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Societies in India are registered as per the provisions of Societies Registration Act, 1860. Before moving towards registration of society let us first know about What is society? A society is an association of individuals combined that unites together for some communal purpose i.e. for advancement of charitable activities. The Societies can be formed for different objects such as for the promotion of science,literature, or the fine arts for instruction, the diffusion of useful knowledge,the foundation or maintenance of libraries or reading-rooms for general use among the members or open to the public orpublic museums and galleries of paintings and other works of art, collections ofnatural history, mechanical and philosophical inventions, instruments, or designs. What are the types of societies? The Societies can be classified on the basis of the objects they are formed. Some of the types of Societies are as follows: Charitable Societies:The societies formed with the objects, to give donations or to provide financially or otherwise aid educational, benevolent, spiritual, charitable institutions. Educational Society: This type of society are formedwith the objects that promote education in any particular area like to open and run, educational and vocational schoolsor institutions to bring education within the reach ofpoor & backward children, in the National Capital Territory of Delhi. Resident welfare association: It is a type of society that has objects for promoting the welfare of the residents of the colony for which it is formed. What is the composition of governing body of society? The society shall consist of seven or more person. The composition of governing body of society shall be as follows: One President One Vice-President. One General Secretary One Secretary One Treasurer Other members shall be executive member. What is the procedure for registration of Society? The societies in India are registered as per the provisions of Society Registration Act, 1860. The step wise procedure for registration of society is as follows: 1. Firstly, the name of the society shall be selected. While selecting the name for the society you should keep in mind that the name of the society doesn’t match with the name of already existing registered society. *Some Practical aspects The time taken for approval of name is approx. 1 to 2 months as this is done through physical verification of officials unlike just a click check of name availability at MCA portal for the Company or LLP. 2. Once, you have decided the name of your propose society, you should start preparing your documents. The documents for the formation of society shall be: A request letter from President of the society. Memorandum of Association* of society which shall contain: Name of the Society Registered Office of the Society Objects of the Society Name, address, occupation and designation of the governing body Name, address, occupation andsignature of the desirous person* Rules and Regulations* of society which shall govern the internal management of the society as same as the Articles of Association for the Company. An affidavit on Rs. 10/- (Rupees Ten) Non- Judicial stamp paper sworn by the President or Secretary of the Society stating that: the Desirous Person are not related with each other by the way of blood or otherwise the name of the society shall be changed if the name of the proposed found attracting the provision of Emblems Act of 1950 and / or identical and resembles closely to any other Society which is already registered under Societies Registration Act of 1860 in the N.C.T. of Delhi and other law of land applicable. Address Proof of the registered office of the society i.e. Sale deed/ Lease Deed/ Utility Bill which shall not be older than 2 months along with No Objection Certificate (NOC)* from the owner of utility bill. *Important Points to be kept in mind while preparing the documents (i) Each and every page of Memorandum of Association and Rules and Regulations of the Society shall be signed by President, Secretary and Treasurer. (ii) List of Desirous Person attached to MOA shall be notarized. (iii) The last page of rules and regulation shall be signed by all the person of the governing body. (iv) NOC shall be furnished on Rs. 10/- (Rupees Ten) Non- Judicial Stamp Paper. 3. Once, you are completed with your documents, the last step is to you have to go and submit the documents with the authority i.e. Sub-Divisional Magistrate for the registration of society. *DO YOU KNOW? Delhi government vide notification dated 26th March, 2010 has decentralized the registration of societies by placing it under the authority of the Sub-Divisional Magistrate of the area. **SOME PRACTICAL ASPECTS While submitting the documents with the authority, the same shall be in a Cobra File. On the face of the file, name of the society, registered address, the name and Mobile Number of Contact Person shall be written. 4. Afterwards, when you have filed the documents with the authority, a letter shall be circulated by the official there for the approval of the name to different SDM office. Once the NOC has been received, then your file shall be submitted to the Sub- Divisional Magistrate for their confirmation. 5. Lastly, when the file is signed by the Sub-Divisional Magistrate, the certificate shall be issued by them after a payment of fee of Rs. 50/- (Rupees Fifty Only) and your society is finally registered. *SOME PRACTICAL ASPECTS The time for registration of society depends mostly on your liaison skills.

As per the MCA notification dated 05th August 2022 Government has notified the Companies (Accounts) Fourth Amendment Rules, 2022.As per the amended rules back-up of the books of account/other books & papers maintained in electronic mode, including at a place outside India, shall be kept in servers physically located in India on a daily basis. 1. Provisions with Amendment in Rules and their impact: - (Amended part is highlighted) Rule 3 of Companies (Accounts) Rules states about, Manner of Books of Account to be Kept in Electronic Mode {1} The books of account and other relevant books and papers maintained in electronic mode shall remain accessible in India, at all times so as to be usable for subsequent reference. One can opine that According to the amendment books of account and books and papers if maintained in electronic mode (Like Tally, Buzy etc) should be available in India all the time. {5} There shall be a proper system for storage, retrieval, display or printout of the electronic records as the Audit Committee, if any, or the Board may deem appropriate and such records shall not be disposed of or rendered unusable, unless permitted by law: Provided that the back-up of the books of account and other books and papers of the company maintained in electronic mode, including at a place outside India, if any, shall be kept in servers physically located in India on a daily basis. One can opine that, according to this amendment Companies are required to take backup of the Books of Accounts and Book & papers on Daily basis if records are maintained in Electronic mode. (6) The company shall intimate to the Registrar on an annual basis at the time of filing of financial statement- (a) the name of the service provider; (b) the internet protocol address of service provider; (c) the location of the service provider (wherever applicable); (d) where the books of account and other books and papers are maintained on cloud, such address as provided by the service provider. (e)where the service provider is located outside India, the name and address of the person in control of the books of account and other books and papers in India One can opine that, according to this amendment Companies are required to give details in AOC-4 of person authorized in india for control of books of account and other books of papers maintained in electronic mode. Corporates in India - especially multinational outfits operating here - can no longer decline real time access of their account books to government authorities because they are maintained in electronic mode under a “cloud” infrastructure with servers located outside India.The daily backups would have to be maintained in servers physically located in India.

As you are aware that "Accident", the term means an event that is without apparent cause, or is unexpected, an unfortunate event especially one causing physical harm or damage, bought about unintentionally a mishap, hadsa or durghatna. Any person – a child, a young man, a young woman, a blind person, a student, a teacher, a lawyer, an engineer, a baboo, an officer, a pedestrian, a cyclist, a scooterist, a motor car owner/driver/passenger – who puts his feet on the road, faces the risk of becoming a victim of an automobile accident. The motor vehicles, particularly those driven by reckless drivers, are indeed killers and howsoever careful or cautious one may be on the road, one is likely to fall a prey to accidents caused by motor vehicles. Road accidents, which lead to serious injuries including death or maiming of innocent and ignorant human beings have become a matter of great concern. Due to an alarming development of road transport alien which includes various types of motor vehicles, i.e., buses, trucks, threewheelers, a large number of accidents take place day in day out. A victim, who was seriously injured and dies for want of immediate medical attention ultimately. The police official on duty and the doctors, who were reluctant to attend to the victim, are to be blamed for his untimely death of the victim. As instead of taking this victim to the nearest hospital immediately, the police wasted much of the valuable time in other formalities. The doctors also declined to give even the first aid. Every victim is entitled for compensation under the Motor Vehicles Act, 1988 in case of death and grievous hurt. The expression 'grievous hurt' is defined in section 320 of the Indian Penal Code, 1860. Section 320 reads: The following kinds of hurt only are designated as "grievous": Firstly: Emasculation Secondly: Permanent privation of the sight of either eye. Thirdly: Permanent privation of the hearing of either ear. Fourthly: Privation of any member or joint. Fifthly: Destruction or permanent impairing of the powers of any member or joint. Sixthly: Permanent disfiguration of the head or face. Seventhly: Fracture or dislocation of a bone or both. Eighthly: Any hurt which endangers life or which causes the sufferer to be during the space of twenty days in severe bodily pain, or unable to follow his ordinary pursuits. There are certain provisions in the Motor Vehicles Act, under which the victim is entitled for fixed compensation even if the accident takes place due to his own fault or in the absence of any proof or negligence on the part of the driver or the owner of the vehicle. LET'S CONSIDER GUIDELINES ON COMPENSATION IN CASE OF DEATH OF A CHILD Hon'ble Andhra Pradesh High Court has issued guidelines for determination of compensation in case of death of a child/infant in an accident; 1. The items of compensation in cases of death of children should not be different from the items of compensation for death of an adult. 