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RNI No. MAHENG/2015/67505I Postal Reg. No. MCS/210/2019-21
Vol. VIII | Issue 1 I July 2020 I Total Pages• 15 I Price: `2/-
THE CTC NEWS
Monthly Newsletter of The Chamber of Tax Consultants
(For Private Circulation - Members Only)
“
Before you are a leader, success is all about growing yourself.
”
When you become a leader, success is all about growing others.
-Jack Welch
Chamber's
CADRE
FORTHCOMING EVENTS
SR. PG.
DATE COMMITTEE PROGRAMME DESCRIPTION
NO. NO.
1. 24-07-2020 & Student GST Annual Return and GST Audit – 2 day Workshop 5
25-07-2020
2. 24-07-2020 & Accounting & Seminar on Business Valuation – 5
25-07-2020 & Auditing (Jointly with Bombay Chartered Accountants’ Society)
01-08-2020
3. 26-07-2020 Study Circle & Analysis of Judgments under Income - tax 6
Study Group
4. 28-07-2020 Indirect Taxes Taxability of E-Commerce Transactions under GST 6
5. 27-07-2020 Direct Taxes ISG on Recent Important Direct Tax Decisions 6
6. 29-07-2020 Direct Taxes Impact of COVID19 on Direct Tax Laws and Procedures 6
7. 02-08-2020 Commercial & Confluence of Benami Law, Black Money Act and Money Laundering Act with 6
Allied Laws Income - tax Act
8. 06-08-2020 Student UDAAN ~ Learning Today... Leading Tomorrow 7
9. 13-08-2020 Student Income - tax Return – Recent Changes and Do’s & Don’ts – Student’s Perspective 7
10. 26-09-2020 Student Tax Audit – Recent Changes and Do’s & Don’ts 7
11. 24th, 25th, Hyderabad Study Long duration course on FEMA – (Jointly with Foundation of Tax and Accounting 8
31-07-2020 & Group Professionals)
1st, 7th, 8th,
14th, 15th,
21-08-2020
12. 31-07-2020 Membership & Real Estate Virtual Summit 2020 – Footprints for Future – (Jointly with Association 9
01-08-2020 & Public Relations of Corporate Advisers & Executives, All india Federation of Tax Practitioners (EZ),
02-08-2020 Indirect Tax Professionals’ Forum, RERA India Education and Resource Federation,
Society For Tax Analysis & Research)
13. — Law & The Vivad Se Vishwas Scheme 2020 11
Representation
Note : All the events will be held through virtual platform (Zoom App)
Kindly enrol at the earliest to avoid disappointment.
Participation Fees to be paid online on the website : www.ctconline.org
THE CTC NEWS | July 2020 2 www.ctconline.org
BRIEF REPORT OF 93RD ANNUAL GENERAL MEETING
At the 93rd Annual General Meeting held on Saturday, 4th July, 2020, the following business was transacted:
i) The Annual Report for the year 2019-20 was approved & adopted.
ii) The Accounts for the year ended 31st March, 2020 were adopted.
iii) CA J. L. Thakkar, was appointed as Auditor for the year 2020-21 and will hold office up to the next AGM
iv) Results of the elections for the year 2020-21 were declared by the Election Officer, Shri Keshav Bhujle, Past President as
follows:
• Anish Thacker was declared elected as President
• The following fourteen members were declared elected to the Managing Council
1. Atul Mehta 8. Mehul R. Sheth
2. Dharan Gandhi 9. Neha Gada
3. Dinesh Poddar 10. Nishtha Pandya
4. Haresh P. Kenia 11. Parag Ved
5. Heneel K. Patel 12. Rajesh L. Shah
6. Ketan L. Vajani 13. Rajesh P. Shah
7. Maitri P. Savla 14. Varsha Galvankar
Rank Participant Name Topic Associates/College
1 Ms. Joshita Chopra Gandhian Values in Today’s Era GBCA & Associates LLP, Chartered
Accountants, Mumbai
2 Ms. Saniya Mary Stanly Artificial Intelligence: Replacement for the BDO India LLP, Chennai
Human Mind?
3 Ms. Vanshika Bhanushali USD 5 Trillion Indian Economy: Dream or GBCA & Associates LLP, Chartered
Achievable? Accountants, Mumbai
THE NEW TEAM FOR 2020-21
i) In the First Managing Council Meeting held on Sunday, 5th July, 2020, the following members were elected as
Office Bearers:
Sr.
Name Designation
No.
1. Ketan L. Vajani Vice President
2. Haresh P. Kenia Hon. Jt. Secretary
3. Neha Gada Hon. Jt. Secretary
4. Parag S. Ved Hon. Treasurer
ii) The following nine members were Co-opted to the Managing Council for the year 2020-21:
1. Ashok Sharma 2. Hinesh Doshi
3. Hitesh R. Shah 4. K. Gopal
5. Kishor Vanjara 6. Mahendra Sanghvi
7. Nilesh Vikamsey 8. Paras K. Savla
9. Paresh P. Shah
THE CTC NEWS | July 2020 3 www.ctconline.org
iii) EDITOR & EDITORIAL BOARD OF THE CHAMBER’S JOURNAL:
Mr. Vipul B. Joshi was appointed as the Editor of “The Chamber’s Journal”.
