Tenant-Landlord Disputes in India: Navigate with Confidence
Author: Business So Simple
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Handling of Inadvertently Rejected records on IMS (FAQs)
Question 1: How can a recipient avail ITC of wrongly rejected Invoices/ Debit notes/ECO-Documents in IMS as corresponding GSTR-3B of same tax period was also filed by recipient?
Answer: In such cases recipient can request to the corresponding supplier to report the same record (without any change) in same return period’s GSTR-1A or respective amendment table of subsequent GSTR-1/IFF. Thus, recipient can avail the ITC basis on amended record by accepting such record on IMS and recomputing GSTR-2B on IMS. Here the recipient will get ITC of complete amended value as original record was rejected by the recipient.
However, recipient will be able to take ITC for the again furnished document by the supplier, as stated above, only in the GSTR-2B of the concerned tax-period.
Question 2: If any original record is rejected by the recipient and supplier furnishes the same record in GSTR-1A of same tax period or in the amendment table of GSTR-1/IFF of subsequent period, till the specified time limit, then what impact it will have on supplier’s liability?
Answer: In case supplier had furnished an original record in GSTR-1/IFF but the same record was rejected wrongly by the recipient in IMS. In such cases supplier on noticing the same in the supplier’s view of IMS dashboard or on request of recipient, may furnish the same record again (without any change) in GSTR-1A of same tax period or in the amendment table of GSTR-1/IFF in any subsequent period, till the specified time limit, then the liability of supplier will not increase. As amendment table take delta value only. Thus, in present case of same values, differential liability increase will be zero.
Question 3: As a recipient taxpayer, how to reverse ITC of wrongly rejected Credit note in IMS as the corresponding GSTR-3B has already been filed?
Answer: In such cases recipient can request the concerned supplier to furnish the same Credit note (CN) without any change in the same return period’s GSTR-1A or in amendment table of subsequent period’s GSTR-1/IFF. Now recipient can reverse the availed ITC based on the amended CN by accepting the CN on IMS. Hence, the recipient’s ITC will get reduced with complete amended value, as soon as the recipient recomputes GSTR-2B on IMS. The reduced value is same as that of the value of original CN as in this case the complete original CN was rejected by the recipient.
Question 4: If any original Credit note was rejected by the recipient and supplier furnishes the same credit note in GSTR-1A of same tax period or in the amendment table of GSTR-1/IFF of any future tax-period, till the specified time limit, then what impact it will have on supplier’s liability?
Answer: At first instant the supplier’s liability will be added back in the open GSTR-3B return, because of original credit note rejection by the recipient. However, as the supplier furnishes the same credit note in GSTR-1A of same tax period or in amendment table of GSTR-1/IFF in any subsequent period, supplier’s liability for this amendment will get reduced again corresponding to the value of amended CN (which in this case is same as original). Thus, net effect on liability of supplier will be only once.
