What is the date of Effective Voluntary Cancellation of Registration under the IT ACT?

Say 12AA Registration, Registration u/s Sec 10 (23C) , PAN NO, TAN NO. etc

1.Voluntary Cancellation of any Registration ( Maybe granted Sec 12AA, u/s 10(23C, etc), Assessee may apply for cancellation of the Registration to the Authority at any point of time.

2.Once the cancellation application was received by the Authority, it is the duty of the Authority Either to accept it OR issue a Show Cause Notice to the Assessee within a reasonable time.

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3.Where no show cause notice was received within a reasonable time then Date of Cancellation of Registration has to be accepted as on the date when Assessee made the application before the Authority.

4.Where Show Cause Notice was received from the Authority, towards Cancellation Application, then the Effective date of Cancellation shall be held as the Date on Conclusion of hearing before the Authority OR reply to the Show Cause notice was placed before the Authority.

The above view was based upon the Principle that
” All the Powers held by someone in a Public Office are powers held in TRUST for the benefit of the Public at Large.
Officers have no discretion either to use or not to use the powers given by the ACT to the Officers.

registration

5.Ex: For deciding the Effective Date of Voluntary Cancellation of Registration:
(i). Date of Application: 5th Feb 2019.
( ii). Show cause notice issued by Deptt: 10.03.2019.
(iii). Date of the hearing of Show Cause Notice. 20.03.2019.
(iv). Date of communication towards Cancellation from.Deptt: 05.06.2021.

Here the date of Voluntary Cancellation of Registration Shall be the date when on Conclusion of hearing of the Show Cause Notice that is 20.03.2019.

Date of Communication from Deptt. Towards Cancellation that is 05.06.2021 has no Relevance.

According Assessee is not under any obligation to fulfil the provisions relating to the Registration From.FY 2019-20.

The above view is supported by the Judgment of the ” NAVAJBAI RATAN TATA TRUST vs. PCIT (MUM.ITAT).

Nut Shell:

1.Voluntary cancellation of Registration ( Say 12AA, (10(23C)), shall be effective from the date on conclusion of the Hearing or filling reply to the Show Cause Notice towards Cancellation.

2.No Show cause notice it is the date of Application for Cancellation.

3.Date of Deptt’s letter granting Cancellation has no relevance to decide, Date of Cancellation.

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Companies Fresh Start Scheme -2020

The Ministry of Corporate Affairs issued Companies Fresh Start Scheme 2020 vide Circular 12/2020 dt 30.3.2020 which applies both public and private companies incorporated under Co Act 1956/2013.

The salient features are:-
(1) permits filing all pending Returns, Statements, Documents for any number of years.

(2) it shall come into operation on 1.4.2020 and remain effective up to 30th Sep 2020.

(3) it applies to all companies
both public or private who failed to file all returns statements or Documents including Annual Return remains for any number of years as on date of filing.

(4) Only normal fees as prevailing on the date of filing shall be payable.

(5)No late fee no penalty no prosecution only normal fees payable.

(6) Prosecution if any pending shall be disposed of after payment

(7) The scheme does not apply to those companies against whom a final notice under Section 248 has been given by ROC for striking off or who applied for striking off or applied for being declared dormant co; vanishing company or dormant company or companies under CIRP

(8) companies who name struck off cannot avail this scheme and have to get their name restored;

(9) Companies can avail this scheme for the purpose of (i) getting themselves dormant under Section 455 and also (ii) getting their name struck off

(10) After payment of normal fees and documents return statement is taken on record, an application shall be filed electronically (without any fees) for obtaining Immunity Certificate but it shall not be filed beyond six months from the date of expiry of the scheme.

(11)Scheme grants immunity against the filing of forms returns and documents but not against any punitive action being done by the company for which suitable can be taken by ROC. For example immunity in delaying in filing return of allotment but not against any illegality committed in allotment of shares.

This is a golden opportunity to file all pending Returns Annual Accounts, Statements including all pending Annual Returns pending for any number of years.

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Exporter’s Order Books

GST squeezes exporters’ order books

exporter and GST

15% drop crosswise over industries and product categories till Oct: FIEO

Two months after the usage of the goods and services tax (GST), the order books of exporters are said to have endured a shot, with gauges pegging the effect by up to 15 for each penny crosswise over businesses and item classifications. The effect could be seen even as fares saw twofold digit ascend in August year-on-year (y-o-y).

As indicated by an appraisal by the Federation of Indian Export Organizations (FIEO), the substantial drop was found in trade arranges that were intended to be conveyed until October.

The plunge enrolled over a time of two months since July (when the GST was presented), was to a great extent by virtue of exporters not satisfying requests because of the absence of credit.

The liquidity crunch had constrained many to utilize accessible assets to oversee existing business operations instead of satisfying requests from abroad.

The liquidity crunch had constrained many to utilize accessible assets to oversee existing business operations instead of satisfying requests from abroad.

Two-Three Months to be Sourced, Handled, and Delivered

In spite of the fact that fare development quickened in August, it is to a great extent y-o-y. For example, sends out declined to Rs 22.54 billion in July from Rs 23.56 in June. In August, these marginally resuscitated to $23.81 billion, however not to the degree of the levels found in April and May. Fares were $24.63 billion in April and Rs 24.01 billion in May.

EEPC  confirmed this by saying the rate hit was higher for exporters taking care of items with a more extended incubation period.

Dealer exporters, and also those whose items require two-three months to be sourced, handled, and delivered, have been hit hard inferable from their capital being tied up longer.

Exporters were prior permitted dutyfree import of merchandise that is utilized for the assembling of fare items. Be that as it may, under the GST, they would need to pay the obligation forthright and apply for discounts later.

EAPC

The issue of a liquidity mash under the new GST administration was hailed by exporters as the most difficult issue. Their expenses have ascended by up to 1.25 for every penny (cargo on board esteem) following the execution of the new duty administration, as per gauges.

The figure is ascending, as late discounts squeeze littler players hard, while bigger elements confront trouble in streamlining operations, say specialists.

The filing of documents for GSTR-1, GSTR-2, and GSTR-3 has been extended to July 10, October 31 and November 10, respectively

Moreover, exporters have kept on pointing out the trouble in getting discounts have not facilitated. This is for the most part on the grounds that the discount procedure has been deferred, in light of the fact that the date of recording the discount reports has been stretched out by the administration. The recording of archives for GSTR-1, GSTR-2, and GSTR-3 have been reached out to July 10, October 31 and November 10, separately, the EEPC said.

This augmentation successfully implies the July discounts may be accessible in the third seven-day stretch of November, at the most punctual, the EEPC said. Essentially, send out discounts for the long stretch of August will be pushed back to December and this is relied upon to have a falling effect on the September discounts.

Additionally, exporters have charged that since the GST take off, discounts from state governments for charges paid under the Duty Drawback Scheme have halted.

A comparable issue is playing out finished obligation scrips: Its extension has been diminished as an expense paying the instrument. In August, the administration had found a 12 for each penny assess on the offer of scrips got for motivator plans, for example, the Merchandise Export from India Scheme (MEIS), interestingly. Scrips got by exporters under the Services Exports from India Scheme and the Incremental Export Incentivisation Scheme, aside from the MEIS, will likewise be burdened.

The administration’s expense move was pummeled by exporters, who said this had no legitimization and would hit their shipments. Along these lines, the GST Council declared a week ago this was being lessened to four for each penny. Be that as it may, while scripts were permitted to be used for the installment of extract, benefit impose and value added assess in the pre-GST period, this may now just be material for the installment of fundamental Customs obligation.