Congratulations!...Hon. Jt. Secretaries: Mihir Sheth, Samir Kapadia Hon. Treasurer: Chirag Doshi Congratulations to the newly elected Office Bearers of The Malad Chamber of Tax Consultants,

www.ctconline.orgTHE CTC NEWS | August 2020 1


CONTENTSSR. NO. DATE COMMITTEE PROGRAMME DESCRIPTION PG.

NO.1 3, 5, 10,

12-8-2020Hyderabad Study Group

Workshop on GST Audit - Organised by HSG 6

2 8-8-2020 Indirect Taxes IDT SC Meeting on Taxability of Supply of Software under GST 63 10-8-2020 Residential Refresher

CourseDebt Market and Selection of Debt Funds in Current Scenario 6

4 12-8-2020 International Taxation

Equalisation Levy as expanded by the Finance Act 2020 – Concept and Panel Discussion 7

5 13-8-2020 Student Income-Tax Return – Recent Changes and Do’s & Don’ts (Students’ Perspective) 76 14-8-2020 Commercial &

Allied LawsCompanies Fresh Start Scheme (CFSS) and LLP Settlement Scheme, 2020 8

7 17-8-2020 International Taxation

FEMA SC Meeting on FEMA provisions relating to NRIs & Emigrating Indians 4

8 18-8-2020 Hyderabad Study Group

HSG Meeting on Newly Introduced Penalties under Income-tax Act 8

9 20-8-2020 Membership & Public Relations

5th Narayan Verma Memorial Lecture Meeting: “COVID-19, Now, Next & Beyond, A Discussion” (Jointly with BCAS Foundation, Dharma Bharti Mission and Public Concern for Governance Trust)

5

10 24-8-2020 Direct Taxes ISG Meeting on Recent Judgements (For ISG Members Only) 811 26-8-2020 Membership &

Public RelationsSAS Meeting on Understanding Sexual Harassment at the work place in the New Normal 4

12 28-8-2020, 29-8-2020

Direct Taxes Workshop on Amendments in Direct Tax Law, Filing of Return of Income and Provisions of section 115BAA & 115BAB - Applicable for AY 2020-21

9

13 29-8-2020 Pune Study Group Study Group Meeting on Transactions with Related Parties – Taxation and Other laws 914 30-8-2020 Study Circle & Study

GroupSC Meeting on Concept of Income 9

15 24-9-2020 Direct Taxes ISG Meeting on Recent Judgements (For ISG Members Only) 816 26-9-2020 Student 4th The Chamber of Tax Consultants National Tax Moot Court Competition, 2020 (Organised

Jointly with Government Law College)12

17 26-9-2020 Student Tax Audit (Recent Changes and Do’s & Don’ts) 1018 12, 18, 20, 25,

3-10-2020Commercial & Allied Laws

Drafting of Deeds and Documents 10

Note : All the events will be held through virtual platform (Zoom App) Kindly enrol at the earliest to avoid disappointment. Participation Fees to be paid online on the website : www.ctconline.org

Due to lock down, The Chamber’s office is not fully functional.If members have any query, kindly contact the following staff members.

Hitesh G. Shah : Chief Manager-9821889249 | Pradeep Nambiar - Dy Manager-Events-8080254129Bindu Mistry : Dy Manager-Technical - 9637692312 Manisha Kasbe : Dy Manager- Accounts - 8104816841

Congratulations!Congratulations!Congratulations to the newly elected Office Bearers of Bombay Chartered Accountants’ Society, Mumbai for 2020-21.

President: Suhas Paranjpe Vice-President: Abhay MehtaHon. Jt. Secretaries: Mihir Sheth, Samir Kapadia Hon. Treasurer: Chirag Doshi

Congratulations to the newly elected Office Bearers of The Malad Chamber of Tax Consultants, Mumbai for 2020-21.

President: M. D. Prajapati Vice-President: Jignesh SavlaHon. Jt. Secretaries: Kishore Thakrar, Jitendra Fulia Hon. Treasurer: Ujwal Thakrar

Congratulations to the newly elected office bearers of The Goods and Services Tax Practitioners Association of Maharashtra for 2020-21.

President: Raj Shah Vice-President: Aalok MehtaHon. Jt. Secretaries: Pravin Shinde, Mahesh Madkholkar Hon. Treasurer: Sunil Khushalani


RENEWAL NOTICE – 2020-21Dear Members,SUB: PAYMENT OF ANNUAL MEMBERSHIP FEES FOR 2020-21

01st June, 2020 It’s our privilege to have been of service to you over the years. We truly appreciate and value your association. It’s time to renew annual membership and subscription of The Chamber’s Journal, Study Group and Study Circle Meetings and other subscription of The Chamber of Tax Consultants (“The Chamber”). The renewal fees for Annual Membership, Study Group and Study Circle and other Subscription for the financial year 2020-21 falls due for payment on 1st April, 2020. We thank you for your subscription. Your involvement is important and very much appreciated. We hope you will always continue to support The Chamber in its activities and growth as done in the past.

