What We Can Do

Our Services

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

The applicability of sec. 14A does not hinge on the actual earning of the tax-exempt income and circular 05/2014 (Clarification regarding disallowance of expenses under section 14A of the Income-tax At in cases where corresponding exempt income has not been earned) is in consonance with the law as explained in case of CIT v. Walfort Share & Stock Brokers P. Ltd. [2010] 326 ITR 1 (SC). [ITAT Amritsar- Lally Motors India (P.) Ltd v The Pr CIT-2, Jalandhar] (Apex Court)
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Amendment in section 68 of the Act with respect to ‘Source to source’ rule is prospective in operation and could not be applied to assessment prior to AY 2013-14. [PCIT-13, Mumbai vs. Veedhata Tower Pvt.Ltd. (ITAT Mumbai)]
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In case prosecution order is issued by Commissioner to proceed against assessee for depositing amount deducted as TDS in account of Govt. belatedly with Interest, HC quashed writ against the said order since criminal proceedings started against the Company. [Indo Arya Central Transport Ltd. V CIT (TDS),Delhi (HC, Delhi)]
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MCA has amended Schedule I of Companies Act, 2013. Accordingly every share certificate issued by the Company shall specify the shares to which it relates and the amount paid-up thereon and shall be signed by two Directors or by a Director and the Company Secretary, as the case may be. If the Company has a common seal, such seal shall also be affixed.
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Ministry of Finance has clarified that PAN and TAN mentioned in the Certificate of Incorporation issued by MCA shall be treated as sufficient proof of PAN and TAN for the Company Assessee removing the requirement of issuing PAN in the form of a laminated card.
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MCA has clarified that the requirement of filing in XBRL format shall remain applicable on such Companies which have filed their financial statements in XBRL format, even if the Company has moved out of any of the mandatory condition for XBRL filings. Also, Companies which have filed their financial statements under Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011, shall continue to file their financial statements and other documents, though they do not fall under the class of Companies specified therein.
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Taxpayers Guide related to Waybill
o A transporter can generate the consolidated e-way bills for movement of multiple consignments in one vehicle
o The maximum distance limit to generate e-way bill has been increased to 4000 kms from earlier limit of 3045 kms
o The taxpayer can upload his customers, suppliers and product details into e-way bill system by preparing the data as per the format provided in the tools option in the portal and upload in the master option after logging in
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IASB issues Exposure Draft to amend IAS 8 to introduce a new threshold for voluntary changes in accounting policy that result from an agenda decision published by the IFRS Interpretation Committee. The proposed threshold would include consideration of the expected benefits to users of financial statements from applying the new accounting policy retrospectively and the cost to the entity of determining the effects of retrospective application. --------------------------------------------------------------
An institute, though registered u/s 12AA, would still be taxed on income which has not been applied in accordance with Sec 11, or in respect of which Sec 13 comes into play & the registration u/s 12AA is purely based on objects of Institution. [B.S.A. College V. CIT(E), Lucknow (ITAT Agra)]
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Freight payment to shipping companies (Non-Resident), subject to provision of Section 172, would not attract provisions of Section 194C or Section 195. [Steelco Gujarat Ltd. v. Assistant Commissioner of Income Tax, Circle-4, Vadodara (ITAT AHMEDABAD BENCH 'I')]
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Payment by Prasar Bharti Doordarshan Kendra to accredited advertising agencies for securing more business is in the nature of commission and liable for TDS u/s 194H [[2018] 92 taxmann.com 11 (SC)]
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Re-assessment notice issued in name of erstwhile private limited company now converted into LLP would not invalidate re-assessment proceedings as same was not a jurisdictional error, but an irregularity and procedural/technical lapse which could be cured under section 292B. [Sky Light Hospitality LLP v ACIT, Circle 22(1), New Delhi.B (SC)]
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GST Update
LUT will be deemed to be accepted as soon as ARN is generated.
If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter’s LUT will be liable for rejection and deemed to have been rejected ab initio.