(Source: GST Portal update 19 June 2025)
आपके सोशल मीडिया अकाउंट्स, डिजिटल तस्वीरें और डेटा: पहले से तय करें कि इन डिजिटल संपत्तियों का उत्तराधिकारी कौन होगा
आज के डिजिटल युग में, हमारी डिजिटल संपत्तियाँ – जैसे सोशल मीडिया अकाउंट्स, ईमेल, क्लाउड स्टोरेज में तस्वीरें और दस्तावेज़ – हमारे जीवन का अहम हिस्सा बन चुकी हैं। इस लेख में बताया गया है कि इन संपत्तियों की उत्तराधिकार योजना बनाना क्यों ज़रूरी है और इसके लिए क्या कदम उठाने चाहिए।
मुख्य बिंदु:
- डिजिटल संपत्तियाँ केवल डेटा नहीं, भावनात्मक धरोहर भी हैं
जैसे प्रसिद्ध फ़ोटोजर्नलिस्ट रघु राय की इंदिरा गांधी की तस्वीरें आज ऐतिहासिक महत्व रखती हैं, उसी तरह आम लोगों की डिजिटल फोटोज, ब्लॉग्स या वीडियोज़ भी आने वाली पीढ़ियों के लिए मूल्यवान हो सकते हैं। - ‘पासवर्ड की पहेली’
अधिकतर लोगों के डिजिटल अकाउंट्स पासवर्ड से सुरक्षित होते हैं, लेकिन मृत्यु के बाद यदि किसी को पासवर्ड नहीं पता, तो उनकी महत्वपूर्ण जानकारी खो सकती है।
सलाह: एक विश्वसनीय व्यक्ति को पासवर्ड की जानकारी (या उसका स्थान) बताकर रखें, या किसी पासवर्ड मैनेजर का उपयोग करें। - Legacy Contact की सुविधा का उपयोग करें
Facebook और Google जैसे प्लेटफ़ॉर्म आपको “Legacy Contact” या “Trusted Contact” जोड़ने की सुविधा देते हैं, जो आपकी मृत्यु के बाद आपके अकाउंट को मैनेज कर सकते हैं।
यह एक प्रभावी तरीका है अपनी डिजिटल पहचान को नियंत्रित करने का। - भारत में डिजिटल संपत्ति के लिए स्पष्ट कानून नहीं हैं
भारत में फिलहाल ऐसा कोई विशेष कानून नहीं है जो डिजिटल संपत्ति के उत्तराधिकार को नियमित करता हो।
हालांकि, आप एक अनौपचारिक “डिजिटल वसीयत” (Digital Will) बना सकते हैं जिसमें आप तय करें कि कौन-कौन सी डिजिटल संपत्ति किसे मिलेगी। - पहले से योजना बनाना है अत्यंत आवश्यक
डिजिटल संपत्ति के लिए कोई कानूनी विवाद न हो, इसके लिए:- अकाउंट्स की सूची बनाएं
- पासवर्ड मैनेजर का उपयोग करें
- भरोसेमंद व्यक्ति को जानकारी दें
- डिजिटल वसीयत या निर्देश तैयार करें
निष्कर्ष:
जैसे हम भौतिक संपत्तियों (जमीन-जायदाद) की वसीयत बनाते हैं, वैसे ही डिजिटल संपत्तियों की उत्तराधिकार योजना बनाना भी आज के समय में बेहद जरूरी है। इससे न केवल भविष्य की उलझनों से बचा जा सकता है, बल्कि आपकी भावनात्मक और रचनात्मक डिजिटल विरासत भी सुरक्षित रहती है।
Summary of Ministry of Corporate Affairs Announcement on Corporate governance & CSR
Summary of Ministry of Corporate Affairs Announcement
1. Strengthening Corporate Governance and Transparency:
The Companies Act, 2013, contains provisions for ensuring corporate governance and transparency in company management.
It mandates compliance through key managerial personnel, the Board of Directors, and shareholders.
2. Maintenance and Disclosure Requirements:
Companies are required to maintain financial records, returns, and registers.
Notices, explanatory statements, and financial reports must be shared with shareholders.
Annual filings with the Registrar ensure regulatory oversight.
3. Corporate Social Responsibility (CSR) Provisions:
Section 135 of the Companies Act, Schedule VII, and CSR Policy Rules, 2014, provide the legal framework for CSR.
CSR activities must align with the eligible activities listed in Schedule VII.
4. CSR Governance and Monitoring:
CSR is board-driven, with decisions based on the CSR Committee’s recommendations.
Companies must report CSR activities annually in the MCA21 registry.
CSR expenditure details must be included in the Annual Financial Statements.
5. Audit and Compliance:
Auditors are required to report any unspent CSR amounts under CARO, 2020, applicable from FY 2021-22.
Companies must publish their CSR Committee composition, CSR Policy, and approved projects on their websites.
6. Enforcement and Accountability:
Non-compliance with CSR provisions results in regulatory action under the Act.
The legal framework ensures the effective use of CSR funds and maintains corporate transparency.
