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Judiciary updates-12th Nov 2021 (Income tax, GST & Corporate Laws)

Posted on by Business So Simple in Company Law, GST, Income Tax, Legal awareness

Income Tax

ITAT disallows grossing up of TDS deducted on interest paid to AE

Lite-on Mobile India Pvt. Ltd. Vs DCIT (ITAT Chennai) dated 03 Nov 2021

Disallowing finance charges, which were allowed in earlier years, needs re-consideration – Matter remanded back to AO

Southern Hills Developers Pvt. Ltd. Vs DCIT (Karnataka High Court) dated 31 Aug 2021

Deduction allowable on loss suffered by assessee on Foreign Exchange Fluctuation Loss

PCIT Vs United Spirits Ltd. (Karnataka High Court) dated 02 Sept 2021

No interest expense disallowance when own fund exceeds capital work-in-progress

Axis Bank Limited Vs DCIT (ITAT Ahmedabad) dated 28 Oct 2021

GST

Separate GST registration need not be obtained at the place of importation

In re Pine Subsidiary Industry (GST AAR Karnataka) dated 29/10/2021

AAR cannot give ruling on whether HSN or SAC needs to be mentioned in invoice

 In re GEW (India) Pvt. Ltd. (GST AAR Karnataka) dated 08/11/2021

GST on job work services such as anodizing, plating, on goods/materials belonging to registered persons

In re ALCOATS (GST AAR Karnataka) dated 29 Oct 2021

Manpower services provided to Government entities not exempt from GST

 In re Sree Vinayaka Enterprises (GST AAR Karnataka) dated 29/19/2021

AAR cannot give ruling on value for levy of IGST on imports

In re HDL Industries (GST AAR Karnataka) dated 29/10/2021

Corporate Laws

Gold smuggling not covered within the definition of terrorist act under Unlawful Activities (Prevention) Act

Mohammed Shafi P. Vs National Investigation Agency (Kerala High Court) dated 02 Nov 2021

Arbitrator has Substantial Discretion in Awarding Interest U/s. 31(7)(a) of Arbitration Act: SC

Punjab State Civil supplies Corporation Limited (SC dated 20/10/2021)

Regards,

Bipul Kumar

CBIC launches online digital application for scheduling of examination of cargo for traders at ICD Tughlakabad, Delhi (MoF Press Release dated 11th Nov 2021)

Posted on by Business So Simple in Custom

CBIC launches online digital application for scheduling of examination of cargo for traders at ICD Tughlakabad, Delhi


ICD Tuglakabad’s initiative will improve logistics efficiency of industry by launching Customs clearance work on Sundays and all public holidays

Customs at ICD Tuglakabad also inaugurates Baggage Scanner for non-intrusive examination of unaccompanied baggage/palletized import Cargo

As a major push in technology and digitalisation, Delhi Customs Zone took three important initiatives today.

An online facility for scheduling examination of Import cargo with the aim of minimising physical interface of trade with Customs and other stakeholders was launched. It is multi-stakeholder application where Customs, CONCOR, Customs brokers and importers on the same platform having a shared view of scheduling examination of goods.  This initiative will ensure fullest transparency alongside of convenience for trade and other stakeholders.

Customs at ICD Tuglakabad also inaugurated a Baggage Scanner, which will result in non-intrusive examination of unaccompanied baggage/palletized import Cargo while ensuring swifter clearances. This will also help Customs in targeted intervention to check smuggling. Few days earlier an electronic tracking of containerised cargo through use of Smart locks and an application built on Blockchain technology was launched. This enables customs to monitor and track movement of non-duty paid goods through GPS tracking while reducing compliance burden on trade in terms of documentation.