Thanking You,

For The Chamber of Tax Consultants

CA Parag S. Ved Hon. Treasurer

Sr. No. Particulars Fees GST @18% Total

I MEMBERSHIP1. LIFE MEMBERSHIP FEES 15,000 2,700 17,7002. ORDINARY MEMBERSHIP FEES - YEARLY (APRIL TO MARCH) 2,500 450 2,9503. ADMISSION FEES - ORDINARY MEMBERSHIP 750 135 8854. ASSOCIATE MEMBERSHIP - YEARLY (APRIL TO MARCH) 7,500 1,350 8,8505. ADMISSION FEES - ASSOCIATE MEMBERSHIP 1,000 180 1,1806. STUDENT MEMBERSHIP - INCLUDING E-JOURNAL (APRIL TO MARCH) 500 90 590II CHAMBER’S JOURNAL SUBSCRIPTION - YEARLY (HARD COPIES)1. JOURNAL SUBSCRIPTION - LIFE MEMBER 1,350 0 1,3502. JOURNAL SUBSCRIPTION - NON MEMBER 2,500 0 2,5003. JOURNAL SUBSCRIPTION - STUDENT MEMBER 1,000 0 1,000

III CHAMBER’S E-JOURNAL SUBSCRIPTION (SOFT COPIES)1. E-JOURNAL SUBSCRIPTION - LIFE MEMBERS (YEARLY) 700 126 8262. E-JOURNAL SUBSCRIPTION - NON MEMBERS (YEARLY) 1,000 180 1,1803. E-JOURNAL SUBSCRIPTION - SINGLE JOURNAL 200 36 236IV ITJ SUBSCRIPTION1. INTERNATIONAL TAX JOURNAL SUBSCRIPTION 1,400 0 1,400V STUDY CIRCLES & STUDY GROUPS (RENEWAL)1. STUDY GROUP ( DIRECT TAXES ) 2,400 432 28322. STUDY CIRCLE (DIRECT TAXES ) 2,000 360 2,3603. STUDY CIRCLE (INTERNATIONAL TAXATION) 1,800 324 2,1244. STUDY CIRCLE (INDIRECT TAXES) 2,250 405 2,6555. STUDY CIRCLE (ALLIED LAWS) (REFER NOTE 1 BELOW) 1,500 270 1,7706. SELF AWARENESS SERIES 1,000 180 1,1807. INTENSIVE STUDY GROUP ON DIRECT TAX 2,000 360 2,3608. FEMA STUDY CIRCLE 1,800 324 2,1249. PUNE STUDY GROUP 3,500 630 4,13010. BENGALURU STUDY GROUP 4,200 756 4,95611. HYDERABAD STUDY GROUP 11,000 1,980 12,980

(Note: 10% Discount applicable for the registration of 3 or more Study Circles & Study Groups)

Notes:1. The Managing Council has decided to extend rollover benefit for one year to the Members of the Allied Laws Study Circle. (Accordingly those Members who have enrolled for this Study Circle in F.Y. 2019-20, need not renew their subscription for F.Y. 2020-21) 2. 10% Discount applicable for the registration of 3 or more Study Circles & Study Groups.3. Members are requested to visit website www.ctcfonline.org for online payment.4. Payments should be made by Account Payee Cheque/Demand Draft in favour of “THE CHAMBER OF TAX CONSULTANTS”. Outstation members are requested

to send payments only by “Demand Draft or At Par Cheque”. Members who are paying by NEFT are requested to share the UTR NO for the payment done.5. A consolidated Cheque/Draft may be sent for all payments.6. Please also update your Mobile number & e-mail address to ensure receipt of regular updates on activities of The Chamber.7. Please write your full name on the reverse of Cheque/DD.8. Kindly pay your membership fees by 30th September, 2020 for uninterrupted service of the Chamber’s Journal.9. Members are requested to download the Renewal Form from Chamber’s website www.ctconline.org10. Renewal Notices are also sent separately and members are requested to fill up the same and send it to The Chamber’s office along with the cheque. 11. Renewal Notice contains entire information of Members as per CTC database. In case of any change in information of Member as shown in form, kindly provide

updated information along with the form.


Sr. No. Topic Speaker1 FEMA provisions relating to NRIs & Emigrating Indians CA Paresh P. Shah

INTERNATIONAL TAXATIONChairman: Rajesh L. Shah | Vice-Chairmen: Kirit Dedhia, Shabbir Motorwala | Convenors: Isha Sekhri, Ronak Doshi, Kartik Mehta

Days & Dates: Monday, 17th August, 2020

Time: 6.00 p.m. to 8.00 p.m.

FEMA Study Circle (For FEMA SC Members Only)

MEMBERSHIP & PUBLIC RELATIONSChairperson: Nishtha Pandya | Co-Chairman: Premal Gandhi | Vice-Chairperson: Ashita Shah Convenors: Bandish Hemani, Tanvi Vora | Advisor: Hitesh R. Shah

Day & Date: Wednesday, 26th August, 2020

Time: 5.30 p.m. to 7.00 p.m.

SAS Meeting on Understanding Sexual Harassment at the Work Place in the New Normal

Dear Members,

Everyone must get equal opportunity to work, regardless of race, caste, religion, colour, ancestry, marital status, gender, sexual orientation, age, nationality, ethnic origin or disability. A safe and conducive work environment should enable all to work without fear of prejudice, gender bias and sexual harassment, where employer and employees respect each other’s integrity and dignity, their privacy, their right to equality and right to opportunity in the workplace, is created. Equality in employment can be seriously impa ired when individuals are subjected to discrimination by way of sexual harassment at workplace. Each such incident results in the violation of fundamental rights of individuals. It is essential to distinguish traditional mindset of harassment being physical and understand the implications of ‘innocent gestures’ which can actually be treated as harassment.

Therefore, it is essential to cultivate a workplace culture that continues to be safe and healthy as the new norm. So that you are able to understand the law and some do’s and don’ts better, the Membership and Public Relations Committee of the Chamber of Tax Consultants is organising a webinar as the part of the SAS initiative on “SAS Meeting on Understanding Sexual Harassment at the Work Place in the New Normal”. As we saw, the lockdown not only moved workplaces to homes, but in some cases the harassment as well. A statistics and news highlight shows that sexual harassment continues to be a problem for employees while they are working remotely/virtually.

