Central Board of Direct Taxes (CBDT) Issues Clarification On The Applicability Of TDS Provisions On Mutual Fund Dividend

Central Board of Direct Taxes vide Press Release dated 4th February, 2020 has clarified that under section 194K (proposed to be inserted vide Finance Bill, 2020), a Mutual fund shall be required to deduct TDS@10% only on dividend payment and no tax shall be required to be deducted by the Mutual Fund on income which is in the nature of capital gains. It is also mentioned in the Press release that necessary clarification, if required, shall be proposed in the relevant provision of the law.
For details, please refer the pdf attachment:  Press Release CBDT dated 04.02.2020 Read Here

Posted in Direct Tax |

Union Budget for the Financial Year 2020-2021

On 1st February 2020,  hon’ble Finance Minister of India, Smt. Nirmala Sitharaman tabled the Union Budget for the Financial Year 2020-2021. A brief snapshot of the Union Budget prepared by Dewan P.N. Chopra & Co. is attached.

For more details Read Here

Posted in Regulatory |

Other electronic modes specified by CBDT

CBDT vide Notification No. 8/2020 dated 29.01.2020 has inserted Rule 6ABBA of IT Rules w.r.e.f 1st Sept 19 prescribing following “Other Electronic Modes” of payments/receipts for the purposes of Section 13A, 35AD, 40A(3) & (3A), 43, 43CA, 44AD, 50C, 56(2)(x), 80JJAA, 269SS, 269ST and 269T:

  • Credit Card;
  • Debit Card;
  • Net Banking;
  • IMPS
  • UPI;
  • RTGS;
  • NEFT; and
  • BHIM Aadhar Pay;

Also amended Rule 6DD to incorporate “Other Electronic Modes” specified in Rule 6ABBA. Moreover words “Exceeding Rs. 20,000” are also substituted with “Exceeding Rs. 10,000” to sync rule 6DD with Section 40A(3) & (3A) wherein the limit of cash expense was reduced to Rs. 10,000 earlier vide Finance Act, 2017;

For details, please refer Notification No. 8/2020 enclosed herewith. >> Click here <<

Posted in others |

No Levy or collection of GST on Ocean Freight

Recently hon'ble Gujarat High Court in the landmark judgment in case of [2020] 113 taxmann.com 436 (Gujarat) M/s. Mohit Mineral Pvt. Ltd. v. UOI has held that no GST shall be leviable under Integrated Goods and Services Tax Act, 2017, on ocean freight for services provided by a person located in a non-taxable territory by way of transportation of goods by a vessel from a place outside India up-to customs station of clearance in India and levy and collection of tax of such ocean freight is not permissible in law;

Further held that Entry No. 9 of Notification No.8/2017-Integrated Tax (Rate) dated 28-6-2017 and Entry 10 of Notification No.10/2017-Integrated Tax (Rate) dated 28-6-2017 are unconstitutional

For more details >> Read Here <<

Posted in GST |


Circular No. 121/40/2019-GST dt.11-10-2019(Refer NN.25/2019- CTR)

  • Services provided by State Government by way of grant of alcoholic liquor licence against consideration in the form of licence fee or application fee or by any other name shall neither be treatedas supply of goods nor as supply of services. Therefore, no GST shall be charged on the above specified services.

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Posted in GST Update |