In another first, ICD Tuglakabad has taken the initiative of improving the logistics efficiency of industry by launching Customs clearance work on Sunday and all public holidays. This facility at ICD TKD is being implemented w.e.f. 14.11.2021 (Sunday) with work hours between 9:30 am to 6:00 pm. In this regard, Public Notice No. 34/2021 and Public Notice no. 04/2021 both dated 10.11.2021 has been issued by the Offices of Pr. Commissioner of Customs (Import) and Commissioner of Customs (Export), ICD-Tughlakabad (Import), New Delhi respectively.

ICD Tughlakabad (TKD) since 1993, at its present location, was the second Land port to be set up in the country after Bangalore in 1983. It caters to the need of importers and exporters and is the biggest inland dry port of North India. This port handles around 2,50,000 TEUs of Exim Cargo and is well connected with four full length rail lines to Gateway ports such as Mumbai, Nhava Sheva, Chennai, Mundra etc. besides bringing the containers by road from other ports such as Ludhiana, Haldia, Calcutta and Kandla, etc. ICD TKD is equipped with most modern facilities such as rail mounted gantry of 40 metric empty lifting capacity, rubber tire diesel powered cranes, billoties and lift trucks, etc.  along with two covered sheds, one for import and another for export with a total area of 16,000 sq. mts. in the Customs  bonded area for stuffing and de-stuffing of Exim goods. With these ultra-modern facilities, ICD-TKD, New Delhi, has developed into the largest multi-modal centre in the Indian sub-continent.

Special Secretary & Member (I.T. & Taxpayer services), Shri Sandeep Kumar, Shri Surjit Bhujbal, Chief Commissioner, Delhi Customs Zone along with other senior officers from ICD Tughlakabad, Parpargunj, Air Cargo Complex, Airport, Audit, Appeals and DG Systems graced the occasion.

PM to launch two innovative customer centric initiatives of RBI on 12 November

Posted on by Business So Simple in Financial Prudence

Dear Sir,

Please find below YouTube video link on What is RBI Retail Direct Scheme & Reserve Bank -Integrated Ombudsman Scheme I Launch on 12 Nov 2021

The RBI Retail Direct Scheme is aimed at enhancing access to government securities market for retail investors. It offers them a new avenue for directly investing in securities issued by the Government of India and the State Governments. Investors will be able to easily open and maintain their government securities account online with the RBI, free of cost.

The Reserve Bank – Integrated Ombudsman Scheme aims to further improve the grievance redress mechanism for resolving customer complaints against entities regulated by RBI. The central theme of the scheme is based on ‘One Nation-One Ombudsman’ with one portal, one email and one address for the customers to lodge their complaints. There will be a single point of reference for customers to file their complaints, submit the documents, track status and provide feedback. A multi-lingual toll-free number will provide all relevant information on grievance redress and assistance for filing complaints.

Regards,
Bipul Kumar

India poised to achieve Services Export target of $1 Trillion by 2030

Posted on by Business So Simple in Business Consultancy, Entrepreneurship, Startups

Ministry of Commerce & Industry Press Release dated 09th Nov 2021

India poised to achieve Services Export target of $1 Trillion by 2030- Shri Piyush Goyal


India has the potential to become the top services exporter in the world- Shri Piyush Goyal

$89 bn Services Trade surplus in FY 2020-21

Rs. 56,027 crore released under various Export Promotion schemes

“Services” boosting India’s transition from an Assembly economy to a Knowledge based economy- Shri Piyush Goyal

India has transformed from being the ‘Back office’ to the ‘Brain office’ of the world- Shri Goyal

The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Goyal today said that India is poised to achieve services export target of $1 trn by 2030.

He was addressing the gathering at the ‘Services Export Promotion Council- Global Services Conclave 2021” in New Delhi today.

The Minister said that Services are a key driver of India’s economic growth.

He added that services sector provides employment to nearly 2.6 crore people and contributes approximately 40% to India’s total global exports. He added that Services trade surplus was $89 bn in FY 2020-21 and it has been the largest FDI recipient (53% of FDI inflows 2000-2021).

The theme of the Global Services Conclave 2021 was ‘India Serves: Exploring Potential Growth Sectors Beyond IT/ITes’.

