3 RD

EDITION
YEARS
OF
CELEBRATING
THE
MAHATMA

TAX
Bulletin

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

Statutory Body under an Act of Parliament
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Headquarters: CMA Bhawan, 12 Sudder Street, Kolkata - 700016
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 MISSION STATEMENT
“The CMA Professionals would ethically
drive enterprises globally by creating
value to stakeholders in the
socio-economic context through
competencies drawn from the integration
of strategy, management
and accounting.”

VISION STATEMENT
“The Institute of Cost Accountants of India
would be the preferred source of
resources and professionals for the
financial leadership of enterprises
globally.”

Objectives of Taxation Committees:

1. Preparation of Suggestions and Analysis of various Tax matters for best Management Practices and for
the professional development of the members of the Institute in the ield of Taxation.
2. Conducting webinars, seminars and conferences etc. on various taxation related matters as per
relevance to the profession and use by various stakeholders.
3. Submit representations to the Ministry from time to time for the betterment and inancial inclusion of
the Economy.
4. Evaluating opportunities for CMAs to make way for further development and sustenance of the
opportunities.
5. Conducting and monitoring of Certi icate Courses on Direct and Indirect Tax for members, practitioners
and stake holders and also Crash Courses on GST for Colleges and Universities.
YEARS
OF
CELEBRATING
THE
MAHATMA
TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
 CMA Rakesh Bhalla
Chairman
Direct Taxation Committee

FROM THE DESK OF CHAIRMAN – DIRECT TAXATION COMMITTEE

I
would like start by thanking my colleagues at the esteemed Council with a special gratitude to CMA
Balwinder Singh, Immediate Past President of the Institute, CMA Biswarup Basu, the then Vice-
President and CMA Niranjan Mishra, Chairman Indirect Taxation Committee (2019-20) for their
continuous support to the department. I am grateful that I have been provided with this opportunity to
chair the position of Chairman – Direct Taxation Committee again for the second time in a row. I have
put in my best efforts in the previous occasion and this time also I am really looking forward to this
responsibility which have been again bestowed upon me and I am hopeful that I would be able to do full
justice to my profile. This time I solicit the guidance of CMA Biswarup Basu, President, ICAI, CMA P Raju
Iyer, Vice President, ICAI and CMA Chittaranjan Chattopadhyay, Chairman Indirect Taxation Committee
(2020-21) to achieve new heights.

I have been closely following the activities of this department since last 1 year and I am happy to see the
incessant contributions that the department is continuously making in the field of taxation. I would like
to congratulate the Department for bringing out the Tax Bulletin and this being the 3rd Anniversary
Edition this is more special. The bulletin has successfully completed its 3 years on every fortnight and
which is being widely circulated to all our members, CBEC and CBDT members, Trade associations, GST
Council Members, Union and State Ministers and MCA for their kind reference.

The bulletin is full of knowledge. It contains articles which discusses and provokes your thoughts on
both Direct and Indirect Taxation. Apart from the external authors and Resource persons even the
Team themselves contributes articles on regular basis in this Bulletin. The Bulletin also includes
Judgements, press releases, interpretation of circulars, notifications and even highlights on the various
important dates and compliances to be maintained by a tax payer through their Tax Compliance
Calendar section.

I am really all of praises for such a valuable contribution by the department. Wishing them all the luck
and hoping they would even outshine their best achievements.

Thank You

CMA Rakesh Bhalla

2nd October, 2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
 CMA Chittaranjan Chattopadhyay
Chairman
Indirect Taxation Committee

FROM THE DESK OF CHAIRMAN – INDIRECT TAXATION COMMITTEE

I
welcome you to the Tax Research Department of the Institute of Cost Accountants of India.

Here, we believe in the power of collaboration and the importance of developing learning
environment which instils ambition and the desire in every member of staff and every knowledge
seeker to discover and achieve their personal best, overcoming any challenge they may face. The Trust
is committed to the pursuit of excellence, with every stake holder at the heart of everything we do and
practical knowledge gain prioritised at every stage. We believe in ourselves. We believe in each other.

Here every team member is passionate about providing the learners with an inspiring and congenial
environment to learn, where they feel respected, their concerns being addressed and where they are
able to thrive and lead happy, healthy lives. We are responsible for tomorrow’s employees, employers,
clients and future contributors to the nation and so here we take very seriously the impact that we can
have upon a community which supports today's events and challenges the future.

Tax Bulletin, published by the department on every fortnight, has been a bright jewel on crown of the
department. The bulletins have been published for last three years on time which give update on all the
happenings on the taxation front of the country. It indeed is a great achievement of the department to
publish tax bulletin uninterruptedly for last three years which has worked as a continuous source of
knowledge on taxation for the stake-holders.

It is not only the efforts of the team, that is noteworthy, we are indebted to the contributions of all the
Resource Persons and mentors of the department. I have my best Wishes to Tax Research Department
and hope they would surge to new heights.

I owe my responsibility to acknowledge the services and contribution rendered by my predecessors

whose untiring effort has built up the strong foundation of Tax Research Department of our Institute
and publication of this Anniversary edition of Tax Research Bulletin.

We look forward for your suggestion/views for further development of the Bulletin.

CMA Chittaranjan Chattopadhyay

2nd October 2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
TAXATION COMMITTEES 2020 - 2021
Indirect Taxation Committee Direct Taxation Committee
Permanent Invitees Permanent Invitees
CMA Biswarup Basu - President CMA Biswarup Basu - President
CMA P. Raju Iyer - Vice-President CMA P. Raju Iyer - Vice-President

Chairman Chairman
1. CMA Chittaranjan Chattopadhyay 1. CMA Rakesh Bhalla

Members Members
2. CMA Balwinder Singh 2. CMA Balwinder Singh
3. CMA Ashwinkumar G. Dalwadi 3. CMA Neeraj D. Joshi
4. CMA Debasish Mitra 4. CMA (Dr.) Ashish P. Thatte
5. CMA H. Padmanabhan 5. CMA H. Padmanabhan
6. CMA (Dr.) V. Murali 6. CMA Papa Rao Sunkara
7. CMA (Dr.) K Ch A V S N Murthy 7. CMA Chittaranjan Chattopadhyay
8. CMA Vijender Sharma 8. CMA Harijiban Banerjee (Co-opted)
9. CMA Rakesh Bhalla 9. CMA Rakesh Sinha (Co-opted)
10. CMA V.S. Datey (Co-opted)
11. CMA Ashok B. Nawal (Co-opted) Secretary
12. CMA Debasis Ghosh (Co-opted) CMA Rajat Kumar Basu, Addl. Director

Secretary
CMA Rajat Kumar Basu, Addl. Director

ACKNOWLEDGEMENTS
CMA Mrityunjay Acharjee CMA Anil Sharma
CMA Amit Sarker CMA Arindam Goswami
CMA Vishwanath Bhat CMA Manmohan Daga
CMA Bhogavalli Mallikarjuna Gupta Shri Rakesh Mishra, IRS
CMA T K Jagannathan CMA Utpal Kumar Saha
CMA Shiba Prasad Padhi CMA Ajith Sivadas
CMA Niranjan Swain
CMA Navneet Kumar Jain

TEAM - TAX RESEARCH DEPARTMENT

CMA Rajat Kumar Basu - Additional Director - Tax Research
CA Neelesh Jain - Deputy Director - Tax Research
CMA Priyanka Roy - Assistant Director - Tax Research
Ms. Mukulika Poddar - Officer - Tax Research
CMA Debasmita Jana - Associate - Tax Research
CMA Amitesh Kumar Shaw - Research Associate
CMA Priyadarsan Sahu - Research Associate

SPECIAL ACKNOWLEDGEMENT

Mr. Dipayan Roy Chaudhuri - Graphics & Web Designer

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
CONTENTS
ARTICLES
SPECIAL ARTICLE
01 FACELESS ASSESSMENT SCHEME
Shri Rakesh Mishra, IRS Page - 1
INDIRECT TAX
02 TREATMENT OF DISCOUNTS, OFFERS, FREE SAMPLES IN GST
CMA Bhogavalli Mallikarjuna Gupta Page - 9
03 PRACTICAL ISSUES IN FILING OF GST ANNUAL RETURN IN FORM GSTR 9
CMA Utpal Kumar Saha Page - 14
DIRECT TAX
04 SCHEME OF FACELESS APPEALS – UNDER INCOME TAX ACT
CMA Niranjan Swain Page - 27
CROSS SECTIONING TAX AND PENAL IMPLICATIONS OF SEC 68/69/69A - INCOME TAX
05 ACT – 1961
CMA Ajith Sivadas Page - 41
ADVANCE RULING IN GST (APRIL – JUNE 2020)
Team TRD Page - 47
RECENT UPDATES IN DIRECT AND INDIRECT TAX
Team TRD Page - 56
TAX UPDATES, NOTIFICATIONS AND CIRCULARS
Indirect Tax Page - 57
Direct Tax Page - 66
PRESS RELEASE
Direct Tax Page - 69
JUDGEMENTS
Indirect Tax Page - 72
Direct Tax Page - 74
TAX COMPLIANCE CALENDAR AT A GLANCE
Indirect Tax Page - 78
Direct Tax Page - 79

Courses - Tax Research Department Page - 82

E-Publications of Tax Research Department Page - 83
Appreciation letter Page - 84

Articles on the Topics of Direct and Indirect Taxation are invited from readers and
authors. Along with the article please share a recent passport-sized photograph, a brief
profile and the contact details. The articles should be the author’s own original.
Please send the articles to

[email protected] /[email protected]

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
 FACELESS ASSESSMENT
SCHEME
Shri Rakesh Mishra, IRS
Chief Commissioner of Income Tax (CCIT) Ranchi &
Chief of ReAC Jharkhand & Bihar

INTRODUCTION

O
ver the last few years, in order to provide a non-intrusive and non-adversarial tax ecosystem, the
Government of India has taken various measures which include rationalisation of tax rates,
simplification of income-tax return forms, faster processing of refunds, speedy resolution of
grievances and introduction of faceless processes to ease the compliance burden on taxpayers &
minimise the physical interface between the taxpayer and the income tax authorities. In August 2020,
Hon’ble Prime Minister of India launched ‘Transparent Taxation-Honouring the Honest’, which is a
platform to meet the requirements of the 21st century taxation system. The platform has major
transformations like Faceless Assessment, Faceless Appeal and Taxpayers’ Charter. The Faceless
Assessment Scheme, 2019 (earlier known as the E-assessment Scheme, 2019) was introduced in 2019
to impart efficiency, transparency and accountability to the assessment process by inter alia eliminating
the interface between the Assessing Officer and the assessee and introduced a team-based assessment
with dynamic jurisdiction. Similar Scheme has been introduced for disposal of appeals by the
Commissioner (Appeals) in a faceless manner on 25.09.2020. Earlier, the cases were selected manually
with the approval of the Range Head, which was later on changed to the approval by the Commissioner
of Income-tax. Subsequently computer aided selection for scrutiny (CASS) was implemented for
selecting cases for scrutiny. The Department went for e-assessment on a pilot basis in 5 metros and the
experience was further utilised for moving on to e-proceeding using Income Tax Business
Administration (ITBA) platform. The Hon’ble FM, in her Budget Speech on 5th July 2019 had announced
assessment in electronic mode with no human interface, notices to be issued electronically by a Central
cell, cases to be allocated to Assessment Units in a random manner and a Central Cell to be the single
point of contact between the taxpayer and the Department. Phase I of the Faceless Assessment Scheme
was inaugurated 7th Oct 2019 with 58,320 assigned cases. On 13th August, 2020, Hon’ble Prime Minister,
Shri Narendra Modi ji launched a platform for 'Transparent Taxation – Honouring the Honest'
comprising Faceless Assessments, Faceless Appeals and Taxpayers’ Charter. The Faceless Assessment
Scheme has been implemented from 13th August, 2020 whereas Faceless Appeal has also been notified
on 25th September, 2020. Notification 60/2020, dated 13-08-2020 and others specify the modalities of
Faceless Assessments.

KEY FEATURES

The key features of Faceless Assessment Scheme for Transparent Taxation are:

 Taxpayers' Charter giving legal basis to taxpayer’s rights & duties

 E Communication of information with department
 E-Confirmation by Taxpayer
 E-verification

E-Response & Faceless Assessment are the main pillars of the platform for transparent taxation & focus
of the ITD in future. All Cases other than those assigned to Central & International Taxes are to be done
through Faceless e-Assessment.

LEGAL FRAMEWORK FOR FACELESS ASSESSMENT

The I.T. Act, 1961 was earlier amended to incorporate sub-sections (3A), (3B) and (3C) as under:

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 1
 143(3A) The Central Government may make a scheme, by notification in the Official Gazette, for
the purposes of making assessment of total income or loss of the assessee under sub-section
(3) or section 144 so as to impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the Assessing Officer and the assessee in the
course of proceedings to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and functional
specialisation;
(c) introducing a team-based assessment with dynamic jurisdiction.

(3B) The Central Government may, for the purpose of giving effect to the scheme made under sub-
section (3A), by notification in the Official Gazette, direct that any of the provisions of this Act
relating to assessment of total income or loss shall not apply or shall apply with such exceptions,
modifications and adaptations as may be specified in the notification:

Provided that no direction shall be issued after the 31st day of March, 2022.

(3C) Every notification issued under sub-section (3A) and sub-section (3B) shall, as soon as may be after
the notification is issued, be laid before each House of Parliament.

E-assessment Scheme 2019 was notified on 12.09.2019 vide SO 3264 and 3265 and Finance Act 2020
further amended the provisions. Consequently, amended notification of the Faceless Assessment
Scheme was issued on 13.08.2020 along with various other changes and the scheme has been renamed
as Faceless Assessment Scheme. Up to the assessment year 2019-20, only the scrutiny assessments
under Section 143(3) were covered within the ambit of e-assessment and with effect from assessment
year 2020-21, the assessments under section 144 have also been included. Accordingly, the e-
assessment scheme has been amended to cover best judgement assessments also. Barring the
exceptions mentioned, all other cases including reopened assessments would be done under the
scheme.

STRUCTURAL FRAMEWORK

The Faceless Assessment Scheme comprises the following units:

1) NATIONAL E-ASSESSMENT CENTRE:

All communication among the other units or with the assessee or any other person with respect to the
information or documents or evidence or any other details, as may be necessary for the purposes of
making an assessment under this scheme shall be through the National e-Assessment Centre (NeAC).
The functions of NeAC consist of:

 Specify format, mode, procedure and processes after approval from Board
 Allocate E-verification under Section 133C to Verification Units through Automated allocation
tool
 Send all notices/communication electronically
 Assign cases to AUs through automated allocation system
 On a request for verification by an AU allocated case to verification units (ReAC) through
automated allocation system.
 Provide Technical Inputs through Technical Units including on Issues such as Legal, Technical,
Data Analytics, Forensic Accounting forensic, information technology, valuation and audit
 Inform AU if Assessee fails to comply with a notice
 Select Draft Assessment Order (DAO) for review & allocate to review unit through automated
allocation system
 Where RU suggests modification allocate case to an AU other than original AU through
automated allocation system
 Providing opportunity to taxpayer in case of any order prejudicial to Assessee before finalising
assessment order

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 2
  Finalize assessment orders
 Transfer all electronic records to jurisdictional AO for post assessment work
 Transfer Cases to Jurisdictional AO after Approval from Board

Format Modes Process & Procedures (FMPP) are to be specified by Pr.CCIT (NeAC), with the prior
approval of the CBDT for laying out circumstances where exclusive electronic communication to
Assessee or his AR as required in provisions of sub-paragraph (1) of paragraph 8 of the said Scheme
( SO.3264) shall not apply, circumstances in which personal hearing through Video Conference in sub-
paragraph (3) of paragraph (11) of the said Scheme (SO.3264) shall be approved . Transfer of a Case to
Jurisdictional AO, if considered necessary at any stage of assessment shall be done by Pr. CCIT, (NeAC)
with prior approval of Board.

2) REGIONAL E-ASSESSMENT CENTRES

Thirty Regional e-Assessment Centres (ReACs) each headed by a CCIT have been set up. Regional e-
Assessment Centre’s major function is to facilitate the conduct of e-assessment proceedings in the cadre
controlling region of a Principal Chief Commissioner, which shall be vested with the jurisdiction to
make the assessment in accordance with the provisions of this scheme. The structure of ReAC would be
as follows:

The number may be variable in some cases.

3) ASSESMENT UNITS

Ninety-Five Assessment Units (AUs) headed by the PCIT each having 4 Ranges with DCIT/ACIT and
ITOs are under the ReAC. They will identify issues, seek information and analyse material to frame draft
assessment orders. They shall perform the function of making assessment, which includes identification
of points or issuing material for the determination of any liability (including refund) under the Act,
seeking information or clarification on points or issues so identified, analysis of the material furnished
by the assessee or any other person, and such other functions as may be required for the purposes of
making assessment.

4) VERIFICATION UNITS (VUs)

Thirty-Five Verification Units are part of ReACs, each headed by the PCIT and having Range Head with
DCIT/ACIT and ITOs with functions to:

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 3
 • Conduct E-verification u/s 133C
• Conduct enquiry, examination of books of account, examination of witnesses and recording of
statement
• Conduct Physical Enquiry only in instances covered by Pr.CCIT NeACs order 12(vi) of the scheme

They shall perform the function of verification, which includes enquiry, cross verification, examination
of books of accounts, examination of witnesses and recording of statements, and such other functions as
may be required for the purposes of verification.

5) REVIEW UNITS

Twenty Review Units headed by the PCIT each having Range Head with DCIT/ACIT and ITOs for Review
of Draft Assessment Order are part of the set up. They would examine whether material evidence has
been brought on record, points of facts and law incorporated, application of judicial decisions
considered and ensure arithmetic correctness etc. They shall perform the function of review of the draft
assessment order, which includes checking the following:

a) Whether the relevant and material evidence has been brought on record;
b) Whether the relevant points of fact and law have been duly incorporated in the draft order;
c) Whether the issues on which addition or disallowance should be made have been discussed in
the draft order;
d) Whether the applicable judicial decisions have been considered and dealt with in the draft
order;
e) Arithmetical correctness of modifications proposed, if any; and
f) Any other functions required for the purposes of review.

6) TECHNICAL UNITS

Four Technical Units headed by the PCIT each having Range Head with DCIT/ACIT and ITOs shall be
under the Pr. CCIT (NeAC) and will provide the technical support and input. They shall perform the
functions of providing technical assistance which includes any assistance or advice on legal, accounting,
forensic, information technology, valuation, audit, transfer pricing, data analytics, management or any
other technical matter which may be required in a particular case or a class of cases, under this scheme.
All actions of AU, VU, RU & TU Officers are to be approved by the respective Range Heads. All
communication among the units or with the assessee or any other person with respect to the
information or documents or evidence or any other details, as may be necessary for the purposes of
making an assessment under this scheme shall be through the National e-Assessment Centre.

DIFFERENCE BETWEEN THE CURRENT ASSESSMENT AND FACELESS ASSSSMENT SCHEME

The difference between the Current scheme of assessment and Faceless Assessment is as under:

S. No. Present Assessment System Faceless Assessment System

1. Case selection through: 1) No discretion to any officer in selection
a. System 2) No selection except through system red alerts
b. Manual 3) No selection other than information based
c. Tax evasion information

2. Cases were permanently 1) Automated random allocation of cases

assigned to a territorial 2) Dynamic division to any faceless team anywhere in
jurisdiction the country – 95 AUs, 30 VUs, 20 RUs and 4 TUs.
3. Issue of notices both manually 1) No discretion in issue of notices
and on system 2) System generated notices triggered by alert
3) Notices without DIN are invalid
4) Notices to be issued electronically and centrally from
the NeAC in New Delhi.
5) The NeAC is the single point of faceless contact

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 4
 between the taxpayer and the Department
4. 1) During scrutiny 1) No physical meeting with any officer
proceedings multiple 2) No officer to call the taxpayer to office
physical meetings between 3) No more waiting outside the office
the taxpayer and the 4) The identity of the officer to remain unknown
officers 5) No human interface at any stage
2) Long waiting time before 6) Assessments in electronic mode
meeting the officers
5. Wide discretion with officers 1) No discretion with any individual officer, team-based
leads to subjective approach assessment
and varying interpretations 2) Draft in one city, review in another city, finalization
in the third city
3) Objective, Fair and just order
6. 6,584 officers and 33,750 1) Faceless Assessment now has 4,224 officers and
subordinate staff, totalling to 17,193 subordinate staff totalling to 21,417.
40,334 were performing 2) All other functions also in faceless manner except
various assessment functions those shown as exceptions

THE E-ASSESSMENT PROCEEDINGS

The National e-Assessment Centre shall serve a notice on the assessee under section 143(2) of the I.T.
Act, 1961 specifying the issues for selection of his case for scrutiny assessment. The assessee is
required to file his response to the National e-Assessment Centre within 15 days from the date of
receipt of such notice or as specified. The National e-assessment centre shall intimate the assessee that
assessment in his case shall be completed under this scheme where assessee:

a) has furnished his return of income under section 139 or in response to notice issued under
section 142(1) or under section 148(1) and a notice has been issued for scrutiny assessment
under section 143(2) of the I.T. Act, 1961 by the Assessing officer or prescribed Income-tax
authority, as the case may be;
b) has not furnished his return of income in response to a notice issued under section 142(1) of
the I.T. Act, 1961 for enquiry by the assessing officer; or
c) has not furnished his return of income in response to a notice issued for reassessment under
Section 148(1) and a notice is issued under section 142(1) of the I.T. Act, 1961 for enquiry by
the assessing officer.

The case shall be assigned by the National e-Assessment Centre to a specific Assessment Unit in any one
Regional e-Assessment Centre through an automated allocation system. Such allocation of the case shall
be made randomly by the system using Artificial Intelligence and Machine Learning. An Assessment
Unit may request the National e-Assessment Centre for the following:

a) To obtain further information, documents or evidences;

b) To conduct certain enquiry or verification by the Verification Unit; or
c) To seek technical assistance from the Technical Unit.

The National e-Assessment Centre shall issue an appropriate notice to the assessee or any other person
for obtaining information, documents or evidence as required by the Assessment Unit for the purpose
of conducting faceless assessment. Assessee or any other person shall file response to the notice issued
by National e-Assessment Centre within the time-period specified therein or time extended by it on the
basis of application made in this regard. Where a request has been raised for conducting enquiry or
verification, the National e-assessment Centre shall assign such request to a Verification Unit through
an automated allocation system; and where a request has been raised for seeking technical assistance,
the National e-Assessment Centre shall assign such request to a Technical Unit in any one Regional e-
Assessment Centres through an automated allocation system. The National e-Assessment Centre shall
send the report received from the Verification Unit or the Technical Unit to the concerned Assessment
Unit. The National e-Assessment Centre shall serve a notice under Section 144 to provide assessee an

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 5
opportunity to show-cause, on a date and time to be specified therein, why the best-judgment assessment in
his case should not be completed if he fails to comply with any of the following:

a) The notice issued by National e-Assessment Centre for obtaining information, documents or
evidence requisitioned by assessment unit;
b) Notice issued under section 142(1) for enquiry; or
c) Direction issued for special audit under section 142(2A).

The assessee is required to file his response to the National e-Assessment Centre within the time specified in
the notice or within the time extended on the basis of an application filed in this regard. In case the assessee
fails to furnish any response, the National e-Assessment Centre shall intimate such failure to the assessment
unit.

After considering all the relevant material available on the record, the assessment unit shall make a draft
assessment order in writing. Where an intimation is received from the National e-Assessment Centre
regarding assessee's failure as mentioned, the assessment unit shall make in writing a draft assessment order
to the best of his judgement, either accepting the returned income or sum payable by or refundable to
assessee or modifying it. A copy of such order shall be sent to National e-Assessment Centre. The assessment
unit shall also provide the details of penalty proceedings to be initiated in such a draft assessment order, if
any. The National e-Assessment Centre shall examine the draft assessment order in accordance with the risk
management strategy specified by the Board and through an automated examination tool.

After examination of the draft assessment order, the National e-Assessment Centre may decide to:

a) Finalize the assessment as per the draft assessment order and serve a copy of such order and notice
to initiate penalty to the assessee along with the demand notice specifying the sum payable or
refund due to the assessee;
b) Where a modification is proposed in the income returned by the assessee, provide an opportunity to
the assessee by serving a notice calling upon him to show cause as to why the assessment should not
be completed as per the draft assessment order; or
c) Assign the draft assessment order to a Review Unit in any one Regional e-Assessment Centre,
through an automated allocation system, for conducting a review of such order.

Where National e-Assessment Centre assigns the draft assessment order to a Review Unit, it shall, after
conducting the review of the draft assessment order, suggest such modifications as it may deem fit or concur
with the draft order and intimate the same to the National e-Assessment Centre. The National e-Assessment
Centre shall, after receiving the concurrence of the Review Unit, finalise the draft assessment order or
provide an opportunity of being heard to the assessee as referred earlier. However, where the review unit
has suggested any modification, the National e-Assessment Centre shall assign the case to an assessment unit,
other than the assessment unit which has made the draft assessment order, through an automated allocation
system. Assessment unit shall, after considering the suggestions, send a final draft order to the National e-
Assessment Centre. Thereafter, the National e-Assessment Centre shall finalise the final assessment order or
provide an opportunity of being heard to the assessee as referred earlier.

Where a modification is proposed in the income returned by the assessee, the National e-Assessment Centre
shall provide an opportunity to the assessee by serving a notice calling upon him to show cause as to why the
assessment should not be completed as per the draft assessment order. Where no response to the show-
cause notice is received from the assessee, the National e-Assessment Centre shall finalize the assessment as
per the draft assessment order. If a response is received by the National e-Assessment centre, the same shall
be forwarded to the Assessment Unit. The Assessment Unit shall make a revised draft assessment order after
considering the response furnished by the assessee and forward it to the National e-Assessment Centre. The
National e-Assessment Centre upon receiving the revised draft assessment order, shall finalize the draft
order if matter proposed is not prejudicial to the assessee. If any matter proposed in the order is prejudicial
to the interest of the assessee, it shall give the assessee an opportunity of being heard. If any response is
furnished by the assessee thereafter, it shall be dealt with in accordance with the procedure prescribed. The
National e-Assessment Centre shall transfer all the electronic records of the case to the jurisdictional
Assessing Officer after the completion of assessment for the purpose of such actions as may be required
under the Act. The Principal Chief Commissioner or the Principal Director General, in charge of national e-
assessment centre, may transfer the case to the assessing officer having jurisdiction over such cases at any
stage of the assessment with the prior approval of CBDT.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 6
During the course of proceedings, any Unit may send a recommendation to the National e-Assessment centre
for initiation of penalty proceedings under the Act against the assessee or any other person for non-
compliance of any notice, direction or order issued under this Scheme. On receipt of such recommendation,
the National e-Assessment Centre shall serve a show-cause notice upon the assessee or any other person to
give him an opportunity to explain why the penalty shall not be imposed on him. The response submitted by
the assessee or any other person shall be forwarded to the concerned Unit which has made the
recommendation. The concerned Unit after considering the response shall either make a draft order of
penalty or drop it after recording reasons and forward the copy of the order to the national e-assessment
centre. The National e-Assessment Centre shall levy penalty as per the draft penalty order and serve a copy of
same along with demand notice on the assessee or any other person. Thereafter, it shall transfer electronic
records of the penalty proceedings to the jurisdictional Assessing Officer for action required under the Act.

JURISDICTIONAL HIERARCHY:

The jurisdictional hierarchy will now have 32 Pr. Chief Commissioners/Chief Commissioners, 96 Principal
Commissioners. 252 Ranges, 261 AC /DCs and 1274 ITOs with attendant staff and the following residual non-
assessment functions:

• Statutory powers under section 263 / 264 of the IT Act, 1961.

• Prosecution and compounding proceedings and related court matters.
• Administrative, HRD and cadre control matters including related court matters.
• Custody and management of Case records.
• Management and control of infrastructure
• All the above Functions have to be done in Faceless Manner through ITBA Portal

APPEAL AGAINST ASSESSMENT

The appeal can be filed against an assessment order or penalty order made by the National e-Assessment
Centre under this scheme before the Commissioner (Appeals) having jurisdiction over the jurisdictional
Assessing Officer. All the communications between the National e-Assessment Centre and assessees or his
authorised representative or any other person or National e-Assessment Centre and other subordinate units
shall be done electronically. However, these provisions shall not be applicable to enquiry or verification
conducted by verification unit to the extent prescribed. The notification for faceless appeals has also been
issued on 25.09.2020 and National Faceless Appeal Centre (NFAC) has been established for faceless appeals.

