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BEPS: Master File And CbCr: Step Towards Making World One Tax Jurisdiction

CA Chaitanya Maheshwari and Advocate Ameya Khare have explained the entire law and practice relating to Master File (MF) documentation and Country-by-Country Reporting (CbCR) as are applicable under sections 92D and 286 of the Income-tax Act, 1961 read with the OECG guidelines on ‘Base Erosion and Profit Shifting’ (BEPS)

BEPS Background
The international tax system was born following the First World War, in a climate of financial instability and political uncertainty. It resulted from technical studies in the 1920s and international negotiations in 1928 through the League of Nations.

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A Subtraction Which Needs Addition – Section 16(1) Of The I.T. Act, 1961 – Standard Deduction Of Salary Class

CA Prarthana Jalan has argued that though the salaried class of taxpayers pays taxes honestly, they have been given a raw deal by the Government. She claims that the removal of the age-old right to claim standard deduction is discriminatory and unjust and contrary to the prevailing international practice. She has pleaded that the Finance Minister should undo the injustice meted out to the salaried taxpayers by restoring the standard deduction in the forthcoming Budget

Will on 1st February, 2018, Hon’ble Finance Minister,Shri Arun Jaitely make an addition of a wrong subtraction done by his predecessor in The Finance Act 2005 which resulted in doing unjust with the most honest tax payers of our country, will be unwrapped in just few days after.

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Allocation Of Separate Budget For Tax Sites/Govt Portals Is The Need Of The Hour

CA Prarthana Jalan has argued that the frequent breakdowns of the Government’s websites has put the Government in bad light and is making mockery of the grandiose digital India plans. She has pleaded that the Finance Minister should allocate funds towards beefing up the infrastructure so that the websites are able to take the ever-increasing number of taxpayers

On 1st February 2018, the Hon’ble Finance Minister would present the budget. For the budget various proposals on various tax/ fiscal laws, area of concerns have been given by many forums but one of the important area to focus on priority basis is to allocate a special budget for the tax sites/government portals. Income Tax Site, GSTN, MCA, PF, ESI, ITAT, High Court etc all these sites have become a part and parcel of majority of our countrymen.

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Law On Cash Transactions – A Study Of The Paradigm Shift

Advocate Kapil Goel has explained that there is a paradigm shift in the manner in which the Legislature and Courts are viewing cash transactions. He has conducted a thorough study of the regulatory provisions and judicial pronouncements relating to cash transactions and explained their precise scope

1. Prologue

From the time the demonetisation was announced in last year November, it is seen that under direct tax laws, the approach and perspective on cash transactions has spasmodically changed, disincentivising the same. It is noticed that from the time high denomination notes have been called of, under direct taxes, the transactions done in cash have started to be viewed with parochial mindset. In this paper author has made an attempt to analyse the legislative journey on cash transactions under income tax act, or “act”. Further, the corresponding judicial approach on the cash transactions is also comparatively analysed.

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Real Estate Development – Guide To Implications Of Income-tax Act, Real Estate Regulatory Authority (RERA) And Goods And Services Tax (GST) Act

firoze andhyarujina

Firoze B. Andhyarujina, Senior Advocate, has provided a masterful analysis of the entire law applicable to real estate development contracts from the perspective of the Income-tax Act, 1961, the Real Estate Regulatory Authority (RERA) and the Goods And Services Tax (GST). Important judgements in support of the propositions are also cited

Part – A

Real Estate Development – Implication of Income-tax Act

(a) Finance Act, 2017

Finance Act 2017 has amended various provisions relating to immovable property, in order to appreciate the true prospective of taxation concerning real estate sector it is necessary to examine the various sections:

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Penalty For Under-Reporting Of Income U/s 270A Of The Income-tax Act, 1961

Advocate Deepa Khare

Advocate Deepa Khare has explained the entire law relating to the imposition of penalty under the newly-introduced section 270A of the Income-tax Act, 1961. She has explained the precise differences between the erstwhile s. 271(1)(c) and 270A. She has also analyzed all the important judgements rendered in the context of s. 271(1)(c) and explained their relevance to s. 270A

