corporate and professional updates 25th JUNE 2018

Image result for corporateDirect Tax :

  • Kolkata ITAT dismisses Revenue’s appeal for AY 2009-10, deletes long term capital gains (‘LTCG’) addition u/s. 50B, made by the AO on transfer of Trading and Distribution (‘T&D’) division of assessee-company (GE Healthcare OY’s wholly owned subsidiary) to Wipro GE Healthcare vide demerger (approved w.e.f. April 1, 2008); [TS-320-ITAT-2018(Kol)]
  • Calcutta HC sets aside ITAT order for AY 1983-84, allows Brooke Bond India’s investment allowance claim u/s. 32A on weighing machines, electrical equipments, other machineries and computers; Rejects Revenue’s stand that to qualify for allowance,  a plant / machinery has to be directly used in the manufacture of an article or thing;  [TS-318-HC-2018(CAL)]
  • Mumbai ITAT rules that capital gains of Rs. 455.70 Cr. arising to assessee-company (a tax resident of Singapore), pursuant to trading in Indian securities during AY 2011-12, not taxable in India under Article 13(4) of India-Singapore DTAA; [TS-321-ITAT-2018(Mum)]
  • CBDT proposes clear-cut timelines under transfer pricing, through a draft notification, suggested that the amount should be returned within 90 days of signing of APAs and MAPs.
  • Due date for furnishing challan-cum-statement in respect of tax deducted U/s 194-IA & 194-IB for m/o May’18- June30,

INDIRECT TAX

  • CBIC has issued a circular clarifying the procedure for interception of conveyances for inspection of goods in movement,and detention, release, and confiscation of such goods and conveyances.
  • Goods without eway bill, bill etc can be confiscated/detained. Others in same vehicle, with proper papers can’t be held. Circular 49 of 21.6.18.

FAQ on E-WAY BILLS:

  • Query:In case of movement of goods by Railways, is there a requirement for railway to carry e-way bill along with goods?
  • Answer: In case of movement of goods by Railways, there is no requirement to carry e-way bill along with the goods, but railways has to carry invoice or delivery challan or bill of supply as the case may be along with goods.

SEBI UPDATES

  • Sebi is set to revamp IPO norms to make them less onerous for legitimate sellers while clamping down on possible misuse. These include recognizing a wider set of institutional investors such as alternative investment funds (AIFs) as counting toward promoters’ contribution in startups, requiring financial disclosures for three years rather than five and reducing disclosure of the price band to two days before the issue opens from five now.

OTHER UPDATES

  • The Insolvency and Bankruptcy Code, 2016 consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
  • NSE is in the process of introducing a corporate governance code that will be stricter than the existing laws and regulations.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

RBI INTRODUCED MANDATORY FDI REPORTING THROUGH SINGLE MASTER FORM (SMF)

Image result for fdi in indiaIn a partial manner notification is applicable to the existing FDI. It is expected from the company that company provide all the details of existing FDI in the prescribed format and prescribed manner as available this respective notification.

SMF gives the facility related to reporting of total foreign investment in an Indian entity and also provide facility related to investment in investment vehicle to the person outside India.

Before any implementation this process, Reserve Bank of India will provide specific format from 28.06.2018 to 12.07.2018 to Indian entities for input the data of foreign investment.

Before the implementation of Single Master Form (SMF), RBI would provide an interface of specified format called Entity Master File (EMF) to Indian entities for input the data of total foreign investment. From 28.06.2018 to 12.07.2018 RBI will made available the interface in their website.

The Indian entities who will not qualify the pre-requisite requirement will not able to receive any foreign investment in India and those Indian entities will be considered as non-compliant in Foreign Exchange Management Act (FEMA), 1999 and regulations.