AUTHENITCATION OF RECORDS

The National e-Assessment Centre shall authenticate all the electronic records by affixing a digital signature.
The electronic records shall be authenticated by the assessee or any other person by affixing his digital
signature, if he is required to furnish his return of income under digital signature, and by affixing his digital
signature or under electronic verification code in any other case. Every notice or order shall be delivered to
the assessee by way of the following means and followed by a real-time alert:

a) Placing an authenticated copy thereof in the assessee's registered account;

b) Sending an authenticated copy thereof to the registered email address of the assessee or his
authorized representative; or
c) Uploading an authenticated copy on the assessee's Mobile App.

Every notice or order or any other electronic communication under this scheme shall be delivered to any
other person, by sending an authenticated copy thereof to the registered email address of such person,
followed by a real-time alert. The assessee shall submit his response to any notice or any other electronic
communication through his registered account. Once an acknowledgement is sent by the National e-
Assessment Centre containing the hash result generated upon successful submission of a response, the
response shall be deemed to be authenticated. Registered e-mail address means the e-mail address at which
an electronic communication may be delivered or transmitted to the addressee, including:

a) The email address available in the e-filing account of the addressee registered in the designated
portal;
b) The e-mail address available in the last income-tax return furnished by the addressee;
c) The e-mail address available in the PAN database relating to the addressee;

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 7
 d) In the case of addressee being an individual who possesses the Aadhaar number, the e-mail address
of addressee available in the database of Unique Identification Authority of India (UIDAI);
e) In the case of addressee being a company, the e-mail address of the company as available on the
official website of Ministry of Corporate Affairs (MCA); or
f) Any e-mail address made available by the addressee to the income-tax authority or any person
authorised by such authority.

As per the Faceless Assessment Scheme, a person shall not be required to appear either personally or
through an authorized representative in connection with e-assessment. However, an assessee may request
for personal hearing to make his oral submissions or present his case against the draft assessment order. The
Chief Commissioner or the Director General, in charge of the Regional e-assessment Centre, under which the
concerned unit is set up, may approve the request for personal hearing. In such cases, a hearing shall be
conducted exclusively through video conferencing, including use of any telecommunication application
software which supports video telephony. Any examination or recording of the statement of the assessee or
any other person, other than statement recorded in the course of survey under Section 133A, shall be
conducted by an Income-tax authority in any unit under this scheme, exclusively through video conferencing,
including use of any telecommunication application software which supports video telephony. The CBDT
shall establish suitable facilities for video conferencing including telecommunication application software
which supports video telephony at such locations as may be necessary.

Personal Hearing

• In case a show cause notice (SCN) along with the draft assessment order (DAO) is issued, the
assessee or the authorised representative (AR) may request for personal hearing.
• The CCIT (ReAC) of the concerned Unit may approve the request for personal hearing only if
covered by the circumstances to be specified under clause (vib) of Paragraph 12 of the Scheme by
Pr.CCIT (NeAC) after approval from CBDT.
• The personal hearing shall be conducted exclusively through Video Conference specified by Board.

The facility for allotting e-PAN also exists now. PAN allotment is e-enabled and Individuals can be allocated e-
PAN allotment online through NSDL & UTISL. Instant PAN in cases where Individual possesses Aadhaar
linked to a mobile number

CONCLUSION

Thus, Faceless Assessment Scheme has brought about a sea change and a paradigm shift in the functioning of
the assessment function in the Income-tax Department. The Scheme relies on the use of technology like
machine learning and artificial intelligence and applies risk management system for arriving at the
conclusions in the assessment order. The assessee as well as the assessing officers have been made opaque to
each other with enhanced transparency and professionalism in the functioning of the Department. The
Taxpayers’ Charter defines the commitment of the tax authorities and also specifies certain expectations
from the taxpayers. The Charter now has a legal basis which was earlier only administrative in nature. The
taxpayer is expected to be conversant with the rules of procedure, update the mode of communication viz.
emails, mobile numbers and also regularly visit the e-filing portal for responding to communications received
from the Department so as to obviate the consequences of default in non-compliance to the statutory notices
issued. The assessment orders are expected to be in accordance with law after considering the facts of the
case and applying law in force and will not only reduce litigation because of application of minds at several
stages but with the use of information technology, will also result in qualitatively improved orders which are
likely to stand the test of appeals. The cost of compliance to the taxpayer as well as the cost of tax collection is
likely to be reduced and with the utilisation of information available and information being prefilled in the
return of the assessee while filing the return, the tax base would increase and there would be better
compliance in the days to come. The Scheme develops on the learnings of the pilot scheme carried out last
year in selected metros. The scheme has been made operational by posting of officers in various units. The
queries and issues raised by the stakeholders are likely to be resolved by issuance of FAQs in the days to
come.

{The views expressed are personal}

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 8
 TREATMENT OF DISCOUNTS,
OFFERS, FREE SAMPLES IN GST
CMA Bhogavalli Mallikarjuna Gupta
Chief Taxologist – Logo Info Soft

F
or any business to flourish, the taxpayers have to offer various promotions like trade discounts,
turnover discounts, free goods, offers, etc.. All these are required for the organizations to capture
the market share, attract new customers, and increase profits. All these are the business
requirements, but at the same time, the taxpayers also have to ensure that they are following all the
provisions of the law and changes in the law from time to time. Another important aspect is that GST is
a business process reform and not tax reform. This has been proved time and again from the various
orders passed by the Honourable High Courts and the orders passed by the Advance Ruling benches
and the National Authority for Anti-profiteering.

The additional amount offered by the taxpayer in whatever name it is are covered under Section 15 of
the CGST Act 2017 and wide Rules 27 to 35 of the CGST Rule 2017.

In any business, there will be two types of discounts, offers, schemes, or by whatever name we call it.
The first one is known at the Time of Supply, and the second is given Post Supply. The provisions of the
law are very clear in case of discounts, schemes or by whatever name given at or during the Time of
Supply. The provisions related to this are given in Section 15(1) of the CGST Act

Section 15 (1) The value of a supply of goods or services or both shall be the transaction value, which is the
price actually paid or payable for the said supply of goods or services or both where the supplier and the
recipient of the supply are not related and the price is the sole consideration for the supply.

(2) The value of supply shall include–––

(a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than
this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the
Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;

(b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by
the recipient of the supply and not included in the price actually paid or payable for the goods or services
or both;

(c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a
supply and any amount charged for anything done by the supplier in respect of the supply of goods or
services or both at the time of, or before delivery of goods or supply of services;

(d) interest or late fee or penalty for delayed payment of any consideration for any supply; and

(e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State
Governments.

Explanation. –– For the purposes of this sub-section, the amount of subsidy shall be included in the value of
supply of the supplier who receives the subsidy.

Discount or offer is not defined in the GST Act and for this we have to refer to the Corpus Juris Secundum,
vol 26A page 974 as follows

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 9
"The term trade discount means the difference between the seller list price and the price at which he
actually sells goods to the trade a percentage deduction from the regular list or catalogue price of goods."

Discount

Say, for example, if the retailer or distributor gives a discount of 10% on the goods or services sold, then
on the tax invoice, the amount of discount given is shown, and the customer pays the net amount of
discount as it will be transaction value and on this only GST will be considered.

Offer / Free

In normal life, we come across terms like Buy 2 and get 1 free. In this case, the buyer has to pay for the
two numbers, and then only the third one is given as free. This means there is nothing free as the buyer
has to pay for the two units, and the third one is given as free then only, which means that the taxpayer
will issue an invoice for three units and charge the price for two units only. In this case, the taxpayer
can have an option of showing the number of units is three and charge the amount for two. GST will be
computed on the price of two items, and the inventory also will be updated for three units.

Alternatively, the taxpayer can show two lines, one line item for two units and the third with one unit,
and prices for the first will be shown for two units, and for the second line, the price can be shown as
Zero.

It is for the taxpayers to adopt whatever they want or any other method to show it on the tax invoice,
and there is no need to reverse the input tax credit in case of the third item as there is consideration
received, and then only the third unit is given free.

The above will be covered as part of the discount/offers / free or by whatever name called as pre-
shipment discounts, and the taxpayer will be charging taxes only the transaction value as it is known at
the time of supply and recorded on the tax invoice.

Post Supply Discounts

Post supply discounts can be in the form of turnover discounts, or reimbursement of expenses incurred
by the agent on behalf of the principal, or trade discount or free trip to different locations within India
or outside India or any time given as gifts on the achievement of pre-determined turnover or by
whatever name it is called has a different treatment under GST.

The provisions for such treatment are given in Section 15(3) of the CGST Act 2017.

The value of the supply shall not include any discount which is given––

(a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in
respect of such supply; and

(b) after the supply has been effected, if—

(i) such discount is established in terms of an agreement entered into at or before the time of such supply
and specifically linked to relevant invoices; and

(ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has
been reversed by the recipient of the supply

From the above provisions, it is clear that any discount given post supply should be documented and
mentioned on the agreement or the tax invoice. If any such details are not there, then any such
discounts given will not be considered in the value of supply, and for such a discount, there will be any
impact of GST, and it will be a normal financial credit note only, and the tax will not be reversed.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 10
If any discount or any reimbursement passed subsequently and not documents will not have any GST
impact, and the same is echoed in the order issued by the AAR of Maharashtra in the case of M/s
UltraTech Cement Ltd.

Facts of the Case

M/s UltraTech Cement Ltd. Is a registered taxpayer under GST and is in the business of manufacturing
and supply of Cement.

The applicants enter into an agreement the authorized dealers/stockists for the supply of goods on a
principal-to-principal basis.

The dealer/stockists are supplied cement at a pre-determined price.

As cement pricing is dynamic, sometimes the dealer/stockist sells the same below his purchase price as
the industry practice because the principal will reimburse the same as a Trade discount.

The agreement entered has a clause that says the price difference will be reimbursed as a trade
discount.

The bench, in its ruling, has stated the following

o The wordings of Section 15 (3) (b) (i) very clearly states that quantum of discount is given after
the supply of goods has taken place has to be there in the terms of such agreement i.e. it cannot
be open ended not based on any criteria. Thus this discount quantum cannot be arrived at
without any basis only at the discretion of the supplier. The supplier has to clearly mention the
quantum of discount or percentage of discount which is to be worked out on the basis of
certain parameters or certain criteria which may be agreed to between the supplier and the
recipient and which are predetermined and mentioned in agreement in respect of supply of the
goods.

o According to the Applicant's agreement with authorized stockists, the company will pay
discount at such rate as may be decided by the company from time to time on the quantity sold
to the authorized stockists in a particular month. But there is no basis or criteria or parameter
(which may even be of personal relations nature between the parties to the agreement)
mentioned in the agreement on the basis of which the quantum of discount to be given on the
goods which have already been supplied is mentioned.

o Hence the amount paid to the Dealer towards "rate difference" and "special discount" as
mentioned above, post supply do NOT comply with the requirements of section 15(3)(b)(i) of
the CGST Act and therefore cannot be considered and allowed as discount for the purpose of
arriving at the 'transaction value' in terms of Section 15 of the CGST Act.

The bench has also ruled that the trade discount given cannot be considered as the transaction value

o Whether the amount paid to authorized dealers towards "rate difference" after effecting the
supply of goods by the applicant to aforesaid dealers can be considered for the purpose of
arriving at the 'transaction value' in terms of Section 15 of the CGST Act. Answered in the
Negative

o Whether the amount paid to authorized dealers towards "rate difference" after effecting the
supply of goods would be allowed under Section 15(1) read with Section 34(1) of the CGST Act
or under Section 15(3) read with Section 34(1) ibid. Answered in the Negative

If the terms of the contract clearly state that the distributor or dealer or by any other name called, the
same is to be considered for the payment of GST.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 11
Facts of the Case

The applicant M/s Santhosh Distributors is an authorized distributor for M/s. Castrol India Ltd, Mumbai.
The applicant uses the software provided for the billing.

The applicant does not have any control over the pricing to be provided to its customers, M/s Castrol
India Ltd determines the price.

In view of this, the applicant has the following questions

i. On the tax liability of the applicant for the transactions mentioned herein and explained as
above. The petitioner is paying the tax due as per the invoice value issued by the applicant and
availing the input credit of GST shown in the inward invoice received by the applicant from the
Principal Company or their stockist.

The applicant/distributor is eligible to avail ITC shown in the inward invoice received by him from
the supplier of goods / principal company.

ii. Whether the discount provided by the Principal Company to their dealers through the
applicant as shown in Annexure D attracts any tax under the GST laws.

It is established from the statement of the applicant that the prices of the products supplied by the
applicant is determined by the supplier /principal company and the applicant has no control on
the price of the products. Therefore, it is evident that the additional discount given by the supplier
through the applicant; which is reimbursed to the applicant is to offer a special reduced price by
the distributor / applicant to the customers and hence the amount represent consideration paid
by the supplier of goods / principal company to the distributor / applicant for supply of goods by
the distributor / applicant to the customer. Therefore, this additional discount reimbursed by the
supplier of goods / principal company to the distributor / applicant is liable to be added to the
consideration payable by the customer to the distributor / applicant to arrive at the value of
supply under Section 15 of the CGST / SGST Act at the hands of the distributor / applicant.

iii. Whether the amount shown in the Commercial Credit note issued to the applicant by the
Principal Company attracts proportionate reversal of input tax credit.

The supplier of goods / principal company issuing the commercial credit note is not eligible to
reduce his original tax liability and hence the recipient / applicant will not be liable to reverse the
ITC attributable to the commercial credit notes received by him from the supplier

iv. Is there any tax liability under GST laws on the applicant for the amount received as
reimbursement of discount or rebate provided by the Principal Company as per written
agreement between the Principal Company and their dealers and also an agreement between
the principal and distributors.

The applicant is liable to pay GST at the applicable rate on the amount received as reimbursement
of discount / rebate from the principal company.

From the above orders, it is clear that if the discount is mentioned clearly, then the credit note
issued will attract GST and the recipient has to reverse the input tax credit accordingly.

In the case of the FMCG companies, the distributors or dealers are given as free gifts on reaching pre-
determined turnover. If such gift details are given in the agreement or documented on the agreement or
tax invoice, the supplier needs to reverse the input tax credit on such free goods as specified under
Section 17(5)(h) of the CGST Act 2017.

goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 12
When purchasing the gifts to the dealers or distributors or by whatever name they are called, if the
supplier avails the input tax credit, then the same need not be reversed. The free gifts can be given in
the form of Gold Coins or consumer durables or laptop, or any other item.

Similarly, there will be cases where the supplier will be offering all paid trips to different destinations in
India or abroad to dealers or distributors or by whatever name they are called, if they achieve a pre-
determined turnover or who achieves the highest turnover. In such cases, if the same is documented
and known at the time of supply, in such cases all the expense which is incurred for the trip, the input
tax credit is eligible. As per the provisions of the CGST Act, the input tax credit can be availed on all
inputs and input services if used in the course or furtherance of business. The sponsored trips are part
of the furtherance or in the course of business, and they are eligible to take the input tax credit.

Conclusion

As per the provisions of the CGST Act, orders passed by the Authority for Advance Ruling at the state
level are applicable to the applicant and the office only. From the orders passed by the AAR, the
jurisprudence can be taken, and the interpretation and the intent of the law can be observed. The basis
on that, if required, the taxpayers have to change their business process wherever possible to avoid
litigations. The provisions of the law are clear, and if there are implemented in the true spirit, there will
not be any legal issues for the taxpayers, and can do their business without any hassles. Some of the
provisions of the GST should not be compared with the erstwhile provisions of Central Excise or Service
Tax or VAT. As it is a new law, there will be some gaps or amendments are required in the provisions
based on the judgments passed by the Honourable Supreme Court of India. Treatment of discounts post
supply is a concern for many of the taxpayers. If the same are interpreted accordingly, and the business
process are modified to meet the provisions of the law, then the taxpayers can spend their valuable
time on business improvement.

Disclaimer

Any views or opinions represented above are personal and belong solely to the author and do not represent those of people,
institutions, or organizations that the author may or may not be associated with in professional or personal capacity unless
explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or
individual.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 13
 PRACTICAL ISSUES IN FILING
OF GST ANNUAL RETURN IN
FORM GSTR 9
CMA Utpal Kumar Saha
AGM – Indirect Tax, McNally Bharat Engineering Co. Ltd.

W e are knocking at the door of filing the annual return in form GSTR 9 for the Financial Year
2018-19. Last year, we had come across different issues in filing of GSTR 9 and further in
process of GSTR 9C. Anyhow, the tax payers including professionals have managed the
complex situation of the very first year of GST implementation. Department had time and again
extended the due date of filing of GSTR 9 and 9C considering the practical issues for the 2017-18
Financial Year. The major hurdle of disclosing HSN wise input and output supplies are made optional,
leading to a big relief to the industry and professionals also.

Here, we are sharing the observations of some difficulties faced in filing of GSTR 9 and its way forward.
Further, Government has issued notification no. 16/2020 dated 23-03-2020 and given exemption of
GST audit for tax payer having turnover upto Rs. 5.00 cr. during the Financial Year 2018-19. Now, we
are moving towards the main part of this article.

Every Registered Person other

than ISD, Person responsible
for deducting TDS or collecting
TCS, NRTP, CTP

Registered person whose

Registered person whose aggregate turnover exceed Rs. Registered person whose
aggregate turnover does not aggregate turnover exceed Rs.
2.00 Crore but does not exceed
exceed Rs. 2.00 Crores Rs. 5.00 Crores 5.00 Crores

Optional to file annual return in Required to file annual return in

GSTR 9. Otherwise, it has been GSTR 9 but no GST audit is
Required to file annual return in
considered as deemed furnished. required for 2018-19 FY. GSTR 9 and comply the GST
Notification No 47/2019 (CT) dated (Notification no 16/2020 dated
audit and filng of GSTR 9C
09th Oct 2019 ( Only for 2017-18 23-03-2020). Proviso to sub-rule
and 2018-19 FY) (3) of rule 80

Option of filing the Annual Return in GSTR 9 for 2017-18 and 2018-19 FY up to aggregate
turnover of Rs. 2 Cr.

As per notification no 47/2019 – Central Tax; dated 09th October 2019, it is optional for the registered
persons whose turnover in a financial year does not exceed Rs. 2.00 cr. to furnish annual returns for the

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 14
said financial year. If such registered persons have exercised the option not to file annual return then it
shall be presumed that such persons have filed their annual return.

Filing of Annual Return - not a new concept:

In earlier VAT regime, there was a concept of filing of annual return in a few States like Jharkhand,
Assam, Bihar, Odisha, Rajasthan etc. However, no annual return concept was prevailing in Central
Excise as well as Service Tax laws. In that annual return the consolidated data of sales, purchase, output
tax, input tax credit, ineligible purchase etc. were incorporated matching with the books of accounts
and followed by VAT audit done by a Chartered Accountant or a Cost Accountant. This old era concept
of annual return and audit under VAT Act are still remaining in GST but in a modified manner.

Now, we are moving towards annual return in GSTR 9 and various components thereof. Basically, there
are six parts contained in annual return GSTR 9.

• Basic Details of the registered person

Part I

• Details of outward and inward supply. (inward supply refer to only those inward supply on which
Part II recipients are liable to pay tax under RCM) and advance on which tax is payable

• Details of input tax credit for the Financial Year

Part III

• Details of tax paid as declared in return for the financial year

Part IV

• Details of transaction in the previous financial year but declared in returns of April to September of
Part V the next financial yera or upto the date filing of annual return whichever is earlier

• Other Information. It contains information about refund, demand, supplies received from
Part VI composition person, goods send to job worker, HSN code wise summary etc.

Each part of the form has its own objective and purpose. We analyze each part of GSTR 9 with FAQ and
practical issues being faced by the business communities including tax professionals like Advocate, CMA,
CA and others tax practitioners.

First Part: First part is the general information of the registered person for whom the annual return is
being filed. Legal name is as printed in PAN and trade name is the name of the business entity, it may be
different from PAN. Generally proprietorship firm has the trade name which is different from its legal
name. For example Mr. Hari Lal Desai has its CMA Firm in the name of H.L.Desai & Co. At the time of
filing GSTR 9 the legal name would be Hari Lal Desai and trade name would be H.L.Desai & Co.

Pt. I Basic Details

1 Financial Year
2 GSTIN
3A Legal Name - As printed in PAN-
3B Trade Name (if any) - Name of the legal entity-

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 15
 Second part: Second part contains detailed information of advance received, outward supply and
inward supply on which GST is payable. In addition with that the outward supplies on which no GST is
payable have to be declared in this part.

Pt. II Details of Outward and inward supplies made during the financial year

(Amount in ₹ in all tables)

Nature of Supplies Taxable Central State Integrated Cess
Value Tax Tax / Tax
UT
Tax
1 2 3 4 5 6
4 Details of advances, inward and outward supplies made during the financial year
on which tax is payable
A Supplies made to un-registered persons
(B2C)
B Supplies made to registered persons
(B2B)
C Zero rated supply (Export) on payment
of tax (except supplies to SEZs)
D Supply to SEZs on payment of tax
E Deemed Exports
F Advances on which tax has been paid
Unadjusted Advance
but invoice has not been issued (not
covered under (A) to (E) above) will be reported here

G Inward supplies on which tax is to be

paid on reverse charge basis This includes advance payment, debit
note, credit note & import of service.

H Sub-total (A to G above)
I Credit Notes issued in respect
of transactions specified in (B) to (E)
above (-)
J Debit Notes issued in respect
of transactions specified in (B) to (E)
above (+)
K Supplies / tax declared
through Amendments (+)
L Supplies / tax reduced through
Amendments (-)
M Sub-total (I to L above)
N Supplies and advances on which tax is to
be paid (H + M) above

Important points are required to be noted: (take away)

1. B2C supply will be net of debit notes and credit notes. No separate disclosure of debit notes and
credit notes are required to be made.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 16
 2. Inward supply in which RCM is applicable shall be net of credit note, credit note and advances.
3. Debit Note and Credit Note in respect of B2B, Zero Rated Supply, SEZ Supply and Deemed
Export will separately be mentioned.
4. Unadjusted advance shall be disclosed in box no 4F.
5. If any outward supply in the given financial year is missed out to be incorporated in GSTR 3B
and even within the extended period of September return of the next financial year or before
filing of annual return whichever is earlier, tax payer shall disclose such undisclosed taxable
outward supply in the appropriate boxes of point 4. Tax payer shall also discharge the
additional liability by way of DRC 03. ( refer PIB dated 04-06-2019)
6. Credit note or Debit note issued and disclosed in GSTR 3B up to March of the given financial
year shall only be disclosed here including point no 1 above.
However, Debit note or credit note was issued in FY 2018-19 but the same was disclosed in
GSTR 3B after March 2019,within the extended period of September 2019, will be reported in
part V of GSTR 9.

Relaxation for 2017-18 and 2018-19 Financial Year:

For the financial year 2018-19, registered person has the option instead of mentioning credit note
in box 4I he may fill the data 4B to 4E net of credit note. Similar application is for debit note in box
4J also. It means the registered person may fill the box from 4B to 4E net of debit note and credit
note instead of separately showing in box 5H and Box 5I.

Some practical issues the professionals are facing in filing of GSTR 9:

1. Tax payer has wrongly disclosed supply of B2B as B2C in the GSTR 1. Whether in GSTR 9
it can be disclosed in B2B?
At the time of filing of GSTR 9 the appropriate treatment would be to disclose in B2B (Box 4B)
of GSTR 9. No additional tax liability will be raised.

2. GSTN number has wrongly been uploaded in GSTR1. Whether any implication in GSTR 9?
No there would not be any implication. As both the cases it will be B2B. Tax payer may amend
GSTR-1, if permissible, otherwise intimate to the concerned assessing authority with a
declaration and send the acknowledged copy to the recipient to avoid unnecessary harassment
from recipient end to avail input tax credit.

3. It has been come to the notice of the accountant while scrutinizing of sales register at the
time of filing GSTR 9 that no GST was paid on sale of assets. What is implication in GSTR
9?
Tax payer shall disclose such sale on GSTR 9 and paid taxes through DRC 03.

4. Bill of a lawyer dated 12-01-2019 was not booked in the financial year 2018-19. But it
was booked in May 2019. Implication in GSTR 9.
The invoice has been booked in the May 2019 (FY 2019-20) and it will be the expenses of
2019-20 FY as per accounting point of view. Liability towards reverse charge will be accounted
for in books with the applicable interest considering the time of supply of services.
Consequently input tax credit will be considered in 2019-20 FY provided the payment of tax
thereof.

5. GSTR 3B was filed with excess amount of outward supply and tax was paid accordingly.
What is the implication in GSTR 9?
In GSTR 9 we need to disclose the actual taxable supply as per books of accounts. The
difference in tax payable and tax paid through GSTR 3B will be reflected in Box 9 of part IV of
GSTR 9. However, tax payer can claim refund of such excess payment of tax as per section 54 of
CGST Act, 2017 subject to the limitation of time given in section 54.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 17
 6. Tax payer has not filed LUT before the execution of export but in GSTR 3B it has been
disclosed as zero rated supply without payment of tax. What is the implication in GSTR
9?
Filing of LUT is a procedural matter. Recently, CBEC has issued circular 125/44/2019 where it
has been clarified that “substantive benefits of zero rating may not be denied where it has been
established that exports in terms of the relevant provisions have been made. Filing of LUT may
be allowed on ex facto basis. In GSTR 9 the same will be placed under 5A.

7. Some exempt supply was wrongly reported in 3B as taxable but subsequently it has been
noticed that tax payer has wrongly paid tax on these supplies. Implication in GSTR 9.
In GSTR 9 it will be under appropriate box in table 5 of GSTR 9 considering the nature of
transaction. However, tax payer may claim refund subject to the provision of section 54.

8. Tax payer has wrongly mentioned the GST number of the recipient at the time of upload
of GSTR 1. Implication in GSTR 9.
These issues will not affect the turnover to be declared in GSTR 9. GST auditors may
incorporate their comments in GSTR 9C. This will create the input tax credit issues in the hands
of the recipient.

9. Advance was received in pre GST and service tax was paid on that advance. Now, GST is
charged only on the net amount after adjustment of pre GST advance. Implication in
GSTR.
In GSTR 9 only net amount will be disclosed and tax thereof. However, the auditor at the time
of filing of GSTR 9C shall mentioned the difference amount in Box 5O.

10. We have booked the liability of RCM in February 2019, but due to shortage of fund the
same is paid in June 2019 and disclosed in June GSTR 3B return with the applicable
interest. Implication in GSTR 9.
This seems that the liability is recognized in books under current liability but at the time of
filing of GSTR 3B Return of February 2019 the same is not considered. Finally it is a liability
standing on 31st March of 2019 in the Balance Sheet. However, in the month of June 2019 it is
disclosed in GSTR 3B and paid taxes along with applicable interest. The event is relating to the
financial year 2018-19 but same is disclosed in GSTR 3B within the extended period. In this
backdrop, we may refer the PIB published on 03rd July 2019 and the relevant portion is
reproduced follows-

PIB 03rd July 2019 - “Many taxpayers have requested for clarification on the appropriate
column or table in which tax which was to be paid on reverse charge basis for the FY
2017-18 but was paid during FY 2018-19. It may be noted that since the payment was
made during FY 2018-19, the input tax credit on such payment of tax would have been
availed in FY 2018-19 only. Therefore, such details will not be declared in the annual
return for the FY 2017-18 and will be declared in the annual return for FY 2018-19.”

Based on this clarification, we may infer that the same will be reported in the Annual Return of
2019-20 FY. However, we request the GST council to amend the GSTR 9 to resolve the issues
and also request the Institute of Cost Accountants of India to make a representation to the
council to amend GSTR 9 return from 2019-20 onwards. Tax payer shall disclose the liability
under RCM as well as the ITC in the Annual Return of 2019-20 FY.

11. Taxable supply was made in December 2017 but in GSTR 3B the same was declared in
the month of June 2018 (2018-19 FY). At the time of filing of GSTR 9 for 2017-18 FY the
same was disclosed in part V of GSTR 9. The registered person has correctly paid the due
taxes of 2018-19 but there is a difference in GSTR 3B tax amount and tax amount
reflected in books due to the payment of tax for 2017-18 in 2018-19 FY. Implication in
GSTR 9 for 2018-19 Financial Year.
Tax payer shall disclose its actual turnover in table 4 and tax payable thereon accordingly.
Further, in table 9 the tax payable amount is also same as in table 4. But the amount of tax paid

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 18
 in table 9 will be more than the tax payable amount. Here is the difference in GSTR 9. GST
auditor shall disclose the difference in the notes to his audit report. However, if the taxpayer
having turnover less than 5.00 cr., then it is preferable to intimate the department by way of a
letter.

5 Details of Outward supplies made during the financial year on which tax is not payable
A Zero rated supply (Export)
without payment of tax
B Supply to SEZs without payment
of tax
C Supplies on which tax is to be
paid by the recipient on
reverse charge basis
D Exempted
E Nil Rated
F Non-GST supply (includes ‘no
supply’)
G Sub-total (A to F above)
H Credit Notes issued in respect of
transactions specified in A to F
above (-)
I Debit Notes issued in respect of
transactions specified in A to F
above (+)
J Supplies declared through
Amendments (+)
K Supplies reduced through
Amendments (-)
L Sub-Total (H to K above)
M Turnover on which tax is not
to be paid (G + L above)
N Total Turnover (including
Total turnover including advance but excluding
advances) (4N + 5M - 4G above)
inward supply liable under RCM

Notes

In this part only details of supplies which are exempt from tax including Zero rated supply without
payment of tax, non-leviable supply, No supply.

