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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

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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• No e-way bill required if consignment value is upto 1,00,000/- in respect of movement of goods originating and terminating with in the state of Delhi (Intra - state movement but without passing through any other state)
• No e-way bill is required irrespective to value of goods when sale is from the registered business place of a taxable person to an unregistered end consumer and movement is accompanied by an invoice.
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• Various certificates like Renewable Energy Certificates (RECs). Priority Sector Lending Certificates (PSLCs) etc. are taxable at a rate of 12%
• If the goods transit through a second State while moving from one place in a state to another place in the same State, an e-way bill is required to be generated.
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The words 'concealment' or 'inaccurate particulars of income' have to be read strictly before levying penalty u/s 271(1)(c) of the Act. AO should give finding as to what particulars of income has been concealed or what particulars of income are inaccurate. [CIT vs. L&T Finance Ltd (Bombay High Court)]
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A non-resident assessee is entitled to claim deduction of an amount equal to 5% of the adjusted total income as expenditure in the nature of Head Office (HO) Expenses. The face that the expenses are not debited in the Profit & Loss account or the books of account is irrelevant. The entries in the books of account are not conclusive. [ITAT Delhi-Ernst & Young Ltd. v ACIT (International Taxation)]
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On issuance of Ind AS 115, Revenue from Contracts with Customers vide the Companies(Indian Accounting Standards) Amendment Rules, 2018 , Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable), which had been issued by ICAI based on principles of Ind AS 11 and IND AS 18, stands withdrawn.
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If the AO wants to rely upon documents found with third parties, he has to provide the evidence to the assessee & grant opportunity of cross-examination following the principal of natural justice [CIT vs. Sunita Dhadda (Supreme Court)]
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If the assessee has paid consent charges/ settlement charges to SEBI under SEBI guidelines to avoid long drawn litigations, those would be considered as business expenditure as per section 37(1) of the Act. [DCIT V. Anil Dhirajlal Ambani (ITAT Mumbai]
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• Due date to file GSTR – 6 by ISD for the period July 17 – June 18 extended to 31st July 18.
• It is clarified by CBIC that any interest/delayed payment ch. Charged for delay in payment of brokerage amount/settlement obligation / margin trading facility shall be leviable to GST.
• Intra – State E-way bill rolled out in Chhattisgarh, Goa, Jammu & Kashmir, Mizoram, Odisha & Punjab w.e.f 1st June 2018
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No additions u/s 69A on excess Jewellery found during search if there was custom to gift Jewellery in family. [Vibhu Aggarwal Vs. DCIT (ITAT-Delhi)]
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If the assessing officer reopens the case on the basis of information received from another assessing officer without further inquiry, it means he has proceeded "mechanically" and "without application of mind". If the CIT does not give reasons while according sanction, it implies that he has also not applied his mind. Both render the reopening void. [Sunil Agarwal Vs. ITO (ITAT-Delhi)]
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The Task Force constituted by Government of India, to draft a new direct tax law, has been given an extension of 3 months to submit its report. Initially the task force was required to submit its report within 6 months i.e. by May 22, 2018.
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Non-resident OIDAR service providers need to file return in Form GSTR-5A compulsorly even if there is no business activity in the tax period only after making full payment of taxes and other liabilities.
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In case an assessee claims depreciation on non-existent assets, penalty u/s 271(1)(c) would be levied for filing inaccurate particulars of income. [Sundaram Finance Ltd. Vs. ACIT (HC Madras)]
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ITAT says Google India should pay tax on advertisement revenue sent to parent.
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A-16/9, Vasant Vihar, New Delhi – 110057
Email Us
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