Important Sections/Notifications/Definitions of GST Law (CA … · 2019-12-15 · Time of Supply 12 Time of supply of goods 13 Time of supply of services Value of Supply 15 Value

Important Sections/Notifications/Definitions of GST Law (CA Inter/IPCC – Nov 2018) Compiled by: CA Kishan Kumar

Practice precedes Perfection 1

Chapter Section Number Brief Description

CGST Act, 2017

Supply under GST

7 Scope of supply – Meaning, Schedule I, II and III

2(30) Composite Supply

8(a) Tax liability on composite supplies

2(74) Mixed Supply

8(b) Tax liability on mixed supplies

Charge under GST

9 Levy and Collection of CGST on intra state supply (Charging Section)

9(2) DAMN and Petroleum Crude

9(3) Reverse Charge read with Notification No. 13/2017 CT (R)

9(5) Notified services on which tax shall be paid by the electronic commerce operator if such

services are supplied through it [Notification No. 17/2017]

10 Composition levy

Exemptions from GST 11 Power to grant exemption from tax. The exemptions have been notified by way of Notification

No. 12/2017 CT (R) and Notification No. 9/2017 IT (R).

Time of Supply 12 Time of supply of goods

13 Time of supply of services

Value of Supply 15 Value of taxable supply

Input Tax Credit

16 Eligibility and condition for taking input tax credit

17 Apportionment of credit in case of mix use and blocked credits

17(5) Blocked Credit

18 Availability and Reversal of credit under special circumstances.

Registration

22 Persons liable for registration

23 Persons not liable for registration

24 Compulsory registration

2(20) Casual Taxable Person




2(77) Non-Resident Taxable Person

27 Validity & Advance Deposit of GST by Causal Taxable Person / Non-Resident Taxable Person

Tax Invoice, Credit and

Debit Notes

31 Time of issue of Tax Invoice

34 Credit and debit notes

Payment of Tax 49 Payment of tax, interest, penalty and other amounts

50 Interest on delayed payment of tax

Returns

37 Furnishing details of outward supplies (GSTR-1)

38 Furnishing details of inward supplies (GSTR- 2)

39 Furnishing of returns (GSTR-3, GSTR 4 and GSTR 5)

48 Goods and services tax practitioners

Definition

2(6) Aggregate Turnover

2(31) Consideration

2(93) Recipient

IGST Act, 2017

Charge under GST 5 Levy and Collection of IGST on Inter-state supply [charging section]

Input Tax Credit 16 Availment of ITC in case of zero-rated supply

Important Notifications

Chapter Notification Brief Description

Charge under GST 13/2017 CT (R) Services notified u/s 9(3) on which GST is payable under Reverse Charge mechanism

17/2017 CT (R) Services notified under section 9(5) [ECO]

Exemption under GST 12/2017 CT (R)* Services exempted wholly from CGST i.e. on Intra-State supply

9/2017 IT (R)* Services exempted wholly from IGST i.e. on Inter-State supply

*Both notifications say almost same things.



Important Schedules

Chapter Schedules Brief Description

Supply under GST

Schedule I Supply without Consideration - Deemed Supply

Schedule II Activities to be treated as Supply of Goods or Supply of Services

Schedule III Negative List - transactions/ activities which shall be neither treated as supply of goods nor a

supply of services

Important Definitions to be covered from Chapter 12 [In addition to those covered in Class in Ch 1 to Ch 11]

i) Consideration [Sec 2(31)]

ii) Place of business [Sec 2(85)]

iii) Principal place of business [Sec 2(90)]

iv) Recipient [Sec 2(93)]

v) Supplier [Sec 2(105)]

Notes:

The above is just an illustrative list of important Sections/ Notifications and Definitions at the Inter/IPCC level.

At least memorize the bold ones.

Don’t learn any other Section / Notification or Definition unless you are fully comfortable with the above sections.

Please complete all questions of Book and DPP. 50/40 marks in 200 pages is the best deal you will get in CA IPCC/Inter.

Important Sections of Income Tax Act, 1961 (CA Inter/IPCC – Nov 2018) Compiled by: CA Kishan Kumar



Basic

2(7) Definition of Assessee

2(31) Definition of Person

2(9) Definition of Assessment Year

3 Definition of Previous Year

87A Rebate upto INR 2,500 allowed to Resident Individual if Total Income is upto 3,50,000.