Relaxation for 2017-18 and 2018-19 Financial Year:

# For the financial year 2018-19, it is the option of the registered person to report the value of
exempted, NIL rated and Non-GST supply separately as given in 5D, 5E, 5F or consolidate in Exempted
box only (box 5D -Exempted box).

# For the financial year 2018-19, registered person has the option instead of mentioning credit note in
box 5H he may fill the data 5A to 5F net of credit note. Similar for debit note in box 5I also. It means the
registered person may fill the box from 5A to 5F net of debit note and credit note instead of separately
showing in box 5H and Box 5I respectively.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 19
 Some practical issues:

1. Tax payer has made high sea sale on 31-03-2019 amounting to Rs. 50 Lac. But at the time
of filing of 3B it has been ignored. What is the implication in GSTR 9
Tax payer shall disclose such transaction in box 5F. If the tax payer discloses such transaction
in GSTR 3B of April 2019 then the same would be disclosed in part V.

2. Credit notes of exempt dated March 2019 was not considered in filing GSTR 3B. However,
in April 2019 is has been considered and disclosed in GSTR 3B. Implication in GSTR 9
The said credit note will be mentioned in Pt V of sl. No.11.

Third part: This part is related to input tax credit availed in GTSR 3B, reversal made in 3B and other
information about ITC like ITC reflected in GSTR 2A.

Pt.
Details of ITC for the financial year
III
Description Type Central State Tax /UT Integrated Cess
Tax Tax Tax
1 2 3 4 5 6
6 Details of ITC availed during the financial year
A Total amount of input tax credit availed through <Auto <Auto <Auto> <Auto>
FORM GSTR-3B (sum total of Table 4A of FORM > >
GSTR-3B)
B Inward supplies (other than Inputs
imports and inward supplies Inward supply
Capital Goods
liable to reverse charge but
includes services received Input Services + inward supply of
from SEZs) services from SEZ
C Inward supplies received from Inputs
unregistered persons liable to Capital Goods
reverse charge (other than B
above) on which tax is paid & Input Services
ITC availed

D Inward supplies received from Inputs

registered persons liable to Capital Goods
reverse charge (other than B
above) on which tax is paid Input Services
and ITC availed
E Import of goods (including Inputs
supplies from SEZs)
Capital Goods
F Import of services (excluding inward supplies
from SEZs)
G Input Tax credit received from ISD
H Amount of ITC reclaimed (other than B above) 3rd proviso to section 6(2)
under the provisions of the Act
I Sub-total (B to H above)
J Difference (I - A above)
Transition Credit through TRAN-I (including
K revisions if any)
L Transition Credit through TRAN-II

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 20
M Any other ITC availed but not specified above
N Sub-total (K to M above)
O Total ITC availed (I + N above)

Important points are required to be noted:

1. Part 6A is auto populated from GSTR 3B.

2. Box 6H: ITC which are availed, reversed and reclaimed in the same financial year shall only be
disclosed here. ITC availed and reverse in 2018-9 but reclaimed in 2019-20 will not be
reported on 6H for 2019-20. It will be included in normal ITC claim in Box 6B in 2019-20 FY.
3. ITC on import of goods will be taken based on the copy of Bill of Entry and its corresponding
payment challan.
4. Import of service is liable to reverse charge vide section 5(3) of IGST Act, 2017 read with
notification no 10/2017 Integrated Tax (Rate) dated 28th June 2017.
5. Generally, the column 6J will be ZERO. Column 6B to 6H is the bifurcation of the input tax credit
availed in GSTR 3B into different aspects. If any difference comes then the same will be paid
through DRC 03 if not rectified within the extended period of September in the next financial
year.

Notes:
Relaxation for 2017-18 and 2018-19 Financial Year:

1. Option to report all input tax credit availed on RCM under box 6D only instead of separately
shown in 6C and 6D (Notification 56/2019 Dated 14th Nov 2019)
2. Option either to report input tax credit bifurcated in inputs, input services and capital goods or
to consolidate the input tax credit amount in inputs row only.

7 Details of ITC Reversed and Ineligible ITC for the financial year
A As per Rule 37 NON PAYMENT WITHIN 180 DAYS FROM
THE DATE OF INVOICE
B As per Rule 39 ISD Credit Note
C As per Rule 42 Common ITC on input and input
services used for exempted and taxable
supply
D As per Rule 43 Common ITC on capital goods used for
exempted and taxable supplies
E As per section 17(5) Blocked Credit
F Reversal of TRAN-I credit
G Reversal of TRAN-II credit
H Other reversals (pl. specify)
I Total ITC Reversed (Sum of A to H above)
J Net ITC Available for Utilization (6O - 7I)

Notes:

Relaxation for 2017-18 and 2018-19 Financial Year:

1. Option either to disclose separately the reversal of ITC in box 7A to 7E or consolidated amount
in 7E only.

Some practical issues:

1. Tax payer has pointed out at the time of filing of GSTR 9 that some ineligible credit has
wrongly been availed in GSTR 3B. Whether the same can be reversed and disclosed in
Box 7E?

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 21
 At the time of filing GSTR 9, the tax payer can’t reverse any ITC wrongly claimed in GSTR 3B.
Tax payer shall pay such ineligible credit availed through DRC 03. The GST auditor may point
out the same in Box 14 of GSTR 9C.

Although some professionals are in the opinion that reversal of ITC may be made through GSTR 9. But
in our view such reversal can’t be made through GSTR 9. (PIB dated 03-07-2019 “Further, no input tax
credit can be reversed or availed through the annual return. If taxpayers find themselves liable
for reversing any input tax credit, they may do the same through FORM GST DRC-03 separately”

However, in the instruction part it has been instructed that if the amount stated in 4D of GSTR 3B is not
included in 4A of GSTR 3B, then no entry is required to be made in box 7E of GSTR 9. If the amount
mentioned in 4D of GSTR 3B is included in 4A of GSTR 3B, then such amount is required to be
mentioned in box 7E of GST 9.

The PIB released on 03rd July 2019 said that no input tax credit can be reversed through GSTR 9 freshly.
So the PIB goes contrary as per the guideline of GSTR 9. Department may bring a clarification in this
matter.

2. ITC was wrongly availed in January 2019 but the same is reversed in April 2019.
Implication in GSTR 9?
The same will be disclosed in Box no 12. However, the auditor shall at the time of filing of GSTR
9C disclose in Box 14 and made comments in part V thereof.

8 Other ITC related information

A ITC as per GSTR-2A (Table 3 & 5 thereof) <Auto> <Auto> <Auto> <Auto>
B ITC as per sum total of 6(B) and 6(H) above <Auto>
ITC on inward supplies (other than imports and
inward supplies liable to reverse charge but
C includes services received from SEZs) received
during 2018-19 but availed during April to
September, 2019
D Difference [A-(B+C)]
E ITC available but not availed
F ITC available but ineligible
IGST paid on import of goods (including
G
supplies from SEZ)
IGST credit availed on import of goods (as per <Auto>
H
6(E) above)
I Difference (G-H)
ITC available but not availed on import of
J
goods (Equal to I)
Total ITC to be lapsed in current financial year <Auto> <Auto> <Auto> <Auto>
K
(E + F + J)

Important points are required to be noted:

This part is basically information about input tax credit auto populated in GSTR 2A and input tax credit
availed in return.

Premise of Table 8D: PIB (03rd July 2019) “The input tax credit which is declared / computed
in Table 8D is basically credit that was available to a taxpayer in his FORM GSTR-2A but was not
availed by him between July 2017 to March 2019. The deadline has already passed and the
taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this
credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be
concerned about the values reflected in this table. This is merely an information that the
Government needs for settlement purposes. Figures in Table 8A of FORM GSTR-9 are auto-
populated only for those FORM GSTR-1 which were furnished by the corresponding suppliers by

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 22
 the due date. Thus, ITC on supplies made during the financial year 2017-18, if reported beyond the
said date by the corresponding supplier, will not get auto-populated in said Table 8A. It may also
be noted that FORM GSTR-2A continues to be auto-populated on the basis of the corresponding
FORM GSTR-1 furnished by suppliers even after the due date. In such cases there would be a mis-
match between the updated FORM GSTR-2A and the auto-populated information in Table 8A”

Fourth Part: This part deals with the information about the tax payable during the financial year and
actual tax amount paid as per the GSTR 3B return either by way of cash or utilization of input tax credit.

Pt.
IV Details of tax paid as declared in returns filed during the financial year

9 Description Tax Payable Paid Paid through ITC

through
cash
Central Tax State Tax Integrated Cess
/ UT Tax Tax
1 2 3 4 5 6 7
Integrated Tax
Central Tax Tax
State/UT Tax payable
Cess would
be sum
Interest
of table
Late fee
4N and
Penalty Table 14
Other

Notes:

In this part the tax payer shall disclose the actual tax payable under column 2. The tax paid as disclosed
in GSTR 3B from April to March will automatically be incorporated in tax paid through ITC. Here, the
person filing the GSTR 9 shall calculate the actual tax payable considering the amount in Box 4N and
Box 14 of GSTR 9.

Basic objective of this box is to disclose the actual tax payable and paid within March 2019, tax payable
but not paid even within the extended period in GSTR 3B and tax payable actually not disclosed in
return within extended period.

Some practical issues:

1. Registered person has wrongly paid CGST and SGST instead of IGST on the transaction of
inter-state trade. Implication in GSTR 9
He shall disclose the said transaction as IGST in Box 4A (B2B). Now in part IV, tax payable
under IGST will be disclosed. Tax paid through CGST and SGST will come in paid through ITC or
cash. IGST liability will be paid through DRC 03 and claim refund of excess paid tax under CGST
and SGST.

2. How GSTR 9 shall disclose the additional tax to be paid or excess tax was deposited?
Tax payer shall fill up the tax payable amount in Pt IV of box 9. Tax payer shall also calculate by
summing up the tax paid amount in Box 9 and Box 14. After comparison of these two amount if
any heads of tax

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 23
 Tax Payable Tax paid
Tax paid
Tax Heads (Column 2 of (Column 3 to 7 Difference Remarks
(Column 14)
Box 9) of Box 9)
Excess
Integrated Tax 100000 90000 20000 -10000
payment
CGST 75000 70000 0 5000 To be paid
SGST 75000 70000 0 5000 To be paid
To be
Interest
calculated

Fifth Part: This part covers the cases where the tax payer has missed out to declare its transaction of
supply during the Financial Year 2018-19 at the time of filing of GSTR 3B within the period ended in
March 2019. But the same is disclosed in GSTR 3B within the extended period as specified in section 39
of CGST Act, 2017. This part is also covering the cases of rectification of GSTR 3B for the financial year
2018-19 made after March 2019 but within the extended period.

Pt. V Particulars of the transactions for the FY 2018-19 declared in returns between April 2019 till
September 2019
Description Taxable Central State Tax Integrated Cess
Value Tax / UT Tax Tax
1 2 3 4 5 6
10 Supplies / tax declared through
Amendments (+) (net of debit
notes)
11 Supplies / tax reduced through
Amendments (-) (net of credit
notes)
12 Reversal of ITC availed during
previous financial year
13 ITC availed for the previous
financial year
Total Turnover (5N+10-11)
14 Differential tax paid on account of declaration in 10 & 11
Description Payable Paid
1 2 3
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest

Notes:

This table is covering the following situations:

a. Outward Supply:

(i) Addition of supply: Transactions of supplies are relating to financial year 2018-19, but
there are missed out to be reported in GSTR 3B within March 2019. However, these
transactions are reported in GSTR 3B within the extended period of September 2019
return as per section 39 of CGST Act.
(ii) Amendments to supply: Supply is made and recorded in GSTR 3B within the Financial
Year of 2018-19 but amendment was made in GSTR 1 and 3B after March 2019 return but
within the extended period September 2019 Returns.

b. Input tax credit:

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 24
 (i) Value of the reversal of Input tax credit which was availed during Financial Year 2018-19
but reversed in the returns for the month of April 2019 to September 2019.
(ii) Input tax credit has been availed for the returns filed for the month of April 2019 to
September 2019 relating to invoices of financial year 2018-19 shall be declared in table 13.

However, it is optional for registered person to declare ITC in part 13 and part 14 for the Financial Year
2018-19.

Transaction of 2018-19 FY but reported in GSTR 3B of the next financial year within September 2019
will only be mentioned in this part. Confusion may arise as to the nomenclature of column 2 of this box.
Column 2 mentioned “Taxable Value” only.

Registered person has disclosed its exempt supply of 2018-19 Financial Year at the time of filing GSTR 3B
of April 2019-20 Financial Year. Whether this will come under this box or not? Although column 2 talks
about taxable value, but in my view this transaction will also be reported here by virtue of broad heading
of part V.

Some practical issues:

1. Debit note was issued dated April 2019 against the tax invoice pertaining to financial
year 2018-19. Implication in GSTR 9
In the given situation the debit note itself was issued in April 2019 which is pertaining to 2019-
20 financial year. So, in GSTR 9 there is no impact and no reporting is required in pt V.

2. Debit note dated March 2019 was uploaded in GSTR 1 within March 2019 but not in
GSTR 3B. In GSTR 3B of April 2019 it has been disclosed. Implication in GSTR 9.
It is irrelevant when the supply is declared through GSTR 1. The main criterion is when the
taxes were paid through GSTR 3B Return. In the given situation tax was paid in April 2019 and
the said will be reported in box 10 and 14. (Refer PIB dated 04-06-2019).

Sixth Part: This part covers the cases of refund claim, refund sanctioned, demand amount and others
particulars which do not have any impact of outward supply, inward supply and input tax credit.

Pt. VI Other Information

15 Particulars of Demands and Refunds
Details Central State Tax Integrated Cess Interest Penalty Late Fee
Tax / UT Tax Tax /Others
1 2 3 4 5 6 7 8
A Total Refund claimed
B Total Refund
sanctioned
C Total Refund
Rejected
D Total Refund Pending
E Total demand of
taxes
F Total taxes paid in
respect of E above
Total demands
G pending out of E
above

Notes:

Here the details of refund and demand made during the financial year for which the annual return is
being filed needs to be disclosed. However, for the Financial Year 2018-19 it is optional for the
registered person to declare the details.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 25
 Some practical issues:

1. Tax payer has claimed refund in 2018-19 FY amounting to Rs. 100000/- consisting of Rs.
50,000/- each for CGST and SGST heads. CGST refund has been sanctioned and credited
in bank account however SGST has not yet sanctioned. Where to disclose the same?
In Box 15A Rs. 50,000 will be disclosed for CGST and SGST. CGST of Rs. 50,000/- will be
incorporated in Box 15B and SGST of Rs. 50000/- in Box 15D.

2. Whether any show cause notice amount will be disclosed in this table?
Show cause notice is not an adjudication order and no disclosure is required. Only adjudication
order confirming demand will be placed here.

3. Company has filed an appeal by paying 10% of the disputed demand, whether such 10%
amount will need to be disclosed here?
Deposition of 10% is akin to payment of tax as per section 107(6) of CGST Act and shall be
disclosed here.

16 Supplies received from composition taxpayers, demand supply by job worker and goods sent on
approval basis
Details Taxable Central State Tax / Integrated Cess
Value Tax UT Tax Tax
1 2 3 4 5 6
A Supplies received from Composition
taxpayers
B Deemed supply under Section 143
C Goods sent on approval basis but not
returned

1. Information of supplies received from composition person shall be incorporated in part

16A. However, the taxpayer shall maintain and prepare its IT system so that it can track the
supply received from composition person.
2. Information regarding the materials send to job worker shall be intimated in Part 16B.
3. Goods send on approval basis shall be mentioned here.

Note: It is optional for the Financial Year 2018-19 to mention the data in table 16. So taxpayer shall
prepare its IT system so that these data are captured in their accounting system.

17 HSN Wise Summary of outward supplies

HSN UQC Total Taxable Rate of Central State Tax Integrated Cess
Code Quantity Value Tax Tax / UT Tax Tax
1 2 3 4 5 6 7 8 9

18 HSN Wise Summary of Inward supplies

HSN UQC Total Taxable Rate of Central State Tax Integrated Cess
Code Quantity Value Tax Tax / UT Tax Tax
1 2 3 4 5 6 7 8 9

19 Late fee payable and paid

Description Payable Paid
1 2 3
A Central Tax
B State Tax

1. It has been made optional for the Financial Year 2018-19 to the taxpayer to mention HSN wise
output supply as well as input supply.
2. Late fee paid at the time of filing of 3B for the financial year is to be incorporated.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 26
 SCHEME OF FACELESS APPEALS –
UNDER INCOME TAX ACT
CMA Niranjan Swain
Advocate & Tax Consultant

1. Background:

A
t times it may happen that the taxpayer is aggrieved by an order of the Assessing Officer /
Income Tax Authority. In such a case he can file an appeal against the order of the Assessing
Officer / income tax authority before different appellate authorities.

1.1. Appellate hierarchy under the income tax act is as follows.

The 1st Appellate Authority is the Commissioner of Income-tax (Appeals). The provisions related to
appealable orders covered under section 246 & 246A, appeal by a person denying liability to deduct tax
at source in certain cases under section 248, form of appeal and limitation in section 249, procedure in
appeal in section 250 and power of the Commissioner Appeals in section 251.

1.2. The list of major orders against which an appeal can be preferred before the Commissioner of
Income-tax (Appeals) is given below:

1. Order passed against the taxpayer in a case where the taxpayer denies the liability to be assessed
under Income Tax Act.
2. Intimation issued under section 143(1)/ (1B) where adjustments have been made in income
offered to tax in the return of income.
3. Intimation issued under section 200A(1) where adjustments are made in the filed statement.
4. Assessment order passed under section 143(3) except in case of an order passed in pursuance of
directions of the Dispute Resolution Panel
5. An assessment order passed under section 144.
6. Order of Assessment, Re-assessment or Re-computation passed after reopening the assessment
under section 147 except an order passed in pursuance of directions of the Dispute Resolution
Panel
7. An order referred to in section 150.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 27
 8. An order of assessment or reassessment passed under section 153A or under section 158BC in case
of search / seizure.
9. Order made under section 92CD(3).
10. Rectification order passed under section 154 or under section 155.
11. Order passed under section 163 treating the taxpayer as agent of non-resident.
12. Order passed under section 170(2)/(3) assessing the successor of the business in respect of income
earned by the predecessor.
13. Order passed under section 171 recording the finding about partition of a Hindu Undivided
Family.
14. Order passed by Joint Commissioner under section 115VP(3) refusing approval to opt for tonnage-
tax scheme to qualifying shipping companies.
15. Order passed under section 201(1)/206C(6A) deeming person responsible for deduction of tax at
source as assessee-in-default due to failure to deduct tax at source or to collect tax at source or to
pay the same to the credit of the Government.
16. Order determining refund passed under section 237.
17. Order imposing penalty under section(s)221/271/271A/271AAA/271F/271FB/ 272A/
272AA/272B/272BB/275(1A)/158B(2)/271B/271BB/271C/271CA/ 271D/ 271E/ 271AAB.
18. Order imposing a penalty under Chapter XXI.
19. Tax deducted u/s 195 and after deduction and having paid such taxes claims that no tax was
required to be deducted

2. Ammendments in Finance Act 2020 related to Faceless Appeals.

2.1. The filing of appeals before Commissioner (Appeals) has already been enabled in an electronic
mode. However, the first appeal process under the Commissioner (Appeals), which is one of the major
functions/ processes that are not yet in full electronic mode. A taxpayer can file an appeal through his
registered account on the e-filing portal. However, the process that follows after the filing of an appeal
is neither electronic nor faceless. In order to ensure that the reforms initiated by the Department to
eliminate human interface from the system reach the next level, it is imperative that an e-appeal
scheme be launched on the lines of the e-assessment scheme.

Earlier, on 13.08.2020, CBDT notified the Faceless Assessment Scheme, 2020 vide Notification No.
60/2020. In line with the Faceless Assessment Scheme, 2020 the appeals filed before the CIT(A) shall
be decided by a team of CITs with dynamic jurisdiction. The assessee won’t know the details of the CITs
deciding their appeals and has to furnish their submissions and paper-books online in their e-filing
portal.

2.2.The announcement of faceless appeal was made by the Finance Minister Nirmala Sitaraman while
presenting the Union Budget 2020 on February 1, 2020. She applauded /praised/plausible the need for
introducing faceless appeal under the income-tax law. She said on the Parliament that

“Our government is committed to bringing in transformational changes so that maximum

governance is provided with minimum government. In order to impart greater efficiency,
transparency and accountability to the assessment process, a new faceless assessment
scheme has already been introduced. Currently, most of the functions of the Income Tax
Department starting from the filing of return, processing of returns, issuance of refunds and
assessment are performed in the electronic mode without any human interface. In order to
take the reforms initiated by the Department to the next level and to eliminate human
interface, I propose to amend the Income Tax Act so as to enable Faceless appeal on the lines
of Faceless assessment.”

Following amendments have been made by the Finance Act, 2020 in section 250 of the Income
Tax Act, 1961 which deals with the appeals before CIT (Appeals) to provide for the legal basis to
the Faceless Assessment Scheme. In section 250 of the Income-tax Act, after sub-section (6A), the
following sub-sections shall be inserted, namely:—

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 28
The amended provisions related to section 250 are reproduced below.

“(6B) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes
of disposal of appeal by Commissioner (Appeals), so as to impart greater efficiency, transparency and
accountability by—

(a) eliminating the interface between the Commissioner (Appeals) and the appellant in the course of
appellate proceedings to the extent technologically feasible;

(b) optimising utilisation of the resources through economies of scale and functional specialisation;

(c) introducing an appellate system with dynamic jurisdiction in which appeal shall be disposed of by one
or more Commissioner (Appeals).

(6C) The Central Government may, for the purposes of giving effect to the scheme made under sub-section
(6B), by notification in the Official Gazette, direct that any of the provisions of this Act relating to
jurisdiction and procedure for disposal of appeals by Commissioner (Appeals) shall not apply or shall apply
with such exceptions, modifications and adaptations as may be specified in the notification:

Provided that no direction shall be issued after the 31st day of March, 2022.

(6D) Every notification issued under sub-section (6B) and sub-section (6C) shall, as soon as may be after
the notification is issued, be laid before each House of Parliament.”.

2.3. Notification of the Scheme of Faceless Appeals:

Accordingly, in exercise of the powers conferred by sub-section (6B) of section 250 of the Income-tax
Act, 1961 (43 of 1961), the Central Government has notified the Scheme called the Faceless Appeal
Scheme, 2020 vide CBDT Notification No. 76/2020 dated 25.09.2020 and No.77/ 2020
[S.O.3297(E)] - Income Tax dated. 25th September, 2020 under the Income Tax Act, 1961 (“Act”) to
provide for e-appeal and for the online hearing and disposal of appeals related to income-tax
disputes by the Commissioner (Appeals). This scheme shall become effective from 25.09.2020 and
shall apply to all the pending appeals and any further new appeals filed under the Income Tax Act.
Under Faceless Appeals, all Income Tax appeals will be finalised in a faceless manner under the
faceless ecosystem with the exception of appeals relating to serious frauds, major tax evasion,
sensitive & search matters, International tax and Black Money Act.

Under the Faceless Appeals, from now on, in income tax appeals, everything from e-allocation of
appeal, e-communication of notice / questionnaire, e-verification / e-enquiry to e-hearing and finally e-
communication of the appellate order, the entire process of appeals will be online, dispensing with the
need for any physical interface between the appellant and the Department. There will be no physical
interface between the taxpayers or their counsel/s and the Income Tax Department. The taxpayers can
make submissions from the comfort of their home and save their time and resources.

The Faceless Appeals system will include allocation of cases through Data Analytics and AI under the
dynamic jurisdiction with central issuance of notices which would be having Document Identification
Number (DIN). As part of dynamic jurisdiction, the draft appellate order will be prepared in one city
and will be reviewed in some other city resulting in an objective, fair and just order. The Faceless
Appeal will provide not only great convenience to the taxpayers but will also ensure just and fair appeal
orders and minimise any further litigation. The new system will also be instrumental in imparting
greater efficiency, transparency and accountability in the functioning of the Income Tax Department.

As per data with CBDT, as on date there is a pendency of almost 4.6 lakh appeals at the level of the
Commissioner (Appeals) in the Department. Out of this, about 4.05 lakh appeals, i.e., about 88 % of
the total appeals will be handled under the Faceless Appeal mechanism and almost 85% of the present
strength of Commissioners (Appeals) shall be utilised for disposing off the cases under the Faceless
Appeal mechanism.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 29
The details of scheme are as follows.

3. Scope of the Scheme:

Para 2 of the Faceless Appeal Scheme provides the definition of different terms used in the
scheme. The scope of the Scheme provides as follows.

 The appeal under this Scheme shall be disposed of in respect of such territorial area or persons or
class of persons or incomes or class of incomes or cases or class of cases, as may be specified by the
Board.

4. Faceless Appeal Centres:

(1) Setting Up different Centres:

For the purposes of this Scheme, the Board may set up following three centres-

(i) a National Faceless Appeal Centre to facilitate the conduct of e-appeal proceedings in a
centralised manner, which shall be vested with the jurisdiction to dispose appeal in accordance with
the provisions of this Scheme;

(ii) Regional Faceless Appeal Centres as it may deem necessary to facilitate the conduct of e-appeal
proceedings, which shall be vested with the jurisdiction to dispose appeal in accordance with the
provisions of this Scheme;

(iii) Appeal units, as it may deem necessary to facilitate the conduct of e-appeal proceedings, to
perform the function of disposing appeal, which includes admitting additional grounds of appeal,
making such further inquiry as thinks fit, directing the National e-Assessment Centre or the Assessing
Officer, as the case may be, for making further inquiry, seeking information or clarification on
admitted grounds of appeal, providing opportunity of being heard to the appellant, analysis of the
material furnished by the appellant, review of draft order, and such other functions as may be
required for the purposes of this Scheme; and specify their respective jurisdiction.

1.1. Constitution and Role of the Faceless Appeal Centres.

Centres Constitution and Purpose

National  NFAC will be located at Delhi comprising of Principal Chief Commissioner of

Faceless Income-tax, Commissioner of Income-tax (‘CIT’), Additional/ Joint CIT, Deputy/
Appeal Centre Assistant CIT- to facilitate the conduct of e-appeal proceedings in a centralised
manner

Regional  At present, 4 RFAC (Delhi, Mumbai, Kolkata and Chennai) have been notified. Each
Faceless RFAC comprises of Chief Commissioner of Income-tax (‘CCIT’) and other income-tax
Appeal officers to facilitate the conduct of e-appeal proceedings
Centres

Appeal units As per Clause 3 of Para -1, the AU shall have the following authorities:
 One or more Commissioner (Appeals); Other income-tax authority, ministerial
staff, executive or consultant to assist the Commissioner (Appeals)
 AU to perform the function of disposing appeal, which includes admitting
additional grounds of appeal, directing the National e-Assessment Centre or the
Assessing Officer for making further inquiry, seeking information or clarification
on admitted grounds of appeal, providing opportunity of being heard to the
appellant, analysis of the material furnished by the appellant, review of draft order
etc.

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(2) Communication between Centres: All communication between the appeal unit and the appellant
or any other person or the National e-Assessment Centre or the Assessing Officer with respect to
the information or documents or evidence or any other details, as may be necessary under this
Scheme shall be through the National Faceless Appeal Centre.

