CORPORATE AND PROFESSIONAL UPDATES 28TH FEB 2018

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  • 153A proceedings not restricted to those materials which were already available with dept. before search -Where pursuant to search and enquiry unaccounted consideration from purchaser had been unearthed, it could not be said that other material already available with Department had been relied upon in proceedings.Kerala HC- DR. A. V. Sreekumar v. CIT
  • No reassessment merely to investigate into accommodation entries without holding prima facie belief of escaped income- Reopening was not permissible merely to investigate facts (information about accommodation entry transactions availed by assessee) without holding prima facie belief based on relevant material towards escapement of income.ITAT Ahmdbd- Mrs. Sejal J. Panchal v. Income-tax Officer.
  • Mumbai ITAT allows set off of brought forward house property losses of AY 2009-10 and 2010-11 against income of relevant AY 2012-13 to assessee, holds Sec. 79 provisions inapplicable observing that 2 individual shareholders who became direct shareholders of assessee in AY 2012-13 (50% each) also beneficially held more than 51% of voting power through intermediate companies as at the end of previous year relevant to AY 2009-10 and 2010-11;[TS-82-ITAT-2018(Mum)]
  • ITAT Jaipur held that exemption u/s 54F cannot be denied merely for property purchase in wife name. Shri Vivek Jain Vs. DCIT (ITAT Jaipur)
  • CBDT set higher target for zones which are performing well. It said we are looking at better advance tax collection for January-March quarter. We will be able to achieve the landmark Rs 10 lakh crore targets.

Indirect Tax:

  • CESTAT Delhi held that without marketability excise duty not leviable on semi- finished Granules, Extracts and oils.  M/s The Himalaya Drug Co. Vs. CCE (CESTAT Delhi)

Gst updates

  • CBEC has introduced an alternative mechanism enabling the exporters to rectify the mistakes in cases where IGST refund is stuck due to invoice mismatch.
  • Online filing enabled at GST Portal, of Letter of Undertaking (LUT) GST RFD-11, to be filed in case of Exports without GST.
  • CBEC has sanctioned Rs 4,000 cr worth refunds to exporters since October. Still 10,000 crore worth claims are stuck due to discrepancies in the information furnished by exporters to GST Network (GSTN) in filing GSTR 1 or Table 6A or GSTR 3B and shipping bill filed with Customs.
  • issues directions on non-utilization of disputed credit & non-transition of blocked credit- Circular No. 33/07/2018-GST, 23rd Feb., 2018.
  • GST/Excise:Government has directed jurisdictional deputy commissioner to release security lying in form of bank fixed deposits proportionately as per the proportionate mega certificate issued by Ministry of Power for excise duty exemption. Circular No. 1064/03/2018-CX

MCA Update:

  • MCA specified that Chapter IX, Section 129 of Companies Act, 2013 Shall not apply to the companies engaged in defense production to the extent of application of relevant Accounting Standard on segment reporting. Dated 23rdFebruary 2018.
  • The Insolvency and Bankruptcy Board of India has issued a circular to designate the website ibbi.gov.inand details of the manner of publishing such Forms on the designated website.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:Defaulting companies and their disqualified directors who have not filed application before NCLT for revival, What is the remedy available?
  • Answer: such companies and disqualified directors shall not be eligible to avail benefits under this Scheme as the Scheme clearly lays down that only companies whose application of revival has been filed before NCLT u/s 252 can avail benefits of this Scheme, subject to favourable order from NCLT for revival. Hence, in order to avail benefit under this Scheme, first application has to be made to NCLT u/s 252 and favorable order for revival is also to be obtained during the validity of the Scheme and thereafter overdue documents to be filed within the prescribed time limit under the Scheme.

Other updates

  • EPFO raises minimum life insurance for EPF-covered employees to Rs 2.5 lakh w.e.f. Feb 15, 2018. EFPO Notification dated 15.02.2018.
  • Commerce and industry ministry has appointed four institutes, including IIFT and ICAI, to interact with stakeholders and suggest measures to push India’s ranking in World Bank’s ease of doing business index.