288A Rounding off of Total Income to nearest 10

288B Rounding off of Tax Payable to nearest 10

Residential status

6(1) Residential Status of Individuals

6(6)(a) RoR/NoR in case of Individuals

6(2) Residential Status of HUF

6(6)(b) RoR/NoR in case of HUF

Incidence of Tax 5 Incidence of Tax or scope of Income

9 Income Deemed to Accrue or Arise in India

Income from

House Property

24(a) Standard deduction @ 30% of NAV

24(b) Interest on borrowed capital in relation to House Property

25A Recovery of Unrealized Rent/Arrears of Rent deemed to be income of the PY in which it is received

27 Deemed owner

Other Source

56 Incomes under Other Source viz. Gift, Family pension, interest etc.

57 Deductions allowable under the head Other Source

58 Amounts not deductible viz. personal expenditure and capital expenditure.

Section 56(2)(x) Taxability of Gift

2(22) (c), (e) Deemed Dividend

10(15) Interest income exempt from Tax

115-O Tax to be paid by domestic company on dividend distributed [effective rate – 20.92%]

10(34) Dividend Income received from domestic company exempt from tax

10(35) Income from mutual funds (interest + Dividend) exempt from tax

115BB Tax rate on Causal Income @ 30%

115BBE Undisclosed Income u/s 68, 69, 69A, 69B, 69C and 69D taxable at flat rate of 60% along with a

surcharge of 25% and education cess @ 3%. Effective rate of tax comes to 77.25%.

115BBDA Tax on dividend exceeding 10 Lakhs @ 10% (no adjustments/deductions, whatsoever)




PGBP

28 Incomes taxable under the head Profit and Gain from Business and Profession

32 Depreciation of any kind viz. normal depreciation, additional depreciation etc.

32AD Investment Allowance (15%) for investment in Backward Region (Any Assessee, any amount)

35 Scientific Research Expenditure [in house or donation]

35AD Specified Business [Investment linked incentive]

35CCA Donation to association and institutions for rural development programmes

35CCC Expenditure on agricultural extension project

35CCD Expenditure on skill development project

35D Allowability of preliminary expense to a Resident.

35DDA Amortization of expenditure incurred under Voluntary Retirement Scheme

37(1) General revenue deductions related to business which have been neither allowed nor disallowed.

40(a)(i) 100% disallowance in case of payment outside India or to a NR in India without TDS

40(a)(ia) 30% disallowance in case of payment to a resident in India without TDS

40A (3) Disallowance in case of cash payment in excess of INR 10,000. Read with Rule 6DD (exceptions)

40A (2) Disallowance of excessive or unreasonable payment to relative/related person

40(b) Remuneration to partners

43(1) Actual Cost

43B Certain Deduction to Be Allowed Only on Actual Payment i.e. paid before due date of filing ROI.

44AA Compulsory Maintenance of Accounts

44AB Compulsory Tax Audit

44AD

Presumptive taxation in case of Resident individual/Firm/HUF having business turnover upto 2

crores @ 8%. 6% in case of turnover received in Account payee cheque/draft or ECS upto due date of

filing ROI.

44ADA Presumptive taxation in case of Resident having professional gross receipt upto 50 lakhs @ 50%

44AE Presumptive taxation in case of a GTA (having upto 10 goods carriage) @ 7,500 per vehicle pm or

part of month

Capital Gains

2(14) Meaning of Capital Asset

47 Transfers not regarded as Transfer

50 Capital gains in case of depreciable assets

50B Slump Sale

50C Full Value Consideration in Case of Land and Building to be not less than Stamp Duty value




50CA Fair Market Value Deemed to Be Full Value of Consideration for Transfer of Unlisted Shares

50D Full Value Consideration in Case Of sale of asset whose value cannot be determined shall be FMV

112 Tax on LTCG @ 20%

111A Tax on STCG @ 15% arising from sale of STT paid equity shares or equity oriented mutual fund

45(5A) Capital Gain in case of Specified Agreement

10(37) Compulsory acquisition of urban agricultural land

10(38) LTCG on STT paid equity shares or equity oriented mutual fund.

10(43)

Amount received by an individual as a loan, either in lump sum or in instalment, in a transaction of

Reverse Mortgage

54

Refer Chart

54B

54D

54EC

54F

Advance Tax and

Payment of

Interest

234C Interest (compensatory) for deferment in installments of advance tax

234B Interest (compensatory) for default in payment of advance tax

234A Interest (penal nature) for default in furnishing of Return of Income

244A Interest on refund

Tax Deduction at

Source

192 TDS on Salary

193 TDS on Interest on security

194A TDS on Interest on other than security

194C TDS on Payment to contractor or sub-contractor

194DA TDS on Payment on Maturity of Life Insurance Policy (Including Bonus Shares)

194E TDS on Payments to Non-Resident Association/Sportsman

194H TDS on commission/brokerage other than Insurance Commission (Principal - agent relationship)

194I TDS on Rent

194IA TDS on Purchase of Immovable Property Except Agro-Land

194IB TDS on Rent by Individuals or Hindu Undivided Family not subject to tax audit




194IC TDS on Payment under Specified Agreement

194LA Compensation on Compulsory Acquisition of Immovable Property Except Agro-Land