The following were appointed as Editorial Board Members:
1. A. S. Merchant 2. K. Gopal
3. Keshav Bhujle 4. Kishor Vanjara
5. Pradip Kapasi
The following were appointed as Asst. Editors:
1. Ajay Singh 2. Ameya Kunte
3. Haresh Chedda 4. Manoj Shah
5. Nishit Gandhi 6. Kumarmangalam Vijay
7. Rakesh Upadhyay 8. Sanjay Parikh
9. Vikram Mehta 10. Yatin Vyavaharkar
iv) COMMITTEES
The following Committees were formed and their Chairpersons & Co-Chairpersons were appointed:
Committees Chairman/Chairperson
1. Accounting & Auditing Heneel Patel
2. Commercial & Allied Laws Dharan Gandhi
3. Direct Taxes Dinesh Poddar
4. Indirect Taxes Atul Mehta
5. International Taxation Rajesh L. Shah
6. I.T. Connect Maitri Savla
7. Journal Paras K. Savla
8. Law & Representation Mahendra Sanghvi
9. Membership & Public Relations Nishtha Pandya
10. Office Premises Kishor Vanjara
Hitesh R. Shah, Co-Chairman
11. Research & Publication Rajesh P. Shah
12. Residential Refresher Course Mehul Sheth
13. Student Varsha Galvankar
14. Study Circle & Study Group Ashok Sharma
15. International Taxation Journal Paresh P. Shah
DELHI CHAPTER
The following members were appointed as Core Team of the Delhi Chapter:
1. Vijay Gupta Chairman
2. Sanjiv Chaudhary Vice Chairman
3. Deepender Kumar Jt. Hon. Secretary
4. Prakash Sinha Jt. Hon. Secretary
5. Harpreet Singh Hon. Treasurer
LAUNCH OF JIGNYASA - Students E-Journal
The Student Committee of the Chamber of Tax Consultants launched the Students’ e-Journal, “Jignyasa - Learning Today... Leading
Tomorrow” at the AGM on July 4, 2020.
This quarterly E-journal is an endeavour of the Committee to keep the Students up to date in every arena. The Committee also
intends to make a part of the journal - by the students, for the students.
The Committee would soon release the guidelines for contributing article for the journal by the students and the same shall be
uploaded on the website of the Chamber. In the meantime interested students can write to the chamber at office@ctconline.org
THE CTC NEWS | July 2020 4 www.ctconline.org
STUDENT
Chairperson: Varsha Galvankar | Vice-Chairperson: Niyati Mankad | Vice-Chairman: Vitang Shah
Convenors: Raj Khona, Charmi Shah | Advisor: Ajay Singh
Days & Dates:
Friday, 24th July, 2020
Saturday, 25th July, 2020
GST Annual Return and GST Audit – 2 day workshop Time:
11.00 a.m. to 1.00 p.m.
5.00 p.m. to 7.00 p.m.
With the due dates of filing of GST Annual Returns and Audit GSTR-9 and GSTR-9C clause by clause and would deal with the
fast approaching, the Student Committee of the Chamber of Tax various issues/complexities involved by giving practical examples.
Consultants is pleased to announce an interactive e-workshop Also, key focus areas which articled students should keep in mind
uniquely designed for the articled students. The workshop would while conducting the GST Audit would be explained.
be conducted by eminent GST experts who will explain the entire
Sr.
Topics Speakers
No.
1 GST Annual Return CA Jigar Shah
2 GST Audit CA Ankit Chande
Fees
Student Member Free
All Other Participants ` 200 + ` 36 (18% GST) = ` 236/-
ACCOUNTING & AUDITING
Chairman: Heneel Patel | Vice-Chairmen: Hemal Shah, Tejas Parikh
Convenors: Prashant Daftary, Arpita Gadhia, Deepak Shah | Advisor: Jayesh Gandhi
Days & Dates:
Friday, 24th July, 2020
Seminar on Business Valuation (Jointly with Bombay Chartered Saturday, 25th July, 2020
Accoutants’ Society) Saturday, 01st August, 2020
Time:
4.30 p.m. to 7.45 p.m.
Sr.
Topics Speakers
No.
1 Opening Remarks and Keynote Address on Valuations CA Sujal Shah
2 Intricacies - Valuation Standards and Rules CA Anand Bathiya
• Provisions of Companies Act • Valuation Rules including Amendments
• Valuation Exams • Overview of Valuation Standards
3 Overview of Valuation Methodologies CA Vikram Jain
• Asset Approach • Income Approach • Market Approach
• Legal Cases (Cadbury, HLL, Solvey, Mihir Mafatlal, etc.)
4 Measuring the Value of Intangibles CA Ravishu Shah
• Types of Intangibles • Methodologies
• Case Study and major Issues - Documentation for Valuation
5 Valuations under Specific Situations: CA Pinkesh Billimoria
•Mergers / Demergers / SEBI Regulations* •Startups •Insolvency
•IND AS / Impairment testing •FEMA •Valuation of Investment Entities
•ESOP Valuation
Fees
Members ` 1,000/- + ` 180/- (18% GST) = ` 1,180/-
Non-Members ` 1,500/- + ` 270/- (18% GST) = ` 1,770/-
THE CTC NEWS | July 2020 5 www.ctconline.org
STUDY CIRCLE & STUDY GROUP
Chairman: Ashok Sharma | Co-Chairman: Dilip Sanghvi | Vice-Chairman: Sanjay Choksi
Convenors: Dinesh Shah, Dipesh Vora, Dhaval Shah
Day & Date:
Sunday, 26th July, 2020
Analysis of Judgments under Income - tax Time:
11.30 am to 1.30 pm
Sr.
Speaker
No.
