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due date extension for linking pan aadhar

CBDT extended Last date for linking of PAN-Aadhaar

March 28th, 2023
Posted By: Team-MMTaxClub

PRESS RELEASE DATED 28th  March, 2023

Last date for linking of PAN-Aadhaar extended

In order to provide some more time to the taxpayers, the date for linking PAN and Aadhaar has been extended to 30th June, 2023, whereby persons can intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. Notification to this effect is being issued separately.

Under the provisions of the Incometax Act, 1961 (the ‘Act) every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2023, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the Act w.e.f. Tst April, 2023. The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to 30th June, 2023.

From 1st July, 2023, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows:

(i) no refund shall be made against such PANS;

(i) interest shall not be payable on such refund for the period during which PAN remains inoperative; and

(ii) TDS and TCS shall be deducted /collected at higher rate, as provided in the Act.

The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000.

Those persons who have been exempted from PAN-Aadhaar linking wil not be liable to the consequences mentioned above. This category includes those residing in specified States, a non-resident as per the Act, an individual who is not a citizen of India or individuals of the age of eighty years or more at any time during the previous year.

It is stated that more than 51 crore PAN have already been linked with Aadhaar till date. PAN can be linked with Aadhaar by accessing the following link https:/eportal.incometax.qgov.in/iec/foservices/#/pre-login/bklink-aadhaar
linking aadhar and voter id,

Government extended due date for linking aadhar with Voter ID
March 22nd, 2023
Posted By: Team-MMTaxClub

MINISTRY OF LAW AND JUSTICE Legislative Department vide notification dated 21st March 2023, extended due date for intimating aadhar number to electoral office till 31st March 2024 from 1st April 2023.

Extract of notification can be read as under-

In exercise of the powers conferred by sub-section (5) of section 23 of the Representation of the People Act, 1950 (43 of 1950), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Law and Justice (Legislative Department), number S.O. 2803(E), dated the 17th June, 2022, namely: -

In the said notification, for the words and figures, “the 1st April, 2023”, the words and figures, “the 31st March, 2024” shall be substituted.

Relevant provision and Original Notification

“Rule 26B. Special provision for providing Aadhaar number by existing electors.— Every person whose name is listed in the roll may intimate his Aadhaar number to the registration officer in Form 6B in accordance with sub-section (5) of section 23 of the Act.”.

S.O. 2803(E).—In exercise of the powers conferred by sub-section (5) of section 23 of the Representation of the People Act, 1950 (43 of 1950), the Central Government hereby notifies the 1st April, 2023 as the date on or before which every person whose name is included in the electoral roll may intimate his Aadhaar number in accordance with the said section.

Delhi GST officers detect Rs 17 crore tax evasion by issue of fake invoice, arrests 2
March 20th, 2023
Posted By: Team-MMTaxClub

GST officers in Delhi have unearthed a fake invoicing racket involving tax evasion of Rs 17 crore and arrested two persons, the Finance Ministry said on Saturday. Central Goods and Service Tax (CGST) Delhi South Commissionerate conducted inspection at the registered premises of three bogus firms/company, namely M/s. NexGen Busicorp, M/s. XEL Informatics and M/s. GW Infotech Pvt., engaged in fake invoicing and circular trading, according to a statement.

During the inspection, some incriminating documents were found from the premises of the taxpayers.

"Preliminary enquiry conducted so far into the transactions of these firms has revealed tax evasion of Rs 17 crore approx. The proprietor/director in his confessional statements has admitted his role in passing and availing fraudulent ITC without any underlying supply of goods," an official statement said.

In this case, two persons Sanjay Kumar Srivastava and Sunil Gulati were arrested on March 17. The accused were produced before the Duty Metropolitan Magistrate following which they have been remanded to judicial custody for 14 days, the ministry said.

The officers acted on specific intelligence concerning certain bogus firms that were created solely for the purpose of generating goods-less invoices and passing on of ineligible input tax credit along the chain.

Source

ITAT rules in favour of Flipkart on alleged ₹1,700 crore marketing intangibles
March 20th, 2023
Posted By: Team-MMTaxClub

Bangalore Income Tax Appellate Tribunal (ITAT) allows Flipkart appeal to allow deductions towards ESOP expenditure.

The company filed a loss return of ₹139.61 crore, against which it was subjected to the addition of ₹1,708.39 crore on account of the valuation of marketing intangibles and ₹15.80 crore on account of ESOP expenses.

Division Bench of Bangalore ITAT comprising Shri George George K, Judicial Member, and Smt. Padmavathy S, Accountant Member ruled, “With regard to revenue’s appeal on marketing intangibles, ITAT relies on Flipkart’s case for AY 2015-16 wherein it was held that the profit margin foregone by the company cannot be held to be an incurred expenditure in creating intangible or goodwill. Thus, ITAT finds no reason to interfere with the commissioner of income-tax’s order and dismisses revenue’s appeal.”

ESOP expenses

On ESOP expenses, Flipkart contended before ITAT that the expenses qualify the conditions prescribed under Section 37, and are an unascertained liability and not contingent liability. The bench added that the expenses are also recognised in accordance with Indian Accounting Standard 102, among other observations.

ITAT relied on a coordinate bench ruling in Novo Nordisk wherein it was held that ESOP expenses incurred on the issue of overseas parent company’s share is to be considered as revenue expenditure.

The bench also relied on a special bench ruling in Biocon (upheld by jurisdictional HC) wherein it was held that the term ‘expenditure’ also includes a loss and therefore, issuance of shares at a discount where the company absorbs the difference between a price at which it is issued and the market value of the shares would also be expenditure incurred for the purpose of Section 37(1). Accordingly, the bench held that expenditure incurred towards ESOP is eligible for deduction under Section 37(1).

Flipkart did not respond to businessline queries on this development.

‘Relevant conditions’

Abhishek A Rastogi, founder of Rastogi Chambers said,  “ESOP expenses qualify the relevant conditions prescribed under Section 37 and are an unascertained liability but not contingent liability. These expenses are recognised in accordance with IND AS 102 by following a consistent accounting method.”

Rastogi added that it must be clearly understood that the term ‘expenditure’ also includes a loss and therefore, issuance of shares at a discount where Assessee (company) absorbs the difference between the price at which it is issued and the market value of the shares would also be expenditure .

“Further, profit margin foregone by the Assessee cannot be held to be an incurred expenditure in creating either intangible or goodwill and as a corollary this amount cannot be subjected to tax,” he said.

Source