194J Professional service, Technical Services, Royalty and Director's remuneration

195 TDS on payments made to Non-Residents and Foreign Companies

197 Deduction of Tax at Lower Rate

197A Self-Declaration for Non-Deduction of Tax at Source

201 Consequences of Failure to Deduct or Pay TDS

206AA Requirement to furnish Permanent Account Number

206C Tax Collection at Source

Filing of Return of

Income

139(1) Normal Return filed within due date

139(3) Loss Return

139(4) Belated Return

139(5) Revised Return

Clubbing of

Income

60 Transfer of Income without Transfer of Assets

61 Revocable Transfer of Assets

62 Irrevocable Transfer of Assets

64(1) Clubbing Provisions – Spouse

64(1A) Clubbing Provisions - Minor Child

10(32) Exemption of 1,500 per minor child whose income is clubbed

Set off and Carry

Forward of Loss

70 Intra Head adjustments/set off

71 Inter Head adjustments/set off

72 Carry Forward & Set off of Business Losses

Deductions

80C Deduction in respect of investment in NSC/PPF, bank fixed deposits etc.

80CCC Deduction in respect of contribution to certain pension funds [Jeevan Suraksha Policy from LIC]

80CCD Deduction in respect of contribution to New Pension Scheme

80CCE Overall limit of deduction u/s 80C, 80CCC and 80CCD restricted to INR 1,50,000

80CCG Investment in notified equity saving scheme

80D Deduction in respect of medical insurance premium

80DD/U Deduction in respect of maintenance including medical treatment of a dependent who is a person

with disability




80U Deduction in respect of maintenance including medical treatment of a person with disability

80DDB Deduction in respect of medical treatment etc.

80E Deduction in respect of interest on loan taken for higher education

80EE Deduction in case of Payment of Interest on Loan taken for acquisition of self-occupied house

property by an Individual

80G Deduction in respect of donation to certain funds, charitable institutions etc.

80GG Deduction in respect of rents paid

80GGA Deduction in respect of certain donations for scientific research or rural development

80GGB/GGC Deductions in case of donation to political parties by Indian Companies/others

80JJAA Deduction in respect of employment of new workmen

80QQB Deduction in respect of royalty income etc., of authors of certain books

80RRB Deduction in respect of royalty on patents

80TTA Deduction from interest on saving bank account

Salary Income

89 Relief in case of arrears of salary/advance salary

10(1) Agricultural Income

10(10CC) Income tax paid by employer on non-monetary perquisites

10(10D) Maturity proceeds of life policy if premium paid is within the prescribed limit.

10AA Units manufacturing in special economic zone

10(10) Taxability of death – cum- retirement gratuity

10(10A) Taxability of commuted pension

10(13A) Taxability of House Rent Allowance

17(2) Taxability of Rent-Free Accommodation

Note:

The above is just an illustrative list of important sections at the Inter/IPCC level.

At least memorize the ones in Bold.

Don’t learn any other section unless you are fully comfortable with the above sections.

Important Sections of Company Law (CA Inter/IPCC – Nov 2018) Compiled by: CA Kishan Kumar


Companies Act, 2013 [Last Three Chapters meant only for Students of New Course]


Kinds of a Company

2(68) Private Company - Definition

2(71) Public Company – Definition

2(62) One Person Company – Definition

2(85) Small Company – Definition

2(46) Holding Company – Definition

2(87) Subsidiary Company – Definition

25 Formation of Companies with Charitable Objects etc.

464 Prohibition of association or partnership of persons exceeding 50 (Illegal Association)

Incorporation of Company 7 Incorporation of Company

9 Effects of Incorporation

Memorandum and Article of Association

4 Contents of Memorandum (clauses of memorandum)

10 Binding Force of MOA and AOA

13 Alteration of MOA (1 section for alteration of Capital, Name, Situation and Object clauses)

14 Alteration of AOA

19 Holding shares by a Company in its Holding Company – Consequences [Prohibition & Exception]

20 Service of Documents

Prospectus

2(70) Definition of Prospectus

25 Deemed Prospectus

31 Shelf Prospectus and Information Memorandum

32 Red Herring Prospectus

2(1) and 33 Abridged Prospectus

34 Misstatement in Prospectus (Criminal Liabilities of Promoters, Directors and Experts and Remedies available)

35 Misstatement in Prospectus (Civil Liabilities of Promoters, Directors and Experts and Remedies available)

41 Global Depository Receipts

42 Private Placement

Allotment of Shares 39 Allotment of securities (Minimum Subscription)