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)

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CORPORATE AND PROFESSIONAL UPDATES 27TH FEB 2018

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Direct Tax:

  • Mumbai ITAT allows set off of brought forward house property losses of AY 2009-10 and 2010-11 against income of relevant AY 2012-13 to assessee, holds Sec. 79 provisions inapplicable observing that 2 individual shareholders who became direct shareholders of assessee in AY 2012-13 (50% each) also beneficially held more than 51% of voting power through intermediate companies as at the end of previous year relevant to AY 2009-10 and 2010-11;[TS-82-ITAT-2018(Mum)]
  • ITAT Jaipur held that exemption u/s 54F cannot be denied merely for property purchase in wife name. Shri Vivek Jain Vs. DCIT (ITAT Jaipur)
  • ITAT (Mumbai) which allowed deduction u/s 80IC for A. Y. 2008-09 where the assessee company made the claim in a revised return of income filed u/s 139(5), filed tax audit report and the prescribed Form 10CCB in support of the claim.

Indirect Tax:

  • CESTAT Delhi held that without marketability excise duty not leviable on semi- finished Granules, Extracts and oils.  M/s The Himalaya Drug Co. Vs. CCE (CESTAT Delhi)

Gst updates

  • In GSTR-3B, reverse ITC for bills older than 180 days. For Feb return, reverse ITC for bills dt 31.8.17 or before. Pay interest @ 24% p.a.
  • In GSTR-1 GST must be exactly equal to Taxable Value X GST Rate rounded off to 2 decimals (for each invoice line item). Other rounding gives error.
  • GSTN has enabled online filing of letter of Undertaking LOU. Go to User Services and Select the Tab “Furnishing Letter of Undertaking.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:  Defaulting companies and their disqualified directors who have not filed application before NCLT for revival, What is the remedy available?
  • Answer: such companies and disqualified directors shall not be eligible to avail benefits under this Scheme as the Scheme clearly lays down that only companies whose application of revival has been filed before NCLT u/s 252 can avail benefits of this Scheme, subject to favourable order from NCLT for revival. Hence, in order to avail benefit under this Scheme, first application has to be made to NCLT u/s 252 and favorable order for revival is also to be obtained during the validity of the Scheme and thereafter overdue documents to be filed within the prescribed time limit under the Scheme.

MCA Update:

  • MCA specified that Chapter IX, Section 129 of Companies Act, 2013 Shall not apply to the companies engaged in defense production to the extent of application of relevant Accounting Standard on segment reporting. Dated 23rdFebruary 2018.

 Other updates

  • Discounts and Rebates would not form part of ‘Sale Price’: Supreme Court In the case of M/s. Universal Cylinders Limited v. Commercial Tax Officer.
  • UIDAI instructs Govt. departments & states not to refuse essential services like medical, school admission, ration through PDS etc for want of Aadhaar.

 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)

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CORPORATE AND PROFESSIONAL UPDATES 26TH FEB 2018

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Direct Tax:

Gujarat HC upholds ITAT order, confirms unexplained cash credit addition u/s 68 in case of assessee (an individual), with respect to receipt of unsecured loan despite confirmation from lender;  [TS-71-HC-2018(GUJ)]

Pune ITAT deletes Sec. 40(a)(i) disallowance for non-deduction of TDS u/s. 195 on payment of lease line charges by assessee (an Indian company) to its US parent, holds payment was not royalty under India-USA DTAA; [TS-70-ITAT-2018(PUN)]

Indirect Tax:

CBEC has issued directions under Section 168 of the CGST Act regarding non-transition of CENVAT credit under section 140 of CGST Act or non-utilization thereof in certain cases-reg. Vide Circular  No. 33/07/2018-GST, dated 23rd February 2018.

FAQ on Condonation of Delay Scheme (CODS):

Query:   Which companies cannot file overdue documents under CODS, 2018?

Answer:   Companies which have been struck off by ROCs or whose name have been removed from the Register of Companies u/s 248(5) of the Companies Act, 2013 by the ROCs shall not be eligible to file documents under this Scheme. Such companies can however, make application to NCLT for revival and upon successful order for revival avail benefits of this Scheme during the period of its validity only.