2. While awarding the conventional sum for the death of the children all the factors should be taken into consideration including the age of the deceased, the age of parents or dependents , the possibility of the deceased growing up and contributing to the family in future in orderly life etc. 3. The monetary loss to the claimant should also be awarded subject to proof as special damages in each case. 4. No precedent should be taken in such a question as the conclusion is the matter as each case has to be considered on its own merits subject to the general principles. 5. No amount of compensation as conventional sum should be taken as fixed. 6. The minimum amount of compensation award able for the case of death of children as in the case of adults should be as follows; (i) Rs. 15,000 for the death of children in respect of accidents occurred on or after the date when Section 92A of 1939 Act was brought on statute book i.e. 1st October, 1982; (ii) Rs. 25,000 for the death of children in respect of accidents occurred on or after the date on which Section 140 of Act, 1988 was brought into force i.e. 1st July, 1989; and (iii) Rs. 50,000 for the death of children in respect of accident occurred on or after the date on which Section 140 of Motor Vehicles Act, 1988 was amended by Act No. 54 of 1994 i.e. 14th November, 1994. 7. The compensation in each case may be more than minimum amounts of compensation stated above in each case depending upon the facts and circumstances of each case depending upon the facts and circumstances of each case which should be proved. 8. Any other item of compensation as suggested in the article " Compensation for the death of children in motor accident" by Smt. S. Lalitha , Reader Department of Law , Sri SriKrishnadevaraya University, Anantpur (1991 ACJ Page XVIII) may also be taken into consideration depending on the facts and circumstances of each case. 9. It shall not be taken that either the Supreme Court or this court or any other court has laid down the law in clear terms that the compensation in the case of death of children for a particular age is a known sum or a definite sum as indicated in some of the precedents and it has to be worked out in each case depending upon yhe facts and circumstances of each case. SECTION 140 IN THE MOTOR VEHICLES ACT, 1988 Liability to pay compensation in certain cases on the principle of no fault.— (1) Where death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section. (2) The amount of compensation which shall be payable under sub-section (1) in respect of the death of any person shall be a fixed sum of 1[fifty thousand rupees] and the amount of compensation payable under that sub-section in respect of the permanent disablement of any person shall be a fixed sum of 2[twenty-five thousand rupees]. (3) In any claim for compensation under sub-section (1), the claimant shall not be required to plead and establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act, neglect or default of the owner or owners of the vehicle or vehicles concerned or of any other person. (4) A claim for compensation under sub-section (1) shall not be defeated by reason of any wrongful act, neglect or default of the person in respect of whose death or permanent disablement the claim has been made nor shall the quantum of compensation recoverable in respect of such death or permanent disablement be reduced on the basis of the share of such person in the responsibility for such death or permanent disablement. (5) Notwithstanding anything contained in sub-section (2) regarding death or bodily injury to any person, for which the owner of the vehicle is liable to give compensation for relief, he is also liable to pay compensation under any other law for the time being in force: Provided that the amount of such compensation to be given under any other law shall be reduced from the amount of compensation payable under this section or under section 163A. THE APEX COURT HELD THAT -TRIBUNALS MUST DETERMINE THE SUM RATIONALLY AND JUDICIOUSLY' The Supreme Court has held that payment of compensation to parents for the death of a child, including a stillborn, in an accident must be just and not be a pittance. A Bench of Justices D.K. Jain and R.M. Lodha said: "The determination of the just amount of compensation is beset with difficulties, more so when the deceased happens to be an infant/child because the future of a child is full of glorious uncertainties." In the case of death of an infant, many imponderables had to be taken into account such as life expectancy and his prospects of earning, saving, spending and distributing. Writing the judgment, Mr. Justice Jain said it was quite possible that there would be no actual pecuniary benefit derived by the parents during the lifetime of the child. But that could not be a ground for rejecting their claim of reasonable expectation of pecuniary benefit if the child had lived. The Bench said: "The word 'just' connotes something which is equitable, fair and reasonable, conforming to rectitude and justice, and not arbitrary. It may be true that Section 168 of the Motor Vehicles Act confers a wide discretion on the Motor Accidents ClaimsTribunal to determine the amount of compensation, but this discretion is also coupled with a duty to see that this exercise is carried out rationally and judiciously by accepted legal standards, and not whimsically and arbitrarily, a concept unknown to public law." The Bench, however, cautioned the tribunals, saying the amount of compensation awarded was not expected to be a windfall or bonanza, nor should it be niggardly or a pittance. "Whether there exists a reasonable expectation of pecuniary benefit" was always a mixed question of fact and law, but a mere speculative possibility of benefit was not sufficient. In the instant case, the National Insurance Company appealed against the Karnataka High Court judgment enhancing the compensation awarded by a tribunal from Rs. 60,000 to Rs. 1.80 lakh for miscarriage suffered by a woman in a motor accident. The tribunal said she was entitled to Rs. 50,000 in compensation for the stillborn and Rs.10,000 for her pain and sufferings. On appeal, the High Court enhanced the amount The insurance company questioned the correctness of the award for "the loss of the unborn child," but the consideration before the High Court was over the quantum of compensation and hence it could not raise the same in the Supreme Court, the Bench said, dismissing the appeal. The Karnataka High Court has in one its recent ruling enhanced the compensation granted to parents of a two-year old deceased in a Motor Accident. The single-judge bench of Justice Shivashankar Amarannavar while reflecting on the fact that in the case of this nature, it is difficult to assess the loss in pecuniary term and that the Motor Vehicles Act is also silent in providing any basis to award just compensation, referred to SC precedents and modern jurisdictions world-over in these matters. Learned Counsel for the appellants-claimants placed reliance on the SC judgment in Kishan Gopal & ANR. Vs. Lala &Ors., 2013 Latest Caselaw 580 SC wherein the Apex Court awarded compensation of Rs.4,50,000/- and another Rs.50,000/- under conventional heads. He contended that keeping in view the current position of law in the matter one herein, what has been held by the Hon'ble Apex Court has to be followed in the facts and circumstances of the case. Learned Counsel for the Respondent-Insurance Company submitted that the deceased was aged about 2 years and she is not an earning member of the family and the appellants are not dependants. She further submitted that whatever the compensation awarded by the Tribunal is just and proper. The Court at the outset noted that it is difficult to assess the compensation in case of a death of minor. "The age of the deceased is not in dispute. The compensation as well as the future prospects cannot be decided on the basis of gender." Commenting on the nature of case and legal proposition around it, the Court said: "An accident leading to the death of a child causes great shock and agony to the parents and family of the deceased. The greatest agony for a parent is to lose their child during their lifetime. Children are valued for their love, affection, companionship and their role in the family unit." "Modern jurisdictions world-over have recognized that the value of a child's consortium far exceeds the economic value of the compensation awarded in the case of the death of a child. Most jurisdictions permit parents to be awarded compensation under loss of consortium on the death of a child. The amount awarded to the parents is the compensation for loss of love, affection, care and companionship of the deceased child." The Court also mentioned that previously, the Co-ordinate Bench of High Court has followed the precedent in Kishan Gopal ' in case of death of a boy who was aged 6 years. In view of the above, the Court enhanced the compensation granted by Tribunal to the appellants-claimants to Rs.4,50,000/- from Rs.3,50,000/-, towards 'loss of dependency' and Rs.50,000/- towards loss of love and affection, funeral expenses and transportation of a dead body and the total compensation comes to Rs.5,00,000/- The Tribubnal order thus stand modified by additional compensation of Rs.1,50,000/- with interest at 6% p.a. from the date of petition till realization of the award amount. CONCLUSION It can be concluded that it order to determine the amount of compensation in particular case, the Court have to look into facts and circumstances of the case. The pecuniary amount can be determined easily but determination of the non pecuniary damages depends upon the facts and circumstances and discretion of the court. No rule can be made in order to determine non pecuniary damages such as damage in regards to pain and suffering and loss of amenities of life, nor amount can be determined in case of loss of consortium. It whole and sole depends upon the facts and circumstances of the case. The value of the compensation awarded in the case of death of a child, the courts permits parents to be awarded compensation under loss of consortium on the death of a child. The amount awarded to the parents is the compensation for loss of love, affection , care and compensation of the deceased child. DISCLAIMER: The article presented here is only for sharing information with readers. the views are personal. In case of necessity do consult with professionals.