7. Government Statement:
Minister of State Shri Harsh Malhotra provided this information in a written reply in the Lok Sabha. (11 March 2025)
Gujarat High Court Rules on Deloitte’s Challenge to Income Tax Reassessment Notice
Gujarat High Court Rules on Deloitte’s Challenge to Income Tax Reassessment Notice
Key Highlights:
Petitioner: M/s. Deloitte Haskins & Sells
Issue: Challenge to Section 148 notice under Income Tax Act, 1961
Allegation: Escaped income from foreign entities (Spain & Japan)
Claim: Reassessment initiated without new tangible material
Court’s View: Reassessment cannot be based on a mere “change of opinion”
Gujarat High Court is reviewing whether the Income Tax Department’s actions violated principles of natural justice.
The Gujarat High Court recently addressed a *writ petition filed under Article 226 of the Constitution by “M/s. Deloitte Haskins & Sells,”* a partnership firm practicing as chartered accountants. The firm challenged a notice issued under Section 148 of the Income Tax Act, 1961, seeking its quashing and an injunction against further proceedings by the Income Tax Department. The case centered on alleged escaped income from foreign entities, including payments received from Spain and Japan, and the department’s failure to address the petitioner’s objections before proceeding with reassessment.
*Key Points:*
*1. Challenge to Section 148 Notice:*
The petitioner contested the validity of the notice issued under Section 148, arguing that the reassessment was initiated based on a mere “change of opinion” without any new tangible material. The Gujarat High Court has previously held that reassessment cannot be initiated on a mere change of opinion for material already scrutinized in previous assessments.
*2. Alleged Escaped Income:*
The reassessment pertained to alleged escaped income from foreign entities, including payments received from Spain and Japan. The petitioner maintained that all relevant details were furnished during the original assessment, and no new information had surfaced to justify the reassessment.
*3. Non-Consideration of Objections:*
The petitioner asserted that the Income Tax Department proceeded with the reassessment without addressing the objections raised, violating principles of natural justice. The Gujarat High Court has previously invalidated assessment orders due to violations of procedural requirements under Section 144B, emphasizing the necessity of considering taxpayers’ objections.
*Court’s Decision:*
While the specific outcome of this particular case is not detailed in the available sources, the Gujarat High Court has consistently ruled that:
*Reassessment notices under Section 148 cannot be issued based on a mere change of opinion for material already scrutinized in previous assessments.*
*Procedural lapses, such as failing to consider taxpayers’ objections, can render assessment orders invalid.*
*These precedents suggest that the court may favor the petitioner’s stance if similar circumstances apply.*
Enhancements in Biometric Functionality for Directors (GST updates)
Date: March 3, 2025
The GST Network (GSTN) has introduced a new facility allowing certain Promoters/Directors of businesses to complete their Biometric Authentication at any GST Suvidha Kendra (GSK) in their Home State, instead of only at the jurisdictional GSK.
Who Can Avail This?
Applicable to Promoters/Directors listed in the Promoter/Partner tab for the following businesses:
Public Limited Company
Private Limited Company
Unlimited Company
Foreign Company
Key Highlights:
1. If selected for Biometric Authentication, an intimation email will be sent to the applicant, providing the option to choose a GSK in their Home State.
2. This is a one-time selection and cannot be changed after confirmation.
3. Currently available in 33 States/UTs; will soon extend to Uttar Pradesh, Assam, and Sikkim.
4. Upon selection, a confirmation email with a slot booking link will be sent.
5. The biometric process, including photo capture and authentication, must be completed at the chosen GSK.
6. If Biometric Authentication has already been completed, re-verification is not required.
7. If the Promoter/Director and Primary Authorized Signatory (PAS) are the same person, the home-state option is not available—they must visit the designated jurisdictional GSK instead.
8. This facility is optional; Promoters/Directors may still visit their jurisdictional GSK if preferred.
Taxpayers are advised to follow these guidelines for a smooth GST registration process.
Mandatory HSN codes in GSTR -1/1A from Jan 2025 II GST Advisory 09 Jan 2025
https://youtu.be/Ghbm2EsJJ9c?si=xf-jdBFsQGP9E892
*Jan 9th, 2025*
After successful implementation of Phase-I & Phase-II now :
👉Phase-III regarding Table 12 of GSTR-1 & 1A is being implemented, from return period January 2025.