1 Ajay Vohra, Senior Advocate, Supreme Court
INDIRECT TAXES
Chairman: Atul Mehta | Vice-Chairman: Sumit Jhunjhunwala
Convenors: Hemang Shah, Kush Vora, Keval Shah | Advisor: Rajiv Luthia
Day & Date:
Tuesday, 28th July, 2020
Taxability of E-Commerce Transactions under GST Time:
4.00 p.m. to 6.00 p.m.
Sr.
Speaker
No.
1 CA Rajat Tatati
DIRECT TAXES
Chairman: Dinesh Poddar | Co-Chairman: Ashok Mehta | Vice-Chairman: Abhitan Mehta
Convenors: Chintan Gandhi, Nimesh Chothani, Viraj Mehta| Advisor: Mahendra Sanghvi
Day & Date:
Monday, 27th July, 2020
Recent Important Direct Tax Decisions (For ISG Members Only) Time:
5.00 p.m. to 7.00 p.m.
Sr.
Topic Speaker
No.
1 Recent Important Direct Tax Decisions Fenil Bhatt, Advocate
Day & Date:
Wednesday, 29th July, 2020
Impact of COVID19 on Direct Tax Laws and Procedures Time:
5.00 p.m. to 7.00 p.m.
Sr.
Speaker
No.
1 Devendra Jain, Advocate
COMMERCIAL & ALLIIED LAWS
Chairman: Dharan Gandhi | Co-Chairman Makrand Joshi | Vice Chairperson: Mallika Devendra
Convenors: Gautam Mota, Tanmay Phadke | Advisors: K. K. Ramani, Sanjay Buch
Day & Date:
Confluence of Benami Law, Black Money Act and Money Sunday, 2nd August, 2020
Laundering Act with Income - tax Act Time:
11.00 a.m. to 01.00 p.m.
Sr.
Speaker
No.
1 Firoze Andhyarujina, Senior Advocate
Fees
Members ` 200/- + ` 36/- (18% GST) = ` 236/-
Non-Members ` 300/- + ` 54/- (18% GST) = ` 354/-
THE CTC NEWS | July 2020 6 www.ctconline.org
STUDENT
Chairperson: Varsha Galvankar | Vice-Chairperson: Niyati Mankad | Vice-Chairman: Vitang Shah
Convenors: Raj Khona, Charmi Shah | Advisor: Ajay Singh
Day & Date:
Thursday, 6th August, 2020
UDAAN ~ Learning Today... Leading Tomorrow Time:
5.30 to 6.30 pm
Episode 2 of the Chat Show with the Stalwarts of the Profession Leading Tomorrow, we have invited CA Nilesh Vikamsey (Past
In the recent years, we have seen a paradigm shift from young President-ICAI) to share his opinion on how relevant the traditional
Chartered Accountants entering the arena of practice to now joining form of practice of a Chartered Accountant will be in the years to
the industry. come. Apart from covering conventional areas, we shall also chat on
the future of existing arenas of modern practice and discuss some
With an object of motivating the students to opt for practice, in new upcoming areas of practice. He shall also guide on the steps
this second episode of the Chat Show ~ Udaan - Learning Today... and nuances on setting up of one’s own practice.
Day & Date:
Income - tax Return – Recent Changes and Do’s & Don’ts Thursday, 13th August, 2020
(Student’s Perspective) Time:
5.00 to 7.00 pm
With various changes in Income - tax Return forms this year, webinar will be delivered by eminent Income - tax experts who
the Students Committee of The Chamber of Tax Consultants is will discuss the changes in the Income - tax return forms and also
pleased to announce a webinar for students on Income - tax Return discuss practical difficulties and common errors that are faced while
– Recent Changes and Do’s & Don’ts (Student’s Perspective). The filing the returns.
Sr.
Topic Speakers
No.
1 Income - tax Return – Do’s and Don’ts (Student’s Perspective) CA Kalpesh Katira & CA Prashant Shah
Fees
Student Member Free
All Other Participants ` 200 + ` 36 (18% GST) = ` 236/-
Day & Date:
Saturday 26th September, 2020
Tax Audit (Recent Changes and Do’s & Don’ts) Time:
5.00 to 7.00 pm
In the present scenario for the practicing professional, the • Is your articled assistant able to co-relate understanding of
responsibility has increased manifold. Cost of negligence is very Income - tax while dealing with Tax Audit?
high. Articled assistants are the initial executors for conducting Tax
Audit. • Is the articled assistant cautious about preparing proper
working file for tax audit?
• Is your articled assistant equipped to carry out tax-audit?
The Student Committee of The Chamber of Tax Consultants is
• Does your articled assistant understand the impact of Auditing pleased to announce a webinar for students on Tax Audit – Recent
Standards for carrying out Tax Audit? Changes and Do’s & Don’ts.
Sr.
Topic Speaker
No.
1 Tax Audit (Recent Changes and Do’s & Don’ts) CA Chintan Gandhi
Fees
Student Member Free
All Other Participants ` 200 + ` 36 (18% GST) = ` 236/-
THE CTC NEWS | July 2020 7 www.ctconline.org
HYDERABAD STUDY GROUP
Co-ordinators: Manindar Kakarla, Neelesh Vithlani, Ram Murthy T., Ravi Ladia, Samba Murthy P. | Advisor: Hinesh R. Doshi
Days & Dates:
Long duration course on FEMA (Jointly with Foundation of Tax and 24th, 25th, 31st July, 2020
Accounting Professionals) 1st, 7th, 8th, 14th, 15th,
21st August, 2020
FEMA is one of the most evolving areas of practice and with understand the basics and few intricacies of FEMA in depth. It’s a
businesses and economies exploring greener pastures offshore it has golden opportunity to learn the important aspects of FEMA. Various
become the most sought after need for professionals. However, due important and interesting topics have been included in the course
to its complex nature, it continues to be a nightmare for companies with one session dedicated to learning the various forms to be filed
and professionals alike. In order to reduce some of the complexities, for practical learning as well.