WHAT IS SMF:-

  • RBI will introduced a SMF for fulfil the objective of integration of various reporting structure of foreign investment in India. The SMF is required to be filed online and also provide a facility to Indian entity for reporting total foreign investment. Single Master File is a substitute of individual reporting currently done through “Form FC-GPR, FC-TRS, LLP-I, LLP-II, ESOP, CN&DRR”. However the requirement of submitting the annual statement of “foreign liabilities and assets” to RBI is continue 15 July every year.
  • The Single Master Form will be integrated reporting forms which will event-based form helping the person residing outside India in reporting the total foreign investment.
  • Entity Master Data (EMD) Annex-I : It is required to all Indian entities to provide all the details of foreign investment received by them till date called as Entity Master Data and the format of is given in Annex-I of said notification.
  • SMF will also provide the facility of reporting total foreign investment in an Indian entity via company, LLP & other investment vehicles(REITs)/Infrastructure Investment Trusts(Invlts)/Alternative Investment Funds(AIFs).
  • SMF is the substitute of existing forms such as:
    • For issue & transfer of shares – FC-GPR & FC-TRS.
    • For foreign direct investment & foreign disinvestment/transfer of capital contribution in LLP – FORM LLP-I & II.
    • For issue of employee stock option plan – FORM ESOP
    • For issue or transfer of convertible notes – FORM CN
    • For issue or transfer of depository receipts – FORM DR
  • Single Master Form will also compulsory in following:-
    • Reporting the Downstream Investment (Indirect Foreign Investment) in a company or LLP via FORM DI.
    • Reporting of investment by person residing outside India in an investment vehicle (including REITs, Invlts &AIFs) via FORM InVi

 SUBSEQUENT INVESTMENTS IN ANNEX-2:-

For any subsequent foreign investments, an integrated reporting structure of various types of foreign investment introduced which will be called SMF. The format of SMF is given in Annex 2 of said notification. While the format of the form has been provided as Annex 2 to the circular, RBI is yet to notify the form. Once notified, the form will be available in the master direction on reporting as well as on the website for the entities to file it as and when required.

CONSEQUENCES OF NON-COMPLAINT BY INDIAN COMPANIES CANNOT RECEIVE FDIS

The Indian entities who will not qualify the pre-requisite requirement will not able to receive any foreign investment in India and those Indian entities will be considered as non-compliant in Foreign Exchange Management Act (FEMA), 1999 and regulations. FEMA requires observation of its provisions in letter and spirit and if any contravention may land in penalties on the erring company and individuals. There are some conditions and stipulations in case of FDI, ODI, investment by individuals in foreign shares, purchase of assets in foreign countries, extending guarantees, availing ECBs, supplier’s credit.

RJA comments

The integration of the extant reporting structures is a positive move made by RBI to simplify and rationalize reporting for foreign investment in India. This crucial amendment is in line with the SEBI circular which was issued for the listed companies for monitoring FDI limits.

There may be certain practical difficulties before implementation of the new form for the Indian entities to collate details on foreign investment, especially as the window for uploading such data on the RBI interface is open for only 15 days. Now severe consequences attached to non-filing, Indian entities having foreign investment must prepare to submit the information timely. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. The information in this blogs is solely for the addressee and should be treated as confidential & non-binding

For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

corporate and professional updates 23rd JUNE 2018

Image result for corporate and professionalDirect Tax :

  • Delhi ITAT rules that assessment made u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (‘the Act’), on a Cyprus based Company (assessee, which had voluntarily wound up in May, 2013) for AY 2012-13, not a nullity, despite assessee being non-existent as on the date of issuance of order in 2017, follows Gujarat HC ruling in Sumantbhai C. Munshaw;
    [TS-319-ITAT-2018(DEL)]
  • Mumbai ITAT upholds disallowance u/s. 40(a)(i) for the entire amount of testing charges paid by assessee-company to German party without TDS during AY 2012-13; Rejects assessee’s stand that in view of CBDT circular 3/2015, only appropriate portion of such sum which is chargeable to tax under the Act shall be disallowed u/s. 40(a)(i);[TS-317-ITAT-2018(Mum)]
  • A tax benefit claimed by a taxpayer in his revised income-tax return cannot be denied outright by an income-tax (I-T) officer merely because the revised return has been filed after issue of notice – ITAT, Mumbai inMahesh Hinduja.
  • Addition u/s.68 – gift – When however, large amounts are stated to have been gifted, that too by a person having no blood relation with the assessee, the question of genuineness of the gifts would require closer scrutiny – Tribunal has made superficial observations and mechanically accepted the genuineness of the gifts – CIT Vs. Mukesh M Sheth (2018 (6) TMI 1056 – Gujarat High Court).
  • Taxpayer can file revised return after notice issued by Income Tax Department- ITAT. However, the revised return needs to be filed within the time limits set out in Income Tax Act.
  • The income tax department has proposed clear-cut timelines by which excess amount assessed by Transfer Pricing Officials over what was declared by associated enterprises of multinational corporations has to be brought in India. These timelines relate to advance pricing agreements and mutual agreement procedure.

