The government want to replace 29 existing Labours in 4 Simplify Code
- Code on wages,2019
- Occupational Safety, Health, and Working Conditions Code,2020
- Industrial Relations Code, 2020
- Code of Social Security,2020
Monday, 15 February 2021
Labour Law Reforms Highlight
Saturday, 13 February 2021
Pre-Litigation Mediation
Pre-Litigation Mediation is a tool that gives us a remedial solution for any litigation problem before filing a civil suit it will be provided a cost-saving solution for AAM people who don't want to wait a long time for a result.
In India, there are many pending cases that have been increased every year in that salutation every one wants to go simple step to resolved instead of long pending litigations queue in an Indian court.
In Pre-Litigation there is following benefits are available to us.
- Cost Saving & Time-saving
- without waiting long queue in court.
Objectives of the Direct Tax code
Direct Tax Code is a major reform in the tax system where the government aims at simplifying the tax laws and regulations into a single legislation.
History of Implementation of Direct tax Code
The government published a discussion paper on the Direct Tax Code in 2009 and issued the Direct Tax Code (DTC) bill in parliament in 2010.
Like all technical bills, this bill too was referred to the standing committee on finance headed by Mr. Yashwant Sinha. The government wanted to implement DTC from 1 Apr 2012 but due to delay in the report being submitted by the standing committee, it was not possible. It is not a very controversial bill as state governments are not involved in it.
Objectives of the Direct Tax code
The objectives of the Direct Tax Code are mentioned below:
To simplify and consolidate all direct tax laws of the central government
To make the tax system more effective and efficient.
To bring the consolidated law relating to direct taxes, that is, income tax, dividend
distribution tax, fringe benefits tax, and wealth-tax
To bring horizontal equity among different classes of taxpayers in line with best international practices.
To improve compliance further, tax laws need to be simple, stable, and robust.
To phase out the multiplicity of tax exemptions and deductions in order to widen and deepen the tax base.
What is the simplification and consolidation of Direct tax Laws?
Simplification of direct tax laws can be stated as follows:
Tax laws would be re-written in simple language
Exemptions and reductions would be reduced
Cross-references will be reduced
Explicit Language will be used.
Consolidation of tax laws can be stated as follows:
All tax laws dealing with direct taxes would be merged.
E.g. Income Tax Act, 1961; Wealth Tax Act, 1957; Gift Tax Act, 1958.
Direct Tax Code (DTC) Proposals
Increase in Income tax slabs. (Government adopted the proposed tax slabs in the financial year 2012 – 2013)
Corporate Income Tax or Corporate Tax – For both domestic and foreign firms, the tax rate should be 30% and no surcharge will be applicable. Currently, there is a 5% surcharge that is applicable for domestic firms and for foreign firms, tax is 40% along with 2% surcharge is also applicable.
The minimum Alternate Tax rate should be 20%. Currently, the tax rate of MAT is 18.5%.
Savings Scheme should be under EET. Presently these schemes are under EEE.
Few schemes like PF, Gratuity, pension funds, etc would still come under EEE.
GAAR – General Anti Avoidance Rule
GAAR is a provision in the direct tax system that aims at providing discretionary power to tax officials to deny and tax benefit to any firm. However, Tax officials can violate certain provisions of the Income Tax Act and Double Taxation Avoidance Act
The main advantage of this rule is that there will be a major reduction in tax avoidance in order to check the misuse of DTAA. This General Anti Avoidance Rule will impose restrictions on round-tripping.
However, there are certain disadvantages of GAAR which are stated below:
It provides discretionary powers to tax officials
Corruption may increase
Uncertainty will increase
Creditworthiness will decrease
To know more about the Tax policy Council and Tax Policy Research Unit, visit the linked articles
Guidelines issued by the government in the implementation of GAAR
The major guidelines issued in the implementation of GAAR are:
An approving panel should be established having 3 high ranking Income Tax officials
GAAR will be invoked only for large transactions.
Parthasarathi Shome committee recommendations:
GAAR should be postponed for 3 years i.e. 1st April 2016.
Whether GAAR has to be invoked or not should be decided by the approving committee.
The threshold limit to be set as 3 crores.
Capital gains tax should be abolished and advanced ruling should be allowed.