CTC HSG and FTAP together bring a learning course on FEMA to
Sr.
Dates Time Topics Coverage Scope Speakers
No.
1 24th July, Friday 4.30 to 7 p.m. Inauguration and Overview of Key Note Speaker CA Dilip Thakkar*
FEMA (Mumbai)
Overview and Introduction of FEMA Act 1999 CA Manoj C Shah
Mumbai
2 25th July Saturday 5 to 7 p.m. Types of NRI Deposit/ Bank Types of accounts that can be maintained by the CA Naresh Ajwani
Accounts & Investments in Residents and Non-Residents & Investments in Mumbai
Properties Immovable Properties India and Abroad
3 31st July Friday 5 to 7 p.m. Establishment of Branch office, Establishment of Liaison office, Branch Office, Projects CA Hinesh Doshi
Liaison Offices by Residents office, etc., in India and abroad Mumbai
and Non-Residents – FEMA
Regulations
4 1st Aug Saturday 5 to 7 p.m. Critical Analysis of Borrowings Covering the aspects of ECB, Trade Credit, Lending and CA P Rajendra Prasad
under FEMA borrowing in Rupees and FC etc Hyderabad
5 7th Aug Friday 5 to 7 p.m. Analysis of FDI Regulations FDI regulations for Investments in Non-Corporate Entities CA Murali Krishna
under FEMA including Partnership and LLP Hyderabad
6 8th Aug Saturday 5 to 7 p.m. Analysis of FDI Regulations FDI Regulations for Investments in Corporate Entities and CA Moin Ladha
under FEMA Non-Debt Instruments Mumbai
7 14th Aug Friday 5 to 7 p.m. Analysis of ODI Regulations ODI Investments by the Companies, LLPs, Partnership CA Vishal Gada
under FEMA Firms, etc. Mumbai
8 15th Aug Saturday 5 to 7 p.m. Analysis of ODI Regulations Remittances available to Individuals under LRS and CA Rajesh P Shah
under FEMA Immigration Investment schemes Drawing, Possession and Mumbai
Utilisation of Foreign Currency
9 21st Aug Friday 5 to 7 p.m. Export of Goods Services– Major aspects of FEMA Regulations related to Export of CA Ganesh
FEMA Regulations Goods and Services Ramaswamy
Bangalore
10 22nd Aug Saturday 5 to 7 p.m. Import of Goods and Services – Major aspects of FEMA Regulations related to Import of CA Shabbir Motorwala
FEMA Regulations Goods and Services Mumbai
11 27th Aug Thursday 5 to 7.30 p.m. Compounding of Offences & Offences and adjudications under FEMA, remedial CA Deepender Agarwal
Auditor’s Responsibility from measures including Compounding of Offences and New Delhi
FEMA perspective Practical Aspects for appearance before ED Authorities.
12 28th Aug Friday 5 to 7 p.m. Filing of various forms under A Practical overview of different forms to be filed under CA Harshal Bhuta
FEMA FEMA and FEMA from Auditor’s perspective Mumbai
13 29th Aug Saturday 5 to 7 p.m. Panel Discussion Case Studies on FEMA and Brain Trust Session CA Anup P. Shah &
CA Paresh P. Shah
Panel Chairman –
CA Dilip Thakkar*
Fees
Members or HSG Members ` 1,000/- + ` 180/- (18% GST) = ` 1,180/-
Non-Members ` 1,500/- + ` 270/- (18% GST) = ` 1,770/-
THE CTC NEWS | July 2020 8 www.ctconline.org
MEMBERSHIP & PUBLIC RELATIONS
Chairperson: Nishtha Pandya | Co-Chairman: Premal Gandhi | Vice-Chairperson: Ashita Shah
Convenors: Bandish Hemani, Tanvi Vora | Advisor: Hitesh R. Shah
INDIRECT TAXES
Chairman: Atul Mehta | Vice-Chairman: Sumit Jhunjhunwala | Convenors: Hemang Shah, Kush Vora, Keval Shah | Advisor: Rajiv Luthia
ACAE
REAL ESTATE
FOOTPRINTS FOR FUTURE
VIRTUAL SUMMIT
2020
31st July & 1st Aug
IDTPF 5:00 P.M. to 7:30 P.M
2nd Aug
10:30 A.M. to 01:00 P.M.
Register
13
Topics including GST, I.Tax,
Finance, Accounts, RERA Today !!