INDIRECT TAX

  • Transporter registered in multiple states with same PAN may apply for common enrolment no. for eway bill by filing GST ENR-02, using any GSTIN.
  • GST has been spoken of as a panacea for high fuel prices but the structure in works would ensure rates remain almost at same levels. A peak tax rate of 28% plus states levying some amount of local sales tax or VAT on petrol and diesel.
  • CBIT&C modifies the procedure for interception of vehicle for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular, dt.13.04.2018 – Circular No.49/23/2018-GST, dt.21.06.18.
  • GTA Service – The document issued by District Supply Officer conveying the goods transported cannot be construed as a consignment note – Gade Transport Vs. CCE (2018 (6) TMI 1010 – CESTAT Mumbai).
  • Transporter registered in multiple states with same PAN may apply for common enrolment no. for eway bill by filing GST ENR-02, using any GSTIN.

FAQ on E-WAY BILLS:

  • Query:Whether e-way bill is required for intra -State movement of goods?
  • Answer:At present e-way bill is required only for inter-State movement of goods. For intra-State movement of goods the requirement for e-way bill will be introduced in a phased manner, for which rules will be notified by respective states separately.

MCA UPDATES

  • MCA issues The Companies (Significant Beneficial Owners) Rules, 2018; &, The Companies (Management & Administration) 2nd Amendment Rules, 2018. MCA Ntfcns of 13.06.18.
  • MCAacross India have initiated the action (II Stage) against the non working companies for striking off of all such companies under Section 248(1) of the Companies Act, 2013. Public Notice in Form No. STK — 5, Pursuant to sub-section (1) and sub-section (4) of section 248 of the Companies Act, 2013 and rule 7 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 has been issue by the Registrar of Companies, Delhi to 31,250 Companies.
  • The Registrar of Companies across India have initiated the action (II Stage) against the non working companies for striking off of all such companies under Section 248(1) of the Companies Act, 2013.

SEBI UPDATES

  • SEBI has issued a circular w.r.t Enforcement of SEBI Orders regarding appointment of Directors by listed companies.SEBI has referred to enforcement of its Orders debarring entities/individuals from accessing the capital markets and / or restraining from holding position of directors in any listed company.
  • SEBI has issued acircular w.r.t Enforcement of SEBI Orders regarding appointment of Directors by listed companies

RBI Update:

  • The Reserve Bank of India has imposed a monetary penalty of Rs. 50,000/- (Rupees fifty thousand only) on City Co-operative Bank Ltd., Hassan, in exercise of the powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949.

OTHER UPDATES

  • Indian Valuation Standards as issued by the Institute of Chartered Accountants of India effective for the valuation reports issued on or after 1st July, 2018.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

APPLICABILITY OF INDIAN ACCOUNTING STANDARD

Image result for IND ASComing months will going to be much more busy than usual for all of us. Especially in some areas like applicability of ICDS, penalty levy on IT returns late filing and IndAS applicability in certain cases.

IndAS continuous implementation creating more challenging or difficulties for the companies in following annual compliance accurately especially the compliances related to Indian tax laws. As all of us know very well the purpose of presentation of financial statements as per IndAS is to disclose the transaction, especially some transactions which are related to the related parties transaction on the Arm’s Length basis for making comparable to industry standard of similar transactions.

There are some meaningful changes were happened in recognizing income and expenditures and their presentation under IndAS and IGAAP. As per IndAS all the liabilities have recognized on substance over form basis than the legal form and all the assets have recognized on fair value basis than the book value. Notwithstanding, IGAAP is telling us the principle which are related to general prudence and historical cost method rather than the fair market values.