Tax residency certificates by governments of other countries should be accepted
The prime objective of GAAR should be to check misuse of tax and it should be invoked only in contravention cases.
If Specific anti-avoidance rules are present then GAAR should not be invoked.
The Shome panel also recommended that retrospective amendment should be made only in rarest of rare cases.
Sunday, 7 February 2021
FORMAT -RECEIPT /AGREEMENT
RECEIPT /AGREEMENT
I__________________________- S/D/W of __________________________ R/o___________________ receive with the thanks a sum of Rs-________________(Rupees_________________________________ only) as a advance money from Shri________________S/D/W of ___________________________ R/o_____________________________ against the sales of Plot/Flat/House No._____________Block No._______________, Sector____________ measuring Area__________SqM/SqFt Allotted by ____________________________ against the total Amount settled in Rs- ________________(Rupees____________________________ only.) The Balance Amount of Rs._____________________(Rupees_______________________ only) will be paid within __________days.(Dt.__________________to Dt._______________).
The Transfer & Registration expenses along with any GST charges will be born by the intending purchaser i.e.( Registrar Fee, GPA, Affidavits, Undertaking & Others, etc)
The Interest of premium/penalties /Dues-Water, electricity, etc if any levied by GNIDA( Farmer compensation /Constructions/Lease Deed) along with any GST charges shall be paid by seller till the date of maturing the deal.1% TDS will be deducted from Seller & deposited under Form 26BQ by Buyer if the Total Cheque Transaction above 50 Lacs. ( As per Income Tax)
If the purchaser does not purchase the above-said property the above money will be forfeited & his offer will be treated as canceled. If the seller fails/refuses to sell the above-said property the seller will be return double of advance and the seller will pay 4% commission to the Broker.
% commission will be charged from Buyer/Seller separately on the Total Deal.
The Seller understands and agrees to the fact that the purchaser is buying the said Plot for Self-use or further resale and the seller has no objection to transfer the papers in the name of any third party. The seller will come to the Greater Noida Industrial Development Authority, Greater Noida office on the above date at his own expense for executing the final documents.
The property is free of any mortgages, encumbrances etc.OR Get NOC clearance & Original papers from the Mortgaged Bank where this property is mortgaged. The Seller has not taken any advance against the said property from any other party.
(PURCHASER) (WITNESS) (SELLER)
Sunday, 31 January 2021
High Security plate mandatory by Apr-15 in UP
HSRP- High-Security Registration Plate is aluminum made plate which fixed on a vehicle using two non-reusable locks
A chromium-based hologram of Ashok Chakra of 20 mm X 20 mm size is applied by not stamping on the top left-hand corner of the plate in both front and rear plates to protect against counterfeiting
The ministry of road transport and highway (MoRTH) has mandated to all vehicles to have an HSRP that have been sold after April-2019.
Violators Should be fined Rs- 10K under the amended motor vehicle Act
The color-coded stickers would be meant to identify vehicles have on their fuel type
UP Govt. on Issued a Staggered time slot for HSRP Installation as under;
Vehicles having the following last digit registration number will be HSRP by the following time
Saturday, 30 January 2021
Budget Over View in India
Union Budget of India is also referred to as The Annual financial statement in the Article 112 of the constitution of India.
“The Article 112 of the constitution of India deal with the procedure of finance matter government present it on the first day of Feb so that it could be materialized before the beginning of the new financial year”
In the phase of presented mode it known as Financial bill & Appropriation
Flash back to History of India Union Budget
Moraji Desai- Nos 10 times
P.Chidambaram- Nos 9 times
Pranab Mukherjee Nos 8 times
Yashwant Shina Nos 7 times
Manmohan Singh Nos 6 time
First Union budget was presented by R.K Shanmukhan Chettey 26-11-1947 the major highlight was as under below;
Hirubhai M Patel , presented the shorted budget speech for the interim budget of 1977, which was mere 800 words long
2016 railway budget presented for 92 years merged with the union budget
Officers and support staff involved remain isolated and stay in the North block until the budget is presented
Union 2019 Bhai- khata Nirmala Sittharaman( Red cloth) instead of briefcases (R.K.Shanmukhan Chettey)
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