5. Procedure in appeal:

(1) The appeal referred to in paragraph 3 of the scheme shall be disposed of as per the following
procedure, namely:

(i) the National Faceless Appeal Centre shall assign the appeal to a specific appeal unit in any one
Regional Faceless Appeal Centre through an automated allocation system;

(ii) where the appellant has filed the appeal after the expiration of time specified in sub-section (2) of
section 249 of the Act, the appeal unit may, —

(a) in case, it is satisfied that the appellant had sufficient cause for not filing the appeal within the said
time, admit the appeal; or

(b) in any other case, reject the appeal, under intimation to the National Faceless Appeal Centre;

(iii) where the appellant has applied for exemption from the operation of clause (b) of sub-section (4) of
section 249 of the Act, the appeal unit may, —

(a) admit the appeal and exempt the appellant from the operation of provisions of said clause for any
good and sufficient reason to be recorded in writing; or

(b) in any other case, reject the appeal, under intimation to the National Faceless Appeal Centre;

(iv) the National Faceless Appeal Centre shall intimate the admission or rejection of appeal, as the
case may be, to the appellant;

(v) where the appeal is admitted, —

(a) the appeal unit may request the National Faceless Appeal Centre to obtain such further
information, document or evidence from the appellant or any other person, as it may specify;

(b) the appeal unit may request the National Faceless Appeal Centre to obtain a report of the
National e-Assessment Centre or the Assessing Officer, as the case may be, on grounds of appeal or
information, document or evidence filed by the appellant;

(c) the appeal unit may request the National Faceless Appeal Centre to direct the National e-
Assessment Centre or the Assessing Officer, as the case may be, for making further inquiry under sub-
section (4) of section 250 of the Act and submit a report thereof;

(d) the National Faceless Appeal Centre shall serve a notice upon the appellant or any other person,
as the case may be, or the National e-Assessment Centre or the Assessing Officer, as the case may be, to
submit such information, document or evidence or report, as the case may be, as may be specified by
the appeal unit or as may be relevant to the appellate proceedings, on a specified date and time;

(vi) the appellant or any other person, as the case may be, shall file a response to the notice referred to
in sub-clause (d) of clause (v), within the date and time specified therein, or such extended date and
time as may be allowed on the basis of an application made in this behalf, with the National Faceless
Appeal Centre;

(vii) the National e-Assessment Centre or the Assessing Officer, as the case may be, shall furnish a
report in response to the notice referred to in sub-clause (d) of clause (v), within the date and time

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 31
specified therein or such extended date and time as may be allowed on the basis of an application made
in this behalf, to the National Faceless Appeal Centre;

(viii) where response is filed by the appellant or any other person, as the case may be, or a report is
furnished by the National e-Assessment Centre or the Assessing Officer, as the case may be, the National
Faceless Appeal Centre shall send such response or report to the appeal unit, and where no such
response or report is filed, inform the appeal unit;

(ix) the appellant may file additional ground of appeal in such form, as may be specified by the National
Faceless Appeal Centre, specifying therein the reason for omission of such ground in the appeal filed by
him;

(x) where the additional ground of appeal is filed-

(a) the National Faceless Appeal Centre shall send the additional ground of appeal to the National
e-Assessment Centre or the Assessing Officer, as the case may be, for providing comments, if any, and
to the appeal unit;

(b) the National e-Assessment Centre or the Assessing Officer, as the case may, shall furnish their
comments, within the date and time specified or such extended date and time as may be allowed on
the basis of an application made in this behalf, to the National Faceless Appeal Centre;

(c) where comments are filed by the National e-Assessment Centre or the Assessing Officer, as
the case may be, the National Faceless Appeal Centre shall send such comments to the appeal unit, and
where no such comments are filed, inform the appeal unit;

(d) the appeal unit shall, after taking into consideration the comments, if any, received from the
National e-Assessment Centre or the Assessing Officer, as the case may be,—

(A) if it is satisfied that the omission of additional ground from the form of appeal was not willful
or unreasonable, admit such ground; or
(B) in any other case, not admit the additional ground,

for reasons to be recorded in writing and intimate the National Faceless Appeal Centre;

Note: On analysis of above provisions, it is seen that the report of NeAC or AO on the admissibility
or otherwise of additional evidence shall be shared with NFAC and with appeal Unit. After receipt
of such report, appeal unit may admit or reject the additional evidence furnished before it. So there
is no opportunity to the appellant to rebut the adverse report, if any, furnished by NeAC/AO on the
admissibility of additional evidence, since there is no provision of sharing such report of NeAC / AO
with appellant for his rebuttal.

(xi) the National Faceless Appeal Centre shall intimate the admission or rejection of the additional
ground, as the case may be, to the appellant;

(xii) the appellant may file additional evidence, other than the evidence produced by him during the
course of proceedings before the National e-Assessment Centre or the Assessing Officer, as the case may
be, in such form, as may be specified by the National Faceless Appeal Centre, specifying therein as to
how his case is covered by the exceptional circumstances specified in sub-rule (1) of rule 46A of the
Rules;

(xiii) where the additional evidence is filed,—

(a) the National Faceless Appeal Centre shall send the additional evidence to the National e-
Assessment Centre or the Assessing Officer, as the case may be, for furnishing a report within the
specified date and time on the admissibility of additional evidence under rule 46A of the Rules;

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 32
 (b) the National e-Assessment Centre or the Assessing Officer, as the case may be, shall furnish the
report, as referred to in sub-clause (a), to the National Faceless Appeal Centre within the date and
time specified, or such extended date and time as may be allowed on the basis of an application made
in this behalf, by the National Faceless Appeal Centre.

(c) where the report, as referred to in sub-clause (a), is furnished by the National e-Assessment Centre
or the Assessing Officer, as the case may be, the National Faceless Appeal Centre shall send such report
to the appeal unit, and where no such report is furnished, inform the appeal unit;

(d) the appeal unit may, after considering the additional evidence and the report, if any, furnished by
the National e-Assessment Centre or the Assessing Officer, as the case may be, admit or reject the
additional evidence, for reasons to be recorded in writing, and intimate the National Faceless Appeal
Centre;

(e) the National Faceless Appeal Centre shall intimate the admission or rejection of additional
evidence, as the case may be, to the appellant and the National e-Assessment Centre or the Assessing
Officer, as the case may be;

Note: The report of NeAC or AO on the admissibility or otherwise of additional evidence shall be
shared with NFAC and with appeal Unit. After receipt of such report, appeal unit may admit or
reject the additional evidence furnished before it.
Thus, in the above machinery, there is no opportunity to the appellant to rebut the adverse report,
if any, furnished by NeAC/AO on the admissibility of additional evidence, since there is no provision
of sharing such report of NeAC/AO with appellant for his rebuttal.

(xiv) where the additional evidence is admitted,—

(a) the appeal unit shall, before taking such evidence into account in the appellate proceedings,
prepare a notice to provide an opportunity to the National e-Assessment Centre or the Assessing
Officer, as the case may be, within the date and time specified there into examine such evidence or to
cross-examine such witness, as may be produced by the appellant, or to produce any evidence or
document, or any witness in rebuttal of the evidence or witness produced by the appellant, and furnish
a report thereof, and send such notice to the National Faceless Appeal Centre;

(b) the National Faceless Appeal Centre shall serve the notice, as referred to in sub-clause (a), upon
the National e-Assessment Centre or the Assessing Officer, as the case may be;

(c) the National e-Assessment Centre or the Assessing Officer, as the case may be, shall furnish the
report, as referred to in sub-clause (a),to the National Faceless Appeal Centre, within the date and
time specified, or such extended date and time as may be allowed on the basis of an application made
in this behalf, by the National Faceless Appeal Centre;

(d) the National Faceless Appeal Centre shall send the report furnished by the National e-Assessment
Centre or the Assessing Officer, as the case may be, to the appeal unit or where no such report is
furnished, inform the appeal unit;

Note: (i) Above provisions provides that the report of the NeAC/AO in rebuttal of the additional evidence
or witness produced by the appellant shall be shared by NFAC with appeal Unit only and there is no
provision for sharing such adverse report with appellant for his comments thereon.
(ii) Cross examination is the sine qua non of due process of taking evidence. No adverse inference can be
drawn against a party unless the party is put on notice of the case made out against him. He must be
supplied the contents of all such evidences, both oral and documentary, so that he can prepare the case
against him. This necessarily also postulates that he should cross examine the witness on whose statement
AO relies to make addition against the assessee. [Pl refer the decisions of Hon’ble Supreme Court in
case of Andaman Timber Industries v. CCE [2015] 62 taxmann.com 3 /52 GST 355 (SC)]

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 33
(iii) If no opportunity is provided by the Assessing Authority to rebut the material on the basis of which the
assessing authority intended to proceed, there would be violation of the principles of natural justice. These
violations of principal of natural justice needs immediate attention of the CBDT.

Production of documents and evidence by the Appellant:

(xv) The National e-Assessment Centre or the Assessing Officer, as the case may be, may request the
National Faceless Appeal Centre to direct the production of any document or evidence by the appellant,
or the examination of any witness, as may be relevant to the appellate proceedings;

(xvi) where the request referred to in clause (xv) is received, –

(a) the National Faceless Appeal Centre shall send such request to the appeal unit;

(b) the appeal unit shall consider such request and may, if it deems fit, prepare a notice –

(A) directing the appellant to produce such document or evidence, as it may specify; or
(B) for examination of any other person, being a witness;

and send such notice to the National Faceless Appeal Centre;

(c) the National Faceless Appeal Centre shall serve the notice referred to in sub-clause (b) upon the
appellant or any other person, being a witness, as the case may be;

(d) the appellant or any other person, as the case may be, shall file his response to the notice referred
to in sub-clause (c), within the date and time specified in the notice or such extended date and time as
may be allowed on the basis of application made in this behalf, to the National Faceless Appeal Centre;

(e) where a response is filed by the appellant or any other person, as the case may be, the National
Faceless Appeal Centre shall send such response to the appeal unit, or where no such response is filed,
inform the appeal unit;

Issue of Show Cause appeal unit intends to enhance an assessment or a penalty or reduce the
amount of refund:

(xvii) where the appeal unit intends to enhance an assessment or a penalty or reduce the amount of
refund, –

(a) the appeal unit shall prepare a show-cause notice containing the reasons for such enhancement or
reduction, as the case may be, and send such notice to the National Faceless Appeal Centre.

(b) the National Faceless Appeal Centre shall serve the notice, as referred to in sub-clause (a), upon
the appellant.

(c) the appellant shall, within the date and time specified in the notice or such extended date and time
as may be allowed on the basis of application made in this behalf, file his response to the National
Faceless Appeal Centre;

(d) where a response is filed by the appellant, the National Faceless Appeal Centre shall send such
response to the appeal unit, or where no such response is filed, inform the appeal unit.

Issue of Draft Order in accordance with section 250, review of the draft order and finalization of
the appeal order:

(xviii) The appeal unit shall, after taking into account all the relevant material available on the record,
including the response filed, if any, by the appellant or any other person, as the case may be, or report
furnished by the National e-Assessment Centre or the Assessing Officer, as the case may be, and after

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 34
considering any matter arising out of the proceedings in which the order appealed against was passed,
notwithstanding that such matter was not raised in the appeal, —

(a) prepare in writing, a draft order in accordance with the provisions of section 251 of the Act; and

(b) send such order to the National Faceless Appeal Centre along with the details of the penalty
proceedings, if any, to be initiated therein;

(xix) the National Faceless Appeal Centre shall upon receipt of the draft order, as referred to in sub-clause (a)
of clause (xviii), —

(a) where the aggregate amount of tax, penalty, interest or fee, including surcharge and cess, payable in
respect of issues disputed in appeal, is more than a specified amount, as referred to in clause (x) of
paragraph 13,send the draft order to an appeal unit, other than the appeal unit which prepared such order,
in any one Regional Faceless Appeal Centre through an automated allocation system, for conducting review
of such order;

(b) in any other case, examine the draft order in accordance with the risk management strategy specified by
the Board, including by way of an automated examination tool, whereupon it may decide to —
(A) finalise the appeal as per the draft order; or

(B) send the draft order to an appeal unit, other than the unit which prepared such order, in any one
Regional Faceless Appeal Centre through an automated allocation system, for conducting review of
such order;

(xx) the appeal unit shall review the draft order, referred to it by the National Faceless Appeal Centre,
whereupon it may decide to –
(a) concur with the draft order and intimate the National Faceless Appeal Centre about such concurrence;
or

(b) suggest such variation, as it may deem fit, to the draft order and send its suggestions to the National
Faceless Appeal Centre;

(xxi) the National Faceless Appeal Centre shall, upon receiving concurrence of the appeal unit, finalise the
appeal as per the draft order;

(xxii) the National Faceless Appeal Centre shall, upon receiving suggestion for variation from the appeal unit,
assign the appeal to an appeal unit, other than the appeal unit which prepared or reviewed the draft order, in
any one Regional Faceless Appeal Centre through an automated allocation system;

(xxiii) the appeal unit, to whom appeal is assigned under clause (xxii), shall, after considering the suggestions
for variation —

(a) where such suggestions intend to enhance an assessment or a penalty or reduce the amount of refund,
follow the procedure laid down in clause (xvii) and prepare a revised draft order as per the procedure laid
down in clause (xviii); or

(b) in any other case, prepare a revised draft order as per procedure laid down in clause (xviii); and send
the such order to the National Faceless Appeal Centre along with the details of the penalty proceedings, if
any, to be initiated therein;

Note: As in case of Faceless assessment scheme, there is no provision of sharing draft appellate order
with the appellant before its finalization under Faceless Appeal Scheme.

Communication of Appeal Order to Appellant, Pr. CCIT / CCIT/ PRCIT/CIT, NeAC:

(xxiv) the National Faceless Appeal Centre shall after finalising the appeal as per item (A) of sub-clause (b) of
clause (xix) or clause (xxi) or upon receipt of revised draft order as per clause (xxiii), pass the appeal order
and-

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 35
 (a) communicate such order to the appellant;

(b) communicate such order to the Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner as per sub-section (7) of section 250 of the Act;

(c) communicate such order to the National e-Assessment Centre or the Assessing Officer, as the case may
be, for such action as may be required under the Act;

(d) where initiation of penalty has been recommended in the order, serve a notice on the appellant calling
upon him to show cause as to why penalty should not be imposed upon him under the relevant provisions of
the Act;

(2) Notwithstanding anything contained in sub-paragraph (1), the Principal Chief Commissioner or the
Principal Director General, in charge of National Faceless Appeal Centre, may at any stage of the appellate
proceedings, if considered necessary, transfer, by an order, the appeal with the prior approval of the Board to
such Commissioner (Appeals) as may be specified in the order.

Pictorial Presentation of the Faceless Appeal Scheme:

6. Penalty proceedings:

(1) Appeal unit may, in the course of appeal proceedings, for non-compliance of any notice, direction or order
issued under this Scheme on the part of the appellant or any other person, as the case may be, send
recommendation for initiation of any penalty proceedings to the National Faceless Appeal Centre.

(2) The National Faceless Appeal Centre shall, upon receipt of recommendation under sub-paragraph (1),
serve a notice on the appellant or any other person, as the case may be, calling upon him to show cause as to
why penalty should not be imposed upon him under the relevant provisions of the Act.

(3) The appellant or any other person, as the case may be, shall file a response to the show-cause notice
referred to in sub-paragraph (2) or in sub-clause (d) of clause (xxiv) of sub-paragraph (1) of paragraph 5,
within the date and time specified in such notice, or such extended date and time as may be allowed on the
basis of an application made in this behalf, to the National Faceless Appeal Centre.

(4) The National Faceless Appeal Centre shall assign the recommendation for initiation of penalty
proceedings, as referred to in sub-paragraph (1), along with the response filed, if any, by the appellant or any

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 36
other person, as the case may be, to a specific appeal unit in any one Regional Faceless Appeal Centre through
an automated allocation system.

(5) The appeal unit shall, after taking into account all the relevant material available on the record, including
the response filed, if any, by the appellant or any other person, as the case may be, —

a) prepare a draft order and send a copy of such order to the National Faceless Appeal Centre; or

(b) drop the penalty after recording reasons, under intimation to the National Faceless Appeal Centre.

(6) where the appeal unit has dropped the penalty, the National Faceless Appeal Centre shall send an
intimation thereof, or where the appeal unit sends a draft order, the National Faceless Appeal Centre shall
pass the order for imposition of penalty as per such draft, and communicate such order, to, —

(a) the appellant or any other person, as the case may be; and

(b) the National e-Assessment Centre or the Assessing Officer for such action as may be required under the
Act.

7. Rectification Proceedings:

(1) With a view to rectifying any mistake apparent from the record the National Faceless Appeal Centre may
amend any order passed by it, by an order to be passed in writing.

(2) Subject to the other provisions of this Scheme, an application for rectification of mistake referred to in
sub-paragraph (1) may be filed with the National Faceless Appeal Centre by the,

(a) appellant or any other person, as the case may be; or

(b) appeal unit preparing or reviewing or revising the draft order; or

(c) the National e-Assessment Centre or the Assessing Officer, as the case may be.

(3) Where any application referred to in sub-paragraph (2) is received by the National Faceless Appeal
Centre, it shall assign such application to a specific appeal unit in any one Regional Faceless Appeal Centre
through an automated allocation system.

(4) The appeal unit shall examine the application and prepare a notice for granting an opportunity–

(a) to the appellant or any other person, as the case may be, where the application has been filed by the
National e-Assessment Centre or the Assessing Officer, as the case may be; or

(b) to the National e-Assessment Centre or the Assessing Officer, as the case may be, where the application
has been filed by the appellant or any other person, as the case may be; or

(c) to the appellant or any other person, as the case may be, and the National e-Assessment Centre or the
Assessing Officer, as the case may be, where the application has been filed by an appeal unit referred to in
clause (b) of sub-paragraph (2); and send the notice to the National Faceless Appeal Centre.

(5) The National Faceless Appeal Centre shall serve the notice referred to in sub-paragraph (4) upon the
appellant or any other person, as the case may be, or the National e-Assessment Centre or the Assessing
Officer, as the case may be, calling upon him to show cause as to why rectification of mistake should not be
carried out under the relevant provisions of the Act.
(6) The appellant or any other person, as the case may be, or the National e-Assessment Centre or the
Assessing Officer, as the case may be, shall file a response to the notice, as referred to in sub-paragraph (5),
within the date and time specified therein, or such extended date and time as may be allowed on the basis of
an application made in this behalf, to the National Faceless Appeal Centre.

(7) Where a response, as referred to in sub-paragraph (6), is filed by the appellant or any other person, as the
case may be, or the National e-Assessment Centre or the Assessing Officer, as the case may be, the National

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 37
Faceless Appeal Centre shall send such response to the appeal unit, or where no such response is filed,
inform the appeal unit.

(8) The appeal unit shall, after taking into consideration the application and response, if any, filed by the
appellant or any other person, as the case may be, or the National e-Assessment Centre or the Assessing
Officer, as the case may be, prepare a draft order, —

(a) for rectification of mistake; or

(b) for rejection of application for rectification, citing reasons thereof;

and send the order to the National Faceless Appeal Centre.

(9) The National Faceless Appeal Centre shall upon receipt of draft order, as referred to in sub-paragraph (8),
pass an order as per such draft and communicate such order, –

(a) to the appellant or any other person, as the case may be; and

(b) to the National e-Assessment Centre or the Assessing Officer, as the case may be, for such action as may
be required under the Act.

8. Appellate Proceedings: [Appeal before Income Tax Appellate Tribunal (ITAT)].

(1) An appeal against an order passed by the National Faceless Appeal Centre under this Scheme shall lie
before the Income Tax Appellate Tribunal having jurisdiction over the jurisdictional Assessing Officer.

(2) Subject to the provisions of paragraph (3) of the scheme, where any order passed by the National
Faceless Appeal Centre or Commissioner (Appeals) is set-aside and remanded back to the National Faceless
Appeal Centre or Commissioner (Appeals) by the Income Tax Appellate Tribunal or High Court or Supreme
Court, the National Faceless Appeal Centre shall pass the order in accordance with the provisions of this
Scheme.

9. Exchange of communication exclusively by electronic mode:

For the purposes of this Scheme,—

(a) all communications between the National Faceless Appeal Centre and the appellant, or his authorised
representative, shall be exchanged exclusively by electronic mode; and

(b) all internal communications between the National Faceless Appeal Centre, the Regional Faceless Appeal
Centres, the National e-Assessment Centre, the Assessing Officer and the appeal unit shall be exchanged
exclusively by electronic mode.

10. Authentication of electronic record:

For the purposes of this Scheme, an electronic record shall be authenticated by the––

(i) National Faceless Appeal Centre by affixing its digital signature;

(ii) the appellant or any other person, by affixing his digital signature if he is required under the Rules to
furnish his return of income under digital signature, and in any other case by affixing his digital signature or
under electronic verification code;

Explanation. – For the purpose of this paragraph, “electronic verification code” shall have the same meaning
as referred to in rule 12 of the Rules.

11. Delivery of electronic record:

(1) Every notice or order or any other electronic communication under this Scheme shall be delivered to the
addressee, being the appellant, by way of-

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 38
 (a) placing an authenticated copy thereof in the appellant’s registered account; or
(b) sending an authenticated copy thereof to the registered email address of the appellant or his authorised
representative; or
(c) uploading an authenticated copy on the appellant’s Mobile App; and
followed by a real time alert.

(2) Every notice or order or any other electronic communication under this Scheme shall be delivered to the
addressee, being any other person, by sending an authenticated copy thereof to the registered email address
of such person, followed by a real time alert.

(3) The appellant shall file his response to any notice or order or any other electronic communication, under
this Scheme, through his registered account, and once an acknowledgement is sent by the National Faceless
Appeal Centre containing the hash result generated upon successful submission of response, the response
shall be deemed to be authenticated.

(4) The time and place of dispatch and receipt of electronic record shall be determined in accordance with
the provisions of section 13 of the Information Technology Act, 2000 (21 of 2000).

12. No personal appearance in the Centres or Units:

(1) A person shall not be required to appear either personally or through authorised representative in
connection with any proceedings under this Scheme before the income-tax authority at the National Faceless
Appeal Centre or Regional Faceless Appeal Centre or appeal unit set up under this Scheme.

(2) The appellant or his authorised representative, as the case may be, may request for personal hearing so
as to make his oral submissions or present his case before the appeal unit under this Scheme.

(3) The Chief Commissioner or the Director General, in charge of the Regional Faceless Appeal Centre, under
which the concerned appeal unit is set up, may approve the request for personal hearing referred to in sub-
paragraph (2), if he is of the opinion that the request is covered by the circumstances referred to in clause
(xi) of paragraph 13.

(4) Where the request for personal hearing has been approved by the Chief Commissioner or the Director
General, in charge of the Regional Faceless Appeal Centre, such hearing shall be conducted exclusively
through video conferencing or video telephony, including use of any telecommunication application software
which supports video conferencing or video telephony, in accordance with the procedure laid down by the
Board.

(5) Any examination or recording of the statement of the appellant or any other person shall be conducted by
Commissioner (Appeals) in any appeal unit under this Scheme, exclusively through video conferencing or
video telephony, including use of any telecommunication application software which supports video
conferencing or video telephony in accordance with the procedure laid down by the Board.

(6) The Board shall establish suitable facilities for video conferencing or video telephony including
telecommunication application software which supports video conferencing or video telephony at such
locations as may be necessary, so as to ensure that the appellant, or his authorised representative, or any
other person is not denied the benefit of this Scheme merely on the ground that such appellant or his
authorised representative, or any other person does not have access to video conferencing or video
telephony at his end.

13. Power to specify format, mode, procedure and processes:

The Principal Chief Commissioner or the Principal Director General, in charge of the National Faceless Appeal
Centre shall, with the prior approval of Board, lay down the standards, procedures and processes for
effective functioning of the National Faceless Appeal Centre, Regional Faceless Appeal Centres and the appeal
unit set-up under this Scheme, in an automated and mechanised environment, including format, mode,
procedure and processes in respect of the following, namely:__

(i) service of the notice, order or any other communication;

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 39
(ii) receipt of any information or documents from the person in response to the notice, order or any other
communication;

(iii) issue of acknowledgment of the response furnished by the person;

(iv) provision of “e-appeal” facility including login account facility, tracking status of appeal, display of
relevant details, and facility of download;

(v) accessing, verification and authentication of information and response including documents submitted
during the appellate proceedings;

(vi) receipt, storage and retrieval of information or documents in a centralised manner;

(vii) general administration and grievance redressal mechanism in the respective Centres and units;

(viii) filing of additional ground of appeal;

(ix) filing of additional evidence;

(x) specified amount referred to in sub-clause (a) of clause (xix) of sub-paragraph (1) of paragraph 5;

(xi) circumstances in which personal hearing referred to in sub-paragraph (3) of paragraph 12 shall be
approved.

14: Few more issues related to Grant of Stay of demand(Not covered under the faceless Appeal
Scheme):

As per settled principles, CIT(A) has inherent power to grant stay on demand if appeal is pending before him.
If appeal is pending before CIT(A), then CIT(A) should decide the stay matter on an application made before
him in this behalf. [Pl refer few decisions as follows]

 Maheshwari Agro Industries v. UOI [2012] 17 taxmann.com 68/206 Taxman 375/346 (Raj),

 Sanjay Kumar Sohd v. ITO [2013] 40 taxmann.com 242/2014] 222 Taxman 140 (Mag.)/354 ITR
177 (MP),

 Smita Agrawal (HUF) v. CIT [2009] 184 Taxman 59/[2010] 321 ITR 491 (All)

 Devraj Pande v. ITO [2013] 39 taxmann.com 1/219 Taxman 120 (Karnataka) (Mag.),

In era of manual appeal filing, appellants used to file stay applications along with appeal Memo. Even in e-
filing era, appellants were allowed to attach stay application with other necessary attachments while e-filing
the appeals. However, there is no scope or procedure defined under the new faceless machinery for
handling and deciding on the stay application filed by the appellant.

15. Conclusion:

Now it is the initial stages of the implementation of the Scheme. The Principal Chief Commissioner or the
Principal Director General, in charge of the National Faceless Appeal Centre, with the prior approval of Board
will lay down the standards, procedures and processes for effective functioning of the National Faceless
Appeal Centre, Regional Faceless Appeal Centres and the appeal unit set-up under this Scheme, in an
automated and mechanised environment, including format, mode, procedure and processes etc. It is expected
from the CBDT to address the issues proactively on real time basis through various amendments / FAQs'
which will help to take forward of the implementation of the scheme and speedy disposal of the appeals.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 40
 CROSS SECTIONING TAX AND PENAL
IMPLICATIONS OF SEC 68/69/69A -
INCOME TAX ACT – 1961
CMA Ajith Sivadas
B Com, ACMA, ACA, Adv Dip MA, CIMA (UK)

Introduction

D
eeming provisions has become increasingly common in modern statutes. The term ‘Deemed’ is
used to impose for the purposes of statute an artificial construction of word or phrase that
would not prevail otherwise. Sometimes it is used to put beyond doubt a particular construction
that might otherwise be uncertain and also to give a comprehensive description for something
uncertain, which is in the ordinary sense impossible. And there by deeming provision is not made for
the purpose of creating fiction every time, and might be to impose for the purpose of a statute or
artificial construction of a word or a phrase that would not otherwise prevail. It may be for the purpose
of formulating a principle of general applicability and may create no legal fiction. (Consolidated Coffee
Limited vs. Coffee Board (1980) 46 STC 164, 174 (SC)). The word deemed may not always introduce a
legal fiction or a legal presumption but in certain special circumstances introduce a provision i.e., a
‘glossary provision’ in which event the word ‘equivalent means’.

Income Tax is a tax on Income. Income is a word of elastic context as it is defined under Section 2(24) of
Income Tax Act in an inclusive pattern. A block of 6 Sections ranging from Section 68 to 69 D have been
introduced in the statute, in deeming nature, step by step in order to block loopholes , and make the
taxation beyond doubt even though there were judicial decisions covering some of the aspects. The
source of these incomes are not known and hence they cannot be linked to any known source/head of
income, including the 'income from other sources'.

Section 68, 69 and 69 A presuming income from unexplained cash credit, unexplained investments and
unexplained money respectively will come to play consequent on demonetization of high denomination
of notes w.e.f 8th of November 2016. It is generally accepted that such demonetization is one of the
strong effective measures to cure black money but it is equally agreed that it is not enough. But this
initiative have made the entire economy towards legal indecisiveness and lacunas relating to taxing
such deposits of SBNs specified bank notes as deemed income via these sections.

Demonetisation has raised many legal and taxation questions that require one’s attention. This policy
led to various chaos in the minds of assesses regarding the applicability of various taxation aspects with
this regard. Especially when these deemed income provisions were elastically imported by the
assessing officers, deep understanding of these provisions are need of the hour and this article throws
light towards some of those key aspects. The majority of orders through scrutiny assessment were
made applying the provisions under section 68,69, and 69 A of the act. And there by a brief knowledge
about these sections are must before the analysis tax and penal implications regarding the same.

Sec .68 – Cash Credits

Where any sum is found credited in the books of an assessee maintained for any previous year, and the
assessee offers no explanation about the nature and source thereof or the explanation offered by him is
not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-
tax as the income of the assessee of that previous year.

Sec . 69 – Un Explained Investments

Where in the financial year immediately preceding the assessment year the assessee has made
investments which are not recorded in the books of account, if any, maintained by him for any source of

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 41
income, and the assessee offers no explanation about the nature and source of the investments or the
explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the value of the
investments may be deemed to be the income of the assessee of such financial year.

Sec. 69 A – Un Explained Money etc.

Where in any financial year the assessee is found to be the owner of any money, bullion, jewelry or
other valuable article and such money, bullion, jewelry or valuable article is not recorded in the books
of account, if any, maintained by him for any source of income, and the assessee offers no explanation
about the nature and source of acquisition of the money, bullion, jewelry or other valuable article, or
the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money
and the value of the bullion, jewelry or other valuable article may be deemed to be the income of the
assessee for such financial year.