Financial statements preparation as per IndAS is mandatory for the following companies from the date of 1st April 2016:-

  • Unlisted companies which having net worth of Rs. 500 Crores or above.
  • Companies which are already listed having net worth of Rs. 500 Crores or above.
  • Companies which are in the process of listing in any stock exchange in India or outside
  • India having net worth of Rs. 500 Crores or above.
  • Also mandatory for their subsidiaries, holding, associate and joint venture companies.

From the date of 1st April 2017, limits of net worth for applicability of IndAS are getting changed:-

  • Unlisted companies which having net worth of Rs. 250 Crores or above.
  • All the Listed companies.
  • All the companies which are in process of listing in any stock exchange in India or outside India.
  • Also mandatory for their subsidiaries, holding, associate and joint venture companies.

Once a company starts following the Ind AS mandatorily on the basis of criteria specified above, it will be required to follow the Ind AS for all the subsequent financial statements even if any of the criteria specified do not subsequently apply to it. Companies to which IndAS are applicable should prepare their first set of financial statements in accordance with the IndAS effective at the end of its first IndAS reporting period i.e. companies preparing financial statements applying the IndAS for the accounting period beginning on 1 April 2016 should apply the IndAS effective for the financial year ending as on 31 March 2017.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE & PROFESSIONAL UPDATES 22ND JUNE

Image result for corporate and professionalDirect Tax :

  • Madras HC dismisses Revenue’s writ appeal against the order of Single Judge for AY 2009-10 holding the final assessment order passed, without issuing draft order, and the subsequent corrigendum treating the earlier assessment order as “draft order” u/s 144C, as invalid;[TS-469-HC-2018(MAD)-TP]
  • Kolkata ITAT upholds CIT(A)’s acceptance of assessee’s TNMM over TPO’s CUP-method for benchmarking assessee’s (manufacturer in FMCG Industry) sale of finished goods transaction for AY 2012-13; Noting that prices at which assessee had sold its products to third party distributors in countries like Kenya, Congo, Sri Lanka etc. were compared by TPO with those sold to assessee’s AEs in Bangladesh, Dubai and UK without any adjustments to difference in economies of these countries;[TS-468-ITAT-2018(Kol)-TP]
  • The central board of indirect taxes and customs has notified the central goods and services tax (sixth amendment) rules, 2018 which shall come into force on the date of their publication in the official gazette.
  • Chennai ITAT confirms CIT(A) order, rejects deemed dividend addition u/s. 2(22)(e) in hands of assessee-individual during AY 2014-15, in respect of outstanding balance payable by assessee’s proprietary concern to a publishing company (in which assessee is a substantial shareholder); [TS-316-ITAT-2018(CHNY)]
  • Madras HC allows petitioner’s (deceased assessee’s spouse) writ, quashes re-assessment notice issued u/s 148 in the name of deceased-assessee, holds that petitioner cannot be compelled to participate in the proceedings and respond to Sec. 148 notice; In response to Sec. 148 notice issued in the name of assessee (within prescribed time-limit), petitioner intimated about assessee’s death and the subsequent notice was issued by Revenue beyond the limitation period.[TS-315-HC-2018(MAD)]

INDIRECT TAX

  • Goods can’t be Seized for Non-Filling of Part B of E-Way Bill transported within a distance of 50 Kms, rules Allahabad High Court.
  • CBEC has made in Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Sixth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette. Vide notification no 28/2018, dated 19th June 2018.

FAQ on E-WAY BILLS:

  • Query: Why the transporter needs to enroll on the e-way bill system?
  • Answer:  There may be some transporters, who are not registered under the Goods and Services Tax Act, but such transporters cause the movement of goods for their clients. They need to enroll on the e-way bill portal to get 15 digit Unique Transporter Id.
  • Query:  What is a detention report under grievance menu?
  • Answer:  If the goods or the vehicle of the taxpayer or transporter has been detained by the tax officers for more than 30 minutes, then the transporter can enter the detention report on EWB Portal, which will reach the designated officer immediately, so that he can take an appropriate action accordingly.