Emphasizing that Service sector is our competitive advantage, powered by Skills, Startups and IT Solutions, the Minister said that today, Indian services have the twin power of universal acceptance & universal attraction.

Lauding India’s commitment to enable ‘work from Home’ during the pandemic, Shri Goyal said that, while services trade remained depressed in other countries, India’s services sector showed immense resilience.

“Sectors like tourism, hospitality, etc. which suffered due to COVID-19 is showing revival signs” he added.

Appreciating the spirit that led to rise through the tough times faced by the sector, Shri Goyal said that tough times don’t last, but tough people do. He expressed his admiration for the selfless service of all frontline workers during the COVID 19 pandemic.

The Minister said that in 2020, India became the 7th largest services exporter in the world, moving up the ladder by two positions. Services PMI rose to a decade high of 58.4 in Oct’21, he said.

Emphasizing that India had the potential to become the top services exporter in the world, Shri Goyal said that Services is boosting India’s transition from an assembly economy to a knowledge based economy.

Global sentiments are changing from ‘why India’ to ‘why not India’, he said.

Observing that India has transformed from being the ‘Back office’ to the ‘Brain office’ of the world, Shri Goyal said that today, India’s Services export largely comprise of IT/ITes and stressed that we need to focus on other potential growth sectors.

The Minister listed certain crucial sectors which can catapult India’s services sector on a high growth trajectory such as higher Education. He observed that students from US, Canada etc. prefer India for heritage, art and culture studies.

The Minister assured that the Government was actively pursuing market access opportunities (FTAs) and working on a scheme alternative to SEIS.

He said that the Government supported service sector through Aatmanirbhar Bharat Package, collateral-free Automatic Loans for Businesses, including MSMEs. Rs. 56,027 Crore was released under various Export Promotion schemes.

He spoke of India’s initiatives in Skill development, especially in emerging areas like AI, Big Data, Robotics, etc.

The Minister also highlighted the need for assisting States in formulating a comprehensive export strategy with districts as Export Hubs.

Shri Piyush Goyal said that the Government as a facilitator and enabler, helped Indian Services to grow & touch lives across the globe. He emphasized that Zero Government interference has enabled IT sector to excel. He appreciated the sector for not pursuing incentives but standing on its competitive strength.

Charting the way forward, the Minister said that we must introduce more standards & improve quality. We must move up the value chain in services and pick areas where our strength lies and expand on that, he said. He also said there is a need to expand markets for Legal/Accounting professionals.

Quoting Shri Atal Bihari Vajpayee, Shri Goyal said that “Our aim may be as high as the endless sky, but we should have a resolve in our minds to walk ahead, hand-in-hand for victory will be ours”.

Guidelines for disallowing debit of electronic credit ledger under Rule 86A of CGST Rules (CBEC-20/16/05/2021-GST/1552 dated 2nd November, 2021)

Posted on by Business So Simple in GST

Dear Sir,

Please find below YouTube video link on Guidelines for disallowing debit of electronic credit ledger under Rule 86A of CGST Rules (CBEC-20/16/05/2021-GST/1552 dated 2nd November, 2021)

1. Grounds for disallowing debit of an amount from electronic credit ledger

2. Proper authority for the purpose of Rule 86A

3. Procedure for disallowing debit of electronic credit ledger/blocking credit under Rule 86 A

4. Allowing debit of disallowed/restricted credit under sub–rule (2) of Rule 86A

Regards,
Bipul Kumar

Role of material evidence under Rule 86A clarified by CBIC Chairman (D.O.No.96/CH(IC)/2020 dated 08 Nov 2021)

Posted on by Business So Simple in GST

Last week week I inaugurated the DGGI Annual Conference of DGs/ADGs for the year 2021 at Mumbai on 01/11/2021. Senior officers of DGGI from across the country had met to discuss and share their thoughts on important GST related compliance and tax evasion issues. These included strengthening of enforcement mechanism, the menace of fake invoicing including those in services, transport monitoring mechanism and issues pertaining to seizure and arrests. The deliberations during the conference, it is felt, will provide key policy inputs to the Board and help in ensuring better compliance.