@Rs.250 (incl GST)
Renowned speakers & Experts Fill up the registration form at
15 from across the Country link below to join the event
http://acaekolkata.org/virtualconference/
Hrs of Learnings on current
10 topics
Association of Corporate
Advisers & Executives
Jointly with
6 Organisations joining hands
All india Federation of Tax
Practitioners (EZ)
Panel Discussions with Industry Indirect Tax Professionals’ Forum
2 Leaders & Regulators RERA India Education and Resource
Federation
Society For Tax Analysis & Research For payments by cash or Cheque Contact
The Chamber of Tax Consultants Niti Dasgupta +91 9830555232
info@acaekolkata.org
OUR VISION ABOUT SUMMIT
Virtual Lobby
Parallel Sessions | Choose
Live or watch later | Short
Sessions | Q & A
Resource Materials
Background Materials| Link
to Past Session| Articles &
Research Papers |Upload
Article | Ask the Expert
SESSIONS PANELLIST
Features
Quiz Competition I Win Prizes
Surveys | Group Chat &
"Real Estate Industry - Current CA (Dr.) Gaurav Gupta, Delhi Lounge | Watch Later | Link
Conundrum" Adv Sumant Batra, Delhi to Advertisers & Sponosrs
GST - ITC- Recent Judicial Principles
Sri D K Singh, DC MSME* Lobby
GST - Antiprofiteering Issues
GST Implications on uncertain rental CA Amit Kr. Kedia, Jaipur
income & suggested recourse CA Ramesh Prabhu, Mumbai
Force Majeure- Implications in Rental Adv V Raghuraman, Bangalore
Agreements CA (Dr) Girish Ahuja, Delhi Experience Virtual
MSME Perspective in Real Estate
JDA - GST Issues and Implications on
Sri Yogesh Thar, Mumbai Room Environment
Sri Ravindra Chamaria, Kolkata
Developers and Owners
Urban Planning- New Dimensions in CA Anish Thacker, Mumbai
view of ongoing Covid 19 pandemic Adv Sandip Gadodia, Ranchi
JDA- Income Tax Implications, Capital CA Manmohan Gupta, Delhi
Gains & Other CA Arun Agarwal, Kolkata
Real Estate- Accounting Issues, Income
Sri H V Patodia, National
Recognition & Disclosure (ICDS,
AS7,etc.) President (Elect) CREDAI
RERA - Challenges & Issues Sri Sumit Sanghai, Mumbai
FOOTPRINTS FOR FUTURE
IBC Code - Obligations, Exit Routes & Sri Apurva Salarpuria, Kolkata
Opportunities Ca Jitendra Lohia, Kolkata
Concluding Panel Discussion
Current Real Estate Policy - Suggestions
* Confirmation awaited
THE CTC NEWS | July 2020 9 www.ctconline.org
CTC PUBLICATION THE CTC NEWS | July 2020 10 www.ctconline.org
LAW & REPRESENTATION COMMITTEE
Chairman: Mahendra Sanghvi | Co-Chairman: Apurva Shah | Vice-Chairman: Vyomesh Pathak
Convenors: Deepak Jain, Adit Shah | Advisor: Vipul Joshi
The Vivad Se Vishwas Scheme 2020
Dear Member,
As you might be aware, The Vivad Se Vishwas Scheme Please email your queries to office@ctconline.org and mark the
2020 has now been extended till 31st December 2020. However, email subject as: V2VS URGENT
we understand that our members are facing various practical
The CTC continues its long standing commitment to understand
difficulties while filing forms on behalf of their clients as well as
issues faced by members and make suitable representations at
from queries which are being raised by Designated Officers/
appropriate forums for redressal in a timely and efficient manner
Assessing Officers in charge of the cases where an application
and seeks your support for the same. Please bring to our attention
is filed and some of these are impractical to deal with during
any such issues faced by sending an email to office@ctconline.org
lockdowns.
with email subject marked as Law and Representation Committee
The Chamber of Tax consultants (CTC) is in the process of (LRC) Request.
making a representation to bring these difficulties to the attention
Sincerely,
of the CBDT and seeking appropriate redressal.
Team LRC 20-21
In the above connection, we request you to please send us a
description of the difficulties faced by you along with supporting President: CA Anish Thacker
evidence if any and we shall collate the same and make a suitable Chairman: CA Mahendra Sanghvi
representation incorporating all the issues highlighted.
IMPORTANT DECISIONS UNDER GST
By Vinay Jain & Sachin Mishra, Advocates
1. Whether after the Finance (Amendment) Act, 2020 the aforesaid mistake, however, all such authorities rejected
under Section 140 of the CGST Act, 2017, mistake the plea of the Petitioner.
committed by the assessee at the time of filing of
The Department argued that the case of the Petitioner fell
GST TRAN-1 can be rectified subsequently? Whether
in the category “the taxpayer has successfully filed TRAN-I,
the decision in Brand Equity Treaties Ltd. And Ors.
but no technical error has been found” as the Petitioner
v. Union of India, [2020] 116 taxmann.com 415 (Delhi)
did not encounter any technical glitch on the portal, his
stands valid after the aforesaid amendment which
request to file a revised TRAN-1 form beyond the limitation
inserted the words “within such time” in Section 140
period was not accepted. The department also argued that
of the CGST Act, 2017, inter-alia empowering the
the decision in Brand Equity Treaties Ltd. And Ors. v.
Central Government to prescribe the time limit for
Union of India, [2020] 116 taxmann.com 415 (Delhi) is
filing TRAN-1, retrospectively?
no more valid in view of the Finance (Amendment) Act,
Facts and Pleadings: M/s SKH Sheet Metals Components 2020 under Section 140 of the CGST Act, 2017. According
Private Limited (hereinafter referred to as ‘The Petitioner’), to department, with the insertion of the words “within
is inter-alia engaged in manufacture of final products and such time” in Section 140 (1) retrospectively, the Central
sale to OEMs. In order to avail the credit in the electronic Government has been granted the power to prescribe
credit ledger under the GST laws, the Petitioner filed ‘GST the time limit for filing TRAN-1 and hence the finding
TRAN-1’ on 27.08.2017. However, on submission of the of this Court in Brand Equity Treaties Case (supra) that
said Form, Petitioner realized that as against the total credit the limitation period under Rule 117 for filing TRAN-1 is
of Rs. 6,52,58,081/-, only Rs. 1,01,24,382/- was reflected merely directory and not mandatory is no longer valid.