Under the income tax and other Direct Tax laws, tax refunds arise in those cases where the amount of tax paid by a person (or paid on his/her behalf) is greater than the amount on which he/she is properly chargeable. When you file the return of your income, you can avail tax refund. There are two ways for Eligible taxpayers to check their ITR refund status online: Through the official website of the Income Tax Department Through the website of the National Securities Depository Limited (NSDL) Mandatory Requirement: Taxpayer's PAN 1. Steps to check ITR refund status via Income Tax Portal Visit the Income Tax Department's website Login using PAN and user id credentials. Select the tab 'My Account' and click on 'Refund/Demand Status'. Select ITR and click on your acknowledgement number, from the drop-down menu. A new web page / tab with all tax details, including refund status will open. Refund status / details can be checked 2. Steps to check ITR refund status via NSDL Website Visit the site of NSDL @ https://tin.tin.nsdl.com/oltas/refund-status-home.html Click on the link to proceed with taxpayer refund status. Enter PAN details and select the Assessment Year 2022-23 / or as applicable. Click on submit. ITR status will be visible. Refund status / details can be checked Notes: Taxpayers can view status of refund 10 days after their refund has been sent by the Assessing Officer to the Refund Banker. Status of 'paid' refund, being paid other than through 'Refund Banker', can also be viewed at www.tin-nsdl.com by entering the 'PAN' and 'Assessment Year'. ' Refund paid' status is also being reflected in the 'Tax Credit Statements' in Form 26AS. Form 26AS is a credit statement which basically contains all the information regarding the details of the tax deducted on your income. Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Arjuna (Fictional Character): Krishna, what is the recent notification brought by Income tax Department for the Books of Accounts to be maintained by the Trusts? Krishna (Fictional Character): Arjuna, on 10th August 2022 Notification No. 94/2022 was issued notifying the New Rule 17AA for books of accounts and other documents to be kept and maintained by Trusts and other various Institutions. Arjuna (Fictional Character): Krishna, to whom the new Rule 17 AA shall be applicable? Krishna (Fictional Character):Arjuna, the Rule 17 AA shall be applicable to the every Fund or trust or any university or other educational institution or any hospital or other medical institution which are required to maintain books of accounts under Section 12A and Section 10(23C) of Income Tax Act. Arjuna (Fictional Character): Krishna, what are the documents which are required to be kept and maintained under Rule 17AA? Krishna (Fictional Character): Arjuna, the assessed is required to maintain following documents: Books of Accounts including Cash Book, Ledger, Journal, Copies of Bills (Serially Numbered), any other book that may be required to be maintained. Other documents for maintaining: Record of all the projects and institutions run by the person containing details of their name, address, and objectives. Record of Income of the person from Voluntary Contributions received, Income Received from property held under trust or record of Income received from sources other than mentioned above. Record of loans and borrowings taken and the detailed information of the application of money borrowed. For E.g. Name and address of the person to whom any credit or payment is made and the object for which such application is made. Record of properties held by the assessed, with respect to the following, namely, - Immovable properties and Movable properties including details of the nature and Any other documents containing any other relevant information. Arjuna (Fictional Character): Krishna, what are the important points provided in the Notification issued by the Department? Krishna (Fictional Character): Arjuna, the important points provided in the Notification are as follows: The books of accounts and other documents specified may be kept in written form or in electronic form or in digital form or as print-outs of data stored in electronic form or any other form of electromagnetic data storage device. The books of account and other documents specified shall be kept and maintained at its registered office. The books of account and other documents specified shall be kept and maintained for a period often years from the end of the relevant assessment year. Arjuna (Fictional Character): Krishna, what should one learn from this? Krishna (Fictional Character): Arjuna, from the above Notification the government is trying to bring strict watch on Trust and other Institution which are claiming deductions under Section 12A of the Income Tax Act. We have recently seen in the CAG report that performance audit carried out by CAG has noticed "certain deficiencies" and to minimize such deficiencies the Government is trying to bring preventive measures.

Background Under GST, there has been confusion on whether tax is applicable on liquidated damages paid for breach of contract, compensation given, Fines/penalties, amounts recovered from an employee leaving the employment, cancellation charges recovered etc. It would do well to recollect that Schedule II to the GST law has set out activities to be treated as supply of goods/service. Therein there is entry 5(e) which covers 'agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act', to be a service. Based on retrospective amendment done [Feb 2019] in CGST Act 2018 for "supply" w.e.f. 01-07-2017, the term 'supply' is amended to exclude activities/ transactions listed in Schedule II. This is to ensure the activities/ transactions as per Schedule II are merely to decide whether the same is the supply of goods or services. The supply definition is excluding the Schedule II with retrospective effect from July 2017. Extract as under: Section 7[(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II. Hence, as a consequence the activities/ transactions listed in Schedule II (as supply of service or supply of goods) would not be taxed just because it is set out in Schedule II. Such activities would be taxed instead only when they constitute 'supply' in accordance with provisions of Section 7(1)(a), (b) and (c) of the CGST Act, 2017 ("the CGST Act"). In light of this retrospective amendment, when there is no supply of goods/services, then the amounts paid would not be taxed to GST at all. Circular No. 178/10/2022-GST has been issued recently clarifying on the tax implications of the damages/compensations/other few recoveries made. In this backdrop the validity of circular and clarifications therein has been examined by paper writer along with past relevant decisions. Recent circular No. 178/10/2022-GST "Agreeing to the obligation to refrain from an act or to tolerate an act or a situation, or to do an act" has been specifically declared to be a supply of service in para 5 (e) of Schedule II of CGST Act if the same constitutes a "supply" within the meaning of the Act. The element of contractual relationship, where one supplies goods or services at the desire or another, is an essential element of supply. The agreeing to the obligation to refrain from an act or to tolerate an act or a situation, or to do an act in para 5 (e) of Schedule II of CGST Act is similar to the definition of contract in the Contract Act, 1872. The Contract Act defines 'Contract' as a set of promises, forming consideration for each other. 'Promise' has been defined as willingness of the 'promisor' to do or to abstain from doing anything. 'Consideration' has been defined in the Contract Act as what the 'promisee' does or abstains from doing for the promises made to him. There must be a necessary and sufficient nexus between the supply (i.e. agreement to do or to abstain from doing something) and the consideration. A perusal of the entry at serial 5(e) of Schedule II, one of the parties to such agreement/contract (the first party) must be under a contractual obligation to either (a) refrain from an act, or (b) to tolerate an act or a situation or (c) to do an act. Further some "consideration" must flow in return from the other party to this contract/agreement (the second party) to the first party for such (a) refraining or (b) tolerating or (c) doing. There has to be an express or implied agreement; oral or written, to do or abstain from doing something against payment of consideration for doing or abstaining from such act, for a taxable supply to exist. Payments such as liquidated damages for breach of contract, penalties under the mining act for excess stock found with the mining company, forfeiture of salary or payment of amount as per the employment bond for leaving the employment before the minimum agreed period, penalty for cheque dishonour etc. are not a consideration for tolerating an act or situation. Specific clarifications set out in circular Liquidated Damages: Black's Law Dictionary defines 'Liquidated Damages' as cash compensation agreed to by a signed, written contract for breach of contract, payable to the aggrieved party. Breach or non-performance of contract by one party results in loss and damages to the other party. The law provides in Section 73 of the Contract Act, 1972 that when a contract has been broken, the party which suffers by such breach is entitled to receive from the other party compensation for any loss or damage caused to him by such breach. The compensation is not by way of consideration for any other independent activity; Such compensation specified in a written contract for breach of non-performance of the contract or parties of the contract is referred to as liquidated damages. Liquidated damages cannot be said to be a consideration received for tolerating the breach or non-performance of contract. They are rather payments for not tolerating the breach of contract. Liquidated damages are a measure of loss and damage