40 Underwriting Commission

Share and Share Capital 47 Voting Rights of Shareholder

50 Calls in Advance




52 Issue of Shares at Premium

53 Issue of Shares at Discount

54 Issue of Sweat Equity Shares

55 Redemption of Preference Shares

62 Further Issue of Shares

63 Issue of Bonus Shares -Legal Requirements

66 Reduction of share capital

67 Purchase by a Company of its own shares

68 Buy Back of Shares

Debenture 71 Issue of Debenture, Creation of DRR, Debenture Trustees

Transfer and Transmission

56 Requirement for transfer or transmission of securities

58

Free transferability of securities in a Public company and appeal against refusal

Transferability of securities in a Private company and appeal against refusal

Charge

77 Provisions related to creation of Charge [when to register and within how many days]

78 Registration of Charge by Charge holder

87 Power of CG to condone the delay

General Meeting

2(55) Definition of Member

96 Annual General Meeting [Time limit and manner of conducting]

100 Extra Ordinary General Meeting [Time limit and manner of conducting]

101 Length of Notice, Contents of Notice, and Notice to Whom?

102 Ordinary and Special Business

103 Quorum

104 Chairman

105 Proxies

106 Restriction on Voting Rights of Members

108 Voting through electronic means

109 Voting by Poll in meeting

110 Postal Ballot

114 Ordinary and Special Resolution

115 Resolution requiring Special Notice

118 Minutes of General Meeting




Declaration of Dividend

123 Conditions for Declaration of Payment of Dividend

124 Unpaid Dividend Account

126 Failure to distribute dividend within 30 days

127 Failure to distribute dividends within 30 days

123(3) Interim Dividend

Accounts of Companies

128 Location, manner, period of maintenance and inspection of books of accounts.

129 Financial Statements

130 Re-opening of accounts on Court’s or Tribunal’s Order

131 Voluntary revision of Financial Statements and Board’s Report

133 Central Government to prescribe Accounting Standard

134 Board’s Report

135 Corporate Social Responsibility

138 Internal Audit

Audit and Auditors

139 Appointment/Reappointment/Rotation of Auditors

141 Eligibility, qualification and disqualification of auditors.

142 Remuneration of auditors

143 Powers and Duties of Auditors and Auditor’s Report

144 Auditor not to render certain services

146 Auditors to attend General Meeting (Duty and Rights in relation to GM)

147 Punishment for Contravention

148 Power of CG to order maintenance of cost records and conduct of cost audit.

Concepts where there are No Sections

1) Characteristics or features of a company

2) Principal of separate legal entity

3) Lifting or piercing of corporate veil

4) Is company a citizen

5) Pre-incorporation or preliminary contracts



6) Doctrine of ultra vires

7) Doctrine of constructive notice Rule

8) Doctrine of indoor management or Turquand’s Rule

9) Golden rule for framing the prospectus

10) Forged transfer

11) Modes of acquiring membership or How to become a member

12) Capacity to become a member (who can become a member?)

13) Crystallisation of a floating charge

14) Revocation of Dividend

Rights of a member under the Companies Act, 2013

1) Right to obtain the share certificate from the company (sec.56)

2) Right to have his name entered in the register of members (sec. 88)

3) Right to transfer his securities (subject to the restrictions contained in the Articles and the Act (sec. 44 and 58)

4) Right to receive the notice of GMs, attend the GMs and vote thereat (sec. 101)

5) Right to receive the dividend, where a dividend is declared by the company (sec. 123)

6) Right to apply to the court seeking an injunction restraining the directors from paying dividend out of capital (Sec. 123)

7) Right to inspect and obtain copies of the registers and indices of members, debenture holders and other security holders and annual returns (sec. 94)

8) Right to obtain copies of memorandum and articles (Sec.17)

9) Right to have the shares offered to him in case of further issue of shares (i.e. the right of pre-emption) (sec.62)

10) Right to apply to the Tribunal to set aside any variation in the right attached to any class of share (sec. 48)

11) Right to give a special notice so as to move a resolution requiring special notice (provided he is eligible as per the provisions of sec.115) (sec.115)



12) Right to receive a copy of special notice when special notice is served on the company (sec. 115)

13) Right to obtain a copy of the minutes of the general meeting (sec. 119)

14) Right to requisition an extra ordinary general meeting (EGM) of the company (provided he is eligible as per the provision of sec. 100) (sec. 100)

15) Right to vote at GM in respect of any matter requiring OR or SR (sec. 107 and 109)

16) Right to vote by means of electronic mode in respect of any matter requiring OR or SR (sec. 108)

17) Right to vote by postal ballot when a resolution is put to vote by the company by way of postal ballot (sec. 110)

18) Right to obtain copies of profit and loss account, balance sheet, auditor’s report and other documents (sec. 136)

19) Right to make an application to the Tribunal seeking an order for calling the AGM (sec. 97)

20) Right to make an application to the Tribunal seeking an order for calling the EGM (sec. 98)

Notes:

The above is just an illustrative list of important sections at the Inter/IPCC level.

At least memorize the ones in Bold.

Don’t learn any other section unless you are fully comfortable with the above sections.