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Seconded expatriate employees operating from the premises of Indian subsidiary and activities thereof were related to the business of Indian subsidiary, then such activities of expat employees would not constitute a PE under Article 5(4) of Indo-South Korea DTAA. [Samsung Electronics Co. Ltd. v DCIT (SC)]
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“CBDT, through The Gazette of India dated 3rd April 2018, notifies New ITR Form for AY 2018-19.”
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If an entity has complied with the conditions attached to the Government scheme under which the entity is entitled to incentive, such incentive receivable will fall under the definition of financial instruments and will be accounted for as a financial asset per Ind AS 109 – ITFG Bulletin 15
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If an assessee acquires shares from borrowed funds for purpose of making long term investments, the expense incurred under the head Finance Charges would not deductible u/s 36(1)(iii) since these charges are not incurred wholly or exclusively for purpose of business. [ Asia Investments(P) Ltd. V. ACIT (ITAT Mumbai)]
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Non-occupancy charges received by co-operative societies from its members and used for mutual benefits would be governed by doctrine of Mutuality and thus not exigible to tax [Income Tax Officer, Mumbai V. Venkatesh Premises Co-operative Society Ltd. (SC)]
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GST Update
• Offline tool of Form GSTR 1 has been modified to allow taxpayer to delete more than 2500 invoices at one go.
• Taxpayers can declare their opening stock and related ITC claim on additional HSN stock line items not declared in Form GST TRAN-2 of July 17, while furnishing form GSTR TRAN-2 for the month of August, 2017 onwards.
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Capital gain from penny stock cannot be assessed as unexplained cash credit u/s 68 on the basis of information from investigation department, if the assessee has produced sufficient documents and AO has not found any fault in it. [Meenu Goel vs. ITO (ITAT Delhi)]
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In case where jurisdictional authority is yet to be assigned tax payer may file its Refund application either with the Central or State tax Department.
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A payer cannot absolve himself from being assessee in default & consequences flowing from Sec 201(1) & 40(a)(ia) for TDS default if recipient doesn't pay tax on income received by him from payer even for reason of a loss return. [Promain Ltd. V. DCIT (ITAT Delhi)]
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Section 14A r.w.r. 8D will be applicable in case of exempt dividend income from shares held as ‘strategic investment’ and ‘stock-in trade’. The dominant purpose test is not relevant to trigger this section. [Maxopp Investment Ltd vs. CIT (SC)]
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Creation of a Trust by a corporate entity for complying with the CSR responsibilities, cannot be a reason for denying registration u/s 12AA. [Nanak Chand Jain Charitable Trust vs. Commissioner of Income-tax (Exemptions), Chandigarh (Delhi ITAT)]
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The fact that notices issued u/s 133(6) of the Act could not be served upon the alleged vendors and they were not physically available at the given addresses does not falsify the claim of the assessee that the purchases are genuine if the assessee has produced other evidence and made payments through banking channels. [Prabhat Gupta Vs.ITO (ITAT Mumbai)] --------------------------------------------------------------
Capital Gain on transfers between the holding company and the setp-down subsidiary is exempt u/s 47(iv) of the Act [Emami Infrastructure Ltd. Vs. ITO (ITAT Kolkata)]
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GST Updates - 26th GST Council Meeting held on 10th March 2018
• The present system of filing GSTR-3B is extended for another 3 months i.e. till June, 2018.
• E-way bill for movement of goods between states will be implemented from April 1, 2018
• For Intra-state goods, e-way bill will be rolled out in a phase manner from April 15 to June 1, 2018.
• The liability to pay tax on Reserve charge basis has been deferred till 30.06.18
• The provision of TDS u/s 51 of the CGST Act and TCS u/s 52 of the CGST Act shall remain suspended till 30.06.18
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Squaring-off loan by way of allotment of equity shares is a usual business practice and a part of routine corporate debt restructuring exercise and hence cannot be held as violation of provisions of Sec. 269T. Penalty levied u/s 271E is to be deleted. [M/s. Arkit Vincom Pvt. Ltd. V ACIT (Kolkata ITAT)]
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A-16/9, Vasant Vihar, New Delhi – 110057
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