RBI Update:

The Reserve Bank of India (RBI) today launched the Ombudsman Scheme for Non-Banking Financial Companies (NBFC) vide Notification dated February 23,2018  for redressal of complaints against NBFCs registered with RBI under Section 45-IA of the RBI Act, 1934. Dated 23rd February 2018.

 Quotes of the day

“There are two primary choices in life; to accept conditions as they exist, or to accept the responsibility for changing them.”

 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)

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CORPORATE AND PROFESSIONAL UPDATES 24TH FEB 2018

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Direct Tax:

  • Profit from sale of land after dividing it into small plots not to be considered as business income-Where assessee sold its land held for more than 60 years in small plots as required by end users and sale consideration was not ploughed back in land, investment, gains on sale of these plots was to be treated as capital gains. ITAT Rajkot – ACIT Vs. Narendra J. Bhimani
  • Disallowance made erroneously in ITR owing to non-deduction of TDS could be raised before ITAT for first time-Where assessee erroneously made certain disallowance in its return on account of non-deduction of tax at source and same was not contested before Commissioner (Appeals), it was open for assessee to challenge said disallowances before Tribunal for first time.ITAT Kolkata- Allahabad Bank VS. DCIT
  • CBDT has notified ‘Maharashtra Electricity Regulatory Commission’ as statutory body exempted for the purpose of section 10(46) of the Income-tax Act, 1961.
  • CBDT has recently issued an explanatory note to the provisions of the Finance Act, 2017. The circular dated 15th February 2018 provides for a brief note on the amendments made in the year regarding the change in the Act, rate structure etc.
  • Tax payers have been provided with facility to give details of supplies made to merchant exports @ 0.1%, in all returns.
  • Delhi High Court in a recent judgment elaborates on deemed dividend and upholds Revenue’s contention that agreement to escape provisions of section 2(22)(e) of the Income Tax Act was camouflage.
  • Delhi ITAT  rules that income arising to assessee (a non-resident company) from supply of software embedded in the hardware to various customers in India, not royalty u/s. 9(1)(vi) of the Act for AYs 2002-03 to 2006-07; [TS-75-ITAT-2018(DEL)]
  • Pune ITAT deletes Sec. 40(a)(i) disallowance for non-deduction of TDS u/s. 195 on payment of lease line charges by assessee (an Indian company) to its US parent, holds payment was not royalty under India-USA DTAA; [TS-70-ITAT-2018(PUN)]
  • Mumbai ITAT allows deduction u/s. 80IC to assessee-company (engaged in software/hardware business) for AY 2008-09, holds that since assessee claimed Sec.80IC deduction in duly filed revised return u/s 139(5) and filed tax audit report along with prescribed Form no. 10CCB,“there was a sufficient compliance for claiming deduction”; [TS-67-ITAT-2018(Mum)]

GST Updates:

  • GST/Excise & Customs : Process of compressing Natural gas to CNG didn’t amount to manufacture; no duty was payable- Where assessee had compressed natural gas in its factory and cleared same, i.e., CNG, to premises of its customers, wherein CNG was subjected to decompression to make Natural Gas which was sold by assessee to customers, process undertaken by assessee in compressing natural gas to CNG did not amount to manufacture. CESTAT Kolkata –CCE Vs. Great Eastern Energy Corpn. Ltd
  • GSTN has added a new functionality at GST Portal which can help taxpayers search result of last ten returns transactions
  • Government is deliberating on three models to replace existing GST return filing process which includes GSTR-3B, GSTR-1, GSTR-2 & GSTR-3.
  • GSTN has added a field in Table 6A of GSTR-1 to enter Cess paid on exports.
  • In GSTR-1 & GSTR-5, on addition of records (Invoices/Debit Notes/Credit Notes, an option has been provided to taxpayer to select a lower tax rate for motor vehicle leasing businesses, as per Notification No 37/2017-Central Tax (Rate), dated 13-10-2017
  • The Karnataka High court has allowed input tax credit of sales tax paid on cement purchased used for laying for foundation and erection of plant and machinery is allowable. JK Cements Vs 2017 (7) GSTL 408.
  • The Madras High Court has allowed of cash refund of unutilized Cenvat amount which is due to fact that final product not being excisable. KG Denim Ltd Vs CCE 2017 (7) GSTL 422.