 MCA Update:

  • MCA has made amendment in the Companies (Accounting Standard) Rules, 2006. These rules may be called Companies (Accounting Standard) Amendments Rules 2018, which shall come into force on the 1st Day of April 2018.
  • Form DIR-3 is likely to be revised on MCA21 Company Forms Download page w.e.f 21st JUNE 2018. Stakeholders are advised to check the latest version before filing.

RBI UPDATES

  • RBI has tweaked priority sector eligibility and classification norms following an announcement in the second bi-monthly policy statement on June 6 for Priority Sector Lending guidelines for housing loans with the Affordable Housing Scheme to low-cost housing for the Economically Weaker Sections.

SEBI UPDATES

  • Sebi is set to revamp IPO norms to make them less onerous for legitimate sellers while clamping down on possible misuse. These include recognizing a wider set of institutional investors such as alternative investment funds (AIFs) as counting toward promoters’ contribution in startups, requiring financial disclosures for three years rather than five and reducing disclosure of the price band to two days before the issue opens from five now.

OTHER UPDATES

  • The Employees’ Provident Fund Organisation (EPFO), a $165-billion behemoth that is also India’s biggest bond buyer, could raise borrowing costs for local companies if its participation is limited by restrictive rules on transaction settlement.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

corporate and professional updates 20th JUNE 2018

Image result for corporateDirect Tax :

  • Mumbai ITAT remits comparability of 2 companies for benchmarking product development services rendered by assessee [engaged in business of import, wholesale trade, manufacture of drug and medicines and research in pharmaceuticals products] for AY 2008-09; In respect of CIT(A)’s exclusion of Celestial Lab Ltd, ITAT holds that no deeper probe of the financial statements were made by the authorities below to find out reasons for earning super normal profits in the subject year and also how the functional profile was different from assessee.[TS-457-ITAT-2018(Mum)-TP]
  • Delhi ITAT deletes addition u/s 68 [dealing with unexplained cash credits] in respect of cash deposited in the bank accounts of assessee-individual during AYs 2010-11 to 2012-13, despite assessee being unable to explain the sources of cash deposits; Holds that Sec. 68 is applicable only when the credits are found in the books of account of assessee, relies on jurisdictional HC ruling in Ms. Mayawati; Clarifies that a credit in the bank account of an assessee cannot be construed as a ‘credit’ in the books of the assessee, remarks that “The account of the assessee in the books of the bank is different from the books of the assessee. [TS-306-ITAT-2018(DEL)]
  • CBDT has proposed amendments in two forms and one rule under to Income Tax Rules, 1962. It has suggested changes in Form No.36 for filing an appeal to the ITAT and in Form 36A, which is a memorandum of cross-objections to the ITAT.
  • Govt has notified 280 as the cost inflation index (CII) number for FY 2018-19. This CII number is important as it will be used to compute inflation adjusted long-term capital gains (LTCG) on assets such as house, gold, debt mutual funds etc.
  • CBEC has issued a circular clarifying the Procedure for e-commerce exports through Post and clarification regarding personal imports. As there are large  number of cases where low-value-small-shipments, which characterize e-commerce environment, are shipped through post.

FAQ on E-WAY BILLS:

  • Query:How can the taxpayer use the SMS facility to generate the e-way bill?
  • Answer: The taxpayer has to register the mobile numbers through which he intends to generate the e-way bill on the e-way bill system. Please see the user manual for SMS based e-way bill generation available on the portal for further details. 

RBI Update :

  • The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 5 lakh on M/s Kosamattam Finance Ltd. (the company) under section 58G(1)(b) read with sub-section 5(aa) of section 58B of the RBI Act, 1934 for violation of directions/orders issued by Reserve Bank of India from time to time.

MCA UPDATES

  • MCA nhas plans to dematerialize all unlisted companies with paid up capital of more than Rs. 50 Million (Rs. 5 crore and above) their shares by 30th June, 2018 and rest of the companies may dematerialize by 30th September, 2018.

