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Assurance

At Luthra & Luthra we focus on building close client relationships that add long-term value.

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Corporate Governance

In this dynamic era growth of an organization merely depends upon its attitude towards corporate governance.

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Transaction Advisory

At Luthra & Luthra we focus on building close client relationships that add long-term value.

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Insolvency and Bankruptcy

Insolvency & Bankruptcy Services: Prior to the enactment of the Insolvency and Bankruptcy Code, 2016,

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IFRS

IFRS are considered as “principle based” set of standards and establish broad rules rather than dictating specific treatments.

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Goods and Service Tax

Overview of the Tax Advisory & Compliance Services

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Business Support

Corporate Taxation

Our taxation team stays constantly abreast with changes in tax policies, administration & regulations.

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Transfer Pricing and International Taxation

Industries Verticals

Airlines / Flight Handling Agencies / Airports

Automobiles

BPO / KPO

Construction / Infrastructure / Road Projects

Consulting Engineering

Consumer Goods

Energy & Environment Consulting

Financial Services / Banking / Insurance

Hospitality

Information Technology Sectors

Investment Funds

Manufacturing

Mining

NGO’s

Retail / Wholesale Trading

Schools / Management Institute / Training

Sports

Telecommunication / Media

Luthra & Luthra has a long history of accelerating our clients’ growth, growing their revenue and adding to their delight

