In this Article, an attempt is made to list out the concept of Corporate Social Responsibility, under the Companies Act, 2013, and the recent clarifications/directions from the Ministry, with specific reference to COVID-19.

The concept of Corporate Social Responsibility (CSR) was introduced by the Companies Act, 2013 (Act) with effect from 01.04.2014.  The provisions of Section 135 of the Act, read with Schedule-VII to the Act, are to be complied with.

Read more: Corporate Social Responsbility - COVID Times

The Honourable Delhi ITAT[1] in the matter of Young Indian v CIT (Exemption)[2] has confirmed the rejection of registration under Section 12AA of Income Tax Act, 1961 (Act) with retrospective effect is valid in law. In this article, we discuss the story of Young Indian (YI), the acquisition of Associated Journals Limited (AJL), the non-carrying of any activities of YI and the cancellation of registration of YI with retrospective effect.

Read more: Story of Young Indian - Cancellation of Section 12AA Registration

Introduction:

Development agreements are popular not only with respect to the construction of residential or commercial complexes but also with respect to laying and development of plots. The real estate companies enter into agreements with landowners for the purpose of laying of plots and undertaking various development works viz. compound wall, approach roads, parks, plantation, street lighting, drainage/sewerage facilities etc. In consideration for undertaking these activities, the developer is generally entitled to a portion of the developed plots. The landowner is entitled to sell the remaining portion of the developed plots. Let us understand the GST[1]implications in connection with these arrangements. Typically, every joint development agreement gives raise to four transactions for which the tax impact has to be understood:

Read more: GST Implications on Developemnt of Plots - Dec 2020

Section 171 of the CT Act[1] provides for anti-profiteering measures owing to the introduction of GST laws in India. The said section was a last-minute inclusion as it was missing in the model GST laws that were released for stakeholders’ consultation. Moreover, section 171 is not exhaustive and is only an enabling section which provides for the meaning and scope of profiteering and conferred powers on Central Government for constitution of Anti-Profiteering Authority for implementation of the said section. However, there were no general or industry-specific guidelines laid down on manner in which profiteering amounts are required to be determined for pass on to customers.

In the absence of such guidelines, taking measures to avoid profiteering became very difficult and complex especially in sectors like real estate. In this article, an effort is made to bring certain practical insights of compliance with anti-profiteering measures to be undertaken by builders in real estate sector and position laid down several rulings pronounced by National Anti-Profiteering Authority.

Read more: Anti Profiteering vis -a-vis Real Estate Sector - Practical Insights