What will you learn from this webinar?• U n d e r s t a n d i n g

terms such as Sexual Harassment, Employee, Workplace etc. and what may lead to sexual harassment (including in the context of remote working / work from home scenarios)

• Sexual Harassment and COVID-19 lockdown

• Understanding the terms ‘quid pro quo’ and ‘hostile work environment’

• Emphasizing on the purpose of Act and corresponding policies

• Internal Committee (IC): Composition, Term, Removal

• Procedure for filing & redressal of a complaint

• Explaining Consequences of Malicious Complaints

• Importance of maintaining confidentiality

• Rights and duties under law

• Preventive Measures (also focusing on some of the do’s and don’ts during COVID-19 lockdown and remote working)

The details of webinar are as follows:

Sr. No. Topic Speaker

1 SAS Meeting on Understanding Sexual Harassment at the Work Place in the New Normal Ms. Shivangi Prasad, Advocate

Open to All

Members


MEMBERSHIP & PUBLIC RELATIONSChairperson: Nishtha Pandya | Co-Chairman: Premal Gandhi | Vice-Chairperson: Ashita Shah Convenors: Bandish Hemani, Tanvi Vora | Advisor: Hitesh R. Shah

Day & Date: Thursday, August 20, 2020

Time: 5.30 p.m. to 7.30 p.m.

5th Narayan Verma Memorial Lecture Meeting: “COVID-19, Now, Next & Beyond, A Discussion” (Jointly with BCAS Foundation, Dharma Bharti Mission and Public Concern for Governance Trust)

Sr. No. Panelists

1 Dr. Hemant P. Thacker, Eminent Physician

2 Dr. Hvovi Bhagwagar, Well-Known Clinical Psychologist

3 CA Sanjay Dhruva, COVID Survivor

4 Discussion Moderator – A senior professional

On 11th March, 2020, the WHO declared the Novel

Coronavirus Disease (COVID-19) outbreak as a Pandemic

and reiterated the call for countries to take immediate actions

and scale up response to treat, detect and reduce transmission

to save people’s lives. To date, the virus has impacted millions.

The virus did take many lives but many more humans are

survivors. Some got away easy, others struggled with stigma,

the isolation and the disease. At the other side of the crisis

now, all of them have one thing to say; whatever it may do

to your body, don’t let COVID mess with your mind. We will

live with the virus, but will not let it overcome us!

This year the Chamber is the host of the 5th Narayan

Verma lecture meeting. The late Narayan Varma lecture has

been held for the past four years by the BCAS Foundation,

Dharma Bharti Mission (‘DBM’) and Public Concern for

Governance Trust (‘PCGT), (the Chamber joined this initiative

in 2019) in the memory of Late Shri Narayan Varma and

‘Always Live Life to the Fullest’ spirit. At this meeting, BCAS

Foundation, DBM and PCGT will also present the Narayan

Verma Memorial awards to persons/institutions that have done

outstanding social work.

This year, the meeting will be on the topic “COVID -19, Now

Next & Beyond, A Discussion”, where we will have eminent

medical experts telling us how to deal with the virus, both

clinically and psychologically. We will also hear from one of us,

a CA who successfully battled with, and overcame the virus.

We are hopeful that this educative and positive discussion

will help us to a great extent to not only take the requisite

precautions, but also to instil in us, a sense of positivity in

dealing with our present circumstances.

All are cordially invited to attend

the meeting.

The details of the meeting on ‘COVID-19, Now Next & Beyond, A Discussion’ are as under:


RESIDENTIAL REFRESHER COURSEChairman: Mehul Sheth | Vice-Chairmen: Bhavik Shah, Ankit Sanghavi Convenors: Darshak Shah, Pratik Doshi | Advisor: Kishor Vanjara

Day & Date: Monday, 10th August, 2020

Time: 5.00 p.m. to 6.30 p.m.

Debt Market and Selection of Debt Funds in the Current Scenario

Sr. No. Topic Speaker1 Debt Market and Selection of Debt Funds in the Current Scenario Mr. Nikhil Mehta

HYDERABAD STUDY GROUPCo-ordinators: Manindar Kakarla, Neelesh Vithlani, Ram Murthy T., Ravi Ladia, Samba Murthy P.

Days & Dates: 3rd, 5th, 10th,

12th, August, 2020 Time:

5.00 p.m. to 7.30 p.m.

Workshop on GST Audit

The GST Audit for FY 2018-19 has kick-started. It is time to recall the learnings of the first year and update ourselves with the latest position. Considering this need of the members, the Hyderabad Study Group (HSG) of the Chamber of Tax Consultants (CTC) has come up with a unique series of webinars on GST Audit. The program is designed to cover the practical aspects of Forms GSTR-

9 & GSTR-9C and excel tools that are handy in undertaking GST Audit.

The program is scheduled in first & second week of August 2020 and is free for members of HSG subject to enrolment on first come first serve basis. Non-members can join the program by paying a fee.

Sr. No. Topics Speakers

1 Basics of GST Audit and Analysis of Form GSTR-9 CA Vamshi Krishna J.2 Analysis of Form GSTR-9C CA Manindar K.3 GST Audit and Spreadsheet- A Relation CA Saran Kumar U.4 Practical Case Study Based Discussion on GST Audit CA Sriram K., CA Radhika V.,

CA Manindar K.

Participation FeesHSG Members FreeFor CTC Members ` 400/- + ` 72/- (18% GST) = ` 472/-Non-Members ` 600/- + ` 108/- (18% GST) = ` 708/-

Sr. No. Topic Speaker1 Taxability of Supply of Software under GST CA Parind Mehta

Participation FeesOnly IDT Study Circle Members FreeCTC Members ` 200/- + ` 36/- (18% GST) = ` 236/-Non-Members ` 400/- + ` 72/- (18% GST) = ` 472/-

Existing members of CTC who has not renewed for IDT study circle membership can renew the same by making the payment.

INDIRECT TAXESChairman: Atul Mehta | Vice-Chairman: Sumit Jhunjhunwala | Convenors: Hemang Shah, Kush Vora, Keval Shah | Advisor: Rajiv Luthia

Day & Date: Saturday, 8th August, 2020

Time: 4.00 p.m. to 6.00 p.m.