👉Manual entry of HSN has been replaced by choosing correct HSN from given Drop down.
👉Table-12 has been bifurcated into two tabs namely B2B and B2C, to report these supplies separately.
👉Validation regarding values of the supplies and tax amounts involved in the same, have also been introduced for both the tabs of Table-12.
👉In initial period these validations have been kept in warning mode only, which means failing the validation will not be a blocker for filling of GSTR-1& 1A.
Ministry of Corporate Affairs : Year End Review-2024
Prime Minister Internship Scheme Launched to Provide 1 Crore Internships in Top Companies Over Five Years
Successful Migration of MCA21 from Version 2 to Version 3 for Streamlined Compliance
Jan Vishwas Initiatives Simplify Share Transmission and Lost Share Certificate Processes, Eliminates Surety Requirements for Duplicate Physical Security Certificates
IEPFA Launches Enhanced Grievance Redressal Mechanism with Multilingual IVRS Facility
Integrated Technology Platform Proposed Under Insolvency and Bankruptcy Code for Better Efficiency
IBC Resolves Rs. 10.22 Lakh Crore Default Cases Pre-Admission with Record Resolution Rates
Competition Commission of India (CCI) Disposes 99% of Combination Cases by September 2024
Central Processing Centre (CPC) Launched for Nationwide E-Form Processing
CPACE Reduces Corporate Exit Processing Time to 90 Days
Amendments Introduced in Indian Accounting Standards (Ind AS 116 and Ind AS 117)
Faceless Adjudication Mechanism Introduced for Decriminalized Corporate Defaults
The major initiatives and achievements of the Ministry of Corporate Affairs during the Year 2024 are as follows:
Prime Minister’s Internship Scheme – Pilot Project
The Prime Minister’s Internship Scheme in Top Companies has been announced in the Budget 2024 aiming to provide internship opportunities to one crore youth in top 500 companies over five years.
Through this Scheme, youth will gain exposure to real-life business environment, across varied professions and employment opportunities.
The interns will be provided with financial assistance of Rs. 5,000 per month, of which Rs. 4500 would be disbursed by the union government, and Rs. 500 per month would be paid by the company from its CSR funds.
Additionally, a one-time grant of Rs. 6,000 for incidentals would be disbursed by Ministry of Corporate Affairs (MCA) to each intern, upon joining the place of internship.
Duration of the internship under the PM Internship Scheme is of 12 months.
A Pilot Project of the Scheme, targeted at providing 1.25 lakh internship opportunities during FY 2024-25, has been launched on 3rd October 2024 through an online portal, accessible at http://www.pminternship.mca.gov.in.
Partner companies have posted approximately 1.27 lakh internship opportunities on the portal.
Approximately 4.87 lakh youths have completed their KYC and registered themselves on the portal.
Approximately 6.21 lakh applications have been received against 1.27 lakh Internship Opportunities. The selection process for internship is ongoing.
Migration of MCA V2 to V3: Enhancing Efficiency and Compliance
IEPFA has successfully migrated forms from MCA 21 Version 2 to Version 3, introducing significant improvement to streamline the compliance process.
The number of compliance forms has been reduced from 5 to 3, simplifying submission requirements for companies.
Additionally, the process of transferring funds has been made fully online, with all company forms now integrated into a Straight Through Process (STP), eliminating the need for manual intervention.
To further facilitate this change, a dedicated dashboard has been implemented for Nodal Officers, allowing them to easily track and file verification reports for claims.
Major Initiative Under Jan Vishwas
(1)-Recognition of Legal Heirship Certificate for Share Transmission
The legal heirship certificate has been officially recognized as a valid instrument for registering the transmission of shares. This important development, applicable to shares transferred to the IEPF by companies under Section 124(6) of the Companies Act, 2013, eliminates the need for a monetary threshold.