that the parties agree would arise due to breach of contract. Where the amount paid as 'liquidated damages' is an amount paid only to compensate for injury, loss or damage suffered by the aggrieved party due to breach of the contract and there is no agreement, express or implied, by the aggrieved party receiving the liquidated damages, to refrain from or tolerate an act or to do anything for the party paying the liquidated damages, in such cases liquidated damages are mere a flow of money from the party who causes breach of the contract to the party who suffers loss or damage due to such breach. Such payments do not constitute consideration for a supply and are not taxable. Examples of such cases are damages resulting from damage to property, negligence, piracy, unauthorized use of trade name, copyright, etc. Other examples are the penalty stipulated in a contract for delayed construction, forfeiture of earnest money. If a payment constitutes a consideration for a supply, then it is taxable irrespective of by what name it is called; Cancellation of coal block/mine allocations: There was no agreement between the prior allottees of coal blocks and the Government that the previous allottees shall agree to or tolerate cancellation of the coal blocks allocated to them if the Government pays compensation. No such promise or offer was made by the prior allottees to the Government. The allottees had no option but to accept the cancellation. The compensation was given to them for such cancellation, not under a contract between the allottees and the Government, but under the provisions of the statute and in pursuance of the Supreme Court Order. Therefore, the compensation paid for cancellation of coal blocks pursuant to the order of the Supreme Court in the above case was not taxable. Cheque dishonour fine/ penalty: Cheque dishonor fine or penalty is not a consideration for any service and not taxable. Penalty imposed for violation of laws: Penalty imposed for violation of laws such as traffic violations, or for violation of pollution norms or other laws are also not consideration for any supply received and are not taxable, which are also not taxable. Same is the case with fines, penalties imposed by the mining Department of a Central or State Government or a local authority on discovering mining of excess mineral beyond the permissible limit or of mining activities in violation of the mining permit. Violation of law is never a lawful object or consideration. It was also clarified vide Circular No. 192/02/2016-Service Tax, dated 13.04.2016 that fines and penalty chargeable by Government or a local authority imposed for violation of a statute, bye-laws, rules or regulations are not leviable to Service Tax. The same holds true for GST also. Forfeiture of salary: In the event of the employee leaving the employment before the minimum agreed period. Premature leaving of the employment results in disruption of work and an undesirable situation. The employee does not get anything in return from the employer against payment of such amounts. Therefore, such amounts recovered by the employer are not taxable as consideration for the service of agreeing to tolerate an act or a situation. Compensation for not collecting toll charges: The toll reimbursements were calculated based on the average monthly collection of toll. It has been clarified vide Circular No. 212/2/2019-ST dated 21.05.2019 that the service that is provided by toll operators is that of access to a road or bridge, toll charges being merely a consideration for that service. During the period from 8.11.2016 to 1.12.2016, the service of access to a road or bridge continued to be provided without collection of toll from users. Consideration came from the project authority. The fact that for this period, for the same service, consideration came from a person other than the actual user of service does not mean that the service has changed. Late payment surcharge or fee: The facility of accepting late payments with interest or late payment fee, fine or penalty is a facility granted by supplier naturally bundled with the main supply. Since it is ancillary to and naturally bundled with the principal supply such as of electricity, water, telecommunication, cooking gas, insurance etc. it should be assessed at the same rate as the principal supply. Fixed Capacity charges for Power: The minimum fixed charges have to be paid by the SEBs/DISCOMS/individual customers irrespective of the quantity of electricity scheduled or purchased by them during a month. They take care of the fixed cost of generating/ supplying electricity. The variable charges are charged per unit of electricity purchased and increase or decrease every month depending on the quantity of electricity consumed. Both the components of the price, the minimum fixed charges/capacity charges and the variable/energy charges are charged for sale of electricity and are thus not taxable as electricity is exempt from GST. Cancellation charges: In case the customer does not show up for availing the service, the supplier may retain or forfeit part of the consideration or security deposit or earnest money paid by the customer for the intended supply. Facilitation supply of allowing cancellation of an intended supply against payment of cancellation fee or retention or forfeiture of a part or whole of the consideration or security deposit in such cases should be assessed as the principal supply. The amount forfeited in the case of non-refundable ticket for air travel or security deposit or earnest money forfeited in case of the customer failing to avail the travel, tour operator or hotel accommodation service or such other intended supplies should be assessed at the same rate as applicable to the service contract, say air transport or tour operator service, or other such services. Paperwriter comments Liquidated damages and compensation paid: The clarifications in respect of non taxability of liquidated damages, compensation paid is in line with the correct interpretation that GST cannot be levied in the absence of supply of goods/services being done. This view has found support in plethora of decisions under erstwhile indirect tax laws, such as Collector vs Spring Fresh Drinks [1997 (92) ELT A70 (SC)], K.N. Food Industries Pvt. Ltd Commissioner Of CGST & C. Ex [2020 (38) G.S.T.L. 60 (Tri. - All.], Neyveli Lignite Corporation Ltd. v. Commissioner of Customs, Central Excise & Service Tax, Chennai [Final Order No. 41702-41706 of 2021 in ST Appeal Nos. 41666, 41747 of 2016 & Ors., dated July 26, 2021]to name a few. Notice period recovery The circular seems to be in line with intent of law. It was held that notice period recovery cannot be taxed in plethora of decisions under erstwhile ST law as well in following: GE T & D India Limited v. Deputy Commissioner of Central Excise [2020 (35) G.S.T.L. 89 (Mad.)] held that service tax is not leviable on the payment received by the Petitioner in lieu of notice period paid by the outgoing employees. Employer not rendered any taxable service or tolerated any act of the employee but has merely facilitated sudden exit of employees by imposing cost upon them for such an act - Notice pay in lieu of sudden termination does not give rise to rendition of service either by employer or by employees. Similarly in the case of M/s. Gujarat State Fertilizers & Chemical Ltd (2016) and Allahabad CESTAT in case of M/s. HCL Learning Systems Vs CCE, Noida (TS-1125-CESTAT-2019-ST). Penalties for infraction of law The clarification on non levy of GST on penalties for infraction of law also was supported in ST education guide under erstwhile negative list based taxation. No GST on electricity The clarification on no tax on electricity is also validly in line with intention of the law, wherein electricity is exempted goods in notification 2/2017-CT(R). Other pointers The circular seems to have erred to observe that late payment surcharge and cancellation fee to be taxed. It has over looked that in the absence of any corresponding supply being done against such cancellation charges, levy itself would not get attracted. In International experience elsewhere, European Court of Justice (ECJ) in case C-277/05 Sociéte thermal d'Eugenie- Les-Bains it was held that "a sum is retained by the hotelier, as a fixed cancellation charge paid as compensation for the loss suffered as a result of client default and which has no direct connection with the supply of any service for consideration and, as such, is not subject to that tax". On the whole, based on this circular, and the assesses can claim the shelter of the beneficial portions thereunder to claim exclusion from tax net. It has been the experience of assessees that the dept at time of audit also commonly is seen to raise frivolous demands of tax along with interest and penalty on the compensation/liquidated damages, notice period recoveries made. In such instances assesses can take support this circular why there should be no levy of GST on same before GST dept officers. Also the dept officers are bound to follow their circulars. This view has been confirmed in the decision of the Apex Court in Dhiren Chemicals [2002 (143) ELT 19 (SC)]. Conclusion In this article the paper writer has examined the latest circular and its impact for various kinds of recoveries made under GST law.