SEBI UPDATES

  • SEBI is planning checks and balances on overseas investors taking the ‘private bank route’ to invest in domestic markets. The move comes after several industry players expressed concerns that the new route allowed by the SEBI could be misused by investors, such as participatory notes (p-notes).

MCA UPDATES

  • Issue of notice is mandatory for the Adjudicatory Authority before admitting application ex parte. GEO Metal Resources (P.) ltd. Vs ABW Infrastructure ltd. [2018] 142 CLA 195 (NCLT) New Delhi (Special Bench) CP No. (IB)-359(ND)/2017.
  • MCA has notified new order which is called as “The Companies (Removal of Difficulties) Order, 2018, which provides that the independent Director re-appointed for second term shall be removed only by passing Special Resolution and after giving the opportunity of being heard. Dated 21st February 2018.

OTHER UPDATES

  • Employees’ Provident Fund Organization has reduced interest rate on deposits to 8.55% for 2017-18. It was 8.65% for 2016-17 and 8.8% in 2015-16.
  • Extension of the last date for submission of examination application forms in respect of Special Examination for members of foreign accounting bodies held under MRA/MOU entered into by ICAI with the foreign accounting bodies.

FAQ on Condonation of Delay Scheme (CODS):

  • Query: What should be the filing window for e-Form CODS 2018 under the Scheme? OR Upto what date e-Form CODS 2018 can be filed?
  • Answer: The e-Form CODS 2018 shall be available for filing from February 20, 2018. The Scheme does not mention any sunset date upto which the e-Form CODS 2018 can be filed. But in our view, from the collective reading of the provisions in the Scheme, the same shall have to be filed within the validity period of the Scheme itself i.e. upto March 31, 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)

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Everything You Need to Know About SIDBI Loan Schemes

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SIDBI has proved to be a great support system for all kinds of small businesses in India. This is because they create a series of equity and loan schemes for MSME sector to sanction their growth. In the following article, we will observe some famous SIDBI schemes like- SME IT loans, vendor development, marketing assistance, international finance, for women entrepreneurs and risk capitals as well. It is owing to these schemes only that SIDBI has gained such a good place in the market.

Marketing Assistance Scheme

The loan provided by SIDBI is usually not below Rs. 10 lakhs, if one wants to directly obtain it form SIDBI branch. The loan is mainly offered to MSEs so that they can do a proper marketing for their products. Also, the ratio of debt-equity is normally not more than 2:1.

SME IT Loans

In order to help the SMEs set-up, a good IT sector in their business, SIDBI,and well known IT Company Intel have come together and launched an extremely successful venture. This is supposed to help SMEs to have a smooth access to finance and technology to implement a better and revised technology. This is because one can get aloan for hardware, software, their installation,and services.  Interest charged on the finance of 5 lakhs to 25 lakh is 11.5% p.a on a diminishing balance basis. This helps in technical growth of SMEs.

Vendor Development Scheme

This scheme proves to be a bliss for merchants of OEMs and other large corporates as well. This merchantis basically part of SMEs belonging to various sectors such as service or industrial sector. SIDBI extends its assistance to these OEM merchants and corporates so that they can expand and modernize their business. In order to make this scheme more successful and helpful, SIDBI has signed a MoU with large corporates of the country, PSUs,and other big MNCs so that a good SME vendor base can be made available.

Through Bill Discounting Scheme, timely payments to various units are assured. Under this scheme, various kind software finance is made available to purchasers and sellers of machinery, components,and parts which constitute an important part of construction and transportation sector of any business.