OTHER UPDATES 

  • PNB’s fraud risk management division issued advisory following reports of borrowings against fake property title deeds, fictitious address proofs and sham income tax returns against the people involved to help.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
  • DUE DATE FOR GSTR-3B -20.06.2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

Warning for those who has not filed their annual account YET

Image result for annual return

Warning for those who has not filed their annual account YET

All companies registered in India must file annual return each year, irrespective of business turnover or activity. Annual return must be filed in Form MGT-7 and Form AOC-4 is also filed along with the annual return.

Any person who is a shareholder or Director in a private limited company should take steps to immediately file any overdue compliance to prevent heavy penalty which would become due from 1st July 2018.there will be a very significant high penalty for not filing annual return from 1st July 2018.

Accordingly, in case the due date of filings under Section 92 or 137 (Annual Financial Statement) of the Companies Act, 2013 dead after 30/06/2018  the additional fee @Rs.100 per day shall become payable in respect of MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS.

Forms for annual return

Annual returns or balance sheet/financial statement which were due to be filed whether under the Companies Act,1956 (23AC,23ACA,23AC XBRL,23ACA XBRL,20B,21A)or the Companies Act, 2013 (MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS) additional fee as per the applicable slab for the period of delay up to 30th June 2018 plus @Rs.100 per day w.e.f 1st July 2018 shall become payable.

All companies in India as a part of their annual compliance. must be filed their Form MGT-7 & Form AOC-4

As per Companies Act, 2013 every Company have to file e-form MGT-7 within 60 from the date of Annual General Meeting ‘AGM’ and AOC-4 required filing with ROC within 30 from the date of AGM.

Statutory Fee for Filing Annual Return

Above Declaration, MCA has significant the heavy  penalty for not filing annual return of a company. The penalty for not filing annual return of a company after 1st July 2018 would be Rs.100 per day per form. Since, a company must file both MGT-7 and AOC-4, the penalty would be Rs.200 per day for not filing annual return. If a company that was incorporated under Companies Act, 1956 or Companies Act, 2013 has so far not filed its annual return, it can file annual return paying the reduced penalty under the old regulations upto 30th June 2018. From 1st July 2018, the penalty would be increased multi-fold to Rs.100 per day per form.

Period of Delay Current Penalty Proposed Penalty
Upto 15 days (sections 93,139 and 157) Rs.400 Upto Rs.3000
More than 15 days and upto 30 days (Sections 93, 139 and 157) and upto 30 days in remaining forms. Rs.800 Upto Rs.6000
More than 30 days and upto 60 days Rs.1600 Upto Rs.12000
More than 60 days and upto 90 days Rs.2400 Upto Rs.18000
More than 90 days and upto 180 days Rs.4000 Upto Rs.36000
More than 180 days and upto 270 days Rs.4800 Upto Rs.54,000
Delay beyond 270 days Rs.100 per day Rs. 100 per day per form

Filing Annual Return

Rajput Jain & Associates provides an easy and online process for Entrepreneurs to file their annual return and income tax return along with financial statement and board meeting documents preparation at very reasonable price . Talk to an Rajput Jain & Associates  Advisor to know more and file Annual Return for your company easily.

For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 19TH JUNE 2018

Direct Tax :

  • Bengaluru ITAT upholds disallowance u/s 40(a)(i) for AY 2011-12 citing failure of assessee to deduct TDS on software payment, sets aside order of CIT(A) who allowed assessee’s ‘impossibility of performance’ plea as jurisdictional HC ruling in Samsung case (dated 15 October 2011) was not available at the time of making software payment;ITAT remarks that once CIT(A) held that payment was in the nature of royalty, the disallowance is automatic u/s. 40(a)(i) and CIT(A) has no power to delete such disallowance, even on the ground of impossibility of performance.[TS-307-ITAT-2018( Bang)]
  • ITAT rules on comparables selection, treatment of sponsorship, brokerage expenses and miscellaneous income while computing PLI for assessee engaged in providing investment advisory services for AY 2009-10; Excludes 5 comparables (Motilal Oswal, Khandwala Securities, Axis Pvt. Equity, Almondz Global Securities and Milestone Capital Advisors) on grounds of functional dissimilarity, non-availability of segmental data, failing 75% revenue filter etc., follows various precedents.[TS-461-ITAT-2018(DEL)-TP]
  • Fee Received by MasterCard from Indian Customers Taxable as ‘Royalty’ not FTS as per Indo-Singapore DTAA:The Authority of Advance Rulings, New Delhi in the application filed by the applicant Mastercard Asia Pacific Pte. Ltd. held that fees received by the services of MasterCard from Indian customers are taxable as “Royalty” and not “Fees from Technical Services”.
  • No disallowance for cash payments if transaction is genuine & identity of payee is knownby applying section 40A (3) of Income Tax Act, 1961. M/s A Daga Royal Arts vs. ITO (ITAT Jaipur)

