse charge on importer stating that he could not be called as recipient of service. However, seen from a different perspective, we believe that the importer can be called as recipient of service and accordingly be subjected to reverse charge obligation. We have articulated our understanding and observations in the said article.

    The article on ‘Taxation of Receipts – Extinction of Profit Earning Apparatus’ deals with the taxation of receipts which are in the nature of extinction of source of income. The question whether such receipt is capital or revenue has been discussed in such article and hope you will have a good read of the same.

    The article ‘SOFTEX for Non-STPI Units – A Mandatory Requirement – FEMA’ is to alert all clients in the DTA units which are engaged in provision of software services to get registered with STPI as Non-STPI to comply with FEMA regulations and accordingly save themselves from penalty and compounding.

    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.

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    Gst Implications On Development Of Plots

    Introduction:

    This article is a continuation to our article in previous edition. In the previous article, we took up to deal the tax implications on development of plots, wherein, we have identified four transactions which are common to any development agreement:

    Transaction I - Transfer of Development Rights (TDR) by landowner to developer

    Transaction II - Construction Services provided by developer to landowner

    Transaction III - Sale of Plots allotted to his share by developer

    Transaction IV - Sale of Plots allotted to his shared by landowner 

    The tax implications on Transaction I and Transaction II are dealt in the previous article. Now, in this article, we wish to deal with tax implications on Transaction III and Transaction IV and conclude with our comments.

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    All About Dividends & Tax

    One of the significant issues that caught everyone’s attention in the recent budget was the amendment to Section 115-O of IT Act[1] which deals with dividend distribution tax (for brevity ‘DDT’), wherein the effect of amendment is that the domestic companies need not pay such DDT for any amount declared, distributed or paid by way of dividends post 31st March 20. In this article, we would detail the various issues which gets touched upon as a consequence to such amendment.

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

    The article on ‘All About Dividends & Tax’ deals with the budget proposal on changes pertaining to DDT and consequential amendments and impact thereon.

    The second part of article on “GST implications on development of plots” deals with liability of developer and landowner qua their sales to respective customers and impact of credit thereof definitely would be an interesting read.

    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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    Key Topics:

    INCOME TAX

    • SECTION 194N OF THE INCOME TAX ACT, 1961-TDS ON CASH WITHDRAWAL

    INTERNAL AUDIT

    • STANDARD ON INTERNAL AUDIT (SIA) 330 INTERNAL AUDIT DOCUMENTATION

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