The Central Government has announced Bailout Package for MSMESs Sector vide Press Release ID: 1846944 dated 01st August, 2022 and has operationalised AatmaNirbhar Bharat Package for MSMEs to cope up with the COVID-19 crisis. The Ministry has operationalised Emergency Credit Line Guarantee Scheme (ECLGS), Credit Guarantee Scheme for Subordinate Debt (CGSSD) and Self Reliant India (SRI) fund under AatmaNirbhar Bharat package. This information is provided by Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma, to the Rajya Sabha. 1. Emergency Credit Line Guarantee Scheme (ECLGS) The Finance Ministry of India launched the Emergency Credit Line Guarantee Scheme (ECLGS) in May 2020 (13.05.2020_to help the pandemic hit economy. EMERGENCY CREDIT LINE GUARANTEE SCHEME (ECLGS) launched by Government of India as a special scheme in view of COVID-19 crisis to provide 100% guarantee coverage to Banks and NBFCs to enable them to extend emergency credit facilities to Business Enterprises / MSMEs in view of COVID-19 to meet their additional term loan/additional working capital requirements. This scheme aimed to provide Rs.3 lakh crore of unsecured loans to MSMEs and business enterprises to mitigate the distress caused by the coronavirus-induced lockdown. The ECLGS is being extended up to March 2023 with an expanded guarantee cover of Rs. 5 lakh crore. The additional guarantee cover of Rs. 50,000 crore is earmarked exclusively for exclusively for hospitality and related enterprises. 2. Self - Reliant India (SRI) Fund The Government of India has announced Fund of Funds as a part of AatmaNirbhar Bharat Package in May, 2020 ,with the nomenclature Self Reliant India (SRI) Fund to infuse as equity funding in MSMEs which have the potential and viability to grow and become large units. This initiative is aimed at providing growth capital to the deserving and eligible units of MSME sector. SRI Fund, in the form of Category II Alternative Investment Fund (AIF), will be oriented towards providing funding support to the Daughter Funds for onward provision to MSMEs as growth capital, in the form of equity or quasi-equity. MSMEs, defined as per the MSMED Act, as amended from time to time, shallbe eligible for consideration. of India will be the sole anchor investor and provide an initial budgetary support of Rs. 10,000 crore to the Mother Fund in phased manner. No other outside investment will be entertained in the MotherFund. Credit Guarantee Scheme for Subordinate Debt (CGSSD): Shri Nitin Gadkari, MSME Minister, had launched the Credit Guarantee Scheme for Sub-ordinate Debt (CGSSD) which is also called “Distressed Assets Fund–Sub-ordinate Debt for MSMEs”. This scheme was announced in May 2020 as a part of AatmaNirbhar Bharat Package with a view to provide credit facility to the promoters of stressed MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the lending institutions. Under the scheme, the promoter would infuse the credit in the MSME as quasi equity or sub-debt. The guarantee covers worth Rs. 20,000 crores will be provided to the promoters who can take debt from the banks to further invest in their stressed MSMEs as equity. 90% guarantee coverage would come from scheme/ Trust and remaining 10% from concerned promoter(s) on the credit extended by MLIs under the scheme. The guarantee cover would be uncapped, unconditional and irrevocable creditguarantee. Benefit is available after completion of necessary formalities including approval of CCEA and consultation with Finance Ministry, SIDBI and RBI among others. According to the study made by Small Industries Development Bank of India (SIDBI) reveals that around 65% of the MSMEs surveyed, have availed the benefits of Emergency Credit Line Guarantee Scheme (ECLGS).According to the study made by National Institute of Bank Management (NIBM) reveals that under ECLGS, the loans were fairly easy to obtain, cost effective, helpful to fulfil short term financial needs, eased cash flow burden. Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Important clarifications/ amendments issued by the Government on GST in July/ August 2022 along with compliance timelines in August 2022 Compliance timelines Updates in the month of July/ August 2022 1. CBIC issues notifications to implement changes in rate of goods and services based on the recommendation of 47th GST Council Meeting CBIC has issued several notifications to implement the recommendations made by the GST Council w.r.t. changes in GST Rates of Goods & Services. These recommendations were made in the 47th GST Council meeting and now these changes have been notified which shall be effective from July 18th, 2022. 03/2022-Central Tax (Rate) dated July 13th, 2022 - Seeks to amend Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 w.r.t. rate of tax on services 04/2022-Central Tax (Rate) dated July 13th, 2022 - Seeks to amend Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 w.r.t. Exempt Services (NIL rated services) 05/2022-Central Tax (Rate) dated July 13th, 2022 - Seeks to amend Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017 w.r.t. Reverse Charge on certain specified Supplies of services 06/2022-Central Tax (Rate) dated July 13th, 2022 - Seeks to amend notification No. 1/2017- Central Tax (Rate) w.r.t. rate of tax on goods 07/2022-Central Tax (Rate) dated July 13th, 2022 - Seeks to amend notification No. 2/2017- Central Tax (Rate) w.r.t. exemption on supply of goods 08/2022-Central Tax (Rate) dated July 13th, 2022 - Seeks to amend notification No. 3/2017- Central Tax (Rate) w.r.t. conditional exemption on supply of goods 09/2022-Central Tax (Rate) dated July 13th, 2022 - Seeks to amend notification No. 5/2017- Central Tax (Rate) w.r.t. no refund of unutilised input tax credit because of inverted duty structure 10/2022-Central Tax (Rate) dated July 13th, 2022 - Seeks to amend notification No. 2/2022- Central Tax (Rate) w.r.t. conditional exemption on supply of bricks and tiles 11/2022-Central Tax (Rate) dated July 13th, 2022 - Rescinds notification No. 45/2017- Central Tax (Rate) w.r.t. applicability of concessional rate w.r.t. certain goods supplied to Public funded research institution, Departments and laboratories of the Central Government and State Governments and Regional Cancer Centre. 2. CBIC issues FAQs on GST applicability on 'pre- 2. CBIC issues FAQs on GST applicability on 'pre-packaged and labelled' goods Pursuant to the change in taxability of specified goods when bearing a registered brand or brand in respect of which an actionable claim or enforceable right in a court of law is available to imposition of GST on such goods when "pre-packaged and labelled", CBIC has issued certain clarifications on the scope of this change, particularly in respect of food items like pulses, flour, cereals, etc. (specified items falling under the Chapters 1 to 21 of the Tariff), as has been notified vide notification No. 6/2022-Central Tax (Rate), dated the 13th of July, 2022, and the corresponding notifications for SGST and IGST. The changes come into effect from today i.e. 18th of July, 2022. 3. Implementation of mandatory mentioning of HSN codes in GSTR-1 Vide Notification No. 78/2020 - Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. To facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal. The detailed advisory can be accessed at https://tutorial.gst.gov.in/downloads/news/hsn_advisory_table_12_2.pdf It has been decided that w.e.f. 01st August, 2022, Taxpayers with AATO of more than 5 cr. would need to report HSN in table 12 of GSTR-1 as per below mentioned scheme: • Taxpayers would be required to mandatorily report 6-digit HSN code. • Manual user entry would be allowed for entering HSN or description and in case of a wrong HSN reported, a warning or alert message will be shown. However, taxpayers will still be able to file GSTR-1. • Taxpayers would be expected to correct HSN where there is an error and a warning message is shown. 4. Introducing new Table 3.1.1 in GSTR-3B for reporting supplies u/s 9(5) by Electronic Commerce Operators According to section 9(5) of CGST Act, 2017, Electronic Commerce Operator (ECO) is required to pay tax on supply of certain services notified by the government such as Passenger Transport Service, Accommodation services, Housekeeping Services & Restaurant Services, if such services are supplied through ECO. For reporting of such supplies a new Table 3.1.1 is being added in GSTR-3B as per Notification No. 14/2022 - Central Tax dated 05th July, 2022 wherein both ECOs and registered persons can report their supplies made under section 9(5) respectively. The change in GSTR-3B will be made available on GST Portal from 1st August 2022. (i) An ECO is required to report supplies made u/s 9(5) in Table 3.1.1(i) of GSTR-3B and shall not include such supplies in Table 3.1(a) of GSTR-3B. The applicable tax on such supplies shall be paid by ECO in Table 3.1.1(i) of GSTR-3B in cash only and not by ITC. (ii) A registered person who is making supplies of such services as specified u/s 9(5) through an ECO, shall report such supplies in Table 3.1.1(ii) and shall not include such supplies in Table 3.1(a) of GSTR-3B. The registered person is not required to pay tax on such supplies as the ECO is liable to pay tax on such supplies. 5. CBIC appoints Principal Director General/ Director General of DGARM to withheld refund for verification of exporters The CBIC has issued an order to authorise Principal Director General/ Director General of Directorate General of Analytics and Risk Management to exercise the functions under clause (c) of sub-rule (4) of rule 96 of the CGST Rules, throughout the territory of India. Rule 96(4)(c) provides that the claim for refund shall be withheld if the Commissioner in the Board or an officer authorised by the Board, on the basis of data analysis and risk parameters, is of the opinion that verification of credentials of the exporter, including the availment of ITC by the exporter, is considered essential before grant of refund, in order to safeguard the interest of revenue. Order No. 01/2022-GST dated July 21st, 2022 6. Advisory on Upcoming Changes in GSTR-3B The Government vide Notification No. 14/2022 - Central Tax dated 05th July, 2022 has notified few changes in Table 4 of Form GSTR-3B requiring taxpayers to report information on ITC correctly availed, reversal thereof and declaring ineligible ITC in Table 4 of GSTR-3B. The notified changes in Table 4 of GSTR-3B are being implemented on the GST Portal and will be available shortly. Until these changes are implemented on the GST Portal, taxpayers are advised to continue to report their ITC availment, reversal of ITC and ineligible ITC as per the current practice. The taxpayers will be duly informed once these changes are made available on the GST Portal. 