LAW DECODED

1. GROUP SAVING LINKED INSURANCE   Read: https://securenow.in/insuropedia/are-group-health-policies-tax-deductible https://securenow.in/insuropedia/are-group-health-policies-tax-deductible No benefits to employees as a deduction but not even added in their salary

The confusion creeps in because the first page of FLA return [which is an excel based utility] asks for CIN number which is applicable to a company. Therefore, LLP is required to send mail:  surveyfla@rbi.org.in (RBI helpdesk – 022-26578662/8214) to create dummy CIN until RBI amend the FLA return format.

Making foreign payments are very frequent in nature, but before making any foreign payment you must keep in mind the compliances under various laws such as: 1. Under Income Tax Laws :  Section 195 of the Income Tax Act requires to deduct TDS if the sum payable is taxable in India. To know this you must check Section 5, 6 and 9 of the Income Tax Act along with section 195 to get the clear picture. Deciding at what rate you should deduct TDS , is also a crucial task. For this, you must check the DTAA [Double Taxation Avoidance Agreement] between India and the Country where you remitting the funds.  Apart from TDS liability and its TDS return filing, you must also intimate the tax authority by filing form 15 CA and 15 CB [CA Certificate] . However, there are certain notified transactions where you are not required to report such transactions [ Rule 37 BB of Income Tax Rules ]. The wording of section 195 is so wide that it covers almost each and every fo...

As per section 3 of Transfer of Property Act, “ Actionable claim ” means a claim to any debt, other than that secured by mortgage of immovable property or by hypothecation and pledge of movable property or to any beneficial interest in movable property not in position, either actual or constructive, of the claimant, which the Civil court recognized as an affording ground for relief, whether debts or beneficial interest be existent, acquiring, conditional or contingent. Followings are a few examples of Actionable Claim: Right to recover insurance policy A claim for an arrear of rent Sale to Lottery tickets Why is it important to understand the actionable claims under GST? Actionable claims are considered as goods under the GST act. As per section 2(52)  of CGST Act, “goods” means every kind of movable property other than money and securities but includes actionable claim , growing crops, grass, and things attached to or forming part of the land which are a...

Notified jurisdiction means those countries which do not help India in tax information exchange u/s 94A. The purpose of this section to discourage the assessee to enter into transactions with the persons located in these notified jurisdictions. The Central Government has the power to notify any such country or territory outside India as Notified Jurisdictional Area. Earlier, Govt has notified “Cyprus” as a Notified Jurisdictional Area under section 94A but subsequently, Govt removes the name of “Cyprus” as a Notified Jurisdictional Area. Any transaction with a person located in NJA would be deemed to be an International transaction and accordingly all the provisions of transfer pricing to be attracted in case of such transaction. Few examples of such transactions: · Purchase or sale of tangible or intangible property or· Provision of services· Lending or borrowing of money or· Any other transaction having bearing on the profits, income, losses or assets of the assessee.The following ...

GAAR is an anti-tax avoidance rule which deters the tax evaders, from making the investment through tax-heaven countries like Switzerland, Luxemburg, Mauritius, and Cyprus etc. The Shome committee proposed the implementation of GAAR, but the provisions of GAAR has not been notified so far. The proposal to apply GAAR will be checked first by the Principal Commissioner of Income Tax / Commissioner of Income Tax and at the second stage by an Approving Panel headed by a judge of High Court. The stakeholders have been assured that adequate procedural safeguards are in place to ensure that GAAR is invoked in a uniform, fair and rational manner. Applicability of GAAR: As per GAAR provisions, an arrangement entered into by a taxpayer may be declared to be impermissible avoidance arrangement and consequences of tax arising shall be dealt as per GAAR provisions. Non-Applicability of GAAR: I. If at the time of sanctioning the arrangement, the court has explicitly and adequately ...