Taxability of Supply of Software under GST

The most frequent question arising in Indirect Taxes has been “Whether Supply of Software is Goods or Service?”. With the introduction of GST law, it was felt that the issue of taxability of software would be resolved to a great extent. It is really important to understand whether the taxability of software as goods or services

has been settled or still remains unsettled.

To discuss and deal with such complicated topic, The Chamber of Tax Consultants has organized an IDT study circle meeting via Webinar.


INTERNATIONAL TAXATIONChairman: Rajesh L. Shah | Vice-Chairman: Kirit Dedhia, Shabbir Motorwala Convenors: Isha Sekhri, Ronak Doshi, Kartik Mehta | Course Co-ordinators: Monika Wadhani, Namrata Dedhia

Days & Dates: Wednesday, 12th August, 2020

Time: 05.30 p.m. to 07.30 p.m.

Equalisation Levy as expanded by the Finance Act 2020 – Concept and Panel Discussion

Vide the Finance Act, 2020, the Indian Government has expanded the scope of Equalisation Levy (‘EL’) payable by Non-Residents in India. The EL was first introduced by the Finance Act, 2016. As per expanded EL provisions, which were not proposed in the Finance Bill 2020, an EL at the rate of 2% is chargeable on consideration (Exceeding the Threshold Prescribed) received or receivable by a non-resident e-commerce operator (who owns, operates or manages digital or electronic facility) from e-commerce supply or services (online sales of goods or provisions of services) made or provided or facilitated by it. The scope of EL has been kept outside the provisions of the Income-tax Act 1961 and therefore outside the

protection of Tax Treaties.

Such expanded scope of EL has raised many interpretation issues on its applicability and has far reaching implications on cross border transactions. As per recent press releases the much awaited clarification expected on EL from the Government is also unlikely to be forthcoming.

In this regard, the International Taxation Committee of the Chamber of Tax Consultants is pleased to invite you to a live webinar wherein a presentation on EL and panel discussion will be conducted as per following details.

Sr. No. Topics Speakers

1 Presentation on background, scope and ambit of expanded scope of EL as introduced by the Finance Act 2020, whether any foreign tax credit available under DTAAs and its overlap with the provisions of the Income-tax Act 1961.

Panellists: CA Himanshu Parekh and Mr. Rajesh Simhan, Advocate

Moderator: CA Jimit Devani2 Panel discussion on constitutional validity, issues, challenges and areas of

uncertainties with respect to electronic facility / platform, online sale of goods, online provisions of services and other provisions of EL.

Fees

CTC Member ` 200/- + ` 36/- (18% GST) = ` 236/-

Non-Members ` 300/- + ` 54/- (18% GST) = ` 354/-

Day & Date: Thursday, 13th August, 2020

Time: 5.00 to 7.00 pm

Income - Tax Return – Recent Changes and Do’s & Don’ts (Students’ Perspective)

Sr. No. Topic Speakers

1 Income - Tax Return – Do’s and Don’ts (Students’ Perspective) CA Kalpesh Katira & CA Prashant Shah

With various changes in Income - tax Return forms this year, the Students Committee of The Chamber of Tax Consultants is pleased to announce a webinar for students on Income - tax Return – Recent Changes and Do’s & Don’ts (Student’s Perspective). The

webinar will be delivered by eminent Income - tax experts who will discuss the changes in the Income - tax return forms and also discuss practical difficulties and common errors that are faced while filing the returns.

FeesStudent Member FreeAll other Participants ` 200 + ` 36 (18% GST) = ` 236/-

STUDENTChairperson: Varsha Galvankar | Vice-Chairperson: Niyati Mankad | Vice-Chairman: Vitang ShahConvenors: Raj Khona, Charmi Shah | Advisor: Ajay Singh


Day & Date: Tuesday, 18th August,2020

Time: 4.30 p.m. to 6.30 p.m.

followed by Q & A session

Newly Introduced Penalties under the Income-Tax Act


1 Newly Introduced Penalties under the Income-Tax Act CA T. Banusekar - Chennai

Participation FeesHSG Members FreeFor CTC Members ` 200/- + ` 36/- (18% GST) = ` 236/-Non-Members ` 300/- + ` 54/- (18% GST) = ` 354/-

The Hyderabad Study Group (HSG) of the Chamber of Tax Consultants is organising a webinar on the topic of Newly Introduced Penalties

under the Income-Tax Act, covering the Sections 270A and other recent amendments/additions. It is scheduled on August 18, 2020.

COMMERCIAL & ALLIIED LAWSChairman: Dharan Gandhi | Co-Chairman Makrand Joshi | Vice Chairperson: Mallika Devendra Convenors: Gautam Mota, Tanmay Phadke | Advisors: K. K. Ramani, Sanjay Buch

Day & Date: Friday, 14th August 2020

Time: 5.00 p.m. to 7.00 p.m.

Companies Fresh Start Scheme (CFSS) and LLP Settlement Scheme, 2020


1 Companies Fresh Start Scheme (CFSS) and LLP Settlement Scheme, 2020 CS Makrand Joshi

The Companies Act, 2013 requires all the companies to file Annual Return and financial statement on annually basis with MCA. Further, various other set of documents, returns, statements etc. are also required to be filed within the prescribed time limit. Non-compliance with the said provisions results in substantial penalties.

In order to give an encouragement to the companies for completing the pending filings and to reduce the burden of cost in terms of high penalties associated with the late filings the Ministry of Corporate Affairs (MCA) has introduced ‘The Companies Fresh Start Scheme’ (CFSS) read with Limited Liability Partnership Settlement Scheme.

The Scheme is seen one as a major relief for companies and also a onetime opportunity for defaulting companies to file their long pending documents / statements etc. The scheme will be available till 30th September, 2020.

To facilitate understanding the benefits and opportunities available for companies and professionals the Commercial & Allied Laws committee of the Chamber of Tax Consultants have organized a webinar, to cover, inter-alia the following aspects relating to the said Scheme.