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RECENT NEWS

Where assessee was an agriculturist and owned agricultural land, mere fact that said land had been sold to an industrial unit & had potential to be used for industrial purpose, could not be a determinative factor to treat profit earned by assessee on sale of that land as business income. [HC Guj. in case of Principal CIT V. Heenaben Bhadresh Mehta]
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Reduction in time taken for listing after the closure of the issue to 6 working days from 12 working days for debt securities, NCRPS and SDI.
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To ease the process of issuance of securities on private placement basis through Electronic Book Provider Platform, SEBI on Aug 17 has provided some additional facilities effective from Oct 01.
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Due date to furnish Form GSTR-1 by registered persons with aggregate turnover of more than Rs. 1.5 crore in the preceding/ current financial year, for the periods from July, 2018 to March, 2019 will be 11th day of the month succeeding such month.
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Due date to furnish Form GSTR-1 by registered persons with aggregate turnover up to Rs. 1.5 crore in the preceding/current financial year, for the periods from July, 2018 to March, 2019 shall be as under: • July - September, 2018 - 31st October, 2018
• October - December, 2018 - 31st January, 2019
• January - March, 2019 - 30th April, 2019
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Due date to furnish Form GSTR-3B for each of the moths from July, 2018 to March, 2019 will be 20th day of the month succeeding such month after discharge his liability towards tax, interest, penalty, fees or any other amount payable.
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If there is no discussion whatsoever by the tribunal of the various case laws cited in the submission filed by the assessee, the order is non-speaking and has to be recalled. [Amore Jewels Private Ltd vs. DCIT (HC-Bombay)]
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An entity should not exclude the appropriation made to mandatory reserves, which is merely appropriation of profits and doesn’t result in reduction of the profit as well as net assets of the associate, from the result of operations of the associate that would be used for the purpose of computing the investor’s share. - Educational material on IND AS 28
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Cash payments exceeding Rs.20,000/- could be made to farmers without attracting any disallowance u/s 40A(3) since this transaction is clearly covered by exemption under Rule 6DD(e)(i). [Principal CIT V. Keshvalal Mangaldas (HC Gujarat)]
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RBI has cancelled licenses of 368 NBFCs till June 2018 for failure to meet the regulatory norms and majority of such NBFCs are those who failed to meet requirement of NOF of Rs. 2cr.
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A cashback of 20% on the GST component will be credited to consumers on the GST component if payment is made digitally though prescribed modes
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Payment of tax under RCM u/s 9 (4) of the CSGT Act has been deferred till 30th September 2019
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Where AO did not find that assessee had incurred any expenditure which was directly attributable to investment made in partnership firm for earning exempt income under section 10(2A), no disallowance could be made under section 14A [Hon’ble Mumbai ITAT in case of Wadhwa Residency (P.) Ltd. Vs. Additional CIT, Mumbai]
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Supreme court dismissed SLP against HC ruling that section 14A cannot be invoked where no exempt income was earned by assessee in relevant assessment year. [CIT, (Central) 1 vs. Chettinad Logistics (P.) Ltd]
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Beneficiary shareholder shall consider the voting rights on shares held by its nominee or in a fiduciary capacity while evaluating the significant influence over the investee. – Educational material on IND AS 28
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If the AO reopens the assessment by obtaining the sanction of the Commissioner of Income Tax instead of the Additional Commissioner of Income Tax, there is a breach of section 151 which renders the reopening void. [CIT V. Aquatic Remedies P Ltd. (HC-Bombay)]
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“When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the assessee and it must be interpreted in favor of the revenue. Over-Ruling decision passed in 1971 in the case of Sun Export [Supreme Court in Commissioner of Customs (Import), Mumbai vs. Dilip Kumar and Co. & Ors.]
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CBDT extends due date for filing of ITR for taxpayers for AY 2018-19 from July 31, 2018 to Aug. 31, 2018 vide Circular F no. 225/242/2018/ITA II dt. 26.07.18.
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• MCA notified amendment in Companies Accounts Rules requiring additional disclosure in Board Report with respect to maintenance of cost records and compliance with the provisions relating to prevention of sexual harassment of women at workplace.
• MCA notified amendment in Companies Accounts Rules wherein matter for the Board Report of One Person Company and Small Company has been specified.
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CBDT's OMs dated 29.02.2016 & 31.07.2017 by which AO's have been directed to grant stay of disputed demand on payment of 20%/ 15% does not fetter the power of the AO & CIT to grant stay on payment of amounts lesser than 15%/ 20%. The AO/ CIT have to deal with the prima facie merits and give reasons for rejection of the stay application. [PCIT v LG Electronics India Pvt Ltd (SC)]
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Re-assessment notice to be set-aside in case underlying reasons for notice weren't found correct [Haryana Paper Distributors (P.) Ltd. Vs. PCIT (HC-Gujrat)]
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Due date to file GSTR- 6 for ISD for the period from July 17 to August 18 has been extended till 30th September 2018.
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A GSTP cannot submit an application on taxpayer’s behalf. He can only prepare and save the application. To submit the application, taxpayer has to login to the GST portal and file it using EVC or DSC as applicable.
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Notice issued in name of dead person is not enforceable in law there is no statutory obligation on part of legal representative of deceased to immediately intimate death of assesse. [Madras HC in case of Alamelu Veerapan V. ITO]