Refinance Through Banks and SFCs

This scheme of Refinance is made available via State Finance Corporations, various banks, for creating small but new scale units which would be helpful for SMEs to expand, modernize, and diversify their business. Service sector usually is comprised of various professional practices, tourism, hospitals or nursing homes, hotels, restaurants etc. SIDBI tends to offer long-term credit, State level Industrial development Institutions, for loans that are provided by MSMEs. But, there is a catch here- the total budget of the project which should come under Refinance Assistance with respect to service sector units should not exceed the amount of 20 crores. This is the reason as to why project cost limit is lower for SFCs.

International Finance

There a number of schemes which are covered under this department:

  • Pre-eminent credit

This scheme is anoffer to various SMEs in adifferent currency – which may be USD, Euro, or in rupees. The margin provided amounts to a minimum value of 10% and themaximum value of 25%. The period for credit is of 180-190 days. The rate of interest is very less- 0.75% charged half yearly.

  • The foreign currency term plans

This assistance is basically given to SMEs so that they can set up new projects and expand their business in the marketplace. This can also be used to renew their technology schemes of the business. In fact, one can repay this amount back in about amaximum period of five years. The interest charged under this scheme is 4%.

  • Post-shipment Credit

This credit is offered in foreign currency only for SME units or trading section so that they can source their SMEs. Finance is mainly given to those SMEs where sourcing requirements are up to Rs 1 crore. The rat rod interest charged for this scheme is also 0.75%. The credit also follows all the guidelines of RBI.

Marketing Fund for Women

SIDBI realized the role of women in every field. So, it provides aid to young, aspiring women entrepreneurs and organizations who are mainly involved in the marketing sector. This helps these women entrepreneurs to expand their reach, in every kind of market and enables them to fight every odd. Under this scheme, finance is provided to NGOs, co-operatives, etc who need financial support for services like trade, internet, advertising, marketing research etc.

Rishi Capitals to MSMEs

Under this, SIDBI has launched a scheme – “SIDBI foundation for Risk Capital for MSMEs”. Various new products and mechanism are created under this project in order to provide risk capital to MSMEs for varied industry units. Also, apart from a direct financial help provided by SIDBI, different delivery routes like VC Funds, small banks etc also help to supply risk capital to MSMEs. This becomes important as no one can envision future risks and issue which might occur with any business, you can only focus on giving your best.

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.

We at Consultant help you to secure your Trademark before someone else takes that opportunity away from you. To know more about the Trademark Registration process you can contact. 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 09811322784 9555 5555 480)

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CORPORATE AND PROFESSIONAL UPDATES 23RD FEB 2018

Image result for corporate and professional updatesDirect Tax:

  • A non-resident company, supplied billing software to ‘Reliance’ for purpose of billing their customers, in view of fact that assessee exclusively owned all Intellectual Property Right (IPR) in software and it had merely granted a copyrighted article to Reliance and not ‘copyright’ in article, payment received by assessee was not liable to tax in India as royalty. Mumbai ITAT -Intec Billing Ireland V. Assistant Director of Income Tax (International Taxation).
  • Karnataka HC quashed writ challenging ITAT’s order granting stay of demand during pendency of appeal. Karnataka HC- ACIT v. Epson India (P.) Ltd
  • Cash discountgiven by assessee to its customers for purchasing goods in bulk quantity was in nature of discount in transaction of sale and, therefore, section 194H had no application to said transaction. ITAT Kolkata- EPCOS India (P.) Ltd. v. Income-tax Officer
  • The Central Board of Direct Taxes (CBDT) has notified ‘Maharashtra Electricity Regulatory Commission’ as statutory body exempted for the purpose of section 10(46) of the Income-tax Act, 1961.
  • Depreciation not to be denied in hands of amalgated company even if assets transferred in amalgamation were non-functional. ITAT Kolkata-Hindustan Engineering & Industries Ltd. v. DCIT
  • Mumbai High Court rejected the arguments of the Revenue that on initiation of proceedings under section 153A of the Act, the reassessment final for assessment years covered under section 153A of the Act stands abated. Only the pending assessments get revived under section 153A of the Act.Jawahar B. Purohit Vs. Asst. CIT & Ors. (ITAT Mumbai)
  • ITAT Pune held that the assessee has complied with all the conditions for claiming the exemption under section 54B of the Act in the assessment year under appeal. Accordingly, the impugned order is set aside and the appeal of the assessee is allowed. Majid Khan Nisar Khan Vs ITO (ITAT Pune)
  • TDS @ 20% for Non PAN Foreign Assessees. Delhi High Court Reads down Stating Treaty Supremacy.