INDIRECT TAX

  • E-way bill Mandatory wef 16.6.2018 for B2B Supplies of more than Rs 1 lakh in Delhi. Not required for B2C supplies. Notice 3/2018 of 15.6.2018.
  • Centre and the ‘concerned state’ will equally share the amount deposited by erring businesses in the consumer welfare fund set up as part of the GST anti-profiteering rules, as per a Finance Ministry notification.
  • The Central Government is all set to bring  35 amendments in the current GST laws including clarification for refunds, changes in the enabling provisions for reverse charge mechanism (RCM) and composition scheme and returns filing etc.
  • e-way bill – Where goods moved from a DTA unit to a SEZ unit or vice versa located in the same State, there is no requirement to generate an e-way bill, if the same has been exempted under rule 138(14)(d) of the CGST Rules – Cir.No.47/21/2018-GST, dt.08.06.18.
  • GST – e-way bill – transportation of goods by railways – the railways shall not deliver the goods unless the e-way bill is produced at the time of delivery – Cir.No.47/21/2018-GST, dt.08.06.18.
  • Services of short term accommodation, conferencing, banqueting etc., provided to a SEZ developer or a SEZ unit shall be treated as an inter-State supply – Cir.No.48/22/2018-GST, dt.14.06.18.

FAQ on E-WAY BILLS:

  • Query:If the vehicle, in which goods are being transported, having e-way bill is changed, then what is required to be done?
  • Answer:The e-way bill for transportation of goods should always have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods, due to trans-shipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the new vehicle number in Part B of the EWB.

MCA UPDATES

  • MCA has issued Notification regarding commencement of some of the provisions of the Companies Amendment Act, 2017. The Central Government has appointed 13th June, 2018 as the date on which the provisions of Section 90 (Register of Significant beneficial Owners in a Company); Section 93 [omitted] (Return to be filed with Registrar in case of promoter stake changes); Section 94 (Place of keeping and inspection of registers and returns etc.); Section 96 (Annual General Meeting) and Section 216 (Investigation of ownership of Company) of the Companies Act, 2013 shall come into force.

RBI UPDATES

  • The Reserve Bank of India (RBI) relaxed its April notification, which forbade FPIs from investing more than 20 per cent of their portfolios in bonds issued by a single corporate group.

OTHER UPDATES

  • Employers to whom both PF & ESI applicable can now use common ECR (Electronic Challan cum Return) for PF & ESI atshramsuvidha.gov.in.
  • CAs, lawyers and valuers now in the line of FIR for bank frauds- Lawyers, Chartered Accountants and valuers, who collude with fraudulent borrowers, will soon find their names in FIRs lodged by banks. The June 14 advisory was issued by PNB’s fraud risk management division following reports of borrowings against fake property title deeds, fictitious address proofs and sham income tax returns.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
  • DUE DATE FOR GSTR-3B -20.06.2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 18TH JUNE 2018

Image result for corporate and professionalDIRECT TAX

  • Cost Inflation Index for FY 2018-19 (AY 2019-20) notified as 280. Notification No.26/2018/F.No.370142/3/2018- TPL of 13.6.2018.

INDIRECT TAX

  • GST registrants can approach jurisdictional tax officer with valid documents to change the e-mail and mobile number recorded against their GST identification number (GSTIN).
  • Sale of pre-GST packaged goods has now been allowed with stickers of revised ratestill July 31. The deadline has been extended several time and the latest was April 30. 