Constitutionality

Entries in the schedule VII of Constitution of India are not powers but are only fields of legislation and
the widest import of significance must be given to the language used by the makers of the constitution
in various entries. So entry 82 in the Union List should be read as not only about imposition of tax but
also as authorizing an enactment which prevails the tax imposed being evaded.

These sections merely gives Statutory recognition, to what may be called as common sense approach.
For being questioned the assessee gives a farfetched explanation, which is rejected, or his explanation
is found unsatisfactory, there would be nothing improper in the amount being considered as the
assessee income from undisclosed in the previous year. The explanation should not be rejected in
whole or part arbitrarily when it is quite reasonable in the circumstances of case and thereby when
only there is no reasonable explanation regarding the investments, cash deposits, cash credits,
additions under these sections would be held under justified.

115 BBE – Rates of Tax.

Those incomes referred in sections 68, 69, 69 A, 69 B, 69 C and 69 D shall be taxed at the rate specified
under section 115 BBE inserted via Finance Act 2012. After amendment w.e.f 1 st of April 2017, it is
expressly provided that no set of any losses shall be allowed in respect of these incomes and also to
increase the rate of tax to 60% (prior to which it was 30%). Such tax rate of 60% will be further
increased by 25% surcharge, 6% penalty, i.e., the final tax rate comes out to be 83.25% (including cess).
Provided that such 6% penalty shall not be levied when the income under Section 68, 69, etc., has been
included in return of income and tax has been paid on or before the end of relevant previous year.

Section 115BBE of the Act is only a machinery provision to levy tax on income and it should not enlarge
the ambit of before mentioned sections of the Act to create a deeming fiction to tax any sum already
credited/offered to tax as income. The intention of the Legislature behind introduction of section
115BBE was not to bring to tax genuine cash credits already offered to tax as income by the Assessee at
higher tax rates. Such an interpretation would lead to recurring attempts on the part of the Revenue
Authorities to reject genuine explanations offered by the Assessee with respect to sums
credited/offered as income in its books as unsatisfactory solely to extort higher rates of taxes thereon
u/s 115BBE of the Act.

Penalty Provisions:

In order to rationalize and bring objectivity, certainity and clarity ,the penalty for concealment of
income vide erstwhile section 271(1)(c) a new section 270 A was inserted via annual finance act 2016.
This section provides for levy of penalty in case of under reporting and Misreporting of Income. Under
reporting of income carries penalty at the rate of 50% whereas in case of Misreporting it gets enhanced
to 200%.

The cases of misreporting of income shall be the following, namely:—

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 42
 a) misrepresentation or suppression of facts;
b) failure to record investments in the books of account;
c) claim of expenditure not substantiated by any evidence;
d) recording of any false entry in the books of account;
e) failure to record any receipt in books of account having a bearing on total income; and
f) failure to report any international transaction or any transaction deemed to be an international
transaction or any specified domestic transaction.

Sec 270 AA – Immunity

If the tax is paid with in 30days of service e of order u/s 156 and an undertaking not to prefer appeal ,
the AO is bound to grant immunity for penalty under reporting of income. Where as the immunity is
only discretionary in case of Misreported income.The immunity can be granted only in the prescribed
circumstances and that too in the prescribed manner as the discretion of the asessing officer. Section
270AA restricts in its import the liability towards tax and the interest determined and payable subject
to the outcome of proceedings either under section 143(3) or section 147, but does not come within the
purview of the provision of section 144. In the event of an-exparte assessment, the assessee will not be
in a position to file an application for seeking immunity from imposition of penalty and initiation of
prosecution proceedings under section 270A and 276C/276CC of the Act.

Sec 271 AAC – Penalty

Penalty at the rate of 10% is leviable if additions is made under section 68,69,69A,69C and 69D of the
act.

Present Position

Post demonitisation for the AY 2017-18, the Income Tax Department had issued notice u/s. 142(1) of
the I.T. Act, 1961 to more than 1.16 lakh individual and firms that made cash deposits exceding
normal limits. A stand was taken by many taxpayers that the SBNs deposited were proceeds out
of genuine cash sales made during the year and not out of undisclosed income of past years. This
led to various legal issues regarding legality of acceptance of banned SBNs.

In addition to this, the CBDT came up with a Standard Operation Procedure Instruction/Internal
Guidance Note for assessing officer with regard to handling of cases related to demonetisation
vide circular dated 09.08.2019 in F.no.225/145/2019 – ITA.II. It specifically instructed the
Assessing Officers to make a comparative analysis of cash sales, cash deposited (year wise and month
wise). The Guidelines also suggested to keep an eye on the special indicators for bogus sales or
backdated sales and to further look at the situations described below:

1. Any unusual increase in the cash sales during the period November to December 2016 as
compared to previous assessment year
2. Any sudden deposit of cash to another account or entity, which may seem inconsistent.
3. Any unusual increase in the percentage of cash trails of identifiable persons as compared to
previous assessment year.

The books of accounts were produced during the course of assessment proceedings and no defect could
be pointed out in the same, however still in many instances, the assessing officer has made the addition
of cash deposited during the demonetisation period on the pretext that assessee has created
fictitious books of accounts. The assessing officer has simply assumed that the assessee had
undisclosed income since past many years and the same was deposited in bank account in the
garb of bogus cash sales or cash in hand which has been skillfully portrayed in the books of
accounts. The addition in such cases has been made u/s. 68 ,69,69A of the I.T. Act, 1961.

The following arguments may be made at appeallate stage in such cases.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 43
 1. Assessee opting to file return u/s. 44AD is not obliged to explain individual entry of cash
deposit in bank unless the AO proves that the said cash deposit has no nexus with gross
receipts and also 44AD cannot be asked to prove that 92% of his receipts have been expended.
2. Questioning the proposed unlawful and factually misconceived additions towards income ,
merely on the basis of deviation/variance in cash deposits and cash sales ratio of
demonitisation period with that of earlier periods.
3. Cash in hand cannot be equated to bogus sales without bringing evidence on record, when
assessee had filed Sales & Purchase details like Sales Register, Purchase Register, Sales and
Purchase Invoices, Stock Register and the AO had not made any further enquiry.

4. When cash deposited in reflected as cash sales in books of accounts and if the AO has not
rejected the books of accounts u/s 145(3), he cannot make any seperate addition for cash
deposit.
5. Regarding onus of proof, there are various contradictory case laws for which whether it is on
the department part or assessee part.
6. Ignorance of aged illiterate people to commit the mistake of carrying cash with out proper
books and deposit during the mean period may be considered on humanitarian consideration
basis.
7. Fundamental questioning for declaring acceptance of SBNs to be illegal and proving the
deposited cash were received and deposited in the mean period.
8. Questioning the constitutionality regarding exorbitant rate of taxes prescribed as per sec. 115
BBE and penalty us. 270A.

Judicial Pronouncements.

Some of the critical decisions regarding Sec 68, 69,69A before demonitisation are listed below:

A. In favour of the revenue:

1. Kale Khan Mohammad Hanif v. CIT 1963 50 ITR 1 SC. -The Income-tax officer had assessed
the gross profits of the businesses on the basis of certain percentages of the total sales which
had also to be fixed by estimates.It was held that the onus of proving the source of a sum
of money found to have been received by the assessee is on him. If he disputes liability
for tax, it is for him to show either that the receipt was not income or that if it was, it was
exempt from taxation under the provisions of the Act. In the absence of such proof, the
Income-tax Officer is entitled to treat it as taxable income.

2. Naresh Kumar Tulshan Vs Fifth Income Tax Officer - In the present case, assessee
deposited high denomination Tax Officer notes in bank declaring their source as past profits.
In subsequent statement however during survey, the source was given as withdrawal from a
partnership firm, but examination in firms book made possession of such high denomination
cash by firm on date of withdrawal improbable and thus Bombay HC held that the ITO was
justified in treating the impugned high denomination cash as assessee’s income as
unexplained money u/s 69A and was made taxable. It was held that “there was a clear
contradiction in the two statements of the assessee about the source of the impugned
amount. Had the source of the notes been his past profits as stated on 19-1-1978, there was
no necessity for him to state subsequently that the amount had been withdrawn from the
firm. Clearly if it represented his past profits, there was no need for any withdrawal from the
firm. Also, the certificate of the firm was in general terms and there was no other
contemporaneous evidence to corroborate the assessee’s case. Even the firm itself had not
explained the source of high denomination notes worth more than Rs. 619 lakhs and had
asked for a settlement.Considering all the evidence produced by the assessee, the conclusion
would be that the notes were never part of the firm’s cash and the assessee had not been
able to establish this fact. The lower authorities were, accordingly, justified in making the
addition.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 44
 3. CIT v. Devi Prasad Vishwanath Prasad. - The High Court, in disposing of the application
under section 66(2), expressed that the question again assumes that it was for the Income-
tax Officer to indicate the source of the income before the income could be held taxable and
unless he did so, the assessee was entitled to succeed. That is not, in our judgment, the
correct legal position. Where there is an unexplained cash credit, it is open to the
Income-tax Officer to hold that it is income of the assessee and no further burden lies
on the Income-tax Officer to show that that income is from any particular source. It is
further for the assessee to prove that even if the cash credit represents income, it is
income from a source which has already been taxed.

4. Manoj Aggarwal v. DCIT [2008] 113 ITD 377 (DELHI) – Though section 68 of the Act may
not be strictly applicable since the assessee was not maintaining any books of account and
the bank statement cannot be considered as the assessee’s books of account, on the basis of
the judgment of the Supreme Court in the case of A. Govindarajulu Mudaliar v. CIT [1958] 34
ITR 807, it is the onus of the assessee to explain the cash received by him and if there is no
explanation or acceptable evidence to prove the nature and source of the receipt, the amount
may be added as the assessee’s income on general principles and it is not necessary to
invoke section 68, nor is it necessary for the income-tax authorities to point out the source of
the monies received. Even if section 68 is not applicable, the cash deposit in the bank can be
asked to be explained by the assessee under section 69 or section 69B of Act.

5. CIT vs. Metachem Industries (2000) 245 ITR 160 (MP) - The moment the firm gives a
satisfactory explanation and produces the person who has deposited the amount, then the
burden of the firm is discharged and in that case that credit entry cannot be treated to be the
income of the firm for the purposes of income-tax. It is open to the Assessing Officer to take
appropriate action under Section 69 of the Act, against the person who has not been able to
explain the investment.

B. Case laws on cash deposits in favour of assessee:

1. Lalchand Bhagat Ambica Ram vs. CIT [1959] 37 ITR 288(SC) – Where amount en-cashed on
demonetization was part of cash balance in the books of account, ASSESSING OFFICER
cannot disbelieve a part of such cash balance as being not of specified denominations,
when the books are not rejected.

2. Mehta Parikh & Co vs CIT (1956) 30 ITR 181 (SC) - When assessee submitted books of
account showing relevant entries showing payment being made to them which resulted
in cash in its books and also submitted affidavits of payers, Revenue authorities cannot
hold that it was not possible that all payments after a particular date were being made in
multiples of Rs. 1000. No addition can be sustained based on pure surmise.

3. Shree Sanand Textiles Industries Ltd. V. DCIT vide ITA No. 1166/AHD/2014.
We also note that the provisions of section 68 cannot be applied in relation to the sales receipt
shown by the assessee in its books of accounts. It is because the sales receipt has already been
shown in the books of accounts as income at the time of sale only. We are also aware of the fact
that there is no iota of evidence having any adverse remark on the purchase shown by the
assessee in the books of accounts. Once the purchases have been accepted, then the
corresponding sales cannot be disturbed without giving any conclusive evidence/finding. In
view of the above we are not convinced with the finding of the learned CIT(A) and accordingly
we set aside the same with the direction to the AO to delete the addition made by him.

4. CIT v. Vishal Exports Overseas Limited (Gujarat High Court) 2009

Revenue carried the matter in appeal before the Tribunal. The Tribunal did not address the
question of correctness of the C.I.T. (Appeals)’s conclusion that amount of Rs.70 lakhs
represented the genuine export sale of the assessee. The Tribunal however, upheld the deletion
of Rs.70 lakhs under section 68 of the Act observing that when the assessee had already offered
sales realisation and such income is accepted by the Assessing Officer to be the income of the

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 45
 assessee, addition of the same amount once again under section 68 of the Act would
tantamount to double taxation of the same income.

5. Lakshmi Rice Mills v. Commissioner of Income-tax [1974] 97 ITR 258 (PAT.) – Section 69A of
the Income-tax Act, 1961 – Unexplained moneys – Assessment year 1946-47 – Whether
when books of accounts of assessee were accepted by revenue as genuine, and cash
balance shown therein was sufficient to cover high denomination notes held by assessee,
assessee was not required to prove source of receipt of said high denomination notes
which were legal tender at that time – Held, yes.

Vivad Se Vishwaas Scheme 2020

The primary reason for bringing out the Direct Tax Vivad Se Vishwaas Scheme 2020, as asserted by
the learned Revenue Secretary is to ensure amicable resolution of disputes arising out of
Demonetisation Cases.

The Income-tax department has launched an aggressive outreach drive, wherein, a large number of
jewellers and real-estate developers have been sent notices, emails and proposals to opt for this Tax
Amnesty Scheme and avail the benefit of immunity from interest and penalty and even prosecution.The
chance for the assessee’s under appeal to opt for this scheme is open till December of this year.

Conclusion

After scrutiny assessment for AY 2017-18 (Demonitisation Previous Year) in December 2019, it’s
literally a procession of appeals against demand applying these deemed provisions. Now in the era of
digitalization especially after implementing Face Less Assessment and Face Less Appeal schemes , from
the assessee point of view, literally the concept of ‘Hearing’ is no more before assessing authorities/
first appellate authority and more over there would not be any opportunity for being heard rather
opportunity to write. And thereby adequate preparations are the need of hour both for tax payer as well
as administrators point of view.

Biblio : Sampath Iyengars Law of Income Tax. and Internet Sources.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 46
 ADVANCE RULING IN GST
(APRIL – JUNE 2020)
Team TRD
Name of Industry Order No. & Case History
Applicant Date
Andhra Transport AAR No.  The applicant is public sector undertaking established
Pradesh State Industry 9/AP/GST/2020 under RTC Act, 195o under the Act of Parliament.
Road Transport dated:05-05-  It is engaged in transportation of passengers both as stage
Corporation 2020 carriers and contract carriers and also in transportation of
goods.
The following questions were raised
Question: Does the contract ser-vices of the applicant are covercd
under contract carriage as specified vide serial no 15 of notification
12/2017; What is the rate of tax payable?
Answer: As per the information given by the applicant, he is
rendering rental services and his tax liability under GST law is 18%
Question: Does the applicant require to file reconciliation statement
in FORM GSTR-9C?
Answer: As per section 97(2) this question doesn't fall under the
scope of advance ruling
Zigma Global Solid Waste AAR  The applicant offers solutions involving segregation,
Environ (MSW) No.10/AP/GST/2 treatment, recycling of Municipal Solid Waste (MSW) and
Solutions Management 020 thus clearing MSW landfills mandated under the solid waste
Private Limited Service dated:05-05- management Rules zo16 and central Pollution control Board
provider 2020 Guidelines for Disposal of Legacy Waste, February, zor9.
 M/s Tirupati Smart City Corporation , a govt. organization
intends to enter into a "DESIGN-BUILD- OPERATE,, (DBo)
system contract with a Private sen'ice Provider to
implement the project on "Remediation of Ramapuram
Dumpsite through Bio-mining process
Before entering in contract with M/s Tirupati Smart City Corporation,
the applicant has raised following queries
Question: Classification of the services provided by the Applicant.
Answer: The services of the applicant fall under Sl.No.32 of heading
9994 of Notification No: 11/2017 Central tax (Rate) dt. 28.06.2017.
Question: Whether the service recipient i.e', M/s. Tirupati Smart City
Corporation is a "Governmental Authority" as per the definition of
Notification No: 12/2017 Central Tax (Rate) dt: 28.06.2017.
Answer: The Service recipient is Government authority.
Question: Whether services provided by the Applicant is exempted
under Sl.No.3 of Notification 12/2017 dated 28.07.2017 as amended?
Answer: Affirmative.
Question: Whether the Governmental Authority is liable to deduct
TDS as per the provisions of section for the services rendered as state
in the Application?
Answer: Does not arise, as the services are exempted.
Pulluri Mining Logistic AAR  The applicant is a support service provider relating to
& Logistics Industry No.11/AP/GST/2 mining.
Private Limited 020 dated:05-05-  The applicant has received work from M/s. Sree Jayajyothi
2020 Cements Private Limited for executing mining contract at
Srinagar
The following question was raised
Question: Whether the HSD Oil issued free of cost by the service
recipient to the applicant would form part of value of supply of
service by the applicant as per Section 15 of the CGST Act, 2017? And
more particularly under sub-section (2) (b) of Section 15 of the CGST
Act”.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 47
 Answer: The HSD Oil issued free of cost by the service recipient to
the applicant would form part of value of supply of service by the
applicant.
Lakshmi Tulasi Petroleum AAR No. 12  The applicant is having Petrol bunk and engaged in supply
Quality Fuels product /AP/GST/2020 of petroleum oils and lubricants
supplier dated:05-05-  The applicant has entered into a lease agreement with D-
2020 Twelve Spaces Private Limited which is inter alia engaged in
the business of running, managing and operating the day to
day affairs of residential premises and sub lease of such
residential premises to individuals (including students) for
the purpose of long stay accommodation
The following question was raised
Question: Whether the applicant is eligible for the exemption from
payment of GST on the monthly rentals received by her on lease of
her residential building at Telangana to D-Twelve Spaces Private
Limited, as per SI.No.13 of the Notification No.9/2017 Dated 28-6-
2017.
Answer: The classification of service provided by M/s. Lakshmi
Tulasi Quality Fuels, is covered under SAC 997212 and hence under
entry no.16 of Notification No.8/2017 (Integrated Tax)(Rate), Dt:28-
6-2017, liable to IGST @ 18%.
The entry No.13 of Notification No.9/2017 (Integrated Tax) (Rate)
Dated 28-6-2017 – “services by way of renting of residential dwelling
for use as residence” is not applicable to the present case on hand.
Ushabala Chits Auction AAR  The applicant is a company engaged in conducting chit
Private Limited Business No.13/AP/GST/2 auctions for the past 36 years and is one of the longest
020 standing organisations.
dated:05-05-  They register the members and conduct auction in respect
2020 of each chit each month. The member winning the auction
will collect the prize money from the company. The
company will be collecting subscriptions from members by
dividing the prize money with number of members.
 The applicant is collecting the foreman commission @5%
from the amount to be distributed to the member taking the
prize money. The GST is paid on the foreman commission
@12%. T
 The foreman is responsible for registering the members,
collection of money from the members, conduct of auctions
and other related matters.
The following questions were raised
Question: Whether the interest/penalty collected for delay in
payment of monthly subscription by the members forms a supply
under GST?
Answer: Affirmative.
Question: If the said interest/penalty is a supply, what is the
classification and rate of duty applicable on the said supply?
Answer: It is classified under SI. No 15 of Heading 9971 Financial and
related services, GST @12% as per Notification No. 8/2017-
Integrated Tax (Rate) dated, the 28th June, 2017 as amended from
time to time.
Leprosy Healthcare AAR No. 14  The applicant was registered as a society under the Societies
Mission Trust Service /AP/GST/2020 Registration Act of 1860.
India Provider dated:05-05-  It has also diverse set of programmes i.e., Healthcare,
2020 Sustainable Livelihood, Community Empowerment,
Advocacy, and research and Training.
The following questions were raised
Question: Whether services provided under vocational training
courses recognised by National Council for Vocational Training
(NCVT) is exempted either under Entry N0.64 of exemptions list of
Goods and Services Tax Act, 2017 or under Educational Institution
defined under Notification No. 12/Central Tax (Rate).
Answer: The services provided under vocational training courses
recognised by National Council for Vocational Training (NCVT) are

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 48
 only exempted under Entry at serial N0.66 (a) of Notification
No.12/2017 Central Tax (Rate) dated 28th June 2017.
Halliburton Oilfield Service AAR  The applicant is a global service provider engaged in
Offshore provider No.15/AP/GST/2 providing various oilfield services to exploration and
Services 020 production companies
Inc.(Oil India) dated:13.05.2020 The following questions were raised
Question: Whether the supply of mud engineering services along
with supply of imported mud chemicals and additives provided on
consumption basis by the Applicant under the Contract qualify as
composite supply.
Answer: No
Question: If the answer to Para (a) is no, then whether such supply of
mud chemicals and additives on consumption basis at OIL India’s
location in India provided under the Contract qualify for concessional
GST rate of 5% against an Essentiality Certificate (‘EC’) under
Notification No. 50/2017-Customs dated 30 June 2017.
Answer: The benefits under referred Customs Notification is
available to supply of such goods at the time of their importation
subject to fulfillment of description, tariff item, lists and conditions
specified therein and subject to the satisfaction of the Proper Officer.
Halliburton Oilfield Service AAR  The applicant is a global service provider engaged in
Offshore provider No.16/AP/GST/ providing various oilfield services to exploration and
Services 2020 production companies
Inc.(Oil India) dated:13.05.2020 The following questions were raised
Question: Whether reimbursement received towards LIH equipment
can be considered as a supply as per Section 7 of the CGST Act, 2017
and hence, liable to GST?
Answer: Affirmative
Question: If reimbursement received towards LIH equipment can be
considered as supply and liable to GST, what would be the
classification and the rate of GST applicable on such supply?
Answer: The reimbursement received towards LIH equipment is
classifiable as .Supply of Goods in terms of section-7 of the GGST Act,
zor7. Depending upon the nature of actual goods involved in the
subject activity, their classification is as per HSN notified for the
goods and the classification Rules made in this regard. Accordingly,
the provisions relating to chargeability and levy of GST under the
CGST Act and the Rules made there under as applicable to the supply
of goods will apply.
Consulting Engineering AAR  The Applicant has agreed to provide project Management
Engineers service No.17/AP/GST/ consultancy Services to Andhra Pradesh Panchayat Raj
Group Limited provider 2020 Engineering Department(APPRED)
dated: The following questions were raised
13.05.2020 Question: Whether the ‘Project Management Consultancy’ services
provided to Andhra Pradesh Panchayat Raj Engineering Department
for Andhra Pradesh Rural Road Project (APRRP) for Road
Construction can be termed as ‘Pure Services’ as referred in Sl. No. 3 –
(Chapter 99) of Table mentioned in Notification No. 12/2017 –
Central Tax (Rate) Dated 28/06/2017 and accordingly eligible for
exemption from Central Goods and Service Tax and Sl. No. 3 –
(Chapter 99) of Table mentioned in G.O.Ms.No.588 –(Andhra
Pradesh) State Tax (Rate) Dated 12/12/2017 and accordingly eligible
for exemption from Andhra Pradesh Goods and Service Tax.
Answer: Affirmative
High Tech Works GOA/GAAR/5 of  The applicant is engaged in the business of maintenance or
Refrigeration & Contractor 2019-20/530 repair service of on works contract basis and erection,
Air commissioning & installation of Refrigerator , Air condition
conditioning machine and similar types of machines
Industries The following questions were raised
Question: Fixing of Air conditioner & VRV system in Goa for a client
(Recipient) registered outside Goa but not registered in Goa. Whether
IGST or (SGST & CGST) rate applicable & whether billing B to C OR B
To B

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 49
 Question: Supplying of Air conditioner to client (Recipient)
registered outside Goa but not registered in Goa consisting of Air
conditioner (28%) Copper pipe, Drain pipe, Electric cable etc (18%)
and fixing rate (18%). These items can be supplied/Billed them
separately under GST
Question: Supplying of Air conditioner (28%) for residential house in
Goa consisting of in case require additional item Copper pipe, Drain
pipe, Electric cable etc (18%) and fixing rate (18%). Billing them
separately is allowed/ok.
Question: Can installation of Air conditioner (28%) can be done by
sister concern or Third party to client based in Goa or Outside Goa @
(18%) GST for fixing.
Question: Can composite Dealer raise Service Bill for Fixing of Air
Conditioner & also what GST Rate applicable.
Question: Whether stabilizer may or may not be sold with Air
conditioner what is the Rate of GST Applicable on Stabilizer (18%)
when it is Attached / Supplied with Air conditioner (28%)
Question: Rate of GST on Centralized Air Conditioning Systems. For
(works contract) Rate of GST on Split Air Conditioning System fixed in
room. And Rate of GST on movable Air conditioning System. Client
Registered in Goa or Client registered outside Goa.
Answer: The ruling so sought by the Applicant is accordingly
answered as under:-The nature of supply made by the applicant is to
be treated as a supply of goods in the course of interstate trade or
commerce and tax is to be charged accordingly.
Springfields Hand GOA/GAAR/1 of  The Applicant is a registered partnership firm
(India) Sanitizers 2020-21/530 manufacturing Hand Sanitizers
Distilleries manufacturer dated 29.06.2020 The following questions were raised
Question: Hand Sanitizer is covered under following HSN Code &
rate 30049087 – Antihypertensive drugs : Antibacterial formulations
not elsewhere specified or included HS Code and Indian Harmonized
System Code. Rate of GST is 12%.
Question: The Ministry of Consumer Affairs, Food and Public
Distribution, in a notification CG-DL-E13032020-218645 has
classified Hand Sanitizers under the Essential Commodities Act, 1955
as an essential commodity and thus exempt from GST.
Answer: Alcohol Based Hand Sanitizers manufactured by the
applicant are covered by HSN 3808 and are accordingly taxable at
appropriate rate as per schedule entry notified vide Notification No. 1
Central Tax (Rate) dated 28/06/2017.
The Leprosy NGO 01/WBAAR/202  The Leprosy Mission Trust India is registered u/s 12A of the
Mission Trust 0-21 dated Income Tax Act’1961.
lndia 29.06.2020  It is a Non-Governmental Organization (NGO), which, among
others, administers Vocational Training institute named Bill
Edgar Memorial Vocational Training Centre (BEMW)
primarily for skill development of the underprivileged
suffering from leprosy.
The following questions was raised
Question: Whether the service of providing vocational training
courses at its Vocational Training Centre, Bankura is exempt under
Entry 66 of Notification No. 12/12017 - Central Tax (Rate) dated
28/06/2017
Answer: The applicant's services to the students, faculty and staff
with respect to the skill development courses for diesel mechanic,
welder and sewing technology are exempt under Entry 66 (a) of
Notification 1212017 - Central Tax (Rate) dated 28/06/2017 (State
Notification No. 1 136-FT dated 2810612017), as amended time to
time. Exemptions under entry 64 or 71 of the above notification are
not applicable.
This Ruling is valid subject to the provisions under Section 103 until
and unless declared void under Section 104(1) of the GST Act.
IZ-Kartex Contract 04/WBAAR/202  The applicant is the local branch of a Russian business entity
named after P G Service 0-21 by the same name (hereinafter „Foreign Company‟), which

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 50
Korobkov Ltd Dated entered into a Maintenance and Repair Contract
29/06/2020 (hereinafter called “MARC”) with Bharat Coking Coal Ltd
(hereinafter “BCCL”) with respect to the machinery and
equipment it had supplied.
The following questions was raised
Question: A foreign company has contracted for a long term repair
and maintenance contract for the equipment it supplied to Bharat
Coking Coal Ltd. Whether it amounts to import of service is the
question to be answered.
Answer: Supply of service to BCCL in terms of the MARC is not
import of service. The recipient is not, therefore, liable to pay GST on
reverse charge basis in terms of Notification No. 10/2017 –
Integrated Tax (Rate) dated 28/06/2017. The applicant, being the
domestic MARC Holder, is liable to pay tax as applicable in terms of
clause 9.2.2 of the MARC.
This Ruling is valid subject to the provisions under Section 103 until
and unless declared void under Section 104(1) of the GST Act.
Mansi Oils and Corporate 02/WBAAR/202  The applicant M/S Mansi Oils and Grains Pvt. Ltd. is a
Grains Pvt Ltd Debtor 0-21 dated corporate debtor under the provision of the Insolvency and
29.06.2020 bankruptcy Code’2016and appointed a liquidator.
The following questions was raised
Question: The applicant wants to know whether sale of assets by the
liquidator is 'supply' and, if so, whether and how the liquidator
should get herself registered.
Answer: The sale of the assets of the applicant by NCLT appointed
liquidator is a supply of goods by the liquidator, who is required to
take registration under section 24 of the GST Act. lf she is already
registered as a distinct person of the corporate debtor in
terms of Notification No. 11/2O2O - Central Tax dated 21/O3/2O2O,
she should continue to remain registered till her liability ceases
under section 29 (1) (c) of the GST Act.
This Ruling is valid subject to the provisions under Section 103 until
and unless declared void under Section 104(1) of the GST Act.
Swayam Charitable 03/WBAAR/202  The applicant M/s Swayam is a charitable trust is registered
Trust 0-21 dated u/s 12A of the Income Tax Act’1961.
29.06.2020  It engaged in providing legal, medical, psychological and
financial support to the women and their children surviving
violence & abuse.
The following questions was raised
Question: Applicant wants to know whether it is liable to pay tax on
reverse charge on such payments.
Answer: The applicant's activities do not amount to 'supply' of
service, neither is it a recipient of the services for which it often
provides financial assistance to the women survivors of sexual and
other violence. The applicant is, therefore, not liable to pay GST on
the activities described in the application
This Ruling is valid subject to the provisions under Section 103 until
and unless declared void under Section 104(1) of the GST Act.
Uttarakhand Govt. Company UK-AAR-  This is an application under Sub-Section (1) of Section 97 of
Forest 01/2020-21 the CGST/SGST Act, and the rules made there under filed by
Development Dt.- 29/05/2020 M/s. Uttarakhand Forest Development Corporation
The following questions was raised
Question: Whether a person, unregistered with GST, providing road
transport service by his own truck, to the applicant, will be treated as
GTA for RCM under GST?
Question: Will issuance of E-Way Bill, form 2.1 and 3.3 by or to road
transporter who is unregistered with GST, providing road transport
service by his own truck, be treated as consignment note for RCM-
GST purpose? It is to be made clear here that the road transporter
does not issue any consignment note of goods carried by him except
signing form 2.1 & 3.3 as stated above.
Question: Whether a person, unregistered with GST, providing road
transport service by hiring trucks from third party, to the applicant,

