Definition of Due Diligence “Due diligence” is research and analysis of a business transaction. It is the research and methodological investigation of a business or organization, or the performance of an act with a certain standard of care to ensure that information derived during the due diligence is accurate and to uncover information that may affect the outcome of the transaction. Due Diligence is the process of inquiries and investigations made by a prospective buyer in advance of the acquisition of a company to determine whether the acquisition should go ahead and upon what terms. In fact ..read more

CGST (Fourteenth Amendment) Rules 2020 Time limit for system-based GST Registration increased The time for system-based registration has been enhanced from 3 days to 7 days. That means, now department shall be required to review and grant registration within 7 days against 3 days as provided earlier from the date of filing of registration application. Where the applicant does not do adhaar authentication or where department feels fit to carry out physical verification the time limit for grant of registration shall be 30 days instead of 7 days. More Powers to GST department in cancellation of ..read more

Creation /Modification/Satisfaction of Charge with ROC WHY CREATION OF CHARGE ON COMPANY’S ASSETS Almost all the Companies requires fund for their project. Companies have lots of method to finance their project and almost all the Companies depend upon share capital and borrowed capital for financing their projects. Borrowed capital may consist of funds raised by- 1- Issuing debentures (secured or unsecured) 2- Obtaining financial assistance from financial institution or banks We are here to discuss on 2nd point i.e. to obtain financial assistance from financial institution or banks, But as of ..read more

ITO Vs Vipul K Sheth (ITAT Mumbai) In the present case the AO has not doubted the sales. The assessee could not establish the genuineness of the transaction to the satisfaction of the AO during assessment proceedings. Hence, from the facts of the case it can be concluded that assessee had made purchases from grey market. Under these circumstances, the AO had no option but to make addition on estimate basis. However, since the AO has not rejected the sales, 100% addition is not sustainable. As mentioned by the Ld. CIT(A) in its order, the Hon’ble Gujarat High Court in the case of CIT vs. S ..read more

Government extends Emergency Credit Line Guarantee Scheme by one month The Union Government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) by one month till November 30th, 2020, or till such time that an amount of Rs. 3 lakh crore is sanctioned under the Scheme, whichever is earlier, in view of the opening up of various sectors in the economy and the expected increase in demand during the ongoing festive season. This extension will provide a further opportunity to such borrowers who have not availed of the Scheme so far, to obtain credit under the Scheme. The ECLGS was announc ..read more

Income-tax Exemption for payment of deemed LTC fare for non-Central Government employees In view of the COVID-19 pandemic and resultant nationwide lockdown as well as disruption of transport and hospitality sector, as also the need for observing social distancing, a number of employees are not able to avail of Leave Travel Concession (LTC) in the current Block of 2018-21. With a view to compensate  Central Government employees and incentivise consumption, thereby giving a boost to consumption expenditure, the Government of India allowed payment of cash allowance equivalent  to  ..read more

DGGI Gurugram arrests man for forging input tax credit of around Rs 392 crore The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested one Kabir Kumar, resident of New Delhi on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit by way of issuance of invoices without any actual receipt or supply of goods or services. It is apparent from the investigation conducted till date, that Kabir Kumar created multiple proprietary companies merely on paper based in Gurgaon, New Delhi, Faridabad, Solan, Noida ..read more

The CBDT issued clarification in respect of Direct Tax under Vivad se Vishwas Act, 2020, wherein the Board has extended the timeline for making payment without additional amount till March 31, 2021. The Vivad se Vishwas Act, 2020 was enacted by the government with the objective to reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers by providing them relief with peace of mind, certainty, and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process. The provisions of the Vivad se V ..read more

Quarterly returns for small taxpayers Relief to small taxpayers, the Council decided that the small taxpayers will be required to file returns quarterly. The number of returns of small taxpayers will also be reduced from 24 to 8 from January 2021. Enhancement in features of return filing: The GST Council has decided to revise the due date of submitting quarterly GSTR-1 by quarterly taxpayers to 13th of the month succeeding the quarter effective from January 1, 2021. Roadmap for auto-generation of GSTR-3B from GSTR-1s by Auto-population of liability from own GSTR-1 w.e ..read more

10 Issues in ITC under GST that have businesses on their knees ITC or Input Tax Credit under GST is the process of claiming the credit of taxes already paid by a taxpayer as an input in the making of a good or service. Although it has been a while since ITC has been in the GST regime it still has many issues that the taxpayers face on a regular basis. In this article, we shall address the working of input tax credit & then a few of these issues in ITC under GST Input Tax Credit under GST Input Tax Credit under GST is the tax that you paid as an input while making a finished good or service ..read more