on the common GST portal. The CENVAT credit of
Rs.5,51,33,6991/- was not displayed in the electronic credit The Appellant relied upon several decisions of the Hon’ble
ledger. Petitioner filed a revised declaration in the nature High Court including Brand Equity Treaties Case (supra) to
of Form GST TRAN-I on 27.12.2017 and reflected the argue that the several Courts have permitted the similarly
correct figures under column 5(a) of the Form, however, situated taxpayers to file the Form GST TRAN-1 beyond
the amount was still not transferred to the electronic credit stipulated period of time even to those taxpayers, who may
register and was shown as “blocked credit”. The Petitioner not have faced “technical glitch on the portal” but were
made several efforts before numerous authorities to rectify otherwise prevented in filing the TRAN-1 form on account
THE CTC NEWS | July 2020 11 www.ctconline.orgof certain human errors or factors and reasons which were of India (“RBI”). DICGC protects small depositors in the
beyond their control. The Petitioner further submitted event of Appellants’ failure by insuring the deposits up to
that irrespective of the said decisions, since admittedly Rs.1,00,000 per depositor (now amended to Rs.5,00,000).
the TRAN-1 form in the case of the Petitioner was filed The banks availed Cenvat credit of the service tax charged
well before the specified date, notwithstanding the benefit by DICGC on the insurance premium paid.
granted by the Court in the said judgment, the Petitioner is
The department has denied the said Cenvat credit on
entitled to transition the credit.
the count that as no consideration was charged by the
Judgement: The Hon’ble High Court held that the Appellants in relation to acceptance of deposits, it was
presumption of department that the Finance (Amendment) only a transaction in money and therefore, was outside the
Act, 2020 under Section 140 of the CGST Act, 2017 scope of service tax under Section 66D(n) of the Finance
renders the decision of this court in Brand Equity Treaties Act, 1994. The Department also alleged that for any service
Case (supra) no longer valid is incorrect. As per the Hon’ble to be qualified as input service, it should be consumed
High Court, the relief granted to the taxpayers in Brand or used for providing taxable output services. The input
Equity Treaties Case (supra) was not entirely resting on the service should have direct nexus with the output service.
fact that CGST Act, 2017 did not prescribe for any time DICGC Insurance is aimed at protecting the interest of the
limit for availing the transition of the input tax credit, rather depositors against the failure of the bank i.e. the Appellants
the relief was granted on several counts. Hence, Hon’ble and does not provide any protection to the Appellants.
High Court held that the decision in Brand Equity Treaties Hence, as per department the service provided by DICGC
Case (supra) still holds good. The Hon’ble High Court also would not qualify as a direct input service for the output
relied upon the GST Council 32nd Meeting wherein it was services performed by a bank on which service tax is paid.
recognized that there could be errors apparent on the face
The Appellants argued that DICGC insurance service
of the record that could be non-technical in nature and
was covered under main part of the definition of ‘input
merit leniency. In line with the spirit of the decision of the
service’ and was also mentioned in the ‘inclusive portion’.
GST Council and the blurring thin line between technical
The Appellants further argued that the activity of accepting
and non-technical difficulty, keeping in view that entire filing
deposits was integrally connected to the lending activities of
is electronic, the Hon’ble High Court held that the restrictive
the Appellants under which service tax was discharged under
applicability of Rule 117 (1A) to be arbitrary. The Hon’ble
the category of ‘Banking and Other Financial Services’ on
High Court further held that transitional provisions and
various incomes. As per the Banking Regulation Act, 1949
the language of Section 140 of the Act in particular, even
and Deposit Insurance and Credit Guarantee Corporation
after amendment, manifests the intention behind the said
Act, 1961, the Appellants are statutorily required to insure
provision is to save the accrued and vested ITC under the
the deposits. Therefore, it is a statutorily obligation without
existing law. The Hon’ble High Court further held that both
which the Appellant cannot function at all. The Appellants
the Act and Rules do not provide any specific consequence
are engaged in “accepting” deposits and not “extending”
on failure to adhere to the timelines. Since the consequences
deposits and so Section 66D(n) of the Finance Act, 1994
for non-compliance are not indicated, the provision has
would not be applicable. The Appellants also argued that
to be seen as directory. The Hon’ble High Court further
even if it is assumed that some part of the deposit was not
held in the present case, the mistake was clerical in nature.
used for provision of output services, Cenvat credit cannot
Therefore, the revision cannot be treated as a fresh filing.
be denied as 50% of the total Cenvat credit was already
According, Petitioner was permitted to revise TRAN-1
reversed in view of Rule 6(3B) of the Cenvat Credit Rules,
Form on or before 30.06.2020 and transition the entire ITC,
2004.
subject to verification by the Respondents.