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 51
 will be treated as GTA for RCM under GST?
Question: Will issuance of E-Way Bill, form 2.1 and 3.3 by or to road
transporter who is unregistered with GST, providing road transport
service by hiring trucks from third party, be treated as consignment
note for RCM-GST purpose? It is to be made clear here that the road
transporter does not issue any consignment note of goods carried by
him except signing form 2.1 & 3.3 as stated above.
Answer: The services rendered by the applicant during the period
01.07.2017 to 31.12.2018 attract GST at the same rate of central tax
as on supply of like goods involving transfer of title in goods i.e 5%
and w.e.f 01.01.2019 the said service attract GST@ 18%.
Uttarakhand Govt. Company UK-AAR-  This is an application under Sub-Section (1) of Section 97 of
Forest 02/2020-21 the CGST/SGST Act, and the rules made there under filed by
Development dated 29.05.2020 M/s. Uttarakhand Forest Development Corporation
The following questions was raised
Question: What will be the applicable rate of GST on Royalty payable
to Government of Uttarakhand under RCM in respect of Reta, Bazri
and Boulder extracted as per permission of Government authorities
and sales are made under GST rate i.e. 5%?
Answer: i. Services received from the unregistered transporters ‘by
the applicant falls under the definition of “GTA’ services in terms of
Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and
the same are covered under ‘RCM’ in terms of Notification No.
13/2017-Central Tax (Rate) dated 28.06.2017.
ii. Form 2.1 issued by the applicant can be considered as a
consignment note.
Tamil Nadu Electric TN/14/AAR/202 The applicant is engaged in the generation and distribution of
Generation and Supplier 0 dated electricity.
Distribution 20.04.2020 The following questions were raised
Corporation Question. GST applicability on the transactions between TANGEDCO
Limited Ltd. & TANTRANSCO Ltd
Answer: The transaction between TANGEDCO and TANTRANSCO are
in the course of generation, transmission and distribution of
electricity. This activity of transmission or distribution of electricity
by an electricity transmission or distribution utility is exempt under
SI.No.25 of Notification No. 12/2017-Central Tax (Rate) dated
28.06.2017 with corresponding exemption for SGST. ARA is
requested to answer the above question, in terms of Sec.97 (2)(b) of
the CGST Act, 2017, in favour of the applicant by confirming that the
transactions between the two electricity transmission and
distribution utility would be exempted from GST as per the
notifications cited.
Question: Applicability of GST on Deposit Contribution Works
Answer: Depository Contribution Works is classifiable under SAC
99873 and the applicable rate of tax is CGST @ 9% as per SI.No. 25
of Notification No. 11/2017-C.T. (Rate) dated 28.06.2017 and SGST @
9% as per SI.No. 25 of Notification No. II (2)/ CTR/ 532(d-14)/2017
vide G.O. (Ms) No. 72 dated 29.06.2017 as amended and the same is
not exempted.
Question: Whether TANGEDCO ltd can be considered a “Government
Entity”
Answer: TANGEDCO is a ‘Government Entity’ as defined
under Notification No. 11/2017-C.T. (Rate) dated 28.06.2017 as
amended and 12/2017-C.T.(Rate) dated 28.06.2017 as amended
by Notification No. 31/2017-Central Tax (Rate) dated
13.10.2017 and Notification No. 32/2017-C.T.(Rate) dated
13.10.2017 effective from 13.10.2017
Question: Applicability of GST on Transmission Charges for Natural
Gas.
Answer: The applicability of GST on the Transmission Charges billed
by GAIL is not answered as not admitted, under sub-section (2) of
section 98 of the CGST Act, 2017 and the TNGST Act, 2017 read with
Section 95(a) of the Act.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 52
Heavy Vehicles Manufacturer TN/15/AAR/202  The applicant is a Central Government Department coming
Factory of Tank and 0 dated under the Ordinance Factory Board, Ministry’ of Defense,
Tank Parts 20.04.2020 and Government of India and are engaged in the
manufacturing Tank and Tank Parts.
The following questions were raised
Question: Whether Tank and all Tank parts supplied by the applicant
is considered under HSN code “8710000-Tank and other armoured
fighting vehicles, motorized, whether or not fitted with weapons and
parts of such vehicles”?
Question: Whether parts manufactured specifically by applicant for
TANK shall be considered under 87100000?
Question: Whether parts and accessories supplied by their vendor
specifically manufactured for tank parts and the same is not supplied
to any other company will come under the HSN 87100000?
Answer: Tank is classified under CTH 8710 0000 while parts which
satisfies the essential conditions i.e., they must be identifiable as
being suitable for use solely or principally with Tanks and must not
be excluded by the provisions of the Notes to Section XVII and must
not be more specifically included in elsewhere in the Nomenclature
are only to be classified as ‘Parts’ under CTH 8710 0000.
Question: Whether tank parts shall be considered under 87100000
or not:-
Answer: Retainer Steel, Valve Assembly, Casing Assembly, Hydraulic
items (all types), Mandrel assembly, Nozzle Assembly, Plate assembly,
Panel assembly, Support Assembly and Sleeve Assembly are
classifiable as parts under CTH 8710 0000 for the reasons stated at
Para 10.2 &10.3 above.
Dowel Pin, Gasket Assembly, Stiffner, Clip Assembly, Connector
Assembly, Needle Bearing and Planet Pinion are not classifiable under
CTH 8710 000 for the reasons stated at Para 10.2 &10.3 above.
Question: If the vendor is supplying parts under an HSN code other
than 87100000, is it necessary that it has to be supplied under the
same HSN code on what the vendor is charging?
Answer: Classification is independent of the buyer or seller and
depends only on the goods.
Kavi Cut Tobacco TN/16/AAR/202  The applicant is engaged in manufacture and supply of
Tobacco(ARUM Product 0 dated tobacco product under brand name of Kavi Cut Tobacco
UGAM) 20.04.2020 The following questions were raised
Question: Classification of Goods
Answer: The specified product is to be classified under CTH 2403
9910 –Chewing Tobacco
Question: Applicability of Notification 01/2017 Comp. Cess (Rate)
Answer: 160%
Global Textile Fabric TN/17/AAR/202  The applicant is engaged in manufacture and supply of
Alliance India Manufacturer 0 dated Fabric products
Pvt Ltd 20.04.2020 The following questions were raised
Question What is the correct classification and rate of GST applicable
on supply of the following Goods:
Answer:
Product Classification GST Rate
Knitted Fabrics CTH 60 5%
Woven Fabrics CTH 5407 5%
Woven Fabric bonded CTH 5407 5%
with Non Oven Fabric
Covers for pillow CTH 63049239/CTH 5%
latex block 63041990
mattresses
Foot Runner CT 63021090 5%(Selling Price Below
Pillow Sheet Rs. 1000)
12%(Selling Price more
than Rs. 1000)
Chenille Yarn CT 56060020 12%
Poly Propylene Retail Sale-CTH 5402 18%

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 53
 Extrusion Yarn Not retail sale- CTH
Poly Propylene 5406
Texturized Yarn
Polyester Texturized
Yarn
Rajesh Rama IT Service TN/20/AAR/202  The applicant provides IT software related consulting
Varma provider 0 dated services in the area of Oracle ERP w.r.t Oracle Financials to
24.04.2020 Doyen for a consultancy fee laid down in the consultancy
agreement.
The following question was raised
Question Tax Liability Determination.
Answer: The services provided by the applicant to Doyen systems
Private Limited is a supply of services under CGST /TNGST Act and
the applicant is liable to pay relevant tax on such supply.
INVENTAA LED LED Light TN/21/AAR/202  The applicant is engaged in manufacturing and trading of
Lights Private manufacturer 0 dated high-quality Outdoor and Indoor LED Lights with Fittings
Limited 24.04.2020 The following question was raised
Question What is the applicable GST Tariff code and GST rate for the
supply of patent-applied LED stem (long bulb) with fittings when
both are manufactured in the applicant’s factory and supplied as a
single unit?
Answer: Supply of ‘LED stem (long bulb) i:e. outdoor lighting fixtures
with LED integrated inside them, by the applicant is classifiable under
CTH 94054090 and is taxable at the rate of 6% CGST vide Sl.No. 226
of Schedule-ll of Notification no 01/2017-C.T. (Rate) dated
28.06.2017 as amended and 6% SGST as per S. No. 226 of Schedule-ll
of G O. (M.S.) No. 62 dated 29.06.2017 as amended.
Sunil Kumar Hair Product RAJ/AAR/2020-  The applicant is engaged in manufacture of hair dye powder
Gehlot (Sunil manufacturer 21/01 dated  The applicant intends to manufacture mehandi/henna
Kumar & Co.) 06.05.2020 powder in future
The following question was raised
Question What is the classification and rate of GST applicable on the
mehandi/henna powder?
Answer: Mehendi/Henna powder is covered under Chapter 33 and
will attract GST @18% (CGST 9% + SGST 9%).
Sarda Bio Psyllium Husk RAJ/AAR/2020-  The applicant is engaged in manufacture of Psyllium Husk
Polymers Pvt. Powder 21/02 dated Powder in Pali
Ltd. manufacturer 06.05.2020  The applicant procures Psyllium Husk which is crushed to
form Psyllium Husk Powder.
The following question was raised
Question What is the classification and rate of GST applicable on
Psyllium Husk Powder?
Answer: Psyllium Husk Powder, a preparation made from Psyllium
Plant or its parts is classifiable under HSN 12119032 and attracts GST
@ 5% (CGST 2.5% + SGST 2.5%) as provided under Notification No.
1/2017 Central Tax (Rate) dated 28.06.2017 (as amended).
KSC Buildcon Mining work RAJ/AAR/2020-  Applicant have signed a contract agreement for
Private Limited development 21/03 dated development work of mines including the earthwork of
contract 14.05.2020 drilling, excavation, removal, transportation of green
marble/serpentine and dumping of waste material
 Also, building of roads for the movement of vehicles and are
also responsible for safe maintenance of the haul roads and
have to deploy necessary personnel.
 Again need to deploy necessary mining machinery viz IR,
Poclain, JCB, Loader, Trucks along with operation &
maintenance personnel and complete labour.
The following question was raised
Question- Classification and Rate of above mentioned goods/services
supplied.
Answer: The work undertaken by applicant is a support of mining
covered under HSN 998622 and attracts GST 18%
ARG Electricals Equipment RAJ/AAR/2020-  The applicant has received work order from Ajmer Vidyut
Pvt. Ltd. supplier of 21/04 dated Vitran Nigam Ltd. for distribution of electricity in various

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 54
 Electricity 14.05.2020 parts of Ajmer District
Infrastructure The following question was raised
Question- Whether the above mentioned work qualifies as a supply
for work contract under Section 2(119) of the CGST Act?
Answer: Composite supply of Works Contract
Question- If Yes, whether such supply, erection, testing and
commissioning of materials/equipments for providing rural
electricity infrastructure made to AVVNL would be taxable at the rate
of 12% in terms of Sr. No. 3(vi)(a) of the Notification No.11/2017-
Central Tax (Rate) dated 28.06.2017 as amended w. e. f. 25.01.2018?
Answer: attracts GST 18%
Hazari Bagh Real estate RAJ/AAR/2020-  The Applicant company has entered into a long term Lease
Builders Pvt. industry 21/05 dated Agreement of 99 years with Rail land Development
Ltd. 30.06.2020 authority for undertaking residential & commercial
development along with development of financial
infrastructure
 The Applicant Company paid a sum of Rs. 158657105.00 in
parts by way of RTGS on separate days in the month of
February, 2019 as Security deposit which, in case of breach
is refundable after forfeiting the bid security deposited
separately for both the Plots as per the terms of the lease
agreement which is Rs. 3300000.00 for Plot A and of Rs.
5200000.00 for Plot B.
The following question was raised
Question- Whether the amount paid prior to 29.03.2019 in
pursuance to the lease agreement of 99 years executed on 08.11.2019
are exempt from levy of GST or not.
Answer: i. The Lease Agreement between the Applicant Company i.e.
the Lessee and RLDA for a period of 99 years is not exempted from
levy of GST in view of the Notification No. 04/2019-Central Tax (rate)
dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate)
dated 28.06.2017.
ii. The amount of Rs. 158657105/- which is transferred by the
Applicant/SPV in pursuance to the tender and lease agreement dated
08.11.2019 is not exempted under GST in view of the Notification No.
04/2019-Central tax(rate) dated 29.03.2019 or Notification No.
12/2017-Central Tax(rate) dated 28.06.2017.
iii. The amount of Rs. 158657105/- deposited during February, 2019
is not exempted from GST vide Notification No. 04/2019-Central Tax
(rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax
(rate) dated 28.06.2017.
Prasar Public Service HP-AAR-1/2020  The applicant is a public service broadcaster
Broadcasting Broadcaster dated 19.05.2020  The applicant avails services of hiring taxis for office staff to
Corporation of facilitate them during ODD duty hours, OB Recordings, for
India lady staff or handicapped staffs.
The following question was raised
Question- Applicable GST rate on renting of motor cab service.
Answer: As per notification number 20/2017 dated 22.08.2017 GST
rate is 5% (of input services in the same line of business
)with limited ITC and 12% with full ITC
Question- Whether ITC will be available to the recipient on the
renting of motor cab service for transportation of employees?
Answer: If the facility provided by a taxpayer for transportation of
employees is not obligatory under any law , for the time being in force
then no ITC will be available to such a taxpayer. The applicant will
however be eligible to claim ITC for the services supplied at 12%GST
rate if the conditions laid down in the second proviso to section 17(5)
b are satisfied.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 55
 RECENT UPDATES IN
DIRECT AND INDIRECT TAX
Team TRD

Direct Tax
Due date for filling of Income Tax Return for A.Y 2019 has been extended from September 30, 2020 to
30th November,2020 considering the genuine difficulties faced by the taxpayers due to the outbreak of
COVID-19

For details, please follow-

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Order_119_of_the_IT_ACT_Extension
_of_dates_for_filing_of_ITRs_AY_2019-20.pdf

Form 35 is re-enabled to file appeal in accordance with the Faceless Appeal Scheme, 'Save draft' will be
enabled shortly.

Indirect Tax
E-invoicing has been launched from 1st October 2020 onwards. However Relaxations have been
provided considering the present pandemic situation

For details, please follow- https://www.gst.gov.in/newsandupdates/read/405

Relief in late fees to Taxpayers filing Form GSTR-4 or 10 and change in navigation of Comparison of
liability declared and ITC claimed report have been provided

For details, please follow- https://www.gst.gov.in/newsandupdates/read/404

Offline Tool is available in GST Portal to compare ITC auto drafted in Form GSTR-2B with Purchase
Register

For details, please follow- https://www.gst.gov.in/newsandupdates/read/403

The Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for filing GSTR-9 and
GSTR-9C for the Financial Year 2018 – 19 till 31st October 2020.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 56
 TAX UPDATES, NOTIFICATIONS AND
CIRCULARS
INDIRECT TAX
GST NOTIFICATIONS & CIRCULARS
Central Tax
Notification No. 66/2020 – Central Tax
Dated – 21st September, 2020

Seeks to give one time extension for the time limit provided under Section 31(7) of the CGST Act
2017 till 31.10.2020

Government has made the following further amendment in the notification No. 35/2020-Central Tax
which was 3rd April, 2020. In this notification, in the first paragraph, in clause (i), after the first proviso,
the following proviso shall be inserted:

“Provided further that where, any time limit for completion or compliance of any action, by any person,
has been specified in, or prescribed or notified under sub-section (7) of section 31 of the said Act in
respect of goods being sent or taken out of India on approval for sale or return, which falls during the
period from the 20th March, 2020 to the 30th October, 2020, and where completion or compliance of
such action has not been made within such time, then, the time limit for completion or compliance of
such action, shall stand extended upto the 31st October, 2020.”

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-66-

central-tax-english-2020.pdf;jsessionid=0B489CFBE7FFDEDEDFC46E5D5B575B41

Notification No. 67/2020 – Central Tax

Dated – 21st September, 2020

Seeks to grant waiver / reduction in late fee for not furnishing FORM GSTR-4 for 2017-18 and
2018-19, subject to the condition that the returns are filled between 22.09.2020 to 31.10.2020

Government has made the further amendments in the notification No. 73/2017– Central Tax which was
issued 29th December, 2017.

In this notification the following proviso shall be inserted:

Provided also that late fee payable under section 47 of the said Act, shall stand waived which is in
excess of two hundred and fifty rupees and shall stand fully waived where the total amount of central
tax payable in the said return is nil, for the registered persons who failed to furnish the return in FORM
GSTR-4 for the quarters from July, 2017 to March, 2020 by the due date but furnishes the said return
between the period from 22nd September, 2020 to 31st October, 2020.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-67-

central-tax-english-2020.pdf;jsessionid=1C7CF96A65ADE8882422878022553C73

Notification No. 68/2020 – Central Tax

Dated – 21st September, 2020

Seeks to grant waiver / reduction in late fee for not furnishing FORM GSTR-10, subject to the
condition that the returns are filled between 22.09.2020 to 31.12.2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 57
Government has waived the amount of late fee payable under section 47 of the said Act which is in
excess of two hundred and fifty rupees, for the registered persons who fail to furnish the return in
FORM GSTR-10 by the due date but furnishes the said return between the period from 22nd
September, 2020 to 31st December, 2020.

Notification No. 69/2020 – Central Tax

Dated – 30th September, 2020

Seeks to amend notification no. 41/2020-Central Tax dt. 05.05.2020 to extend due date of return
under Section 44 till 31.10.2020

Due date of return under Section 44 has extended 30th September, 2020 to till 31 st October, 2020.
For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-69-
central-tax-english-2020.pdf;jsessionid=EBB16CD07DF552B6C72ECE7A7B81DD73

Notification No. 70/2020 – Central Tax

Dated – 30th September, 2020

Seeks to amend notification no. 13/2020-Central Tax dt. 21.03.2020

Government made the following further amendments:

In this notification, the words “a financial year”, the words and figures “any preceding financial year
from 2017-18 onwards” shall be substituted and after the words “goods or services or both to a
registered person”, the words “or for exports” shall be inserted.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-70-

central-tax-english-2020.pdf;jsessionid=CB4FDFBA80F67FE6CA34E84A37FA6C91

Notification No. 71/2020 – Central Tax

Dated – 30th September, 2020

Seeks to amend notification 14/2020- Central Tax to extend the date of implementation of the
Dynamic QR Code for B2C invoices till 01.12.2020

Government made the following further amendments:

By this notification the words “a financial year”, the words and figures “any preceding financial year
from 2017-18” onwards shall be substituted and in the second paragraph, for the figures, letters and
words “1st day of October”, the figures, letters and words “1st day of December” shall be substituted.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-71-

central-tax-english-2020.pdf;jsessionid=BA4617F5D5E8F57A723D72B3778668C3

Notification No. 72/2020 – Central Tax

Dated – 30th September, 2020

Seeks to make the Eleventh amendment (2020) to the CGST Rules

In this amendment following clause shall be inserted:

i. Quick Reference code, having embedded Invoice Reference Number (IRN) in it, in case invoice
has been issued in the manner prescribed under sub-rule (4) of rule 48.”
ii. in rule 48, in sub-rule (4), the following proviso shall be inserted
“Provided that the Commissioner may, on the recommendations of the Council, by notification,
exempt a person or a class of registered persons from issuance of invoice under this sub-rule

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 58
 for a specified period, subject to such conditions and restrictions as may be specified in the said
notification.”
iii. In the said rules, in rule 138A, for sub-rule (2), the following sub-rule shall be substituted
“(2) In case, invoice is issued in the manner prescribed under sub-rule (4) of rule 48, the Quick
Reference (QR) code having an embedded Invoice Reference Number (IRN) in it, may be
produced electronically, for verification by the proper officer in lieu of the physical copy of such
tax invoice.”

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-72-

central-tax-english-2020.pdf;jsessionid=E3D9C4AE284D8580308409FB5823D60F

Notification No. 04/2020 – Central Tax (Rate)

Dated – 30th September, 2020

Extension of CGST exemption on services by way of transportation of goods by air or by sea from
customs station of clearance in India to a place outside India, by one year i.e. upto 30.09.2021

In this notification, in the Table:

(i) against serial number 19A, in the entry in column (5), for the figures "2020", the figures "2021 "
shall be substituted;
(ii) against serial number 19B, in the entry in column (5), for the figures "2020", the figures "2021 "
shall be substituted;

This notification has come into force with effect from the 1st October, 2020.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-04-

2020-cgst-rate-english.pdf;jsessionid=7A4C4065585131D70262CE7CCAAEAF25

Notification No. 04/2020 – Integrated Tax (Rate)

Dated – 30th September, 2020
Extension of IGST exemption on services by way of transportation of goods by air or by sea from
customs station of clearance in India to a place outside India, by one year i.e. upto 30.09.2021

In this notification, in the Table:

(i) against serial number 20A, in the entry in column (5), for the figures "2020", the figures "2021 "
shall be substituted;
(ii) against serial number 20B, in the entry in column (5), for the figures "2020", the figures "2021 "
shall be substituted;

This notification has come into force with effect from the 1st October, 2020.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-04-

2020-igst-rate-english.pdf;jsessionid=962E08BB405137841F9C04CAD06602E9

Notification No. 04/2020 – Union Territory Tax (Rate)

Dated – 30th September, 2020

Extension of UTGST exemption on services by way of transportation of goods by air or by sea

from customs station of clearance in India to a place outside India, by one year i.e. upto
30.09.2021

In this notification, in the Table:

(i) against serial number 19A, in the entry in column (5), for the figures "2020", the figures "2021 "
shall be substituted;

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 59
(ii) against serial number 19B, in the entry in column (5), for the figures "2020", the figures "2021 "
shall be substituted;

This notification has come into force with effect from the 1st October, 2020.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-04-

2020-utgst-rate-english.pdf;jsessionid=8EFE1C957E0CE2FFE279A823F243AF46

CUSTOMS NOTIFICATIONS & CIRCULARS

Tariff Notification
Notification No. 34/2020-Customs
Dated – 17th September, 2020

Seeks to further amend notification No. 50/2017-Customs dated 30.06.2017 so as to reduce the
Basic Customs Duty on Lentils (Mosur) for the period from 18th September, 2020 to 31st October,
2020.

Central Government has made the further amendments in the notification No. 50/2017- Customs which
was issued on 30th June, 2017.

In this notification, -
a) in the first proviso, for clause (e), the following clause shall be substituted namely
“(e) the goods specified against serial numbers 21E and 21F of the said table, -
(i) during the period 1st September, 2020 to 17th September, 2020”;
(ii) after the 31st day of October, 2020.”;
b) in the second proviso, after the figure and letter “21D,”, the figure and letter “21E,”, shall be
inserted.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-tarr2020/cs34-
2020.pdf;jsessionid=F5F9C911CE2DCD5836F7B29344BA35C5

Notification No. 35/2020-Customs

Dated – 30th September, 2020

Seeks to further amend notification No. 50/2017-Customs dated 30th June, 2017 so as to
prescribe 5% BCD on Open Cell for LED/LCD TV Panels.

Central Government has made the further amendments in the notification No. 50/2017- Customs which
was issued on 30th June, 2017. In this notification the following amendment has made –
(i) in the Table, against S. No. 515A, for the entry in column (4), the entry “5%” shall be
substituted;
(ii) in the first proviso, clause (d) shall be omitted.

This notification has into force with effect from the 1st October, 2020.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-tarr2020/cs35-
2020.pdf;jsessionid=16B598E44338F612D1A44FB4D3DF9E88

Non-Tariff Notification
Notification No. 88/2020-Customs (NT)
Dated – 17th September, 2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 60
 Exchange Rate Notification

CBIC has determined the rate of exchange of conversion of each of the foreign currencies into Indian
currency or vice versa which is specified in Schedule I and Schedule II and has effected from 18 th
September, 2020.

Schedule I
Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees
For Imported Goods For Exported Goods
Australian Dollar 54.75 52.45
Bahraini Dinar 201.90 189.50
Canadian Dollar 56.70 54.75
Chinese Yuan 11.05 10.70
EURO 88.20 85.10
US Dollar 74.60 72.90

Schedule II
Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees
For Imported Goods For Exported Goods
Japanese Yen 71.50 68.85
Korean Won 6.45 6.05

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-nt2020/csnt88-2020.pdf;jsessionid=B105D05B817FC51D09C2EA588F2B4167

Notification No. 89/2020-Customs (NT)

Dated – 17th September, 2020

Seeks to amend Notification No. 40/2012-Cus (N.T.) dated 2nd May, 2012

CBIC has made the following further amendments in the notification No. 40/2012-Customs (N.T.) which
was issued 2nd May, 2012.

In this notification, in the Table,-

i. against serial number 3, in column 3, after item (viii), the following item shall be inserted,
namely: -
“(viiia) Section 28DA;
ii. against serial number 4,in column (3), after item (ia), the following item shall be inserted,
namely: -
“(ib) Section 28DA;
iii. against serial number 5, in column (3)

This notification has into forced on the 21st September, 2020.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-
nt2020/csnt_caa_dri_89.pdf;jsessionid=F55AA67F30F693B278B000B80F3B814E

Notification No. 90/2020-Customs (NT)

Dated – 17th September, 2020

Amendment to Bill of Entry (Forms) Regulations, 1976

CBIC made the following regulations further to amend the Bill of Entry (Forms) Regulations, 1976. It
has come into force with effect from the 21st September, 2020.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-
nt2020/csnt_caa_dri_90.pdf;jsessionid=4E0CB7DE248392BCB36183E648C1EEAB

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 61
 Notification No. 91/2020-Customs (NT)
Dated – 24th September, 2020

Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds,
Areca Nut, Gold and Silver

CBIC has made the amendments in the notification No. 36/2001-Customs (N.T.) which was issued on 3rd
August, 2001. In this notification, the following Table has substituted.

TABLE - 2
Sl No. Chapter/ heading/ sub- Description of goods Tariff value (US $)
heading/tariff item
(1) (2) (3) (4)
1 71 or 98 Gold, in any form, in respect of which the benefit 631 per 10 gram
of entries at serial number 356 of the (i.e. no change)
Notification No. 50/2017-Customs dated
30.06.2017 is availed
2 71 or 98 Silver, in any form, in respect of which the 760 per kilogram
benefit of entries at serial number 357 of the
Notification No. 50
3 71 (i) Silver, in any form, other than medallions and 760 per kilogram
silver coins having silver content not below
99.9% or semi-manufactured forms of silver
falling under sub-heading 7106 92;
(ii) Medallions and silver coins having silver
content not below 99.9% or semi-manufactured
forms of silver falling under sub-heading 7106
92, other than imports of such goods through
post, courier or baggage.
Explanation. - For the purposes of this entry,
silver in any form shall not include foreign
currency coins, jewellery made of silver or
articles made of silver.
4 71 (i) Gold bars, other than tola bars, bearing 631 per 10 grams
manufacturer’s or refiner’s engraved serial (i.e. no change)
number and weight expressed in metric units;
(ii) Gold coins having gold content not below
99.5% and gold findings, other than imports of
such goods through post, courier or baggage.
Explanation. - For the purposes of this entry,
“gold findings” means a small component such
as hook, clasp, clamp, pin, catch, screw back
used to hold the whole or a part of a piece of
Jewellery in place.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-nt2020/csnt91-
2020.pdf;jsessionid=6EDBA41876AB95DCD345C2850F9221EB

Notification No. 92/2020-Customs (NT)

Dated – 28th September, 2020

Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seed,
Areca nut, Gold & Silver

CBIC has made the amendments in the notification No. 36/2001-Customs (N.T.) which was issued on 3rd
August, 2001. In this notification, the following Table has substituted.