1. Introduction:

Under the Income Tax act, Penalty under Section 271(1)(c) was provided for concealing the particulars of income or furnishing of inaccurate particulars of income (hereinafter referred as concealment penalty for the sake of brevity). The penalty was linked with the fundamental obligation under the Act of declaring the true and correct income and emerged from the assessment of income of a person. In fact, the fabric of default contemplated under such penalty prevailed from the Income Tax Act 1922 and remained intact with some deviations as to the burden of proof as a rule of evidence. While the scheme of Income Tax Act as to the basic charge, computation provisions as well as the procedural aspect remain unchanged, Finance Act 2016 revamped the above penalty to new Section 270A abandoning the old one. Obviously, such step on the part of the legislature not only came as a surprise but also posed further critical questions. These critical questions flowing from the new Section entail understanding the change in the fabric of default, the change in principles as well as the procedural aspect. The present endeavour therefore is made in that direction with a comparative discussion of old law. This may help us to adopt to the new penalty provision in Section 270A in correct perspective and bring us the desired clarity.

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Digest Of Important Judgements On Transfer Pricing, International Tax And Domestic Tax (July To September 2017)


Shri Sunil Moti Lala, Advocate, has prepared a compilation of 500 important judgments on transfer pricing (257 cases), International Tax (15 cases) and Domestic Tax (228 cases) reported in the period from July to September 2017. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. A PDF copy of the digest is available for download. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of all the important judgements dealing with transfer pricing, international taxes and domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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Finally, We Have Got More Time To Bat -The Test-Match Got Extended Till 7th November, 2017

CA Prarthana Jalan has equated the filing of GST and income-tax returns to a grueling test match being played by the taxpayers and the professionals. She laments that even the complex “duckworth lewis” rules look simpler compared to the GST and income-tax rules. She also laments that the “pitch” (website) is so badly prepared that the players have to retire hurt. Fortunately, the CBDT has extended the overs by giving the 11th hour extension and this will enable the weary professionals to complete the match

Well, 31st October, 2017 was the last day of the test match for all the CA’s/Advocates and Income Tax Practitioners of our country i.e filing of Tax Audit Reports and Income Tax Returns in auditable cases. This year the test match of tax audits started late, as most of the Practitioners were engrossed in playing various other tournaments i.e GST, Income Tax notices/Assessment/appeals/ ROC etc.

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S. 254(2): The Law On Limitation Period For Filing Rectification Applications Before The ITAT

Advocate S. M. Surana has analyzed the recent judgement of the ITAT in DCIT vs. Hita Land Pvt Ltd which holds that the reduced period of six months for filing rectification applications applies to all rectification applications filed after 1st June 2016 even if the order sought to be rectified was passed before that date. The author has argued with cogent reasons that this view of the Tribunal is wrong and requires reconsideration

Section 254(2) of the Income-tax Act 1961 deals with the powers of the Income Tax Appellate Tribunal for rectification of its order. Section 254(2) before amendment w.e.f. 1-6-2016 read as under:-

"254(2) The Appellate Tribunal may, at any time within four years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1), and shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer."

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Liability Of Electronic Commerce Operators To Pay GST

Advocate Sanjiv M. Shah has studied the law relating to the levy of GST on online retailers like Amazon, Flipkart etc and its consequences for customers. He has explained all the nuances of the law in the context of the statutory provisions, notifications and also the FAQs issued by the CBEC

Electronic Commerce Operator – GST

Essential Principles

1) Ordinarily, tax legislation is founded to impose tax on an event which triggers the fundamental charge. Accordingly, Section 9 read with Section 7 of Central Goods and Services Tax, 2017 [CGST] and corresponding sections of State Goods and Service Tax, 2017 [SGST]/Integrated Goods and Service Tax, 2017 [IGST] respectively, as the case may be, mandate that there shall be levied a tax called the central goods and service tax on all intra state supplies of goods or services or both………………………………….. and collected in such manner as may be prescribed and shall be paid by the taxable person. Therefore, it follows that basic charge of the tax is always on the supplier of goods/services or both, but manner of collecting said tax can be tweaked by legislature for convenient, easy and efficient realisation of taxes so as to mitigate burden on the implementing machinery.

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