Judgment: The Hon’ble Larger Bench of CESTAT held
M/s SKH Sheet Metals Components Private Limited
that it is mandatory for all banks to register themselves
vs. U.O.I, High Court of Delhi decided in W.P.(C)
with the DICGC and failure to pay the premium amount
13151/2019 dated 16.06.2020.
to DICGC may lead to cancellation of its licence with
RBI. The Hon’ble Larger Bench of CESTAT the insurance
2. Whether the banks can avail credit of service tax
service received by the banks from the DICGC is not
paid by the banks for the service provided by the
only mandatory but was also commercially expedient. The
Deposit Insurance and Credit Guarantee Corporation
service rendered by the DICGC to the banks would fall
(“DICGC”) in relation to insuring banks deposits with
in the main part of the definition of ‘input service’ and
DICGC?
such Cenvat credit would be eligible. The Hon’ble Larger
Facts and Pleadings: The Appellants herein are all Bench of CESTAT also held that as per Section 66D(n),
banking companies that are inter-alia engaged in the banking the activity of services by way of extending deposits, loans
business. The Appellants are mandatorily required to insure or advances is under negative list and will not include the
their deposits with Deposit Insurance and Credit Guarantee activity of accepting deposits from the customers for which
Corporation (“DICGC”), a subsidiary of the Reserve Bank the banks pay interest to the customers. The Hon’ble Larger
THE CTC NEWS | July 2020 12 www.ctconline.orgBench of CESTAT further held that when reversal under to the Appellant, thus the consideration for such service
Rule 6(3B) of the Cenvat Credit Rules, 2004 was done by also flows from foreign reinsurer and not from the Indian
the Appellants, they were entitled for credit of the entire insurance companies. Further, the Hon’ble CESTAT also
amount of service tax paid on input service having nexus held that such cases amount to export of service and that
with the provision of output service. the ‘Reinsurance Brokerage’ retained as brokerage in Indian
Rupees by deducting instead of remitting the entire amount
M/s. South India Bank vs. CC,CE & ST, Calicut,
abroad and receiving back foreign currency should be treated
Larger Bench of CESTAT, Bangalore decided in
as receipts for export in foreign currency.
Interim Order Nos. 13 - 31 / 2020 dated 20.03.2020
Bharat Reinsurance Brokers Pvt. Ltd. vs. CCE,
3. Whether the services provided by a reinsurance broker CESTAT, Hyderabad, decided in Final Order No.
to reinsuring company located abroad and insurance A/30877/2020 dated 10.06.2020.
company located in India should be considered as
export of service or otherwise when the ‘Reinsurance 4. Whether the service provided by M/s. Karnataka
Brokerage’ is received in INR? Industrial Areas Development Board under the
Facts and Pleadings: M/s. Bharat Reinsurance Brokers provisions of Karnataka Industrial Areas Development
Pvt. Ltd. (hereinafter referred to as “the Appellant”) acts Act, 1966 shall be considered as statutory functions
as reinsurance broker and arranges for reinsurance of and hence, not leviable to service tax under the
Indian insurance companies with overseas reinsurers. The Finance Act, 1994?
appellant identifies appropriate reinsurers located abroad Facts and Pleadings: M/s. Karnataka Industrial Areas
for the Indian Insurance companies and negotiates terms Development Board (KIADB, for short) is established under
of contracts with them. For this service, the Appellant gets Karnataka Industrial Areas Development Act, 1966 (“KIAD
a commission called ‘Reinsurance Brokerage’ by deducting Act, 1966”). The Appellant performs various statutory/
his brokerage from the premium received from the insuring sovereign functions assigned to it under provisions of KIAD
company and passing the balance to the reinsuring company. Act. Accordingly, the Appellant has provided various taxable
Services such as Renting of Immovable Property Services,
The department argued that the Appellant provides services
Construction of Commercial and Residential Complexes,
to the Indian Insurance companies for which remuneration
Business Support Services, Management, Maintenance or
is received in Indian Rupees from foreign insurance
Repair Services, Manpower Recruitment and Supply Services,
companies and hence, the same does not qualify for export
Works Contract Services, etc., to various clients.
of service. In this regard, the Department also relied upon
Suprasesh General Insurance Services & Brokers Pvt. The case of the department is that Service Tax is leviable
Ltd. [2009(13)S.T.R 641 (Tri.-Chen.)] wherein it was on the said taxable services and payable by the Appellant
held that reinsurance brokerage received in Indian rupees as per provisions of law, the Appellant did not discharge
does not amount to export of services because the amount any service Tax liability thereon. The department alleged
has not been received in convertible foreign exchange and that a conjoint reading of the provisions of the KIAD
confirmed the service tax on such amounts. Act clearly indicate that Appellant has its own identity as
distinct from the State Government and is a body corporate
The Appellant submitted that the aforesaid allegation of
with perpetual succession and a common seal, and may
the department is not sustainable on the count that the
sue and be sued in its corporate name. The receipts of the
Hon’ble High Court of Madras in the case of Suprasesh
appellant are credited to its own fund and do not go to the
General Insurance Services & Brokers Pvt. Ltd. vs.
Consolidated Fund of the State. If that be so, the activities
CST, Chennai [2016(41)S.T.R 34 (Mad.)] had reversed
undertaken by it cannot be construed as functions of the
the aforesaid decision of Hon’ble CESTAT in Suprasesh
State. The department also alleged that leasing of land by
General Insurance Ser vices & Brokers Pvt. Ltd.
the appellant on its own account to private individuals on
[2009(13)S.T.R 641 (Tri.-Chen.)] and hence, the same is
commercial consideration cannot be said to be a sovereign
not correct position of law.
function at all as normally understood. The department
Judgement: The Hon’ble CESTAT relied upon the decision further alleged that the Appellant being an instrumentality
of Hon’ble High Court of Madras in the case of Suprasesh of the State is not entitled to claim immunity from payment
General Insurance Services & Brokers Pvt. Ltd. vs. CST, of service tax. The department also alleged that the
Chennai [2016(41)S.T.R 34 (Mad.)] to held that in the appellant does not have the power to acquire the land by
present case, the Appellant is rendering services to foreign itself and hence the appellant is not empowered to exercise
reinsurance company rather than the Indian insurance the power of ‘eminent domain’ and hence it cannot be
companies. The Hon’ble CESTAT further held that even regarded as sovereign authority.