TABLE - 2
Sl Chapter/ heading/ sub- Description of goods Tariff value (US $)
No. heading/tariff item
(1) (2) (3) (4)

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 62
 1 71 or 98 Gold, in any form, in respect of which the benefit 599 per 10 grams
of entries at serial number 356 of the Notification
No. 50/2017-Customs dated 30.06.2017 is
availed
2 71 or 98 Silver, in any form, in respect of which the benefit 760 per kilogram
of entries at serial number 357 of the Notification (i.e. no change)
No. 50
3 71 (i) Silver, in any form, other than medallions and 760 per kilogram
silver coins having silver content not below (i.e. no change)
99.9% or semi-manufactured forms of silver
falling under sub-heading 7106 92;
(ii) Medallions and silver coins having silver
content not below 99.9% or semi-manufactured
forms of silver falling under sub-heading 7106 92,
other than imports of such goods through post,
courier or baggage.
Explanation. - For the purposes of this entry,
silver in any form shall not include foreign
currency coins, jewellery made of silver or
articles made of silver.
4 71 (i) Gold bars, other than tola bars, bearing 599 per 10 grams
manufacturer’s or refiner’s engraved serial
number and weight expressed in metric units;
(ii) Gold coins having gold content not below
99.5% and gold findings, other than imports of
such goods through post, courier or baggage.
Explanation. - For the purposes of this entry,
“gold findings” means a small component such as
hook, clasp, clamp, pin, catch, screw back used to
hold the whole or a part of a piece of Jewellery in
place.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-nt2020/csnt92-
2020.pdf;jsessionid=68286951EBE017DA6406FF2068270F6F

Notification No. 93/2020-Customs (NT)

Dated – 30th September, 2020

Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seed,
Areca nut, Gold & Silver

CBIC has made the amendments in the notification No. 36/2001-Customs (N.T.) which was issued on 3rd
August, 2001. In this notification, the following Table has substituted.

TABLE - 1
Sl. No Chapter/ heading/ sub- Description of goods Tariff value (US $ Per
heading/tariff item Metric Tonne)
(1) (2) (3) (4)
1 1511 10 00 Crude Palm Oil 762
2 1511 90 10 RBD Palm Oil 795
3 1511 90 90 Others – Palm Oil 779
4 1511 10 00 Crude Palmolein 802
5 1511 90 20 RBD Palmolein 805
6 1511 90 90 Others – Palmolein 804
7 1507 10 00 Crude Soya bean Oil 909
8 7404 00 22 Brass Scrap (all grades) 3911
9 1207 91 00 Poppy seeds 3693

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 63
 TABLE - 2
Sl No. Chapter/ heading/ sub- Description of goods Tariff value (US $)
heading/tariff item
(1) (2) (3) (4)
1 71 or 98 Gold, in any form, in respect of which the benefit of 607 per 10 grams
entries at serial number 356 of the Notification No.
50/2017-Customs dated 30.06.2017 is availed
2 71 or 98 Silver, in any form, in respect of which the benefit of 768 per kilogram
entries at serial number 357 of the Notification No.
50
3 71 (i) Silver, in any form, other than medallions and 768 per kilogram
silver coins having silver content not below 99.9%
or semi-manufactured forms of silver falling under
sub-heading 7106 92;
(ii) Medallions and silver coins having silver content
not below 99.9% or semi-manufactured forms of
silver falling under sub-heading 7106 92, other than
imports of such goods through post, courier or
baggage.
Explanation. - For the purposes of this entry, silver
in any form shall not include foreign currency coins,
jewellery made of silver or articles made of silver.
4 71 (i) Gold bars, other than tola bars, bearing 607 per 10 grams
manufacturer’s or refiner’s engraved serial number
and weight expressed in metric units;
(ii) Gold coins having gold content not below 99.5%
and gold findings, other than imports of such goods
through post, courier or baggage.
Explanation. - For the purposes of this entry, “gold
findings” means a small component such as hook,
clasp, clamp, pin, catch, screw back used to hold the
whole or a part of a piece of Jewellery in place.

TABLE – 3
Sl. No. Chapter/ heading/ sub- Description of goods Tariff value (US $ Per
heading/tariff item Metric Tonne)
(1) (2) (3) (4)
1 1 080280 Areca nuts 3720

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-nt2020/csnt93-
2020.pdf;jsessionid=C5362344AF4789F36F9F0A7490E3D45C

Notification No. 94/2020-Customs (NT)

Dated – 30th September, 2020

To amend The Sea Cargo Manifest and Transhipment Regulations, 2018.

CBIC made the regulations further to amend the Sea Cargo Manifest and Transhipment Regulations,
2018. These regulations may be called the Sea Cargo Manifest and Transhipment (Third Amendment)
Regulations, 2020.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-nt2020/csnt94-
2020.pdf;jsessionid=BBBD66A62DE18DF0DD608C728A383A25

Notification No. 95/2020-Customs (NT)

Dated – 1st October, 2020

Exchange rate Notification

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 64
CBIC has determined the rate of exchange of conversion of each of the foreign currencies into Indian
currency or vice versa which is specified in Schedule I and Schedule II and shall effect from 2nd October,
2020

Schedule I
Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees
For Imported Goods For Exported Goods
Australian Dollar 54.10 51.75
Bahraini Dinar 201.60 189.25
Canadian Dollar 56.40 54.45
Chinese Yuan 11.00 10.70
EURO 88.05 84.90
US Dollar 74.50 72.80

Schedule II
Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees
For Imported Goods For Exported Goods
Japanese Yen 71.15 68.55
Korean Won 6.55 6.15

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

act/notifications/notfns-2020/cs-nt2020/csnt95-
2020.pdf;jsessionid=73125A1CC85727172BFDA3AF8AF4589A

Circulars - Customs
Circular No. 42/2020-Customs
Dated – 29th September, 2020

Amending Circular 38/2016-Customs on Guidelines for Provisional Assessment under Section

18 of the Customs Act 1962

After the amendments, if provisional assessment is requested by the importer when inquiry is initiated
in terms of rule 5 or when verification is initiated in terms of rule 6(1)(a) or 6(1)(b) of CAROTAR, 2020
all class of importers including Authorised Economic Operators (AEO) are required to furnish 100% of
differential duty as a security.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

circulars/cs-circulars-2020/Revised-Circular-42_2020-amending-Circular-
38_2016.pdf;jsessionid=900ED46A2E0FB86421501766AC648D9A

Circular No. 43/2020-Customs

Dated – 30th September, 2020

Implementation of the Sea Cargo Manifest and Transhipment Regulations

As per new Regulations stipulate for advance notice by authorized carriers for goods arriving in or
being exported out of India through gateway seaports and further movement between Customs stations.
They stipulate the obligations, roles and responsibilities for the various stakeholders involved in
movement of imported/export goods. Based on the feedbacks from the various stakeholders, the
changes were incorporated and the said regulations were made effective from 1st August, 2019 with
transitional provisions under Regulation 15 till the 30th of September, 2020 but Considering the
disruptions caused due to Covid-19 Pandemic and non-readiness of the stakeholders, Board has issued
Notification No.94/2020-Customs(N.T.) dated 30.09.2020, vide which the transitional provisions under
Regulation 15(2) have been extended from 1st October, 2020 till 31st March, 2021 to enable
submission of manifests under erstwhile regulations.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 65
Another procedural relaxation is that the amount of bond and bank guarantee or postal security or
National Savings Certificate or fixed deposit, as required under Regulation 3(1A) has been reduced to
Rs. 5,00,000 from Rs. 10,00,000.

For more details, please follow: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-

circulars/cs-circulars-2020/Circular-No-43-
2020.pdf;jsessionid=4DBFAAA9C70545781B91AB451F72E1A1

DIRECT TAX
Notifications & Circulars

Notification No. 75/2020

Dated – 22nd September, 2020

Notification for the amendment

CBDT has made the following rules further to amend the Income Tax Rules, 1962,

In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 29B
a) for the words “banking company”, wherever they occur, the words “banking company or an
insurer” shall be substituted;
b) after sub-rule (5), the following explanation shall be inserted

“Explanation.–– for the purposes of this rule, “insurer” shall have the same meaning as assigned to it in
sub-clause (d) of clause (9) of section 2 of the Insurance Act, 1939 (4 of 1938).”

For more details, please follow:

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Notification No. 76/2020

Dated – 25th September, 2020

Faceless Appeal Scheme, 2020

Central Government has made the Faceless Appeal Scheme, 2020.

Scope of the Scheme - The appeal under this Scheme shall be disposed of in respect of such territorial
area or persons or class of persons or incomes or class of incomes or cases or class of cases, as may be
specified by the Board.

Faceless Appeal Centres - For the purposes of this Scheme, the Board may set up
(i) National Faceless Appeal Centre
(ii) Regional Faceless Appeal Centres
(iii) Appeal units, as it may deem necessary to facilitate the conduct of e-appeal proceedings.

For more details, please follow:

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Notification No. 77/2020

Dated – 25th September, 2020

Procedure for Faceless Appeal Scheme, 2020

Purposes of giving effect to the Faceless Appeal Scheme, 2020, Central Government has made the
following directions

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 66
(1) The appeal, as referred to in paragraph 3 of the said Scheme, shall be disposed of under the said
Scheme as per the following procedure

(i) the National Faceless Appeal Centre shall assign the appeal to a specific appeal unit in any one
Regional Faceless Appeal Centre through an automated allocation system;
(ii) where the appellant has applied for exemption from the operation of clause (b) of sub-section
(4) of section 249 of the Act, the appeal unit may-
a) admit the appeal and exempt the appellant from the operation of provisions of said
clause for any good and sufficient reason to be recorded in writing; or
b) in any other case, reject the appeal
under intimation to the National Faceless Appeal Centre;
(iii) the National Faceless Appeal Centre shall intimate the admission or rejection of appeal, as the
case may be, to the appellant;

For more details, please follow:

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Notification No. 78/2020

Dated – 25th September, 2020

CBDT has made the following amendments by issuing the notification namely;-

(i) entry number 11, 20, 21 and 35 stands deleted.

(ii) against serial number 10, in column (4),
(iii) against serial number 18, in column (4)
(iv) against serial number 19
(v) against serial number 32

For more details, please follow:

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Notification No. 79/2020

Dated – 25th September, 2020

Authorision to Assistant Commissioner/Deputy Commissioner of Income Tax having his

headquarters at Delhi

CBDT has authorised the Assistant Commissioner/Deputy Commissioner of Income-tax (National e-

Assessment Centre) having his headquarters at Delhi, to act as the Prescribed Income-tax Authority for
the purpose of sub-section (2) of section 143 of the Act, in respect of returns furnished under section
139 or in response to a notice issued under subsection (1) of section 142 of the said Act, for the purpose
of issuance of notice under sub section (2) of section 143 of the said Act.

This notification has already been into force from 13th August 2020.

For more details, please follow:

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Notification No. 80/2020

Dated – 25th September, 2020

Powers and perform functions of Income-tax authorities of the National Faceless Appeal

CBDT has directed that the Income-tax authorities of the National Faceless Appeal Centre specified in
column (2) of the Schedule, having its headquarter at Delhi, shall exercise the powers and perform
functions, in order to facilitate the conduct of Faceless Appeal Proceedings, in respect of such territorial
areas or persons or class of persons or incomes or class of incomes or cases or class of cases as specified

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 67
by the Board in para 3 of the Scheme, with respect to appeals filed under section 246A or 248 of the Act,
pending or instituted on or after 25.09.2020

For more details, please follow:

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Notification No. 81/2020

Dated – 25th September, 2020

Specified Territorial areas or persons or class of persons or incomes or class of incomes or cases
or class of cases

CBDT has directed that the Income Tax authorities of the Regional Faceless Appeal Centres specified in
column (2) of the Schedule, having their headquarters at the places mentioned in column (3) of the said
Schedule, shall exercise the powers and perform functions, in order to facilitate the conduct of Faceless
Appeal Proceedings, in respect of such territorial areas or persons or class of persons or incomes or
class of incomes or cases or class of cases as specified by the Board in Para 3 of the Scheme, with
respect to appeals filed under section 246A or 248 of the Act, pending or instituted on or after
25.09.2020.

This notification has come into force with effect from the 25th September, 2020.

For more details, please follow:

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Circular No. 17/2020

Dated – 29th September, 2020

Guidelines under section 194-O(4) and section 206C(1-I) of the Income-tax Act, 1961

Finance Act, 2020 inserted a new section 194-0 in the Income-tax Act 1961 which has mandated with
effect from 1st October, 2020, an e-commerce operator shall deduct income Tax at the rate of one per
cent (subject to the provisions of proposed section 197B of the Act) of the gross amount of sale of goods
or provision of service or both, facilitated through its digital or electronic facility or platform. However,
exemption from the said deduction has been provided in case of certain individuals or Hindu undivided
family fulfilling specified conditions. This deduction is required to be made at the time of credit of
amount of such sale or service or both to the account of an e-commerce participant or at the time of
payment thereof to such e-commerce participant, whichever is earlier.

The following more has inserted:

(i) Finance Act, 2020 also inserted sub-section (1H) in section 206C of the Act.
(ii) Sub-section (4) of section 194-0 and sub-section (I-I) of section 206C of the Act.
(iii) Guidelines
(iv) Applicability on transactions carried through various Exchanges

For more details, please follow:

https://www.incometaxindia.gov.in/communications/circular/circular_17_2020.pdf

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 68
 PRESS RELEASE
DIRECT TAX
17th September, 2020
Income Tax Department carries out searches in Jammu & Kashmir

The Income Tax Department carried out a search and seizure operation on a prominent Hotelier, owning a chain of
Hotels at Srinagar, Gulmarg, Sonamarg and Pahalgam with another hotel under construction at Leh.

Various incriminating documents and materials evidencing unexplained investments in immovable properties,
construction of hotels and residences aggregating to Rs.25.00 crore in the last six financial years have been seized
during the search, though he has not paid any tax since A.Y. 2014-15. Almost all these investments are in cash and
outside the known sources of income.

During the course of the search operation, receipt of unsecured loans to the tune of Rs.25.00 crore in the past two
years from persons of no-means has been found. All these loans are prima-facie not genuine, as the same have been
advanced by persons with doubtful creditworthiness.

The search also revealed that the assessee’s children are studying in USA on whom expenditure of approximately
Rs. 25.00 lakh/annum is being incurred. The expenditure on account of education in USA prima-facie appears to be
unexplained / undisclosed. Further, the assessee is also running a B-Ed College as a Trust along with his mother.
The Trust in not registered and no return is being filed for the Trust though it has substantial taxable income. The
assessee has also admitted to having incurred expenditure of Rs. 40.00 lakh on renovation of his residential house.

During the investigations a bank locker has also been found, which has been put under restraint.

The Department also carried out searches in another case of a prominent jeweller in Srinagar. During the search, it
was found that he had not maintained books of accounts of the jewellery business even though the turnover is of
the range of Rs. 2 crore to Rs. 10 crore in the earlier years.

The search has revealed that an undeclared bank account was maintained by the assessee with deposits running
into crores of rupees, which has not been offered to tax. He also sold immovable property of Rs. 1.90 crore in
Srinagar in Financial Year (FY) 2015-16, capital gains tax on which has not been paid.

During the search, documents were found, revealing receipt of sum of Rs. 16.00 lakh in cash as ‘Pagri’ by the
assessee in FY 2019-20 at the time of leasing of one of the shops. This transaction is in violation of provisions of
Section 269SS of the Income Tax Act, 1961. This fact of receiving cash of Rs. 16 lakh has been admitted by the
assessee as well as the lessee. The payment of Pagri of Rs. 16.00 lakh is also out of undisclosed income of the lessee.

The search also revealed that sale of a flat in Delhi was made by the wife of the assessee in F.Y. 2019-20 of Rs. 33
lakh. During the search, it was seen that no capital gains has been paid on the above sale. Further, out of the sale
consideration of Rs. 33.00 lakh, Rs. 13 lakh has been received in cash in violation of provisions of Section 269SS of
the Income-tax Act, 1961. The source of investment of buyer also seems prima-facie undisclosed, which is being
investigated.

The search also revealed that the daughter of the assessee was studying abroad and the expenditure on account of
the same prima-facie appears unexplained / undisclosed.

Further investigations are in progress.

25th September, 2020

Faceless Appeals launched by CBDT today - Honoring The Honest

The Income Tax Department today launched Faceless Income Tax Appeals. Under Faceless Appeals, all Income Tax
appeals will be finalised in a faceless manner under the faceless ecosystem with the exception of appeals relating to
serious frauds, major tax evasion, sensitive & search matters, International tax and Black Money Act. Necessary
Gazette notification has also been issued today.

It may be noted that Hon’ble PM on 13th August, 2020 while launching the Faceless Assessment and Taxpayers’
Charter as part of “Transparent Taxation - Honoring the Honest” platform, had announced launching of Faceless

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Appeals on 25th September, 2020 on the birth anniversary of Pt. Deen Dayal Upadhayay. Also, in recent years the
Income Tax Department has carried out several reforms in Direct Taxes for the simplification of tax processes and
for ease of compliance for the taxpayers.

Under the Faceless Appeals, from now on, in income tax appeals, everything from e-allocation of appeal, e-
communication of notice/ questionnaire, e-verification/e-enquiry to e-hearing and finally e-communication of the
appellate order, the entire process of appeals will be online, dispensing with the need for any physical interface
between the appellant and the Department. There will be no physical interface between the taxpayers or their
counsel/s and the Income Tax Department. The taxpayers can make submissions from the comfort of their home
and save their time and resources.

The Faceless Appeals system will include allocation of cases through Data Analytics and AI under the dynamic
jurisdiction with central issuance of notices which would be having Document Identification Number (DIN). As part
of dynamic jurisdiction, the draft appellate order will be prepared in one city and will be reviewed in some other
city resulting in an objective, fair and just order. The Faceless Appeal will provide not only great convenience to the
taxpayers but will also ensure just and fair appeal orders and minimise any further litigation. The new system will
also be instrumental in imparting greater efficiency, transparency and accountability in the functioning of the
Income Tax Department.

As per data with CBDT, as on date there is a pendency of almost 4.6 lakh appeals at the level of the Commissioner
(Appeals) in the Department. Out of this, about 4.05 lakh appeals, i.e., about 88 % of the total appeals will be
handled under the Faceless Appeal mechanism and almost 85% of the present strength of Commissioners
(Appeals) shall be utilised for disposing off the cases under the Faceless Appeal mechanism.

25th September, 2020

Note in the Vodafone Award matter

Finance Ministry has said today that it has just been informed that the award in the arbitration case invoked by
Vodafone International Holding BV against Government of India has been passed. The Government will be studying
the award and all its aspects carefully in consultation with its counsels. After such consultations, the Government
will consider all options and take a decision on further course of action including legal remedies before appropriate
fora.

26th September, 2020

Income Tax Department conducts search in Jharkhand and West Bengal.

The Income Tax Department has carried out search and survey operations on 25th September, 2020 at around 20
residential and business premises of a prominent group having operations in Jharkhand and West Bengal. The
group is engaged in trading of various commodities, production of vanasapati ghee, real estate and tea estates. The
group is having real estate projects in Kolkata.

During the search substantial evidences of transactions outside the regular books of accounts, unaccounted cash
expenses and cash advances received and interest having been paid in cash, have been found. Further, cash has
been found to have been introduced in the group shell companies, which has been advanced as loan to the real
estate company.

Most of the companies having family members as directors do not have any real business and very few returns of
income have been filed. Most of the returns with ROC have also not been filed.

One such group company has no business since 2014, although it has shown sales of Rs. 7 crore in cash. This cash
has been deposited in bank accounts in Kolkata, whereas cash sale is shown in books to buyers from Jharkhand.

During the search, hard disks, pen drives and hand written diaries have also been seized. Certain hand written
diaries found indicate giving and taking of loans in cash and out of books receipt of cash on account of booking of
commercial space in the real estate project. Evidences of out of books cash payments to contractors and fictitious
payments to a dummy contractor have also been found. The project cost recorded in books has been found to be
understated, as evidences of out of book cash expenses for construction have been found.

As per preliminary estimates, evidences of cash transactions of around Rs. 40 crore have been found. Advances
received for the real estate project of around Rs. 80 crore are also under examination. Further investigations are
going on.

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 30th September, 2020
Clarification on doubts arising on account of new TCS provisions

There are reports in certain sections of media wherein certain doubts have been raised regarding the applicability
of the provisions relating to Tax Collection at Source (TCS) on certain goods introduced vide Finance Act, 2020.
This press note is being issued to clarify those doubts about the applicability of these provisions.

Finance Act, 2020 amended provisions relating to TCS with effect from 1st October, 2020 to provide that seller of
goods shall collect tax @ 0.1 per cent (0.075% up to 31.03.2021) if the receipt of sale consideration from a buyer
exceeds Rs. 50 lakh in the financial year. Further, to reduce the compliance burden, it has been provided that a
seller would be required to collect tax only if his turnover exceeds Rs. 10 crore in the last financial year. Moreover,
the export of goods has also been exempted from the applicability of these provisions.

It has been reported in the media that TCS has been made applicable to the amount received before 1st October,
2020. It is clarified that this report is not correct. In this connection, it may be noted that this TCS shall be
applicable only on the amount received on or after 1st October, 2020. For example, a seller who has received Rs. 1
crore before 1st October, 2020 from a particular buyer and receives Rs. 5 lakh after 1st October, 2020 would be
required to collect tax on Rs. 5 lakh only and not on Rs. 55 lakh [i.e Rs.1.05 crore - Rs. 50 lakh (threshold)] by
including the amount received before 1st October, 2020.

It has also been reported in certain section of the media that every transaction will attract this TCS. This report is
not correct. It may be noted that this TCS applies only in cases where receipt of sale consideration exceeds Rs. 50
lakh in a financial year. As the threshold is based on the yearly receipt, it may be noted that only for the purpose of
calculation of this threshold of Rs. 50 lakh, the receipt from the beginning of the financial year i.e. from 1st April,
2020 shall be taken into account. For example, in the above illustration, the seller has to collect tax on receipt of Rs.
5 lakh after 1st October, 2020 because the receipts from 1st April, 2020 i.e. Rs. 1.05 crore exceeded the specified
threshold of Rs. 50 lakh.

Further, the seller in most of the cases maintains running account of the buyer in which payments are generally not
linked with a particular sale invoice. Therefore, in order to simplify and ease the compliance of the collector, it may
be noted that this TCS provision shall be applicable on the amount of all sale consideration received on or after 1st
October, 2020 without making any adjustment for the amount received in respect of sales made before 1st October,
2020. Mandating the collector to identify and exclude the amount in respect of sales made up to 30th September,
2020 from the amount received on or after the 1st of October, 2020 would have resulted into undue compliance
burden for the collector and also litigation.

It has been reported in certain section of the media that this TCS is an additional tax. This is obviously not correct.
In this regard, it may be noted that TCS is not an additional tax but is in the nature of advance income-tax/TDS for
which the buyer would get the credit against his actual income tax liability and if the amount of TCS is more than
his tax liability, the buyer would be entitled for refund of the excess amount along with interest.

It may also be noted that this TCS shall be applicable only on the receipt exceeding Rs. 50 lakh by a seller from a
particular buyer. Therefore, on payment of Rs. 1 crore made by a buyer to a particular seller only Rs.5,000 (Rs.
3,750 this year) i.e. [0.1% of (Rs. 1 crore - Rs. 50 lakh)] shall be collected. Hence, in case of a person making
payment of Rs.1 crore each to 10 different sellers, the total tax collected shall be only Rs.50,000 (Rs. 37,500 this
year) i.e 10 x [0.1% of (Rs. 1 crore- Rs. 50 lakh)] on the total payment made for purchase of Rs. 10 crore to ten
different sellers.

Assuming a net profit of 8% on sales, his business income in respect of this payment of Rs. 10 crore made for
purchase would be around Rs. 87 lakh. The incometax liability on the income of Rs. 87 lakh for an individual in the
new taxation regime would be around Rs. 27 lakh. Hence, the amount of TCS collected i.e. Rs.50,000 (Rs. 37,500 this
year) would be a miniscule part of his actual tax liability and would be easily adjusted against his tax liability. In a
rare case, if his tax liability is less than even Rs.50,000 (Rs. 37,500 this year), he shall be entitled for refund of
excess TCS with interest.

It has also been reported in certain section of media that every seller will have to collect TCS. This is also not
correct. In this context, it may be noted that in order to reduce the compliance burden, this TCS is made applicable
to only those sellers whose business turnover exceeds Rs. 10 crore. In other words, those having turnover of less
than Rs. 10 crore will not be required to collect TCS. There are only around 3.5 lakh persons who have disclosed
business turnover of more than Rs. 10 crore in FY 2018- 19. There are around 18 lakh entities which already deal
with TDS/TCS. Therefore, this TCS collection under these new provisions would be required to be made by persons
who, in most of the cases, would already be complying with the other provisions of TDS/TCS.