GST Updates:

  • GST/VAT : Where assessee claimed input tax credit against output tax liability, such claim could not be denied only because it was made in respect of sale invoices which were not pertaining to same tax period, nor it could be denied on ground that such claim was not made immediately in month or months following month of purchase of goods. Karnataka HC-  Kirloskar Electric Co. Ltd.v. State of Karnataka. 
  • Service station wasn’t required to pay ST on amount  received from ‘Maruti’ for providing free vehicle services. CESTAT, ALLAHABAD – Pandit Automobiles v. CCE
  • Filing GSTR-3B is now made more Users friendly -EVC facility starts for pvt ltd. fill either CGST or SGST/UGST amount, other tax will get auto filled.
  • GST/Service Tax: In a ruling in favor of the construction industry, a two-judge bench of the Supreme Court, held thatservice tax cannot be levied on the value of goods/material supplied free of cost by a service recipient during construction. SC-Commissioner Of Service Tax Vs. M/s. Bhayana Builders (P) Ltd. 

FAQ on Condonation of Delay Scheme (CODS):

  • Query:    What is the procedure to avail benefits of CODS scheme?
  • Answer:  There is no separate application required to be filed for availing benefits under this Scheme. The defaulting companies shall straight away proceed to upload their overdue documents with the DIN of the disqualified directors as the same shall be temporarily activated under this Scheme pursuant to Para 4 of the Scheme which lays down the procedure for the purpose of this Scheme. According to Para 4, the DIN of the disqualified directors associated with such defaulting companies shall be temporarily activated for the validity period of this Scheme to enable them filing of the overdue documents.

SEBI UPDATES

  • SEBI Circular dated 15thFebruary, 2018 which provides for compensation to retail individual investors in IPO where they have failed to get allotment due to bank’s fault.

MCA UPDATES

  • No change in Bank Auditors appointment Policy for March 2018. Auditors of the subsidiaries of State Bank of India shall be shifted to SBI for their residual period. 
  • Where there is an existing dispute between the parties relating to invoices sent for the services rendered, that would disentitle the petitioner to an order of admission. NR Switch N Radio Services (P.) LTD. Vs ZTE Telecom INDIA (P.) ltd. (NCLT) Chandigarh Bench. 11th October 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.

We at Consultant help you to secure your Trademark before someone else takes that opportunity away from you. To know more about the Trademark Registration process you can contact. 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 09811322784 9555 5555 480) 

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DEDUCTIONS UNDER SECTION 80CCD OF INCOME TAX ACT

Image result for DEDUCTIONIncome Tax Act, 1961 provides various tax deductions under Chapter VI-A for contribution to pension plans. Such deductions are available u/s 80C, 80CCC and 80CCD. This guide talks about section 80CCD.

This section provides tax deductions for contribution to the pension schemes notified by Central Government, i.e., National Pension Scheme (NPS) & Atal Pension Yojana (APY). There are two parts or sub-sections of this section namely – section 80CCD(1) & section 80CCD(2).

Section 80CCD(1)

This part applies to all the individual tax payers who are employed by the Central Government/any other employer or any other individual assessee. All citizens of India between the ages of 18 and 60 years can contribute to NPS on a voluntary basis. An NRI can also contribute to NPS. This Scheme can be participated in addition to PPF and EPF.

Under this section, maximum deduction allowed is:

  • up to 10% of salary for salaried employee
  • and 10% of gross income for other taxpayer who is not under salaried employment

Part (1B) provides additional deduction of Rs. 50,000 for contribution made by an assessee under NPS.

Note: The maximum deduction as an aggregate of section 80C,80CCC & 80CCD(1) should not exceed Rs. 1,50,000 but after including section 80 CCD(1B), total deduction limit becomes Rs. 2,00,000.