7. 18% GST on services provided by FSSAI; State levies are subject to GST under reverse charge: FSSAI Order W.e.f. 18th July 2022, Government has withdrawn the GST exemption on services provided by the Food Safety and Standards Authority of India ('FSSAI') to Food Business Operators by way of licensing, registration and analysis/ testing of food. Thus these services of FSSAI are now subject to GST. In connection with this change, FSSAI has issued an order explaining the GST applicability on different services. The GST applicable on State License and Registration fee and penalties are on reverse charge basis. Therefore no GST is being charged through FoSCoS portal on State License and Registration fees and the penalties belonging to States/ UTs. The same is also printed on the receipt generated through FoSCoS. (File No. RCD-0100/7/2021 Dated July 27th, 2022) 8. E-Invoicing to be mandatory for assessees having AATO of more than 10 crores w.e.f. October 1st, 2022 Assessees having an Aggregate Annual Turnover (AATO) of over Rs. 10 crores in any of the FYs starting 2017-18 onwards, will be required to follow E-Invoicing w.e.f. October 1st, 2022. AATO includes the turnover of all GSTINs under a single PAN across India. The e-Invoice System is for GST registered persons for uploading all B2B invoices to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user. One can visit https://einvoice1.gst.gov.in/ for more details. (Notification no. 17/2022 - Central Tax dated 1st August, 2022) 9. GSTN introduces single click NIL filing of GSTR-1 In order to further simplify the return filing experience a single click NIL filing of GSTR-1 has been introduced on GST Portal. Taxpayers can now file NIL GSTR-1 return by simply ticking the check box File NIL GSTR-1 available at GSTR-1 dashboard. Please note that Nil filing of GSTR-1 will not be allowed in case there is already saved records in GSTR-1. The taxpayers are advised to delete already saved records or reset GSTR-1 data by clicking RESET button available on GSTR-1 dashboard before filing NIL GSTR-1. 10. Clarifications regarding applicable GST rates & exemptions on certain services Certain issues on which representations had been received were examined by the GST Council in its 47th meeting held on 28th and 29th June, 2022. Pursuant to the said meeting and discussions held, issue-wise clarifications as recommended by the GST Council has been issued. (Circular Nos. 177/09/2022-TRU dt. 3rd August, 2022 and 178/10/2022-GST dt. 3rd August, 2022) 11. Clarification regarding GST rates & classification (goods) CBIC has issued a Circular clarifying the rates of the following goods: 1. Electric vehicles whether or not fitted with a battery pack, attract GST rate of 5%; 2. Stones otherwise covered in S. No. 123 of Schedule-I (such as Napa stones), which are not mirror polished, are eligible for concessional rate under said entry; 3. Mangoes under CTH 0804 including mango pulp, but other than fresh mangoes and sliced, dried mangoes, attract GST at 12% rate; 4. Treated sewage water attracts Nil rate of GST; 5. Nicotine Polacrilex Gum attracts a GST rate of 18%; 6. Fly ash bricks and aggregate - condition of 90% fly ash content applied only to fly ash aggregate, and not fly ash bricks; 7. Applicability of GST on by-products of milling of Dal/ Pulses such as Chilka, Khanda and Churi. (Circular No. 179/11/2022-GST dt. 3rd August, 2022) 12. Impact on unsold stock manufactured /packed / imported prior to revision of GST and changes related thereto Central government has permitted the manufacturers or packers or importers of pre-packaged commodities to declare the revised retail sale price (MRP) on the unsold stock manufactured /packed / imported prior to revision of GST, after inclusion of the applicable/ increased amount of tax or after reducing the reduced amount of tax due to GST, if any, in addition to the existing retail sale price (MRP) upto 31st January, 2023 or till such date the stock is exhausted, whichever is earlier. Declaration of the changed retail sale price (MRP) shall be made by way of stamping or putting sticker or online printing, as the case may be, after complying with the conditions as per the Circular. (Circular no. I-10/14/2020-W&M Section dt. 01.08.2022) 13. CBIC notifies exchange rates effective from August 5th, 2022 The Central Board of Indirect Taxes and Customs has notified the rate of exchange of conversion of the foreign currencies into Indian currency or vice versa, with effect from 5th August 2022, for import and export of goods. In this regard, notification has been issued in supersession of the Notification No.64/2022-Customs (N.T.) dated 21st July, 2022. Notification No.66/2022 -Customs (N.T.) dated 4th August, 2022 14. Allowing taxpayers to enter multiple trade names Earlier only a single Trade Name was being captured during New Registrations and subsequent amendment in core field for Normal Taxpayer on the Portal. Now taxpayers have been provided with an option to provide up to 9 additional trade names for a single GSTIN registration through core field amendment. The Taxpayer can upload supporting document for trade name of size 5 MB. Both these new fields will be kept optional. 15. Option in Form RFD-01 to get refund arising out of excess payment in GSTR 4, for Taxpayer under Composition levy Earlier the taxpayers who had opted for Composition levy were not able to file for refund in Form GST RFD-01 under refund category "Excess payment of Tax, if any" but had to choose the refund category "Any other". Now while filing annual return (GSTR-4), if the composition taxpayers have deposited excess tax, they will now be able to file for refund under category "Excess payment of Tax, if any". 16. Functionality to search and view Advance Ruling Orders Earlier, there was no functionality available to search for the Advance Ruling Orders issued by the Authority / Appellate Authority for Advance Ruling. A functionality has now been implemented on the Portal, under the menu Advance Ruling, in both Pre-login and Post-login, wherein the users would be able to search for Advance Ruling orders issued by all Advance Ruling forums. 17. Activation of GSTR 9 and GSTR 9C for the FY 2021-22 GSTR 9 and GSTR 9C has been enabled on the GST portal. Taxpayers can now file their Annual Return in GSTR 9 and Reconciliation Statement in GSTR 9C, the last date for which is 31-12-2022. Please note that Annual return in Form GSTR-9 once filed cannot be revised. The computation of ITC has been made based on GSTR-1/IFF/GSTR-5 filed by the corresponding suppliers upto 15/07/2022. GSTR-1/IFF/GSTR-5 filed after the updation date will be covered in the next updation on the portal. GSTR-9 can be filed online. It can also be prepared on Offline tool and then uploaded on the Portal and filed. All applicable statements of Forms GSTR-1/IFF and returns in Form GSTR-3B of the financial year should have been filed before filing GSTR-9. In case, one is required to file GSTR-9C (Reconciliation statement and Certification), the same shall be enabled on the dashboard post filing of GSTR-9.

As per Limited Liability Partnership Rules, 2009- Rule 37 (1), ROC has power to strike off any defunct LLP or any LLP may voluntarily apply to Registrar of Companies for striking off its name from the register. I. MANDATORY STRIKE OFF BY REGISTRAR Where an LLP is not carrying on any business or operation for a period of two years or more and the Registrar has reasonable cause to believe the same, the Registrar shall send a notice to the LLP and all its partners, of his intention to strike off the name and requesting them to send their representations, if any, within a period of one month from the date of the notice. II. VOLUNTARY STRIKE OFF Where an LLP is not carrying on any business or operation for a period of one year or more, it can make an application for Strike Off in Form 24 to the Registrar. Explanation. - The date of cessation of commercial operation is the date from which the Limited Liability Partnership ceased to carry on its revenue generating business and the transactions such as receipt of money from debtors or payment of money to creditors, subsequent to such cessation will not form part of revenue generating business. Note: Even if an LLP is struck off, the liability of all Designated Partners continues and may be enforced as if the LLP had never been dissolved. POST-SUBMISSION OF LLP FORM 24 A notice issued by Registrar or contents of an application made by the LLP shall also be placed on the website of the MCA for a period of one month. At the expiry of time mentioned in the notice or one month, the Registrar may by an order strike off its name, and shall publish notice in the Official Gazette, and on the publication of this notice, the LLP shall stand dissolved. The Registrar shall, before passing an order has sufficient cause to believe that the LLP has any asset or liability, satisfy himself that sufficient provision has been made for the realisation of all amount due to the LLP and for the discharge of its liabilities and obligations and, if necessary, obtain necessary undertakings from the designated partner or partner or other persons in charge of the management of the LLP. The assets of the LLP shall be made available for the discharge of all its liabilities and obligations even after the date of the order removing the name of the LLP from the register. The liability of every designated partner of the LLP dissolved shall continue and may be enforced as if the LLP had not been dissolved. Explanation. -In computing the period of 30 days from the date of order, the requisite time for obtaining a certified copy of order shall be excluded. The author is a Practicing Company Secretary and founder of the firm Sahil Jain & Associates.