— Companies Fresh Start Scheme - A never before opportunity— Shift from Physical processes of penalizing to automatic process (Adjudication

Mechanisms)— Opportunities to professionals under the said scheme— Coverage of E-Forms covered in connection to Companies, Limited Liability

Partnerships, Liasion Office, Branch Office and Project Office.

DIRECT TAXESChairman: Dinesh Poddar | Co-Chairman: Ashok Mehta | Vice-Chairman: Abhitan Mehta Convenors: Chintan Gandhi, Nimesh Chothani, Viraj Mehta| Advisor: Mahendra Sanghvi

Day & Date: Monday, 24th Aug., 2020

Time: 6.00 p.m. to 8.00 p.m.

Intensive Study Group Meeting (For ISG Members Only)

Sr. No. Topic Group Leader

1 Recent Judgements Rahul Hakani, Advocate

HYDERABAD STUDY GROUPCo-ordinators: Manindar Kakarla, Neelesh Vithlani, Ram Murthy T., Ravi Ladia, Samba Murthy P.

Day & Date: Thursday, 24th Sep., 2020

Time: 6.00 p.m. to 8.00 p.m.

Intensive Study Group Meeting (For ISG Members Only)


1 Recent Judgements CA Abhitan Mehta


Days & Dates: Friday, 28th August, 2020

Saturday, 29th August, 2020 Time:

6.00 p.m. to 8.00 p.m. 4.00 p.m. to 7.00 p.m.

Workshop on “Amendments in Direct Tax Law, Filing of Return of Income and Provisions of section 115BAA & 115BAB - Applicable for AY 2020-21”

The constant changing tax laws makes it imperative for tax professionals to refresh their memory about amendments applicable from A Y 2020-21 under the Income-tax Act before the return filling season begins .

Further, the taxation of Companies has undergone a significant change with the insertion of section 115BAA and 115BAB gives option to the companies to select a lower taxation rate which comes with conditions to be fulfilled, which are applicable from AY 2020-21 onwards. The decision whether to opt for the new scheme or choose to be governed by the existing regime

of taxation for the companies is very important, especially when the former is irreversible.

Further, the department has notified the return of income for the A Y 2020-21 and the returns now require certain additional information which has to be provided by the assessee.

With a view to understand the same in an elaborate manner, the Direct Taxes Committee of Chamber of Tax Consultant has organized a workshop on August 28th & 29th, 2020. (Friday & Saturday) through web mode.

Sr. No. Days & Dates Time Topics Speakers

1 Friday, 28th August, 2020 6.00 p.m.–8.00 p.m. New Tax Regime for Companies u/s 115BAA and 115BAB

CA Bhadresh Doshi

2 Saturday, 29th August, 20204.00 p.m.–6.00 p.m. Income Tax Amendments related to AY. 2020-21 CA Mahendra Sanghvi6.00 p.m.–7.00 p.m. Filing of Return of Income for AY 2020-21 CA Avinash Ravani

Fees Individual Session Both SessionsMembers ` 300/- + ` 54/- (18% GST) = ` 354/- ` 500/- + ` 90/- (18% GST) = ` 590/-Non- Members ` 500/- + ` 90/- (18% GST) = ` 590/- ` 750/- + ` 135 (18% GST) = ` 885/-

PUNE STUDY GROUPCo-ordinators: Govind Agrawal, Mehul Shah, Sunil Vaidya | Convenors: Sachin Sastakar, Shridhar Pathak

Day & Date: Saturday, 29th August, 2020

Time: 10.00 a.m. to 12.30 p.m.

Transactions with Related Parties – Taxation and Other laws


1 Transaction with Related Parties – Taxation and Other laws CA Shreedhar Pathak

FeesMembers of Pune Study Group FreeNon-Members ` 350/- + ` 63/- (18% GST) = ` 413/-

STUDY CIRCLE & STUDY GROUPChairman: Ashok Sharma | Co-Chairman: Dilip Sanghvi | Vice-Chairman: Sanjay Choksi Convenors: Dinesh Shah, Dipesh Vora, Dhaval Shah | Advisor: Keshav Bhujle, Akbar Merchant

Day & Date: Sunday, 30th August, 2020

Time: 11.30 am - 1.30 pm

Study Circle Meeting


1 Concept of Income CA H. Padamchand Khincha

FeesFor Study Circle Members FreeFor CTC Members ` 200/- + ` 36/- (GST) = ` 236/-Non-Members ` 400/- + ` 72/- (GST) = ` 472/-

Existing members of CTC who have not renewed for study circle membership can renew the same by making the payment

DIRECT TAXESChairman: Dinesh Poddar | Co-Chairman: Ashok Mehta | Vice-Chairman: Abhitan Mehta Convenors: Chintan Gandhi, Nimesh Chothani, Viraj Mehta| Advisor: Mahendra Sanghvi


COMMERCIAL & ALLIIED LAWSChairman: Dharan Gandhi | Co-Chairman Makrand Joshi | Vice Chairperson: Mallika Devendra Convenors: Gautam Mota, Tanmay Phadke | Advisors: K. K. Ramani, Sanjay Buch

Drafting of Deeds and Documents

The legal profession thrives on the maxim “verba volant, scripta manent” which literally means “spoken words fly away, written words remain”. Drafting is one of the powerful instruments of legal communication. It is an art which strikingly requires knowledge of law, the ability to balance abstract as well practical issues with precision, a good grasp of the legal language and many more things.

The need of precise drafting is often felt by professionals in day to day practice. If not drafting, professionals are often approached for vetting of documents. In such scenarios, it becomes imperative for

professionals to be aware about the nitty-gritties of the drafting as well as importance of certain non-negotiable clauses.