This reform significantly reduces the burdens on individuals by removing the requirement to obtain a succession certificate, letter of administration, or probate of a will. As a result, beneficiaries can save both time and costs that were previously associated with civil court procedures. This initiative not only simplifies the transmission process for shares but also enhances accessibility and efficiency for families experiencing complexities of inheritance.
(2)Simplification of Processes for Lost Share Certificates
In a progressive move aimed at claimants, the requirement to file an FIR for the loss of physical share certificates for securities valued up to Rs. 5 lakhs have been eliminated. This change streamlines the process for individuals who may have lost their share certificates, reducing the bureaucratic hurdles they face.
(3)Elimination of Surety Requirements for Duplicate Physical Security Certificates
In a significant reform, the requirement for sureties when applying for duplicate physical security certificates has been eliminated for all values. This crucial change aims to simplify the process for claimants who may need to replace lost or damaged certificates, thus removing unnecessary barriers and enhancing accessibility.
Enhanced Grievance Redressal Mechanism
IEPFA has augmented its grievance redressal mechanism to provide a more effective and user-friendly experience for stakeholders.
The Authority has introduced an intuitive call centre solution equipped with Interactive Voice Response System (IVRS) facilities available in six languages, ensuring accessibility for a diverse audience.
Additionally, the call centre operates through a convenient five-digit short code – 14453, simplifying the process for users to seek assistance and address their concerns. This enhancement reflects IEPFA’s commitment to improving communication and support for claimants, ensuring that their grievances are addressed swiftly and efficiently.
To enhance accessibility, increase interactivesness; bring financial inclusiveness and engagement with stakeholders, IEPFA successfully conducted
Niveshak Sunwai Initiatives in Mumbai and Ahmedabad;
Niveshak Panchayat: Bridging the Gap Between Claimants and IEPFA;
Niveshak Didi: Empowering Women through Financial Literacy;
Niveshak Saarthi: Embracing Financial Inclusivity.
Setting of an Integrated Technology Platform under the IBC:
The Government is considering setting up an Integrated Technology Platform under the Insolvency and Bankruptcy Code, 2016.
It may provide for an integrated case management system for processes under the IBC, automated processes to file applications with the Adjudicating Authority, delivery of notices, enable interaction of Insolvency Professions with stakeholders, storage of records of the corporate debtor, and incentivise effective participation of stakeholders.
The Integrate Technology Platform would lead to better transparency, minimisation of delays, effective decision making and better oversight of the processes by the authorities.
Achievements/performance of the Insolvency and Bankruptcy Code, 2016:
The IBC has introduced a new era of transparency and fairness in insolvency resolutions.
It ensures equitable treatment of all stakeholders, with a clear and predictable resolution process.
Till March 2024, 28,818 applications for initiation of CIRPs, having underlying default of Rs. 10.22 lakh crore were resolved before their admission. This is attributed to the behavioural change in debtor creditor relationship effectuated by the Code.
Till September 2024, 1068 CIRPs have culminated in resolution plans, achieving on average 86.13% of the fair value of the Corporate Debtor (CD). Creditors have realised Rs. 3.55 lakh crore under the said resolution plans.
By June 2024, the IBC successfully navigated 3,409 CDs through the insolvency process, with 1068 achieving resolutions through plans and the remainder through appeals, reviews, settlements, or withdrawals. The resolution of these CDs has led to a realization rate of over 161% against liquidation value. The average expense incurred in the resolution processes is remarkably low, standing at only 1.37% of the liquidation value and 0.83% of the resolution value.
Competition Commission of India (CCI) achievements:
Since its inception, the Competition Commission of India (CCI) has received 1289 antitrust matters (Sections 3 & 4) and has disposed of 1157 (90% approx.) cases till September, 2024.
Further, from January 2024 to September 2024, the Commission received 30 new cases and disposed 30 cases (including carry forward cases from previous year).
The Commission considered and approved mergers and acquisitions relating to various sectors of the economy such as Financial Markets, Power & Power Generation, Pharmaceuticals & Healthcare, and Digital Markets.