Simultaneously, on the trade facilitation front, guidelines for scrutinising proper availment of Input Tax Credit under Rule 86A of CGST Rules 2017 have been issued by GST Policy Wing on 02/11/2021. The guidelines inter alia lay the contours of the ‘reasons to believe’ test on objective parameters rather than on subjective consideration. The role of material evidence under Rule 86A has also been clarified. This would bring in clarity and transparency both for officers and the trade. It is also in line with the observations made by various courts regarding the laying down of such guidelines.

CBIC is gearing up in its preparedness on AKAM activities to befittingly commemorate the 75th anniversary of India’s Independence. The ICONIC week allotted for Ministry of Finance is from 6th to 12th December 2021. We are planning to have two major events during this period. The event requiring your active participation is on honouring sports persons i.e. awardees of Padma / Arjuna / Dronacharya awards and those who have won medals at international competitions like Olympics, Asian Games Commonwealth games and/ or other non-athletic international sport of an equal stature, including Paralympic events. This has been informed to the Zones earlier. If you are in this category or know of some departmental officer, serving or retired who does so, immediately inform your / their details to your Sports officers or the JC / ADC (P&V) of your Commissionerate. As the time now left is very short, a quick response is expected from the Zones with names of officers and the awards / medals they have won.

They should communicate the details latest by Tuesday i.e. the 8th of December 2021 to Shri Upender Gupta, Pr. ADG, DGTS. Let us ensure that no one who is eligible is left out from the merit list.
CBIC would also be participating in the forthcoming Trade Fair in Delhi from the 14th of November, 2021. During the fair a few thematic events would be showcased. All those who are or happen to be in Delhi during this period are invited to visit our enclosure. Those interested may also volunteer their services and participate in the events.

During my visit to Mumbai, I got an opportunity to visit and take stock of the progress made in the construction of our Customs enclave at Wadala. This is a prestigious project that is coming up in a centrally located place of Mumbai and is expected to ease and address the office and accommodation needs of our departmental officers. Work is in progress and the foundation laying ceremony for the complex would be possible by early December. Phase I of this project will have six towers housing 10 Commissionerates and 769 residential quarters. It is scheduled to be completed by 2024.

On the welfare front, the Governing Body of the Welfare Fund had approved the proposals for granting financial assistance of Rs. 8.44 lakh for setting up a Gym/Recreation/sports facilities at Customs Commissionerate Hqrs. Indore during FY 2021-22 and Rs 4.06 lakh for setting up of a new canteen at Customs Canine Centre, Attari. It has also approved the proposal for reimbursement of medical claims of about Rs. 13.45 lakh incurred by 11 officers/staff for their own/dependents medical treatment.

Our anti-evasion efforts last week saw Mumbai Central CGST Commissionerate detect a fake ITC case involving Rs. 49 crores, based on data mining. Rs. 24.51 crores has been recovered and one person has been arrested.

Last week Air Cargo Customs, Chennai made a seizure of a large brass Nritya Ganapati idol that was to be exported out of India. Archaeological Survey of India on examination of the statue has opined that the idol is more than 400 years old. This detection has helped save a national treasure from being lost. Madurai airport Customs has seized gold bars weighing 4999.89 grams valued at Rs. 2.42 crore from a passenger who arrived from middle east. Such seizures call for alertness of our officers even at smaller airports having thin international flight operations.