Question ABC Limited is a company engaged in the business of cement exports and it is also specialized in the area of Enterprise Resource Planning (ERP) implementation offering their services to domestic and overseas customers. Enforcement Directorate under Foreign Exchange Management Act (FEMA) carried out the investigation against the ABC Limited. i) The investigation also centered around the details of the Promoters and their shareholdings; ii) how many subsidiaries companies were formed by the appellants in India and abroad for doing business; iii) details of the share transactions between the promoters of the Company and Non-Resident Indian(NRI) and; . iv) the details of loans raised by the ABC Limited for their business purpose etc. The investigation carried out by Enforcement Directorate has clearly made out a case against ABC Limited of violation of Section 8 and Section 42 of Foreign Exchange Management Act as well as Foreign Exchange Management (Realization, Repatriation and Surrender of Foreign Exchange) Regulations, 2015. A complaint has been made by the Enforcement Directorate before Special Director. Special Director allowed the complaint and held that ABC Limited has contravened the provisions of FEMA as prayed in the complaint and accordingly imposed a penalty of Rs.5 crores on the Company. ABC Limited felt aggrieved by the aforementioned order of Special Director and contemplates to file an appeal. As a Company Secretary of ABC Limited advise the company regarding: (a) Adjudication and Appeal under Foreign Exchange Management Act, 1999. (b) Duty of persons to realise foreign exchange due and Manner of Repatriation as well as Period for surrender of realised foreign exchange under Foreign Exchange Management (Realization, Repatriation and Surrender of Foreign Exchange) Regulations, 2015. (c) Consequence of contravention of provisions of Foreign Exchange Management Act, 1999 and Rules and Regulation made thereunder by a company. LET'S FIRST DISCUSS APPLICABLE PROVISIONS OF FEMA,1999 Realisation and repatriation of foreign exchange.- Save as otherwise provided in this Act, where any amount of foreign exchange is due or has accrued to any person resident in India, such person shall take all reasonable steps to realise and repatriate to India such foreign exchange within such period and in such manner as may be specified by the Reserve Bank. - Save as otherwise provided in this Act, where any amount of foreign exchange is due or has accrued to any person resident in India, such person shall take all reasonable steps to realise and repatriate to India such foreign exchange within such period and in such manner as may be specified by the Reserve Bank." SECTION 13 OF FEMA,1999 DEALS WITH PENALTIES (1) If any person contravenes any provision of this Act, or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorisation is issued by the Reserve Bank, he shall, upon adjudication, be liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh rupees where the amount is not quantifiable, and where such contravention is a continuing one, further penalty which may extend to five thousand rupees for every day after the first day during which the contravention continues. (2) Any Adjudicating Authority adjudging any contravention under sub-section (1), may, if he thinks fit in addition to any penalty which he may impose for such contravention direct that any currency, security or any other money or property in respect of which the contravention has taken place shall be confiscated to the Central Government and further direct that the foreign exchange holdings, if any, of the persons committing the contraventions or any part thereof, shall be brought back into India or shall be retained outside India in accordance with the directions made in this behalf. Explanation.- For the purposes of this sub-section, "property" in respect of which contravention has taken place, shall include- (a) deposits in a bank, where the said property is converted into such deposits; (b) Indian currency, where the said property is converted into that currency; and (c) any other property which has resulted out of the conversion of that property. SECTION 42- Contravention by companies (1) Where a person committing a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. (2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. Explanation.- For the purposes of this section- (i) "company" means any body corporate and includes a firm or other association of individuals; and (ii) "director", in relation to a firm, means a partner in the firm. ANSWER (a) Chapter V (Section 16 to 35) of the Foreign Exchange Management Act, 1999(FEMA) deals with the provisions of Adjudication and Appeal as under: Adjudicating Authority For the purpose of adjudication under Section 13 of FEMA (dealing with Penalties), the Central Government may, by an order published in the Official Gazette, appoint as many officers of the Central Government as it may think fit, as the Adjudicating Authorities for holding an inquiry in the manner prescribed after giving the person alleged to have committed contravention under Section 13, against whom a complaint has beenmade. Adjudicating Authority shall not hold an enquiry except upon a complaint in writing made by any officer authorised by a general or special order by the Central Government. Appeal to Special Director (Appeals) Central Government shall, by notification, appoint one or more Special Directors (Appeals) to hear appeals against the orders of the Adjudicating Authorities. Every appeal shall be filed within forty-five days from the date on which the copy of the order made by the Adjudicating Authority is received by the aggrieved person and it shall be in such form, verified in such manner and be accompanied by prescribed fee. Appeal to Appellate Tribunal Central Government or any person aggrieved by an order made by an Adjudicating Authority, or the Special Director (Appeals), may prefer an appeal to the Appellate Tribunal. Every appeal shall be filed within a period of forty-five days from the date on which a copy of the order made by the Adjudicating Authority or the Special Director (Appeals) is received by the aggrieved person or by the Central Government and it shall be in such form, verified in such manner and be accompanied by such prescribed. Appeal to High Court Any person aggrieved by any decision or order of the Appellate Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal to him on any question of law arising out of such order. (b) Duty of persons to realise foreign exchange due: A person resident in India to whom any amount of foreign exchange is due or has accrued shall, save as otherwise provided under the provisions of the Foreign Exchange Management Act, 1999, or the Rules and Regulations made thereunder, or with the general or special permission of the Reserve Bank of India, take all reasonable steps to realise and repatriate to India such foreign exchange, and shall in no case do or refrain from doing anything, or take or refrain from taking any action, which has the effect of securing – a). that the receipt by him of the whole or part of that foreign exchange is delayed; or b). that the foreign exchange ceases in whole or in part to be receivable by him. Manner of Repatriation (1) On realisation of foreign exchange due, a person shall repatriate the same to India, namely bring into, or receive in, India and – a) sell it to an authorised person in India in exchange for rupees; or b) retain or hold it in account with an authorised dealer in India to the extent specified by the Reserve Bank; or c) use it for discharge of a debt or liability denominated in foreign exchange to the extent and in the manner specified by the Reserve Bank. (2) A person shall be deemed to have repatriated the realised foreign exchange to India when he receives in India payment in rupees from the account of a bank or an exchange house situated in any country outside India, maintained with an authorised dealer. Period for surrender of realised foreign exchange: A person not being an individual resident in India shall sell the realised foreign exchange to an authorised person, within the period specified below :- i) foreign exchange due or accrued as remuneration for services rendered, whether in or outside India, or in settlement of any lawful obligation, or an income on assets held outside India, or as inheritance, settlement or gift, within seven days from the date of its receipt; ii) in all other cases within a period of ninety days from the date of its receipt. (c) According to Section 42 of the Foreign Exchange Management Act, 1999, where a person committing a contravention of any of the provisions of the Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. It may be noted that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised due diligence to prevent such contravention. Where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. DISCLAIMER: The case law presented here is only for sharing knowledge and information with readers. The views are personal. In case of necessity do consult with professionals for better understanding and clarity on subject matter.

Question Mrs. A transferred her shares (procured before 31 January 2018) without any consideration to Mr. A , demat account in 2019-20. Mr. A has sold some of these shares in 2020-21. Please discuss the matter on below mentioned points; How do Mr. A calculate the long-term capital gain or loss? Should it be according to the market value of shares as on 31 January 2018, on the date these were transferred to Mr. A or on the date of procurement by his wife? Will the gain or loss be booked to Mr. A or his wife? Answer Please Note That As per Section 2(14) of the Income Tax Act, shares and securities are Capital Assets. The transfer of a Capital Asset is taxable as Capital Gains. However, the definition of ‘transfer’ as per Section 47 specifically excludes gifts. Thus, the gift of shares and securities is not taxable in the hands of the sender of the gift. Taxes on the gifting of shares are exempt in the following situations: Individual receiving gift from a relative (including siblings, spouse and lineal ascendants or descendants); Individual receiving gift on the occasion of marriage; Gift received by way of inheritance. In case the donee is a relative as per income tax act which includes spouse, siblings of self/spouse, children, linear ascendants and descendants of self/spouse, etc., the gift received is not taxable, irrespective of the value of the shares transferred. In case the shares are gifted to someone other than relatives as mentioned in the Income Tax Act, the same is tax-exempt if the value is less than Rs 50,000. For the valuation of the shares, FMV is to be considered. However in case, the FMV of the shares gifted is more than Rs 50, 000, the transfer gets taxed in the hands of the receiver under the head income from other sources.[ Section 56(2) of IT Act,1961] INCOME EARNED ON GIFTED SHARES In case of income arising from shares gifted to a spouse or minor child, provisions of clubbing of income shall apply. If the receiver of the gifted asset is a spouse or minor child, any income that arises directly or indirectly from such asset is clubbed with the income of the donor as per Section 64(1)(iv) & Section 64(1A) of the Income Tax Act. However, in the case of an adult child, the same stands taxable in the hands of the donee and not the doner. LET'S FOCUS ON QUESTION The transfer of shares by Mrs. A to Mr. A , for no consideration, will not attract any capital gains in her hands. However, any income, including capital gains, accruing to Mr. A from such shares, shall be clubbed in the hands of his wife, i.e. Mrs. A . The shares gifted (assuming listed equity shares) were held for more than 12 months (combined period of holding considered for Mr. A and his wife) and therefore, would be classified as a long-term capital asset. Upon transfer of these shares, the long-term capital (LTCG) - Sales Price less Cost of acquisition— exceeding Rs 1 lakh would attract tax at 10%, in the hands of your Mrs. A . SECTION 112A PROVIDES for long term capital gains on the sale of listed equity shares, equity-oriented mutual funds, and the units of a business trust. The said section was introduced in Budget 2018 after the removal of exemption under section 10(38). It is applicable from the financial year 2018-19. It provides for taxation of long-term capital gains on listed securities at 10% for gains exceeding the threshold limit of Rs. 1 lakh. SCOPE OF SECTION 112A The following conditions apply for availing the benefit of the concessional rate under section 112A of Income Tax Act. 1. In the case of an equity share of a company, the securities transaction tax(STT) has been paid on the acquisition and transfer of such assets. 2. In the case of the units of an equity-oriented fund or the units of a business trust, the STT has been paid at the time of sale of the asset. 3. The securities should be long-term capital assets. 4. Deduction under chapter VI A cannot be availed in respect of such long-term capital gain. 5. Rebate under section 87A cannot be claimed in respect of tax payable on long-term capital gain under section 112A In the case of long-term capital loss arising out of such sale, the entire amount shall be allowed to be carried forward in subsequent years. However, Mrs. A needs to file the return of income on or before the due date. CALCULATION OF COST OF ACQUISITION OF SHARES 1. The shares were purchased by Mrs. A before 31 January 2018; thus, the cost of acquisition (CoA) upon transfer by you, shall be determined as follows: If the net sale proceeds (after transfer expenses like brokerage, commission, etc.) from the sale of shares (hereinafter referred as NSP) is more than the fair market value (FMV) of such shares on 31 January 2018, then Cost of Acquisition is higher of: a) The actual cost to Mrs. A; b) FMV as on 31 January 2018. 2. If the NSP(Net Sale Proceeds) is more than the FMV(Fair Market value) of shares as on 31 January 2018, then the Cost of Acquisition will be higher of: a) The actual cost to Mrs. A; b) The Net Sale Proceeds (NPS) Thus, the LTCG, arising in Mr. A hands, to be clubbed to Mrs. An income will be Net Sale Proceeds minus the Cost of Acquisition (as determined above). Further, if the sale proceeds from this transfer are invested elsewhere, then any income arising from such investment in Mr. A hands, shall also be clubbed in the hands of his wife and included in her total income. LET’S CONSIDER AN EXAMPLES Mrs. A purchased 5000 shares at INR 100 of ABC Ltd on 1st April, 2021. She has gifted 2000 shares to Mr. A (husband), on 1st September 2021. FMV on 01/09/2021 was INR300 per share. Mr. A sold out these shares on 2nd March 2022 at INR 500. Calculate the tax liability. 1. Tax treatment for Mrs. A (donor) - No tax liability since the gift of shares is not treated as a transfer of capital asset between relatives. 2. Tax treatment for Mr. A (donee or received of the gift); On receiving a gift - no tax liability since gift from a relative is an exempt income as per Section 56(2)(vii) of Income Tax Act. On the sale of shares. Here is the tax calculation: o Sale Date - 02/03/2022 o Sale Value - INR 10,00,000 (500 * 2000) o Purchase Date - 01/04/2021 (as per previous owner) o Purchase Value - INR 1,00,000 (100 * 1000) (as per previous owner) o LTCG =10,00,000 - 1,00,000 = INR 9,00,000 o Tax on LTCG u/s 112A = 10% * (9,00,000-1,00,000) = INR 80,000 TAX TREATMENT The donor ( Mrs. A ) of the gift need not report the gift in the Income Tax Return. The receiver of the gift( Mr. A ) should report the gift under Schedule Exempt Income if the income is exempt or Schedule OS (IFOS) if the income is taxable. If the gift is taxable, calculate tax liability at slab rates. Disclaimer: the case law presented here is only for sharing information with the readers. The views are personal . In case of necessity do consult with tax professionals.