Since its inception, the Commission has received 1191 combination matters (Sections 5 & 6) and has disposed of 1179 (99 % approx.). Further, from January 2024 to September 2024, the Commission received 91 new cases and disposed 101 cases (including carry forward cases from previous year). Seventeen (17) letters were issued to the parties out of Two hundred and ninety-one (291) transactions seen in Media scanning.
CCI initiated a Study on “Competition Issues in Renewable Energy Sector across BRICS Nations”.
The study report is being prepared based on inputs received from the competition authorities of BRICS nations.
Increased Compliance and Filing Rates:
Over the past two years, the Ministry has significantly improved compliance with Section 148 of the Companies Act, 2013.
This progress is evident from a substantial increase in the filings of e-Form CRA-2(Intimation of Appointment of Cost Auditor) and e-Form CRA-4 (Filing of Cost Audit Report). Specifically, there has been a 35% increase in e-Form CRA-2 filings and a 36% rise in e-Form CRA-4 filings in the fiscal year 2023-24 compared to2021-22.
Proactive Advisory Initiatives:
From the financial year 2023-24, the Ministry has proactively issued regular advisories to companies, emphasizing the importance of adhering to the prescribed timelines for filing Cost Audit Reports.
This initiative has led to a 14% increase in the timely submission of Cost Audit Reports during 2023-24 compared to the previous year.
Examination of Existing Framework of Cost Audit and its Rules:
To review the existing framework of Cost Records and Cost Audit and to improve the usefulness of the Cost Audit Reports in various sectors of the economy, a Committee was constituted in October, 2023 by MCA.
The Committee’s report has been placed on the website of MCA inviting comments from the stakeholders.
Based on the stakeholders comments, recommendations of the Committee will be examined and framework governing Cost Record and Audit will be amended.
Newly established office i.e., Central Processing Centre (CPC) in the year 2024.
The Central Processing Centre (CPC) was launched in 2024. CPC was established for discharging or carrying out the function of processing and disposal of such e-forms, as may be prescribed under the provisions of the Companies Act, 2013.
The CPC shall also exercise functional jurisdiction of processing and disposal of e-forms and all related matters pertaining to statutory compliances under the Companies Act, 2013 having territorial jurisdiction all over India and any other e-forms as may be notified by the Central Government, filed along with the prescribed fee as provided in the Companies (Registration of Offices and Fees) Rules, 2014″.
Empowering the Regional Directors
Rule 25A of Companies and (Compromises, Arrangements Amalgamations) Rules, 2016 [CAA Rules] has been amended on 9th Sep. 2024 (effective from 17.9.2024) empowering the Regional Directors (RDs) to approve petitions for mergers between a holding company incorporated outside India with a wholly owned subsidiary incorporated in India in a time bound manner, instead of NCLT.
The Ministry has also issued Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 on 24th January, 2024 to allow Indian companies to list their equity shares on Gift IFSC International stock exchanges. The “Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme” has also been issued by D/o Economic Affairs.
Amendment in Companies (Indian Accounting Standards) Rules, 2015 has been effected to bring changes in Ind AS 116 and introduction of Ind AS 117 as follows:
Ind AS 116: Amendment in Ind AS 116 has been made vide G.S.R. 554(E) dated 09.09.2024, which involves the treatment of leaseback transactions. A new paragraph, 102A, has been added to Ind AS 116, for right-of-use assets and lease liabilities arising from sale and leaseback transactions.
Ind AS 117: Vide the notification no. G.S.R. 492 (E) dated 12th August 2024, the Indian Accounting Standard (Ind AS) 117 has been introduced, in respect of insurance contracts.
Centre established for Processing Accelerated Corporate Exit (CPACE)
Fulfilling budget and announcement (2022-23), a Centre established for Processing Accelerated Corporate Exit (CPACE) for expeditious processing of applications filed for voluntary closure of companies, with an aim of bringing down the number of days taken for such closure from about 2 years to less than 6 months.
Since commencement of C-PACE on 01.05.2021, the average number of days for closure has reduced to about 90 days during the FY 2023-24. It is now centralized and the applications filed for voluntary closure of L.L.Ps are also with C-PACE to ensure their expeditious processing as well.