With three months to go before the budget is presented, preparatory work has begun in right earnest. To begin with, Tax Research Unit (TRU) has invited inputs/suggestions relating to indirect taxation from
all our stakeholders. You may also add value to this exercise with contributions of your own through your Zonal Chief Commissioners. Comprehensive suggestions on fiscal changes, both on policy and procedure, you feel would be beneficial for the country are welcome. This should reach the JS, TRU by the 15th of this month. I also hope, as indicated by me earlier, that you have sent your valuable policy contributions to the Pr. Commissioner GST Policy Wing on the subject of GST revenue augmentation and compliance reduction, which is to be placed before the Group of Ministers. A chance to win an award should not be wasted.

It is my pleasure to share with you that a beginning has been made to bring to close a long pending issue of regularization of promotion in various grades of Grp ‘A’ posts. In a major achievement, a DPC was held in the UPSC today i.e. 08th November 2021 for regularization of promotions in the grade of Assistant Commissioner of Customs and Indirect Taxes against the vacancy years 2002-03 to 2012-13. This is a matter of great happness for officers and department alike as it will set the ball rolling for further regularization of promotion right up to the Commissioner level posts and for regular promotions thereafter.

Heavy rains have taken place in Tamil Nadu causing severe disruption to life and more rains are predicted. All officers and staff there, should take maximum care and support one’s colleague or fellow citizen in distress. Departmental assets should also be secured against the ravages of the weather. Do take care.

Yours sincerely,
(M. Ajit Kumar)
To
All Officers and Staff of Central Board of Indirect Taxes and Customs

NALSA observes Legal Services Day (Ministry of Law and Justice Press Release dated 09 Nov 2021)

Posted on by Business So Simple in Legal awareness

The National Legal Services Authority (NALSA) observed Legal Services Day in Greater Noida, Uttar Pradesh today. iOS Mobile App was also launched on the occasion. Shri Justice N.V.Ramana, Chief Justice of India & Patron-in-Chief, NALSA was the Chief Guest for the function. Union Minister of Law & Justice Shri Kiren Rijiju and Shri Justice Uday Umesh Lalit were the guests of honour for the function. Shri Justice Rajesh Bindal, Chief Justice, Allahabad High Court and Shri Justice M.N.Bhandari, Executive Chairman, UP State Legal Services Authority and other dignitaries including Judges, Supreme Court of India, Judicial Officers, etc. shall also be gracing the said occasion.

Shri Justice Uday Umesh Lalit lauded the students of Maharishi University who launched a skit on the occasion on the importance of Legal Aid Awareness. He stressed the importance of the wide dissemination through various modes of communication in making people aware of people’s constitutional right to get free legal aid. He wished to eradicate the lack of knowledge on this right so that more people will come forward to avail of the right. He stressed the importance of the law students engaging in the legal aid events to eradicate the ignorance about constitutional rights of the citizens.

Addressing the gathering, Shri Kiren Rijiju commended the legal services authorities on their initiatives and measures taken for spreading legal awareness in each part of the country. He said judges are busy with their work on hearing the cases and so services of NALSA are required to spread the legal awareness to the citizens. He expressed happiness in seeing Lok Adalat being conducted and serving justice on time. He said this brings justice to the doorsteps of the people. He said more focus should be given to the lower judiciary. He said the bridge between access to justice and the common man has to be bridged. He said a strong judiciary is required for democracy to be robust.

He emphasized on bringing all the Law Colleges & Universities in upgrading their standards. He said the Government is looking at alternative redressal mechanisms and other such avenues for the career of law students. He recalled the Prime Minister’s promise of making India a global hub of arbitration. He  argued for bringing a simple and small law so that the common man can understand the law easily.

The Minister mentioned Article 8 of Universal Declaration of Human Rights, 1948 that provides that “Everyone has the right or an effective remedy by the competent national tribunals for acts violating the fundamental rights granted by the constitution or by law.” 

He noted that Article 39 A of the Constitution of India spells out the paradigm for ensuring justice to all. He said the Constitutional vision of “Equal Justice and Free Legal Aid” is imperative for a nation whose millions of people are living in abject poverty. He said having fundamental rights doesn’t make a country great. People should be aware of the fundamental duties and oblige them. He said a common man can live a dignified life, if he is given proper legal aid.