In order to facilitate in-depth understanding of the subject, the Commercial & Allied Laws committee of the Chamber of Tax Consultants has organized a 5 day webinar series on “Drafting of Deeds and Documents”. These webinars not only intend to sharpen legal knowledge but also aim to nurture drafting skills among professionals with the help of eminent faculties.

Sr. No. Days & Dates Time Topics Speakers

1 Saturday, 12th September, 2020 04.00 p.m. to 06.00 p.m. Overview of drafting (Indian Contract Act and Specific Relief Act)

Mr. Parimal Shroff, Advocate and Solicitor

2 Friday, 18th September, 2020 5.00 p.m. to 7.00 p.m. Real estate contracts and conveyancing – Part 1 (Conveyance, Development agreement and JDA)

Mr. Mahesh Shah, Solicitor

3 Sunday, 20th September, 2020 11.00 a.m. to 1.00 p.m. Real estate contracts and conveyancing – Part 2 (Tenancy, lease, license, release and gift deed)

Mr. P. A. Jani, Advocate and Solicitor

4 Friday, 25th September, 2020 5.00 p.m. to 7.00 p.m. Shareholders agreement, franchise agreement and other commercial contracts –

Mr. Sharad Abhyankar, Partner, Khaitan & Co.

5 Saturday, 3rd October, 2020 5.00 p.m. to 7.00 p.m. Trust Deed, LLP Deed, Partnership Deed CA Pradip Kapasi

Fees All Sessions Individual SessionFor Commercial & Allied Law Committee Study Circle Members

Free —

Members ` 800/- + ` 144/- (18% GST) = ` 944/- ` 200/- + ` 36/- (18% GST) = ` 236/-Non-Members ` 1,000/- + ` 180/- (18% GST) = ` 1,180/- ` 300/- + ` 54/- (18% GST) = ` 354/-

Day & Date: Saturday, 12th September, 2020Friday, 18th September, 2020 Sunday, 20th September, 2020Friday, 25th September, 2020Saturday, 3rd October, 2020

Day & Date: Saturday 26th September, 2020

Time: 5.00 to 7.00 pm

Tax Audit (Recent Changes and Do’s & Don’ts)

Sr. No. Topic Speaker1 Tax Audit (Recent Changes and Do’s & Don’ts) CA Chintan Gandhi

In the present scenario for the practicing professional, the responsibility has increased manifold. Cost of negligence is very high. Articled assistants are the initial executors for conducting Tax Audit.• Is your articled assistant equipped to carry out tax-audit?• Does your articled assistant understand the impact of Auditing

Standards for carrying out Tax Audit?

• Is your articled assistant able to co-relate understanding of Income - tax while dealing with Tax Audit?

• Is the articled assistant cautious about preparing proper working file for tax audit?

The Student Committee of The Chamber of Tax Consultants is pleased to announce a webinar for students on Tax Audit – Recent Changes and Do’s & Don’ts.

FeesStudent Member FreeAll Other Participants ` 200 + ` 36 (18% GST) = ` 236/-




Day & Date: Saturday, 26th September, 2020 and Sunday, 27th September,

2020

4th The Chamber of Tax Consultants National Tax Moot Court Competition, 2020 (Organised Jointly with Government Law College)


Sessions: All sessions/oral rounds shall be held online and shall consist of - Preliminary Round, Quarter Final Round, Semi-final Round & Final Round

Who can participate? Any student of any recognized law college in the countryRegistration Fees ` 1,800/- Per Team

Team must consist of two speakers and one researcherWho should attend? Open to allThe Objective: To give an opportunity to students of various Law Colleges from all over the country to prepare and argue

on a case involving Income Tax provisions vis-à-vis General Anti-Avoidance Rule (GAAR) before Eminent Lawyers, Members of the ITAT and Judges of the High Court.

In view of the ongoing pandemic, this year the moot court is being held online.Prizes Best Team - ` 13,000/-

2nd Best Team - ` 7,000/-Best Speaker - ` 4,000/-2nd Best Speaker - ` 3,500/-Best Memorial - ` 4,000/-2nd Best Memorial - ` 3,500/-

IMPORTANT DECISIONS UNDER GST By Vinay Jain & Sachin Mishra, Advocates

1. Whether Rule 117 of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”) is ultra vires Section 140 of the Central Goods and Services Tax Act, 2017 (“CGST Act”) and is liable to be construed as a directory provision and not a mandatory provision?

Facts and Pleadings: M/s P.R. Mani Electronics (hereinafter referred to as ‘The Petitioner’), was unable to file TRAN-1 before the extended time limit of 27.12.2017 as specified under GST law because of issues in the portal. The Petitioner subsequently approached the Sales Tax Collection Inspector on 29.12.2017 and submitted a hard copy of TRAN-1 and received an acknowledgement. In spite of repeated follow ups, there was no response with regard to entitlement of the Petitioner to Transitional Credit. Consequently, a writ petition was filed before the Madras High Court, challenging Rule 117 of the CGST Rules as being ultra vires Section 140 of the CGST Act and violative of Articles 14 and 300-A of the Constitution of India. It was further prayed that Rule 117 should be read as a directory or permissive provision and not as a mandatory or peremptory provision.

The Department argued that Input Tax Credit is in the nature of a concession granted to registered persons and therefore any conditions, including time limits, subject to which such concessions are granted should be enforced strictly. The

department placed reliance om Jayam and Company v. Assistant Commissioner and another [(2016) 15 SCC 125], ALD Automotive Private Limited v. Commercial Tax O¬cer [(2019) 13 SCC 225] and Nelco Limited v. Union of India [2020 SCC Online Bom 437].