The CPACE for processing closure applications of LLPs was notified on 05th August, 2024 effective from 27th August, 2024.Since inception on 27th August, 2024 and upto 7th December, 2024, 4640 applications of LLP closure have been disposed of by the CPACE.
Amendments in Companies Act, 2013, and L.L.P Act 2008,
Through gradual amendments in Companies Act, 2013, and L.L.P Act 2008, 63 provisions have been decriminalized bringing defaults under such provisions under in-house adjudication mechanism. At present, Registrar of Companies (RoC) are adjudicating cases of defaults, wherein representatives of corporates have to attend hearings ‘in person’. The adjudication mechanism has been made electronic and faceless to eliminate interactions in person during adjudicatory process at RoC level.
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NB/AD
Release Id :-2088711
CBDT notifies Tolerance Range for Transfer Pricing for A.Y 2024-25 as per proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962
CBDT notifies Tolerance Range for Transfer Pricing for A.Y 2024-25 as per proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962
Notification of tolerance range shall provide certainty to taxpayers and reduce the risk perception associated with pricing of a transaction in transfer pricing
The Central Board of Direct Taxes (CBDT) has issued notification no. 116/2024 dated October 18, 2024 notifying the tolerance range for AY 2024-25. The notification of tolerance range shall provide certainty to taxpayers and reduce the risk perception associated with pricing of a transaction in transfer pricing.
Proviso to sub-rule(7) of rule 10CA sub-rule(7) provides that, “if the variation between the arm’s length price so determined at which the international transaction or specified domestic transaction has actually been undertaken does not exceed such percentage not exceeding three percent of the latter, as may be notified by the Central Government in the Official Gazette in this behalf, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price.”
The tolerance range for transfer pricing is as follows:
The tolerance range for transfer pricing is as follows:
1. The tolerance ranges shall be 1% for transactions in the nature of “wholesale trading” and 3% for others, respectively, as notified last year and
2. The term ‘wholesale trading’, shall be defined as an international transaction or specified domestic transaction of trading in goods which fulfil all the following conditions:
1. Purchase cost of finished goods is 80% or more of the total cost pertaining to such trading activities; and
2. Average monthly closing inventory of goods is 10% or less of sales pertaining to such trading activities.
New Form 12BAA to reduce TDS from salary (CBDT Notification dated 15 Oct 2024)
New Form 12BAA to reduce TDS from salary (CBDT Notification dated 15 Oct 2024)
https://youtu.be/LcNlgy1ut7g?si=N9fkmTLpLdJhj743
Central Board of Direct Taxes (CBDT) has notified amendments in income-tax rules for ease in claiming credit for TCS collected/TDS deducted for salaried employees and enabling claiming TCS credit of minors in the hands of parents. Sub-section (2B) of Section 192 of the Income-tax Act, 1961 (‘the Act’) was amended vide the Finance (No. 2) Act, 2024 (FA (No. 2)) to include any tax deducted or collected at source under the provisions of Chapter XVII-B or Chapter XVII-BB, as applicable, for the purpose of making tax deductions in the case of salaried employees.
Vide CBDT Notification No. 112/2024 dated 15.10.2024, the Income-tax Rules, 1962 (‘the Rules’) have been amended, introducing Form No. 12BAA as the prescribed statement of particulars required under sub-section (2B) of Section 192 of the Act. Employees must provide these particulars to their employers, who are responsible for making payments under sub-section (1) of Section 192. The employer, in turn, shall deduct TDS on salary after taking into account the furnished particulars.
Further, sub-section (4) of Section 206C of the Act was amended vide FA (No. 2) to allow the credit of TCS to a person other than the collectee—such as a parent in the case of a minor collectee—when the minor’s income is clubbed with that of the parent. Accordingly Vide CBDT Notification No. 114/2024 dated 16.10.2024 Rule 37-I of the Rules has been amended to allow credit of tax collected at Source to a person other than the collectee, in whose hands the income of the collectee is assessable.
The said notifications are available at http://www.incometaxindia.gov.in
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