Shri Justice NV Ramana lauded NALSA for spreading legal awareness and upholding justice for the poor and the needy. He quoted Swami Vivekananda’s mantra “Arise, awake and stop not till the goal is reached” and said that the skit performed a while ago was reflective of this mantra. He commended the law students for making the legal services day a grand success. He expressed happiness for observing legal services day on such a grand scale.

He recalled the legal services movement during the period of freedom struggle. He said earlier the service of legal aid was confined to the courtroom and now it has expanded to legal awareness, legal literacy, social action litigation, alternative dispute resolution mechanism, etc.

He said on this occasion a new building for the mediation centre was inaugurated in the supreme court premise. He urged the law students to be the voice of those who have none and be alert about the social problems and act to solve it. He lauded the law students for disseminating legal awareness among the people. He commended the launch of the multi-language portal of NALSA thereby extending the reach of the NALSA. He commended the work of NALSA in spreading legal awareness among the people.

Hon Chief Justice of India Justice N V Ramana inaugurated a four day short film festival on the Legal aid awareness which is being organised under the aegis of the Chhattisgarh State Legal Services Authority. Over 300 entries have been received for the festival on Crimes on women and children, drug awareness etc.

Prizes were also distributed to the winners of the Moot Court Competition and elocution competition among students of Law Colleges. 

***

Consultation Paper on Statutory Audit and Auditing Standards for Micro, Small and Medium Companies (MSMCs) – extension of last date for submission of comments to 30th November 2021 (National Financial Reporting Authority Press Release dated 09th Nov 2021)

Posted on by Business So Simple in Company Law

The last date for submission of comments on Consultation Paper on Statutory Audit and Auditing Standards for Micro, Small and Medium Companies (MSMCs) has been extended from 10th November to 30th November 2021. Consultation Paper may be viewed at: https://nfra.gov.in/sites/default/files/NFRAConsultationPaperMSMCs_0.pdf

The comments may either be submitted by email at comments-tac.paper@nfra.gov.in or by post to NFRA at:


The Secretary,

National Financial Reporting Authority

7th-8th Floor, Hindustan Times House, 18-20,

Kasturba Gandhi Marg, New Delhi 110001

About NFRA

National Financial Reporting Authority (“NFRA” or “Authority”), was constituted as an independent regulator for accounting and auditing in India in October 2018. NFRA’s Charter positions it as an organisation that should be known for Objectivity, Integrity, Impartiality, Independence, Fairness, and Transparency. In making any recommendations, NFRA attempts to keep in mind the implications of such recommendations on the Ease of Doing Business. Section 132(2)(a) of Companies Act, 2013 requires NFRA to make recommendations to the Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors, as the case may be.

Time to reduce logistics cost by 5% (Ministry of Commerce & Industry Press Release dated 08/11/2021)

Posted on by Business So Simple in Business Consultancy, Entrepreneurship

Time to reduce logistics cost by 5% – Shri Piyush Goyal


LEADS report to push healthy competition for improvement in logistics development among States – Shri Piyush Goyal

Gujarat, Haryana and Punjab emerge as top performers in LEADS 2021

Inputs of the report to act as significant stimulants to PM GatiShakti National Master Plan- Shri Piyush Goyal

Efficient Logistics is pivotal to bring ease and empowerment to businesses as well as citizens- Shri Piyush Goyal

Ministry of Commerce and Industry releases report on Logistics Ease Across Different States (LEADS) 2021

Jammu and Kashmir bags the top rank among North Eastern States and the Himalayan Region

The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today said that the inputs given by Logistics Ease Across Different States Report 2021 can lead the way to bring down logistics cost by 5% over the next 5 years.

He was addressing the gathering after the release of the LEADS Report in New Delhi today.

Shri Piyush Goyal said that India is committed to build modern infrastructure for the 21st century, at a pace never seen before.