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• Quarterly returns for business turnover up to Rs 5 crore instead of monthly filings. However, tax payment would be monthly.
• Turnover limit to opt for composition scheme has been recommended to raise from 1 Cr to 1.5 Cr
• In case of non-payment to supplier within 180 days from invoice date, ITC availed need to be reversed , no need to pay interest
• The order of cross utilization of ITC has been rationalized
• Hotels to be taxed on actual tariff basis not on declared tariff
• GST Rates on many goods has been reduced
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Mushroom is not a ‘vegetable’, ‘plant’, 'fruit' or ‘animal’ but is a ‘fungus’. Anything which is produced by performing basic operations on the soil is an "agricultural product" and the income therefrom is "agricultural income". The nature of the product and the fact that it is not a ‘plant’, ‘flower’, ‘vegetable’ or ‘fruit’ is irrelevant. The only relevant aspect is whether the production is by performing some basic operations on the soil. [ITAT HYDERABAD - DCIT v M/s. Inventaa Industries Private Limited]
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• CBIC to observe 3rd Refund fortnight from 16.07.18 to 30.07.18 to clear pending refunds
• Form GST ITC 03 is required to be filed where taxpayer has opted for composition scheme or goods or services or both supplied by him becomes wholly exempt or in case registration has been cancelled
• Taxpayer has to pay ITC availed in respect of inputs held in stock/ semi-finished/ finished goods held in stock or capital goods/ plan & machinery
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With a motive to reduce the litigation on Income-tax matters the CBDT has sharply increased the threshold limit for filing of appeal before ITAT, High Courts and Supreme Courts to Rs. 20 lakhs, Rs. 50 lakhs and Rs. 1 Crore respectively.
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If the alleged share applicants do not appear before the AO pursuant to the s. 131 summons and the documentation is inadequate, it is a "completely bogus claim". The assessee cannot argue that the AO should have made inquiries from the AO of the share applicants as to their credit-worthiness. [J J Development Pvt. Ltd. Vs. CIT (HC, Kolkata)]
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“Interest paid to New Okhla Industrial Development Authority (NOIDA) will not attract TDS provision under section 194, as NOIDA is an organization established under a State Act. [CIT vs. Canara Bank (SC)]”
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While "res judicate" does not apply to income-tax matters, the principles of consistency does. If the Revenue has accepted a practice and consistently applied and followed it, the Revenue is bound by it. The Revenue can change the practice only if there is a change in law or change in facts and not otherwise. [PCIT-8 v M/s. Quest Investment Advisors Pvt. Ltd (Mumbai HC)]
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While computing Capital gains on sale of shares kept under Portfolio management scheme (PMS), assesse could not claim deduction of consultancy fees/ PMS fees as the same neither fell under category of transfer fee, nor cost of acquisition/ improvement. [Mateen Pyarali Dholkia V. DCIT (ITAT Mumbai)]
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The parent being is an investment entity is required to measure its investments in its subsidiaries (except for entities covered under paragraph 32 of Ind AS 110) at fair value through profit or loss in its consolidated financial statements as per the requirement of Ind AS 109. Further, such investment entity is required to account for these investments in the similar way in its separate financial statements as they have been accounted for in consolidated financial statements. – Educational material on IND AS 27.
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• GST on Reverse Charge Mechanism (RCM) u/s 5(4) of IGST / 9(4) of CGST w.r.t procurement of suppliers from unregistered persons has been deferred till 30.09.2018.
• Banks using third party ATM’s, Business Correspondents (BC) or third party warehouses, are not required to include such third party places in their GST registration.
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• A tax payer can apply for revocation of cancelled Registration certificate on GST portal.
• Once approved, the taxpayer's GSTIN status will be changed from Inactive to Active w.e.f. the effective date of cancellation.
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• E-way bill system for intra-state movement of goods has been implemented in Delhi w.e.f 16th june 2018
• A tax payer can apply for revocation of cancelled Registration certificate on GST portal.
• Once approved, the taxpayer's GSTIN status will be changed from Inactive to Active w.e.f. the effective date of cancellation.
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Where the transactions between the shareholder & company were in nature of current account, that is, business transactions, the provisions of deemed dividend as per Sec 2(22)(e) of the Act would not be applicable. [CIT V. Gayatri Chakraborty (HC-Calcutta)]
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BSE has issued a circular to Listed Companies with respect to enforcement of SEBI Orders in the matter of appointment of Directors. Accordingly, all Listed companies and its Nomination Committees while considering a person for appointment as Director, shall verify that the said person is not debarred from holding the office of Director pursuant to any SEBI order and shall specifically affirm the same to the Stock Exchange while making Corporate Announcements. Further, in case an existing Director is restrained from acting as a Director, he shall voluntarily resign with immediate effect, failing which the listed entity shall initiate the process of removal of such Director under Companies Act, 2013, and inform the Exchange about the same.
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Legal notice or messages sent through WhatsApp messaging app are valid legal evidence under law, and the blue tick over the messaging app is a valid proof that the respondent has accepted the communication. [SBI Cards & Payment Services Pvt. Ltd vs Rohidas jadhav (Mumbai HC)]
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Business transactions between assessee (substantial shareholder cum director) and the company were intermingled and the outstanding balances occurred due to commercial exigencies such as regular trading business and consistent services rendered by assessee. CBDT circular 19/2017 shall be applied which specifically excludes trade advances arising out of commercial transactions from the purview of Sec. 2(22)(e). [The ACIT v Smt. Rathinam Thirupathiswamy (ITAT Chennai)]

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