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 71
 JUDGEMENTS
INDIRECT TAX 16(2)(b) read with section 17(5)(c) and
17(5)(d) of the CGST Act, 2017
No ITC can be claimed on Lift Installation ……………………………………………………………………….
Charges: AAAR
Applicant- M/s. Las Palmas Co-operative AAAR affirms applicant can’t charge 12%
Housing Society Limited GST under Forward Charge Mechanism as a
Case No.- ARA-31/2019-20/B GTA
Date-22.01.2020 Applicant- M/s Liberty Translines
Case No.- ARA-39/2019-20/B
Fact of the Case Date-05.03.2020

 The applicant, M/s. Las Palmas Co- Fact of the Case

operative Housing Society Limited situated
is a Co-operative Housing Society.  In the present case M/s Liberty Translines,
 Appellant is recovering an amount, from owner of various goods transport vehicle is
each of the society members under various the applicant
heads such as Service Charges. Electricity  The applicant is in the business of Road
Charges, Lift Charges, Ground Rent, Sinking Transportation and registered as GTA
Fund, Repair Fund, Water Charges, Parking under GST Laws. The service rendered by
Charges, etc., and paying 18% GST on it. the applicant is classified under SAC
 The Appellant is under the process of 996791 which is covered under reverse
replacing existing lift of the society for charge.
which a Contract has been awarded to M/s.  Sometimes, the applicant functions as a
Fujitec India Private Limited mere Transporter of goods for which
 The Appellant is also recovering a separate consignment note is issued by some other
amount for replacement of lifts from the party which acts as GTA for that
members, apart from the normal charges transaction. Applicant now wants to opt for
as stated above as contribution for payment of GST at the rate of 12%, on
installation of new lifts and charging 18% forward charge basis and avail Input Tax
GST on it to the members of the society. Credit as permitted by Notification No
 The Appellant filed an application before 20/2017-Central Tax (Rate) 2017 dated 22
the AAR, on the issue whether the August, 2017
Applicant/Appellant is eligible for the  The applicant raised the issue of whether
input tax credit of lift installation charges the Applicant is actually asking whether
paid to Fujitec they can charge GST at the rate of 12%
under Forward Charge mechanism as a
Decision of the Case GTA, in terms of Notification No 20/2017-
Central Tax (Rate) 2017 dated 22 August,
 The AAR held that the erection, 2017.
commissioning, and installation of the lift  The AAR ruled that applicants cannot issue
under question is immovable property, another consignment note for the same
they went on to decide that the input tax goods and for the same transaction where
credit in respect of the charges paid to the consignment notes are already issued by
lift contractor were not admissible to the POSCO. Hence the applicant, in respect of
Appellant in terms of section 17(5)(d) of the subject transaction cannot be treated
the CGST Act, 2017. as a GTA and therefore cannot charge GST
 The AAAR consisting of Sanjeev Kumar and at the rate of 12% under Forward Charge
Rajesh Kumar Sharma upheld the AAR’s mechanism as a GTA.
order and ruled that the Appellant will not  The applicant challenged the AAR’s ruling
be eligible to avail the ITC in respect of the before the AAAR on the grounds that the
GST paid on lift installation charges paid to AAR failed to appreciate that a mere
the lift contractor, in terms of section consignment note which is not even
defined in the Act or in Rules of GST can

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 72
 not determine the classification and Decision of the Case
taxability of Service.
 The AAR ruled that the amount of prize
Decision of the Case money received from the events
conducting entities would be covered
 The AAAR consisting of Sanjeev Kumar and under ‘supply under section 7 of the CGST
Rajesh Kumar Sharma upheld the ruling of Act, 2017 and consequently, it is held as a
AAR and said that the question which has taxable supply of services and liable to GST
been raised by the applicant is not at the rate of 18%
pertaining to any of the matters mentioned  However, the AAAR consisting of Sanjeev
in Section 97 (2) of the GST Act Kumar and Rajesh Kumar Sharma while
 The Maharashtra Appellate Authority of setting aside the AAR’s order held that
Advance Ruling (AAAR) affirmed the AAR’s input tax credit is restricted to the portion
ruling and held that the applicant can not of taxable supplies only
charge GST at the rate of 12% under  Therefore, the AAAR held that in the
Forward Charge mechanism as a Goods present case, the Applicant-Respondent
Transport Agency (GTA). will not be eligible to avail ITC in respect of
………………………………………………………………………. any input supply including the entry fee,
the training charges paid to the horse
No GST applicable on Prize Money / stakes trainers, and the charges
in absence of Supply: AAAR ……………………………………………………………………….
Applicant- Vijay B. Shirke
Case No.- ARA-12/2019-20/B No GST on Scanning OMR Flying Slip, Marks
Date-04.10.2019 Foil, Attendance Sheet etc. provided to
Educational Institution: AAR
Fact of the Case Applicant- M/S. DATACON TECHNOLOGIES
Case No.- KAR ADRG 47/2020
 In the present problem the applicant Vijay Date-11.09.2020
B. Shirke is duly registered with the Goods
and Service Tax Department Fact of the Case
 The Applicant owns horses. The horses
owned by the applicant participate in races  In this case the Applicant, M/s Datacon
organized at different clubs. The horse Technologies are a leading service provider
races take place at Royal Western India in respect of Print solutions and
Turf Club (RWITC) located in Mumbai and infrastructure services, which provide
Pune, in Mysore Race Club, Bangalore Turf services all over the country
Club, Hyderabad Race Club etc.  They also provide services in respect of
 Upon winning such horse races, the examination matters of various Boards and
applicant is awarded with prize money in Universities & the said services include
respect of horses, which win the race .In Offset and Digital Print Solutions; Variable
the year 2012, when the Service Tax was Data Printing; Security featured Print
introduced stake or prize money receiver Stationery; Printing of OMR technology
i.e the owner is covered under Service Tax forms; Scanning, Editing, and processing of
 Accordingly, the applicant paid the service OMR and ICR technology forms; Data
tax at the applicable rate till June 2017. As mining and Data Management Result
the definition of service under the Service processing and Report Generation and
Tax Act is identical in the GST, the other allied IT infrastructure services
applicant continued to pay the GST under including hardware and Maintenance
the GST Act services.
 The applicant sought advance ruling on the  The applicant sought Advance Ruling with
issue whether receipt of prize money from respect to the question that whether the
horse race conducting entities, in the event services performed by them are exempted
horse owned by the applicant wins the race, by virtue of item (b) of Sr. No. 66 of
would amount to ‘supply under section 7 of Notification No. 12/2017 dated June 28,
the Central Goods and Service Tax Act, 2017.
2017 or not and consequently, liable to GST  The Notification No.14/2018-Central Tax
or not. (Rate) dated July 26, 2018 inserted a

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 73
 clarification that the Central and State  Society has to develop Parks and other
Educational Boards shall be treated as Civic Amenities in terms of the approved
Educational institutions for the limited plan to make the sites developed, habitable
purpose of providing services by way of zones, and to ensure completion of the
conduct of examination to the students. execution of all the other works in terms of
the approved Plan.
Decision of the Case  The applicant sought advance ruling on the
issue that is the activity of maintaining the
 The two-member bench of Dr. Ravi Prasad facilities at the layout from the funds
M.P. and Mashood ur Rehman Farooqui collected from the members of the Society
held that it is an undisputed fact that the a service attracting GST.
process of conducting the examination is
not limited or restricted to a test center. Decision of the Case
Examination is an incomplete activity
without assessment. Scanning of answer  The two-member bench of M.P. Ravi
sheets and quantifying marks is an Prasad and Mashood ur Rehman Farooqui
essential part albeit the main objective of ruled that the activity of maintaining the
the examination process. Educational facilities at the layout from the funds
institutions or the examinees do not look at collected from the members of the Society
these activities in isolation. is a service attracting GST
 The Karnataka Authority for Advance  The AAR further ruled that the
Ruling (AAR) ruled that OMR flying slip, contributions collected by the applicant
marks foil, attendance sheet and absentee from the member of the housing society
sheet along with data extraction and either annually or once in ten years, such
finalization for Bihar School Educational amount when utilized for sourcing of goods
Board would be exempted from GST. or service from the third person for the
………………………………………………………………………. common use of its member, and from the
endowment fund, must be divided by
Maintenance Activity laid out from the Fund recipients of such service in the society and
collected for providing facility to the society if the said amount per member does not
attracts GST: AAR exceed Rs.7,500 in that tax period, such
Applicant- Gnanaganga Gruha Nirmana amount is exempted from tax as per entry
Case No.- KAR ADRG 45/2020 No. 77 of Notification No. 12/2017, and if
Date-11.09.2020 that amount per member in that tax period
of Rs.7,500, then the entire amount is
Fact of the Case taxable.
……………………………………………………………………….
 In the present situation the applicant is a
Housing Society registered under the DIRECT TAX
Karnataka Co-operative Societies Act,
engaged in the development and sale of Expenses incurred for Buy-Back of Shares
Sites for its members amount to ‘Revenue Expenditure’: ITAT
 The applicant submitted that the process of
formation of Sites involves identification of Fact of the Case
land, which may be an Agricultural land
and this agricultural land has to be  In the present problem the assessee is a
converted into non-agricultural land from company which buy- back of its shares by
the prescribed authority. spending of Rs.8,90,961
 Further society has to secure plan approval  The Assessing Officer noted that during the
from the appropriate Planning authority relevant assessment year, the assessee had
and execute the works like marking of the debited the amount of Rs.8,90,961 to Profit
sites, formation of the roads, preparing and & Loss account. He noted that the
leveling of the roads, asphalting the roads, expenditure was disallowed by the AO in
formation of drainage, securing water and his draft assessment order holding the
electric connection to the layout as a whole same to be capital expenditure.
and connecting the same to the individual  During the proceedings, DRP upheld that
residential sites. the face value of shares bought back is

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 74
 reduced from the paid up capital and the under the category of systematic regular
surplus (premium) is debited to reserves mythological imparting of lessons for the
such as securities premium account or overall development of the students and
other reserves (other than revaluation further assessee’s case also could not
reserve). considered under the concept of mutuality
 According to the order of the DRP, these  Consequently, the AO completed the
provisions do not permit debiting the assessment by invoking the proviso to
amount paid to profit and loss account for section 2(15) and the total income of the
the year and therefore, there is no infirmity assessee was determined at Rs.5,11,38,830.
in the order of the AO and the objection of  The assessee carried the matter before the
the assessee is not accepted.” CIT(A)
 Before the Tribunal, the assessee
submitted that the issue in question is Decision of the Case
decided in favour of assessee by the
judgment of the Karnataka High Court in  The Tribunal noted that the Hon’ble
the case of CIT v. Motor Industries Co. Ltd Tribunal in assessee’s own case on
identical facts wherein it was held that the
Decision of the Case activities of the laboratory testing and
consultancy to be in furtherance of main
 Allowing the submission, the Tribunal held and charitable object of the assessee
that “in view of the judgment of the Hon’ble association and it was also held that the
High Court of Karnataka in the case of CIT v. activities undertaken by the assessee
Motor Industries Co. Ltd. (supra), it was cannot be termed as activities with the
held that the expenses incurred by the main object of profit earning motive.
assessee for buy-back of shares amounting  The two member bench headed by the Vice
to RS.8,90,961 are allowed as revenue President, Sushma Chowla upheld the
expenditure. It is ordered accordingly. order of CIT(A) and directed the AO to
………………………………………………………………………. allow exemption under section 11 and 12
with consequent benefits to the assessee.
ITAT allows exemption u/s 11 & 12 to ……………………………………………………………………….
Association of State Road Transport
Undertaking as it qualifies as an No Notice of Reassessment can be issued
organization for Charitable purposes after 4 years of Assessment, If assessee fully
and truly discloses all information: Bombay
Fact of the Case HC grants relief to SBI

 In the present case Association of State Fact of the Case

Road Transport Undertaking is an apex
coordinating body of all Nationalized State  Here the Petitioner SBI is a corporation
Road Transport Corporation is the assessee established by and under the State Bank of
 It is working under the Ministry of Road India Act, 1955 having its corporate office
Transport and Highways and it was at Mumbai
established with the main object of  Since its formation in the year 1955,
improving Public transport system in the petitioner has mainly engaged in the
country and to assist its members STUs by business of banking activities in India as
providing automobile parts at the most well as in foreign countries through its
economical and competitive rates so that branch offices. One of the major sources of
the members STUs could run its passenger income of the petitioner is interest earned
buses at economical cost. from its lending activities.
 The AO on pursuing the Income  Sub-section (1) of section 14A says that for
Expenditure account noticed that assessee the purposes of computing the total income
has incurred expenditure of Rs.1,96,28,414 under Chapter IV, no deduction shall be
out of the total income of Rs.24,74,22,943 allowed in respect of an expenditure
and had shown a surplus of Rs.5,11,38,828. incurred by the assessee in relation to
 The AO was of the view that the activities income which does not form part of the
of the assessee cannot be considered to be total income under the Act
education activity as it does not come

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 75
 The petitioner received a notice dated  The assessee company was not a party to
March 30, 2001 issued by respondent the Agreement which was exclusively
authority under section 148 of the Act. And between the Indian concern and its
it was statedAs per the notice, respondent marketing company
authority stated that income of the  The Assessing Officer was of the view that
petitioner chargeable to tax for the the marketing activities also benefit the
assessment year 1990-91 had escaped assessee company and hence DAPE. The
assessment within the meaning of section Assessing Officer has alleged the existence
147 of the Act and, therefore, he proposed of DAPE on account of alleged marketing
to re-assess the income activities undertaken by the Indian entity
 Petitioner was called upon to file return of on behalf of the assessee company.
income in terms of the said notice within  The condition which needs to be fulfilled in
30 days. The petitioner pointed out the Article 5(8) of the Double Taxation
CBDT circular not to re-open any Avoidance Agreement (DTAA) between
assessment under section 147 of the act India and Singapore for holding of DAPE
which has already been finalized before 1st explained as follows
April 2001 to respondent authority and the 4(a). Firstly, he has no such authority, but
Respondent Authority informed that the habitually maintains in the first-mentioned
said circular was not applicable to the State a stock of goods or merchandise from
petitioner as the assessment of the which he regularly delivers goods or
petitioner was re-opened by issuing notice merchandise on behalf of the enterprise”.
under section 148 of the Act on March 30, 4(b). Secondly, if he habitually secures
2001, thus taking the view that the orders in the first-mentioned State, wholly
assessment proceeding was pending as on or almost wholly for the enterprise itself or
April 1, 2001. for the enterprise and other enterprises
controlling, controlled by, or subject to the
Decision of the Case same common control, as that enterprise.

 The Court took into consideration the Decision of the Case

decision given in the case of DIL Limited Vs.
Assistant Commissioner of Income Tax  The two-member bench headed by Vice
wherein it was held that beyond the period President Shushma Chowla held that the
of four years when an assessment is sought Assessing Officer has failed to establish his
to be re-opened, there must be failure on case and where none of the conditions
the part of the assessee to fully and truly specified in Article 5(8) of the DTAA have
disclose all material facts necessary for been satisfied
assessment.  The Income Tax Appellate Tribunal (ITAT),
 The Bombay High court while quashing the Delhi Bench held that Yum! Restaurants
notices issued under Section 148 of the (India) Private Limited and Yum!
Income Tax Act to State Bank of India (SBI) Restaurants Marketing Pvt. Ltd. does not
held that no notice of reassessment can be constitute Dependent Agent PE (DAPE) in
issued after 4 years of assessment, if the India.
assessee has fully and truly disclosed all ……………………………………………………………………….
information necessary for assessment.
………………………………………………………………………. Bar on revision of orders prejudicial to
revenue, If AO allowed claim after proper
Yum! Restaurants India do not constitute examination and due application of mind:
DAPE in India: ITAT Delhi ITAT grants relief to Vodafone

Fact of the Case Fact of the Case

 The assessee, M/s. Yum! Restaurants (Asia)  In the present problem Vodafone India Ltd
Pvt. Ltd. is an entity in Singapore and has is the assessee
entered into Technology License  The assessee is engaged in provision of
Agreement (TLA) with only YRIPL, which wireless telecommunications services to
was in charge of operations of Pizza Hut individual and corporate customers in
and KFC restaurants in India. India. It is primarily engaged in providing

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 76
 telecommunication services to its after proper examination and due
customers/subscribers located in Mumbai application of mind.
circle.
 The assessee company has claimed
deduction on account of bad debt is
allowable if the amount of bad debt has
been written off as irrecoverable in the
accounts. The deduction claimed on
account of bad debt directly in the
computation of income should have been
disallowed
 The PCIT has also stated that the assessee
company has capitalized an amount of Rs.
35,22,38,00,000 in the books of accounts
whereas the amount capitalized for income
tax purpose was Rs. 35,77,10,81,245 for
acquisition of 3G spectrum. Thus, the
assessee has capitalized an excess amount
of Rs. 54,72,81,245 for income-tax purpose
on account of 3G spectrum and has claimed
excess deduction on account of
depreciation on this excess amount.
 Accordingly, in respect of the aspects,
provision of Section 263 of the Income Tax
Act, 1961 were to be invoked. Therefore, a
show cause notice was first issued and a
final show cause notice was issued.
 The petitioner argued that the PCIT erred
in assuming jurisdiction and initiating
proceeding under section 263 of the
Income Tax Act, 1961 since the order
passed by the Assessing Officer was neither
‘erroneous’ nor ‘prejudicial’ to the interest
of the revenue after having gone through
adequate inquiries and necessary
verification on the basis of details sought
from the assessee during the course of the
assessment proceedings and had taken one
of the permissible views.

Decision of the Case

 The two member bench of Judicial

Member, Ram Lal Negi and Accountant
member, R.C. Sharma observed that AO
had conducted enquiries during the
course of proceedings, however, the
CIT merely changed its opinion by
reappraising evidence that is not
within the parameters of revisional
jurisdiction under section 263.
 The Income Tax Appellate Tribunal
(ITAT), Mumbai Bench held that no
proceedings relating to revision of
orders prejudicial to revenue under
Section 263, if AO took one of the
possible views and allowed the claim

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 77
 TAX COMPLIANCE CALENDAR AT A GLANCE
GST CALENDAR

Revised Due Date for GSTR-3B

Month
Turnover in Without 9% 18%
State (Revised Due
Preceding F.Y. Interest Interest Interest
Date)
Turnover is
September,
For All State more than Rs. 20thOct, 2020
2020
5 Crore
Chhattisgarh,Madhya September,
22nd Oct, 2020
Pradesh,Gujarat,Mah 2020
arashtra, Karnataka, 1st Oct 30th
Goa, Kerala, August, 2020 2020 September,
TamilNadu, 2020 After 30th
Telangana, Andhra 27th Sept (For all September,
Turnover is July,2020
Pradesh, Daman & 2020 months) 2020
upto 5 Cr
Diu and Dadra & 23rd Sept (For all
Nagar Haveli, June, 2020 months)
2020
Puducherry,
Andaman and 12th Sept
Nicobar Islands, May, 2020
2020
Lakshadweep

Himachal Pradesh, September, 24th Oct,

Punjab, Uttarakhand, 2020 2020
Haryana, Rajasthan, 3rd Oct
August, 2020
Uttar Pradesh, Bihar, 2020
30th
Sikkim, Arunachal 29th Sept After 30th
July,2020 September,
Pradesh, Nagaland, 2020 September,
Turnover is 2020
Manipur, Mizoram, June 2020 25thSept 2020 2020
upto 5 Cr (For all
Tripura, Meghalaya, (For all
months)
Assam, West Bengal, months)
Jharkhand, Odisha, 15th Sept
Jammu and Kashmir, May 2020
2020
Ladakh, Chandigarh,
Delhi

Revised Due Date for GSTR-1

Sl. No. Month/Quarter Date
1 September 11th October, 2020
2 July to September, 2020 31st October, 2020

Composition Scheme Due Dates

From Description Extended Due Date
GSTR-4 Return for Composite Supplier for F.Y. ending 31st October, 2020
31st March, 2020-2021
CMP - 08 Return for Composite Supplier for Jul to Sep, 2020 18th October, 2020

Others Returns
Due date for the month of
From Description
August, 2020
GSRT - 5 & 5A Filed by Non-resident taxable person and OIDAR 20thOctober, 2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 78
 respectively( For September, 2020)
For input Services Distributor who are required to furnish
GSTR - 6 details of invoice on which credit has been received ( For 13thOctober, 2020
September, 2020)
Filed by person required to deduct TDS under GST( For
GSTR - 7 10thOctober, 2020
September, 2020)
E-commerce operator who are required to deduct TDS( For
GSTR - 8 10thOctober, 2020
September, 2020)
To Claim Input Tax Credit On Job Work ( Jul, 2020 to Sept,
ITC 04 25th October, 2020
2020 )
GSTR 2Bform will help the government as well as the
assessees in matching the input and output of ITC in forms
GSTR 2B 12th October, 2020
GSTR 3B, GSTR-1, and GSTR 2A, accordingly. ( For
September, 2020)

Annual Return
Extended Due
Original Due Date Date Extended
From Description Late Fee
for F.Y. 2018-19 Due Date for F.Y.
2018-19
31st December, Liability is Rs. 200
GSRT - 9 Annual Return 31st October, 2020
2019 per day of default
(CGST+SGST). This
is subject to a
Reconciliation maximum of 0.25%
31st December,
GSTR - 9C Statement & 31st October, 2020 of the taxpayer’s
2019
Certificate turnover in the
relevant state or
union territory

DIRECT TAX CALENDAR – OCTOBER, 2020

07.10.2020

 Due date for deposit of tax deducted/collected for the month of September, 2020. However,
all sum deducted/collected by an office of the government shall be paid to the credit of the
Central Government on the same day where tax is paid without production of an Income-tax
Challan.
 Due date for deposit of TDS for the period July 2020 to September 2020 when Assessing
Officer has permitted quarterly deposit of TDS under section 192, 194A, 194D or 194H

15.10.2020

 Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the
month of September, 2020 has been paid without the production of a challan.
 Due date for issue of TDS Certificate for tax deducted under Section 194-IB, 194-IA, 194M in
the month of August, 2020
 Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers)
in Form No. 15CC for quarter ending September, 2020
 Quarterly statement of TCS deposited for the quarter ending September 30, 2020
 Upload declarations received from recipients in Form No. 15G/15H during the quarter ending
September, 2020
 Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of
transactions in which client codes been modified after registering in the system for the month
of September, 2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 79
 30.10.2020

 Due date for furnishing of challan-cum-statement in respect of tax deducted under section
194-IA, 194-IB & 194M in the month of September, 2020
 Quarterly TCS certificate (in respect of tax collected by any person) for the quarter ending
September 30, 2020

31.10.2020

 Intimation by a designated constituent entity, resident in India, of an international group in

Form no. 3CEAB for the accounting year 2019-20.
 Quarterly statement of TDS deposited for the quarter ending September 30, 2020
 Due date for furnishing of Annual audited accounts for each approved programmes
under section 35(2AA)
 Quarterly return of non-deduction of tax at source by a banking company from interest on
time deposit in respect of the quarter ending September 30, 2020
 Copies of declaration received in Form No. 60 during April 1, 2020 to September 30, 2020
to the concerned Director/Joint Director
 Due date for filing of return of income for the assessment year 2020-21 if the assessee (not
having any international or specified domestic transaction) is (a) corporate-assessee or (b)
non-corporate assessee (whose books of account are required to be audited) or (c) partner
of a firm whose accounts are required to be audited).
The due date for filing of return has been extended from October 31, 2020 to November 30,
2020 vide the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020
read with Notification No.35 /2020, dated 24-06-2020
 Audit report under section 44AB for the assessment year 2020-21 in the case of an
assessee who is also required to submit a report pertaining to international or specified
domestic transactions under section 92E
 Report to be furnished in Form 3CEB in respect of international transaction and specified
domestic transaction
 Due date for e-filing of report (in Form No. 3CEJ) by an eligible investment fund in respect
of arm's length price of the remuneration paid to the fund manager (if the assessee is
required to submit return of income on October 31, 2020).
Note: The report is required to be furnished by the due date of furnishing the return of
income under section 139(1). The due date for submission of return of income for the
Assessment Year 2020-21 has extended from October 31, 2020 to November 30, 2020 vide
the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with
Notification No. 35 /2020, dated 24-06-2020
 Due date for filing of audit report under section 44AB for the assessment year 2020-21 in
the case of a corporate-assessee or non-corporate assessee
The due date for filing of audit report for the assessment year 2020-21 has been extended
from September 30, 2020 to October 31, 2020 vide the Taxation and Other Laws
(Relaxation of Certain Provisions) Ordinance, 2020 read with Notification No.35 /2020,
dated 24-06-2020.
 Statement by scientific research association, university, college or other association or
Indian scientific research company as required by rules 5D, 5E and 5F (if due date of
submission of return of income is October 31, 2020)
Note: The statement is required to be furnished by the due date of furnishing the return of
income under section 139(1). The due date for submission of return of income for the
Assessment Year 2020-21 has extended from October 31, 2020 to November 30, 2020 vide
the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with
Notification No. 35 /2020 , dated 24-06-2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 80
  Application in Form 9A for exercising the option available under Explanation to section
11(1) to apply income of previous year in the next year or in future (if the assessee is
required to submit return of income on October 31, 2020)
Note: The application is required to be furnished by the due date of furnishing the return of
income under section 139(1). The due date for submission of return of income for the
Assessment Year 2020-21 has extended from October 31, 2020 to November 30, 2020 vide
the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with
Notification No. 35 /2020 , dated 24-06-2020
 Statement in Form no. 10 to be furnished to accumulate income for future application
under section 10(21) or 11(1) (if the assessee is required to submit return of income on
October 31, 2020)
Note: The statement is required to be furnished by the due date of furnishing the return of
income under section 139(1). The due date for submission of return of income for the
Assessment Year 2020-21 has extended from October 31, 2020 to November 30, 2020 vide
the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with
Notification No. 35 /2020 , dated 24-06-2020
 Due date for claiming foreign tax credit, upload statement of foreign income offered for tax
for the previous year 2019-20 and of foreign tax deducted or paid on such income in Form
no. 67. (If due date of submission of return of income is October 31, 2020)
Note: The statement is required to be furnished by the due date of furnishing the return of
income under section 139(1). The due date for submission of return of income for the
Assessment Year 2020-21 has extended from October 31, 2020 to November 30, 2020 vide
the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with
Notification No. 35 /2020, dated 24-06-2020.
 Submit copy of audit of accounts to the Secretary, Department of Scientific and Industrial
Research in case company is eligible for weighted deduction under section 35(2AB) [if
company does not have any international/specified domestic transaction]*
Note: The report is required to be furnished by the due date of furnishing the return of
income under section 139(1). The due date for submission of return of income for the
Assessment Year 2020-21 has extended from October 31, 2020 to November 30, 2020 vide
the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with
Notification No. 35 /2020 , dated 24-06-2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 81
 COURSES OFFERED BY
TAX RESEARCH DEPARTMENT
Eligibility criterion for admission in TRD Courses
 The members of the Institute of Cost Accountants of India
 Other Professionals (CS, CA, MBA, M.Com, Lawyers)
 Executives from Industries and Tax Practitioners
 Students who are either CMA qualified or CMA pursuing

EXISTING COURSES
CERTIFICATE COURSE ON TDS CERTIFICATE COURSE ON INCOME TAX
RETURN FILLING
Course Fee - Rs. 10,000 + 18% GST
20% Discount for Members, CMA Final Course Fee - Rs. 10,000 + 18% GST
Passed Candidates and CMA Final pursuing 20% Discount for Members, CMA Final
Students Passed Candidates and CMA Final pursuing
Students
Exam Fees - Rs. 1, 000 + 18% GST Exam Fees - Rs. 1, 000 + 18% GST
Duration – 30 Hours Duration – 30 Hours
Mode of Class – Online Mode of Class – Online

CERTIFICATE COURSE ON GST ADVANCED CERTIFICATE COURSE ON GST

Course Fee - Rs. 10,000 + 18% GST Course Fee - Rs. 14,000 + 18% GST
20% Discount for Members, CMA Final 20% Discount for Members, CMA Final
Passed Candidates and CMA Final pursuing Passed Candidates and CMA Final pursuing
Students Students

Exam Fees - Rs. 1, 000 + 18% GST Exam Fees - Rs. 1, 000 + 18% GST
Duration – 72 Hours Duration – 40 Hours
Mode of Class – Online Mode of Class – Online
* Special Discount for Corporate

CRASH COURSE ON GST FOR COLLEGE AND UNIVERSITY

Batch Size – 50 (Minimum)

Eligibility criterion - B.COM/B.B.A pursuing or completed

M.COM/M.B.A pursuing or completed

Course Fee - Rs. 1,000 + 18% GST

Exam Fees - Rs. 200 + 18% GST
Course Duration - 32 Hours

NEW COURSES
ADVANCED COURSE ON GST AUDIT AND ADVANCED COURSE ON INCOME TAX
ASSESSMENT PROCEDURE ASSESSMENT AND APPEAL

Course Fee - Rs. 12,000 +18% GST [Including Exam Course Fee - Rs. 12,000 +18% GST [Including Exam
Fee] Fee]
Duration – 30 Hours Duration – 30 Hours
Mode of Class – Online Mode of Class – Online

For enquiry about courses, mail at – [email protected]

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 82
 E-PUBLICATIONS OF
TAX RESEARCH DEPARTMENT
Impact of GST on Real Estate Handbook on GST on Service Sector
Insight into Customs - Procedure & Practice Handbook on Works Contract
Input Tax Credit & In depth Discussion Handbook on Impact of GST on MSME Sector
Exemptions under the Income Tax Act, 1961 Insight into Assessment including E-Assessment
Taxation on Co-operative Sector Impact on GST on Education Sector
Addendum_Guidance Note on GST Annual Return
Guidance Note on GST Annual Return & Audit
& Audit
Sabka Vishwas-Legacy Dispute Resolution An insight to the Direct Tax- Vivad se Vishwas
Scheme 2019 Scheme 2020
Guidance Note on Anti Profiteering International Taxation and Transfer Pricing
Advance Rulings in GST Handbook on E-Way Bill
Handbook on Special Economic Zone and Export
Taxation on Works Contract
Oriented Units

For E-Publications, Please visit Taxation Portal -

https://icmai.in/TaxationPortal/

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 83
 Appreciation letter for implementation of
E-Invoicing in GST submitted to CBIC Chairman
on 1.10.2020

TAX BULLETIN – 3RD ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA 84
 TAXATION COMMITTEES - PLAN OF ACTION

Proposed Action Plan:

1. Successful conduct of Certi icate Course on GST.

2. Publication and Circulation of Tax bulletin (both in electronic and printed formats) for the
awareness and knowledge updation of stakeholders, members, traders, Chambers of
Commerce, Universities.
3. Publication of Handbooks on Taxation related topics helping stakeholders in their job
deliberations.
4. Carry out webinars for the Capacity building of Members - Trainers in the locality to facilitate the
traders/ registered dealers.
5. Conducting Seminars and workshops on industry speci ic issues, in association with the Trade
associations/ Traders/ Chamber of commerce in different location on practical issues/aspects
associated with GST.
6. Tendering representation to the Government on practical dif iculties faced by the stakeholders
in Taxation related matters.
7. Updating Government about the steps taken by the Institute in removing the practical
dif iculties in implementing various Tax Laws including GST.
8. Facilitating general public other than members through GST Help-Desk opened at Head quarter
of the Institute and other places of country.
9. Introducing advance level courses for the professionals on GST and Income Tax.
10. Extending Crash Courses on Taxation to Corporates, Universities, Trade Associations etc.

Disclaimer:

The Tax Bulletin is an informational document designed to provide general guidance in simpli ied language on a
topic of interest to taxpayers. It is accurate as of the date issued. However, users should be aware that subsequent
changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The information provided in
these documents does not cover every situation and is not intended to replace the law or change its meaning.

The opinion expressed in Article is fully based on the views of the experts. This information is provided for public
services only and is neither an advertisement nor to be considered as legal and professional advice and in no way
constitutes an attorney-client relationship between the Institute and the User. Institute is not responsible or liable
in any way for the consequences of using the information given.

© The Institute of Cost Accountants of India

 Contact Details:
Tax Research Department
12, Sudder Street, KolKata - 700016
Phone: +91 33 40364747/ +91 33 40364798/ +91 33 40364711

E-mail: [email protected]

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

Statutory Body under an Act of Parliament
www.icmai.in
Headquarters: CMA Bhawan, 12 Sudder Street, Kolkata - 700016
Ph: 091-33-2252 1031/34/35/1602/1492
Delhi Office: CMA Bhawan, 3 Institutional Area, Lodhi Road, New Delhi - 110003
Ph: 091-11-24666100