Referring to the recently launched PM GatiShakti Master Plan ,he said that it would revolutionise the next generation of multimodal infrastructure development in the country.

Lauding Prime Minister Shri Narendra Modi’s consistent focus on infrastructure, the Minister said that the initiatives taken by him in Gujarat for 13 years had laid the foundation for Gujarat to consistently stay at the top of the chart in LEADS report

He said that the speed of highway construction has increased three fold from ~12 km/day in 2013-14 to 37 km/day in 2020-21 and that there was a four fold increase in Railways Capex from Rs. 54,000 Crore in 2013-14 to Rs. 2.15 Lakh Crore in 2021-22.

He observed that in the 5 years before 2014, only 60 panchayats could be connected with optical fibre and that in last 7 years, more than 1.5 lakh gram panchayats connected with optical fibre.

Shri Goyal emphasized that efficient logistics was pivotal to bring ease and empowerment to businesses as well as citizens. He observed that logistics contributed immensely in our fight against COVID-19 by taking essential supplies including liquid Medical Oxygen throughout the country during the 2nd wave

Observing that logistics is an enabler of multiple visions- From Make in India for the World to Last Mile Delivery, the Minister said that to achieve ambitious targets we cannot afford to walk but we need expressways of Land, Air & Water.

He named Infrastructure, Quality Services & Conducive Regulatory Framework as the three pillars of Resilient logistics. He added that with Competitive & Cooperative federalism, LEADS is creating an Ecosystem for Excellence by bringing in a healthy competitive spirit where everyone is persuaded to improve.

“Rather than just absolute improvement in one State, improvement of logistics across all States, will be a force multiplier for the entire logistics ecosystem”, he said.

He lauded Gujarat, Haryana & Punjab for having acquired the top 3 positions respectively.

He applauded the actions taken by Gujarat Govt against LEADS 2019 recommendations such as the widening of roads, implementation of faceless services in license renewals, expansion of warehousing etc.

He also congratulated the State of Uttar Pradesh for leapfrogging 7 ranks since 2019, highest among all states, driven by policy initiatives, higher infra

spending in logistics.

Shri Goyal said that since its inception in 2018, each year LEADS report has

followed a progressive methodology to provide a granular insight on the logistics performance at State/UTs level. “LEADS 2021 has gone 2-step ahead in analysis of domestic and EXIM logistics ecosystem of the state” he added.

The Minister said that states have Indispensable role in improving the logistics ecosystem of India. He outlined a number of suggestions for States including framing of State Logistics policy & Logistics Master Plan, use single-window clearance system for logistics establishment of grievance redressal mechanism and enabling if skilling in logistics through State skilling infrastructure

He opined that LEADS report would be a handy & practical guide to identify strengths, opportunities & improve the logistics performance of States.

The report ranks the states on the basis of their logistics ecosystem, highlights the key logistics related challenges faced by the stakeholders and includes suggestive recommendations.

The Ministry of Commerce and Industry (MoCI) had launched a study, “Logistics Ease Across Different States (LEADS)” in 2018 with the main objective of ranking States and UTs on the efficiency of their logistics ecosystem.

The first version of the report, LEADS 2018, focused on export-import trade and assessed the efficiency of the logistics ecosystem in each State and UT.

The second edition of the study – LEADS 2019, covered both international and domestic trade.

The LEADS 2021 exercise has gone one-step ahead in analysing domestic and EXIM logistics ecosystem of the state. Specifically, two improvements have been done in the overall assessment framework. Firstly, objective parameters have been used along with the perception-based indicators for index formulation.

The objective parameters in the LEADS 2021 Index have been introduced by way of an objective survey instrument administered to the States/UTs and by the inclusion of secondary datasets on logistics across the State/UT level. Secondly, the statistical methodologies to build the index has been updated to get more robust results, given change in the overall framework.

Alternatively, a total of 21 perception and objective variables have been statistically analysed to prepare a composite index basis upon which the states have been ranked.