The Petitioner argued that the Rule 117 of the CGST Rules is ultra vires Section 140 of the CGST Act, 2017. The Petitioner further argued that the said Rule is liable to be construed as a directory provision in so far as it specifies a time limit for the submission of the declaration in TRAN-1. The Petitioner further submitted that the tax authorities were fully cognizant of the fact that registered persons were unable to submit the TRAN-1 online within the prescribed period on account of technical glitches and that is the reason for extension of time limit up to 31.03.2020 by the government. Thus, the Petitioner submitted that it clearly indicates that the provision was intended to be directory and not mandatory notwithstanding the use of the word “shall” in Rule 117(1). In this regard, reliance was placed on Delhi High Court decision in Micromax Informatics Ltd. v. Union of India [WP(C) No. 196 of 2019]; SKH Sheet Metals [2020-TIOL-1031-HC-DEL-GST] and Brand Equity Treaties Ltd. v. Union of India - 2020-TIOL-900-HC-DEL-GST.


Judgement: The Hon’ble High Court relied on Jayam and Company v. Assistant Commissioner and another [(2016) 15 SCC 125] to held that the contention of the Petitioner that ITC is the property is incorrect and rather it is to be construed as a concession. The Hon’ble High Court observed that the ITC cannot be availed without complying with the conditions prescribed thereto. According to the Hon’ble High Court as the power to prescribe a time limit is expressly incorporated in Section 140 post amendment, Tran credit cannot be availed except within the stipulated time limit. The Hon’ble High Court further relied upon Nelco Limited v. Union of India [2020 SCC Online Bom 437] to held that both ITC and Tran credit cannot be availed except within the stipulated time limit. As per the Hon’ble High Court, the object and purpose of Section 140 clearly warrants the necessity to be finite. In fact, it is a time limit relating to the availing of a concession or benefit. Accordingly, the Hon’ble High Court held that the time limit is mandatory and not directory. Thus, the Hon’ble High Court held that since the Petitioner had not filed the TRAN-1 electronically but handed over in person to the STC Inspector, the prescription in Rule 117 is not satisfied. The Tran claim of the Petitioner is thus not admissible.

M/s P.R. Mani Electronics v. Union of India & Ors., Madras High Court Order dated 13.07.2020 in WP. No. 8890 of 2020 and WMP No. 10803 of 2020

2. Whether ‘foreclosure charges’ levied by banks and non-banking financial companies on premature termination of a loan can be subjected to levy of service tax under Banking and Other Financial Services (“BoFS”)?

Facts and Pleadings: M/s. Repco Home Finance Ltd. and other (hereinafter referred to as the “Appellants”) provided housing loans to borrowers for a specified period subject to terms and conditions contained in the agreement. In circumstances where the borrower decided to terminate the loan before the stipulated period, the Appellants collected foreclosure charges, which were usually determined as a percentage of outstanding principal amount.

The department alleged that the termination of loan prior to the agreed term is a facility provided to the borrower for a price. As per the department, the definition of ‘Banking and Other Financial Services’ contains the phrase ‘in relation to lending’ and therefore, any activity in relation to lending will be subjected to service tax. The department also alleged the ‘foreclosure charges’ cannot be termed as an ‘interest’ or ‘penal interest’ on the count that penal interest would only be chargeable on default in making payment. Hence, as per the department these charges would have to be subjected to service tax.

The Appellants argued that the ‘Foreclosure charges’ are collected as compensation for breach of the loan agreement arising on premature termination. These receipts do not constitute ‘consideration’ as per Section 67 of the Finance Act, 1994 for provision of lending services. The Appellants further argued that foreclosure charges paid by the borrowers are not ‘at the desire of ’ the banks/ non-banking financial companies. The Appellant submitted that the foreclosure charges are recovered as compensation for disruption of a service, and not towards lending services as such. It is the borrower who unilaterally decided to cut short the period

of loan by making the payment before the stipulated time resulting in a breach of the contract. Accordingly, the Appellant argued that the ‘Foreclosure charges’ cannot be subjected to service tax.

Judgment: The Hon’ble Larger Bench of CESTAT observed that the ‘Consideration’ must flow from the service recipient to the service provider and should accrue to the benefit of the service provider. The Hon’ble Larger Bench of CESTAT relied upon the definition ‘Consideration’ under Section 2(d) of the Indian Contract Act, 1872, to held that consideration must necessarily flow ‘at the desire of the promisor’. Since premature termination of loan only results in loss of future interest income, ‘foreclosure charges’ do not flow ‘at the desire’ of such banks. The Hon’ble Larger Bench of CESTAT further observed the distinction between ‘condition to a contract’ and ‘consideration to a contract’. A service recipient may be required to fulfil certain conditions contained in the contract but that would not necessarily mean that this value would form part of the value of taxable services that are provided. Accordingly, the Hon’ble Larger Bench of CESTAT held that the ‘Foreclosure charges’ are compensation paid to the banks as a result of a unilateral repudiation/ breach of contract and not towards ‘lending services’. The Hon’ble Larger Bench of CESTAT observed that though the definition of BoFS uses the term ‘in relation to lending’, it cannot be read in so widely so as to include even those acts which terminate the activity. In fact, ‘foreclosure’ is an anti-thesis to lending and therefore, cannot be construed as in relation to lending. The Hon’ble Larger Bench of CESTAT further held that ‘Foreclosure charges’ cannot be viewed as an ‘alternative mode of performance’ of contract because ‘alternative mode of performance’ still contemplates performance, whereas foreclosure is an express repudiation of the contractual terms. Treating eventuality of foreclosure as an optional performance is incorrect. Accordingly, the Hon’ble Larger Bench of CESTAT held that the ‘Foreclosure charges’ cannot be subjected to service tax.

Commissioner of Service Tax, Chennai v. M/s. Repco Home Finance Ltd., CESTAT Larger Bench, Miscellaneous Order No. 40053/2020, dated June 8, 2020.

3. Whether the construction of associated facilities like toll plaza, cattle and pedestrian crossing facilities, parking bays for buses/trucks and rest room for staff and common people are part of the road (exempt) or are liable to service tax under the head ‘works contract service’?