FAQ on E-WAY BILLS:

  • Query:How to enter multiple modes of transportation, i.e., road, rail, ship, air for the same e-way bill?
  • Answer:.One e-way bill can go through multiple modes of transportation before reaching destination. As per the mode of transportation, the EWB can be updated with new mode of transportation by using ‘Update Vehicle Number’.

MCA Updates:

  • MCA has amend the Companies (Management and Administration) Rules, 2014.These rules may be called the Companies (Management and Administration) Second Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette
  • MCA has made the Companies (Significant Beneficial Owners) Rules, 20l8, which shall come into force on the date of their publication in the Official GazeIte.
  • MCA has amend the Companies (Registered Valuers and Valuation) Rules, 2017. These rules may be called the Companies (Registered Valuers and Valuation) Second Amendment Rules, 2018, which shall come into force on the date of their publication in the Official Gazette.
  • MCA has notified 5 Sections of companies Amendment Act, 2013.
  • The corporate affairs ministry wants all unlisted companies with paid-up capital of more than Rs 50 million to digitalize shares by June-end. Others can do so by September. The aim is to make transactions more transparent.

SEBI UPDATES

  • Sebi vides its notifications dated May 31, 2018, amended the provisions of Takeover Code, Issue of Capital and Disclosure Requirements (ICDR) Regulations, Delisting Regulations and Listing Obligations and Disclosure Requirements (LODR) Regulations to facilitate the resolution process under IBC.

OTHER UPDATES

  • ICAI has decided to obtain information from all the Members holding COP as on 01.04.2018 who presently have or at any time in the past seven financial years had networking relationship or affiliation by whatever name called with any entity.
  • ICAI Members/partners/firms who at present or any time in the past seven financial years had no networking arrangements or affiliation by whatever name called need not submit the information.
  • ICAI young members Committee will organize training programmers for 1000 interested members for developing their public speaking skills as Guest Speaker.Please click the link https://goo.gl/Jmd2xT to access the form. Last date 2nd July 2018. Phone: +91-11-30110431 ; Email: ymec@icai.in

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
  • DUE DATE FOR GSTR-3B -20.06.2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

Process of making change of email and mobile number of the authorized signatory in GST System

Image result for gst
Complaints were being received by GST Dept that the intermediaries who were authorized by them to apply for registration on their behalf had used their own email and mobile number during the process. They are now not sharing the user credentials with the taxpayer on whose behalf they had done the registration in the first place and because of this the taxpayers are facing a lot of problem.
With a view to address this difficulty of the taxpayer, a functionality to update email and mobile number of the authorized signatory is available in the GST System. The email and mobile number can be updated by the concerned Jurisdictional tax authority of the taxpayer as per the following procedure prescribed.
Govt. has prescribed the procedure for change of e-mail Id & mobile no. of authorized signatory with the assistance from the jurisdictional tax officer of the taxpayer.
Recently the govt has issued a press release on 14th June 2018 which contains the detailed procedure for the same. This procedure prescribed therein is as follows:
Steps to be followed:
  • Taxpayer is required to approach the concerned jurisdictional Tax Officer to get the password for the GSTIN allotted to the business.
  • Jurisdiction can be checked through search taxpayer option available on the website of GST Dept. Allotted jurisdiction is displayed in red text
  • Taxpayer would be required to provide valid documents to the tax officer as proof of his/her identity and to validate the business details related to his GSTIN.
  • Tax officer will check if the said person is added as a Stakeholder or Authorized Signatory for that GSTIN in the system.
  • Tax officer will upload necessary proof on the GST Portal in support to authenticate the activity.
  • Tax officer will enter the new email address and mobile phone number provided by the Taxpayer.
  • After upload of document, Tax officer will reset the password for the GSTIN in the system. Username and Temporary password reset will be communicated to the email address as entered by the Tax Officer.
  • Taxpayer need to login on GST Portal https://www.gst.gov.in/ using the First time login link.
  • After first time login with the Username and Temporary password that was emailed to him, system would prompt the taxpayer to change username and password. The said username and password can now be used by the taxpayer.
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)