though the Appellant gets ‘Reinsurance Brokerage’ by
The Appellant mainly contended that the appellant is a
deducting his brokerage from the premium received from
Government undertaking and being a ‘State’ as defined in
the insuring company, the same is paid by foreign reinsurer
Article 12 of the Constitution of India are not liable to
THE CTC NEWS | July 2020 13 www.ctconline.orgpay service tax. The Appellant also relied upon the decision Facts: The Applicant is a food products company involved
of the Bombay High Court in the case of CCE, Nashik in preparation & supply of wide range of ready to cook,
Vs. Maharashtra Industrial Development Corporation fresh foods including whole wheat parota and Malabar
[2018(9) GSTL 372 (Bom.)] wherein the Bombay High parota. The aforesaid products whole wheat parota and
Court has held that no service tax could be demanded Malabar (refined flour) parota, are made up of whole wheat
on the charges collected by Maharashtra Industrial flour and refined flour (maida), respectively. The other
Development Corporation in terms of the Maharashtra common ingredients are RO purified water, edible vegetable
Industrial Development Act, 1961 towards maintenance oil or refined oil, edible common salt and edible vegetable
of the industrial areas, as the same is in the nature of fat. The products are not readily consumable (ready to eat),
statutory functions performed in terms of the statute. The but need to be heated before consumption. The instant
Appellant also submitted that all other functions rendered application pertains to classification of whole-wheat parota
by the appellant being incidental, cannot be brought to tax. & Malabar parotta.
Further, the Appellant also stated that it is not carrying out
commercial activities for a consideration and the amount of The Applicant contended that the product merits
deposit collected by the Appellant is based on principles of classification under Chapter heading 1905, under the
rationality and reasonableness. product description of ‘Khakhra, plain chapatti or roti” and
therefore are taxable at 5% GST, in terms of entry No.99A
Judgement: The Hon’ble CESTAT held that a careful of Schedule I to the Notification No. 1/2017-Central Tax
reading of the aforesaid provisions of KIAD Act and (Rate) dated 28.06.2017. The Applicant relied on the ruling
KIADB Regulations would clearly go to show that the passed by the Advance Ruling Authority, Maharashtra, in the
appellant is a State undertaking and creature of a statute case of M/s Signature International Foods India Private
to exercise the power of ‘eminent domain’. The appellant Ltd., wherein it was held that paratha & paratha wraps
is engaged in discharging statutory functions under an act are covered by the scope of entry 99A of Notification
of Legislature viz. KIAD Act, 1966. It is a statutory body 34/2017-Central Tax (Rate) dated 13.10.2017.
performing statutory functions and exercising statutory
powers. Once carrying out the objectives of the Act, then AAR Observations: The AAR observed that the present
it cannot be treated as a service provider under the Finance products having description “parota” cannot be classified
Act, 1994. Further, Hon’ble CESTAT held that there is no under the heading 1905 the products covered under heading
service provider-client relationship so as to warrant the levy 1905 are already prepared or completely cooked products
of service tax under the provisions of Finance Act, 1994. and no further process is required to be done on them
Appellant has undertaken various activities and functions for consumption and hence they are ready to use food
in the State of Karnataka as per the directions of the State preparations whereas in the instant case, the impugned
Government given from time to time under the provisions products are admittedly not ready for consumption, but
of the Act and hence their activities cannot be considered need to be heated before consumption. The AAR further
as taxable service and no service tax can be levied for these observed that the present products having description
activities. Hon’ble CESTAT held that in view of the decision “parota” is best classifiable under heading 2106 90
of the Bombay High Court in the case of CCE, Nashik which covers Preparations for use, either directly or after
Vs. Maharashtra Industrial Development Corporation processing (such as cooking, dissolving or boiling in water,
[2018(9) GSTL 372 (Bom.)] when the maintenance of milk, etc.), for human consumption, provided that they are
industrial area itself is held to be statutory function, then not covered by any other heading of the Nomenclature.
the main function of acquisition of law, development of In the instant case, the impugned goods i.e. ‘parota’ are
such land into industrial area and allotment of such land on not covered under any other heading and also need to be
lease-cum-sale basis by the Appellant would certainly be a processed for human consumption. Therefore, the impugned
statutory function and does not attract levy of service tax. goods are rightly classifiable, more specifically, under heading
On the same analogy, Hon’ble CESTAT held that other 2106 90. Further, the AAR also observed that as the present
functions being incidental cannot be brought into tax net. products having description “parota” are neither khakhra,
plain chaptatti nor roti, hence, the benefit of 5% GST, in
M/s. Karnataka Industrial Areas Development Board terms of entry No.99A of Schedule I to the Notification
vs. CCT, CESTAT Bangalore, decided in Final Order No. 1/2017-Central Tax (Rate) dated 28.06.2017 is not
No. 20357/2020 dated 09.06.2020. applicable.
5. Whether the preparation of Whole Wheat parota and M/s. ID Fresh Food (India) Pvt Ltd, The Authority for
Malabar parota be classified under Chapter heading Advance Ruling in Karnataka, GST decided in Advance
1905, attracting GST at the rate of 5%? Ruling No. KAR ADRG 38/2020 Dated: 22.05.2020.
Note : THE FULL DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG
UNDER SEMINAR PRESENTATIONS - UNREPORTED DECISIONS
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