Facts and Pleadings: M/s. GMR Project Pvt. Ltd. (hereinafter referred to as “the Appellant”) have been granted on ‘Build, Operate and Transfer (BOT)’ basis, construction and maintenance work of roads by ‘National Highways Authorities of India’ (NHAI). The Appellant also undertakes the construction of associated facilities like toll plaza, cattle and pedestrian crossing facilities, parking bays for buses/trucks and rest room for staff, etc. and common people.

The department argued that the NHAI have entered into the concessionaire agreement with the Appellant for execution of highway projects envisaging design, construction, development, finance, operation and maintenance on BOT basis. The case of Department is that exclusion from service tax is primarily for the work of laying of road and not for allied works


such as the construction of aforesaid associated facilities undertaken with regard to the said activity and hence the allied activities are taxable under the Works Contract Service.

The Appellant submitted that the Appellant had been granted ‘concessionaire agreement’ on Trunkey basis, on BOT model. The Appellant argued that the construction of Toll Plaza does not amount to construction for commercial concern. The same is in furtherance of the agreement to build and manage roads as granted by the NHAI on Turnkey basis on BOT model, which is necessary for the recovery of the costs incurred by the Appellant. The Appellant further submitted that the Construction of Toll Plaza is not an isolated project activity to attract tax. The Appellant argued that it is not rendering any service to itself, when it built the Toll Plaza, etc. on or along with road, for recovery of its costs, etc. Accordingly, the Appellant submitted that the construction of Toll Plaza etc., is directly connected and attached to the service of construction of roads which is exempt under Section 97 read with Section 65(105) (zzzza) of the Finance Act, 1994.

Judgement: The Hon’ble CESTAT held that the construction like toll plaza, cattle/pedestrian crossing facilities, parking bay for buses/trucks, rest room for staff and common public at large, etc. are also part of the road, as these are meant for exclusive use by the highway staff and the people using these roads. Further the Hon’ble CESTAT took note of several judgments of the Tribunal wherein even greenery done in the middle of the road, by way of divider or on the side of the roads, as well as crash barriers erected on the side of the roads all form part of the road and not exigible to service tax. The Hon’ble CESTAT also took note of the decision of the Delhi Bench of this Tribunal in the case of Jagdish Prasad Agarwal Vs. CCE, Jaipur-I [2017(3) GSL 455 (Tri. Del.)]. Accordingly, The Hon’ble CESTAT held that the Appellant is entitled for the exemption under Section 65(105) (zzzza).

M/s. GMR Project Pvt. Ltd. vs. CCE, CESTAT, Banglore, decided on 17.06.2020 in Service Tax Appeal No. 25673 of 2013.

4. Whether the services provided by M/s National Securities Depository Ltd. to their Depository Participants in nature of “provision and transfer of information and data processing” services taxable under the category of Banking and Other Financial Services as defined by Section 65(12) of the Finance Act 1994?

Facts and Pleadings: M/s. National Securities Depository Ltd. (hereinafter referred to as “the Appellants”) hold securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. The Appellants also provide services related to transactions in securities. The Appellants interface with the investors through their agents called as Depository Participants. The aforesaid Depository Segment of the Appellants includes providing various services to the investors like dematerialization, re-materialization, transfer and pledge of securities in electronic form through closed user group network of business partners viz issuers/ Registrar & Transfer Agents and Depository

Participants (DP). The Appellants have an electronic platform which is designed to provide information in relation to securities and enables the DP or their investors to have access to their securities holding at any time.

According to the department the aforesaid processes of de-materialization/ re-materialization; pledge, transfer of securities indicate that there is provision of information, transfer of information and data processing through electronic media. Thus, the department alleged that the Appellants are providing “provision and transfer of information and data processing” taxable under the category of “Banking and Financial Services” as defined by Section 65 (12)(a) of the Finance Act, 1994. The department relied upon Bank of Baroda [2016 (43) STR 141 (T-Mum)] = 2016-TIOL-216-CESTAT-MUM wherein on the similar facts of the case it was held that the services provided are classifiable under the taxable category of “Banking and Other Financial Services” as “provision and transfer of information and data processing”.

The Appellant contended that the Depository Participants are merely an agent Depositories. There is no service in the nature of Depository Service provided by the Appellant to the DP’s. DP’s provide the service to the customer/ client. There is no service in nature of Depository provided to the DP’s. The Appellant further argued that even if they are required to pay service tax under the category of Banking and Other Financial Service then the same will be under 65(12)(v) and not under 65 (12)(vii). The Appellant further submitted that since the depository participants act as agents for the purpose of depository services and have discharged Service Tax on entire consideration including fees, therefore, the Appellant is not liable to discharge tax on the same once again. The Appellant further argued that if it is presumed that they are providing the services to Depository Participants then also the same could be only “infrastructure support service” which is in the nature of Business Support Service and not the Banking and Other financial Service.

Judgement: The Hon’ble CESTAT observed that the Appellant’s have an electronic system providing for transmission of data to various participants/ partners in their business and they provide the platform to their Depository Participants through which they interact with Investor, Issuer, Registrar and Transfer Agents & Clearing House. For providing these services the Appellant charges certain fees from their Depository participants. The Hon’ble CESTAT further observed that the Appellant is providing “provision and transfer of information and data processing” in relation to their depository operations. Accordingly, the Hon’ble CESTAT held that the by providing for provision and transfer of information and data processing in relation to the depository services, the Appellants have provided the “Banking and Other Financial Services” as defined by 65(12)(a)(vii) to the Depository Participants and the Depository Participants have in turn utilized these as input services to provide Depository Related services to their users/ clients.

M/s. National Securities Depository Ltd. vs. CST, CESTAT Mumbai, decided in Final Order No. A/85598/2020 dated 08.06.2020.

Note : THE FULL DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER SEMINAR PRESENTATIONS - UNREPORTED DECISIONS


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