The perception survey was administered to the four different categories of logistics stakeholders, viz. traders/ shippers, transport service providers, terminal operators, and logistics service providers.

The States’ objective survey collected binary responses in the context of the areas related to policy, institutional framework, current enforcement mechanism, warehousing approvals and processes, smart enforcement, city logistics, drivers’ empowerment, etc. to understand the initiatives taken by the different state governments towards improving the logistics environment in their respective States.

The secondary dataset was compiled with the assistance of the central government ministries, department and associated agencies.

The LEADS survey 2021 was conducted over the period from May to August 2021 in a challenging environment when the COVID crisis was being fought across multiple fronts.

The whole exercise garnered 3771 responses from 1,405 respondents across the country. For representation purposes, states have been ranked in three separate classes including ‘North Eastern States & Himalayan UTs’ and ‘Other UTs’ group.

Gujarat, Haryana and Punjab have emerged as the top performers in the LEADS 2021 index respectively.

Proactive policies, well-developed infrastructure and services driven by a responsive Government have helped Gujarat to maintain its rank. Haryana has secured the second position, followed by Punjab.

Within the North Eastern States and Himalayan Region, Jammu and Kashmir is the top ranker followed by Sikkim and Meghalaya. Delhi stands at the top rank among Other UTs. Uttar Pradesh, Uttarakhand and Jharkhand have witnessed a remarkable improvement in their ranks compared to 2019 LEADS ranking and have emerged as the top improvers.

The report consists of specific section on States and UTs giving detailed analysis of their performance in the LEADS, including issues and challenges being faced by stakeholders as well as suggestions to mitigate the issues.

States/UTs are encouraged to examine and evaluate the findings of the report and to formulate a suitable strategy and a prioritized action plan for improving logistics performance.

LEADS is a continuous exercise, and the MoCI is enthused to provide a pivotal role in initiating, creating, and connecting all the stakeholders to bring in the required improvements in the logistics space collaboratively.

With the efforts in the right direction, it is hoped that the vision of logistics cost will be reduced by 5% in the next five years. This will ensure that the Logistics sector serves as an engine of growth and a key driver for transforming India into a five trillion-dollar economy.

Department of Commerce through LEADS will continuously engage with all States and UTs to support, facilitate and promote improvements in the overall logistics ecosystem. Synergies flowing from such a coordinated approach will reduce logistics costs and which, in turn, will act as significant stimulants to PM Gati Shakti National Master plan.

Access Weblink- https://commerce.gov.in/whats-new/

Judiciary updates (Income tax, GST & Corporate Laws) -09th Nov 2021

Posted on by Business So Simple in Company Law, GST, Income Tax, Legal awareness

Income Tax

ITAT condone the delay in appeal filing as delay was in e-filing & not on manual filing

Gemini Iron and Steel (P) Ltd. Vs ITO (ITAT Chennai) dated 02/11/2021

TDS not deductible on exempt supplementary rent – Section 10(15A)

InterGlobe Aviation Ltd. Vs JCIT (ITAT Delhi) dated 29/10/2021

Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) dated 28/10/2021

GST

SCN quashed by Bombay HC for allegedly availing inadmissible transitional credit as has been issued on an erroneous legal premise

Godrej & Boyce Mfg. Co. Ltd. Vs Union of India and Ors. (Bombay High Court) dated 29/10/2021

TDS under GST applicable if services not exempt from GST

In re Tukaram Pundalik Borade (GST AAR Maharashtra) dated 02/11/2021

Corporate Laws

Judgment debtor cannot raise objections to executions in installments: SC

Dipali Biswas & Ors. Vs Nirmalendu Mukherjee (Supreme Court of India) dated 05/10/2021

Beneficial scheme cannot run contrary to express terms of provisions

 Union of India Vs Abhiram Verma (Supreme Court of India) dated 30/09/2021

Regards

Bipul Kumar