The Goods and Services Tax Network ("GSTN") vide Advisory dated July 20, 2022 state that E-Commerce Operator ("ECO") are liable to pay GST on specified supply of services under Section 9(5) of the Central Goods and Services Tax Act, 2017 ("the CGST Act") viz. Passenger Transportation Services, Accommodation Services, House Keeping Services and more specifically, Restaurant Services and all provisions of the CGST Act shall apply to such ECO as if he is the supplier liable for paying the tax in relation to the supply of such specified services. Earlier, restaurant was liable to pay GST on their restaurant services but, w.e.f January 01, 2022, GST on restaurant services supplied through the ECO viz. Zomato and Swiggy, etc., is to be paid by the ECO in cash at the rate of 5% and no Input Tax Credit ("ITC") can be availed on such supplies irrespective of fact whether the restaurant is registered or not. Accordingly, a new table Table 3.1.1 has been inserted as per [Notification No. 14/2022 – Central Tax dated July 05, 2022] in Form GSTR-3B and the same will be available on the GST portal from August 01, 2022 wherein both the ECO and registered restaurant can report supplies made under Section 9(5) of the CGST Act as mentioned below: "3.1.1. Details of supplies notified under sub-section (5) of section 9 of the Central Goods and Services Tax Act, 2017 and corresponding provisions in Integrated Goods and Services Tax/Union Territory Goods and Services Tax/State Goods and Services Tax Acts." Nature of Total Integrated Central State/UT Cess Supplies Taxable Tax Tax Tax Value (1) (2) (3) (4) (5) (6) i) Taxable supplies on which electronic commerce operator pays tax under Sub- section (5) of Section 9 [To be furnished by the electronic commerce operator] (ii) Taxable supplies made by the registered person through electronic commerce operator, on which electronic commerce operator is required to (5) pay tax under Sub- section of Section 9 [To be furnished by the registered person making supplies through electronic commerce operator.] The ECO is required to report supplies made u/s 9(5) in Table 3.1.1(i) of GSTR-3B and shall not include such supplies in Table 3.1(a) of GSTR-3B. The applicable tax on such supplies shall be paid by ECO in Table 3.1.1(i) of GSTR-3B in cash only and not by ITC. A registered person who is making supplies of such services as specified u/s 9(5) through an ECO, shall report such supplies in Table 3.1.1(ii) and shall not include such supplies in Table 3.1(a) of GSTR-3B. The registered person is not required to pay tax on such supplies as the ECO is liable to pay tax on such supplies. Earlier, the CBIC has issued various clarifications regarding restaurant services provided through the ECO vide [Circular No. 167/23/2020- GST dated December 17,2021] Would ECOs have to still collect TCS in compliance with section 52 of the CGST Act, 2017? As 'restaurant service' has been notified under section 9(5) of the CGST Act, 2017, the ECO shall be liable to pay GST on restaurant services provided, with effect from January 01, 2022, through ECO. Accordingly, the ECOs will no longer be required to collect TCS and file GSTR 8 in respect of restaurant services on which it pays tax in terms of section 9(5). On other goods or services supplied through ECO, which are not notified u/s 9(5), ECOs will continue to pay TCS in terms of section 52 of CGST Act, 2017 in the same manner at present. Would ECOs have to mandatorily take a separate registration w.r.t supply of restaurant service notified under 9(5) through them even though they are registered to pay GST on services on their own account? As ECOs are already registered in accordance with rule 8(in Form GST-REG 01) of the CGST Rules, 2017 (as a supplier of their own goods or services), there would be no mandatory requirement of taking separate registration by ECOs for payment of tax on restaurant service under section 9(5) of the CGST Act, 2017. Would the ECOs be liable to pay tax on supply of restaurant service made by unregistered business entities? Yes. ECOs will be liable to pay GST on any restaurant service supplied through them including by an unregistered person. What would be the aggregate turnover of person supplying 'restaurant service' through ECOs? It is clarified that the aggregate turnover of person supplying restaurant service through ECOs shall be computed as defined in section 2(6) of the CGST Act, 2017 and shall include the aggregate value of supplies made by the restaurant through ECOs. Accordingly, for threshold consideration or any other purpose in the Act, the person providing restaurant service through ECO shall account suchservices in his aggregate turnover. Can the supplies of restaurant service made through ECOs be recorded as inward supply of ECOs (liable to reverse charge) in GSTR 3B? No. ECOs are not the recipient of restaurant service supplied through them. Since these are not input services to ECO, these are not to be reported as inward supply (liable to reverse charge). Would ECOs be liable to reverse proportional ITC on his input goods and services for the reason that ITC is not admissible on 'restaurant service'? ECOs provide their own services as an electronic platform and an intermediary for which it would acquire inputs/input service on which ECOs avail ITC. The ECO charges commission/fee etc. for the services it provides. The ITC is utilised by ECO for payment of GST on services provided by ECO on its own account (say, to a restaurant). The situation in this regard remains unchanged even after ECO is made liable to pay tax on restaurant service. ECO would be eligible to ITC as before. Accordingly, it is clarified that ECO shall not be required to reverse ITC on account of restaurant services on which it pays GST in terms of section 9(5) of the Act. It may also be noted that on restaurant service, ECO shall pay the entire GST liability in cash (No ITC could be utilised for payment of GST on restaurant service supplied through ECO). Can ECO utilize its ITC to pay tax w.r.t 'restaurant service' supplied through the ECO? No. As stated above, the liability of payment of tax by ECO as per section 9(5) shall be discharged in cash. Would supply of goods or services other than'restaurant service' through ECOs be taxed at 5% without ITC? ECO is required to pay GST on services notified under section 9(5), besides theservices/other supplies made on his own account. On any supply that is not notified under section 9(5), that is supplied by a person through ECO, the liability to pay GST continues on such supplier and ECO shall continue to pay TCS on such supplies. Thus, present dispensation continues for ECO, on supplies other than restaurant services. On such supplies (other than restaurant services made through ECO) GST will continue to be billed, collected and deposited in the same manner as is being done at present. ECO will deposit TCS on such supplies. Would 'restaurant service' and goods or services other than restaurant service sold by a restaurant to a customer under the same order be billed differently? Who shall be liable for raising invoices in such cases? Considering that liability to pay GST on supplies other than 'restaurant service' through the ECO, and other compliances under the Act, including issuance of invoice to customer, continues to lie with the respective suppliers (and ECOs being liable only to collect tax at source (TCS) on such supplies), it is advisable that ECO raises separate bill on restaurant service in such cases where ECO provides other supplies to a customer under the same order. Who will issue invoice in respect of restaurant service supplied through ECO - whether by the restaurant or by the ECO? The invoice in respect of restaurant service supplied through ECO under section 9(5) will be issued by ECO.