Here salary means (basic pay + dearness allowance)

Section 80CCD(2):

Deduction is also allowed to an employee if his employer makes contribution to employee’s account in the pension scheme of Central Government. The deduction allowed here for employer’s contribution is up to 10% of the salary of the individual.

Taxability of amount received back from the National Pension Scheme & Atal Pension Yojana

40% of the payment received from the National Pension System Trust to an employee on closure of his account or on his opting out of the pension scheme referred to in section 80CCD shall be exempt u/s 10(12A).

Balance 60% will be taxable, but if the same is used for purchase an annuity plan, then it shall not be considered as income of individual at the time of closure of the account.

Further the periodic pension/annuity received from such annuity plan will be includible in the taxable income in the year of receipt and taxable accordingly. So in a sense by purchasing an annuity plan one can defer the tax liability or avoid/reduce the tax if he is not expected to have significant taxable income post retirement in future.

In case of death of account holder, the amount received by nominee of departed on closure of account is exempt from tax.

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.

We at Consultant help you to secure your Trademark before someone else takes that opportunity away from you. To know more about the Trademark Registration process you can contact. 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 09811322784 9555 5555 480)

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AUDIT UNDER GST ACT 2017

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Under GST Audit would be done in Two Ways:
Section 65 (compulsory audit by tax authorities)
Section 66 (special audit by chartered accountant or cost accountant)

What is an Audit?

As per Section 2(13) of CGST Act, 2017’audit’ means the examination of records and other documents maintained or furnished by the registered person under this Act or rules made there under or under any other law for the time being in force to verify the

  • correctness of turnover declared,
  • taxes paid,
  • refund claimed and
  • input tax credit availed and
  • to assess his compliance with the provisions of this Act or the rules made there under.

Compulsorily Audit

Compulsorily Audit [Section 35(5) of the CGST Act, 2017 read with rule 80(3) of the CGST Rules, 2017] Section 35(5) of CGST Act 2017: Every registered person whose turnover during a financial year exceeds the prescribed limit (2 crore) shall get his accounts audited by a Chartered Accountant or a Cost Accountant and shall submit

 a copy of the audited annual accounts,

 the reconciliation statement under sub-section (2) of section 44 and

such other documents in such form and manner as may be prescribed.

Reconciliation statement

Reconciliation statement reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement and such other particulars as may be prescribed.

requirement of audit

As per Rule 80(3) of the CGST Rules, 2017,every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs 2 crores during the financial year.

 Section 65 of CGST Act 2017 Audit by Tax Authorities:

The commissioner or any officer authorized by him by way of a general or specific order, may undertake audit of any registered person for such period at such frequency and in such manner as may be prescribed.

The officers referred to in sub-section (1) may conduct audit at the place of business of the registered person or in their office.

The registered person shall be informed by way of a notice not less than fifteen working (15) days prior to the conduct of audit in such manner as may be prescribed.

The audit under sub-section (1) shall be completed within a period of three months (3) from the date of commencement of the audit.

Provided that where the Commissioner is satisfied that audit in respect of such registered person cannot be completed within three months, he may, for the reasons to be recorded in writing, extend the period by a further period not exceeding six (6) months.

Commencement of Audit means the date on which the records and other documents called by the tax authorities are made available by the registered person or the actual institution of audit at the place of business, whichever is later.

During audit, the authorized officer may require the registered person:-

to afford him the necessary facility to verify the books of account or other documents as he may require

to furnish such information as he may require and render assistance for timely completion of the audit.

On conclusion of audit, the proper officer shall, within 30 days inform the registered person whose records are audited about the findings his rights and obligations and the reasons for such findings.

Where the audit conducted under sub section 1 results in deduction of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized the proper officer may initiate action under section 73 or section 74.

Section 73 of CGST Act 2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppression of facts.

Section 74 of CGST Act 2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts.

Section 66 of CGST Act 2017 Audit of Special Audit:

If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner.

The chartered accountant or cost accountant so nominated shall, within the period of ninety (90) days, submit a report of such audit duly signed and certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified.

Provided that the Assistant Commissioner may, on an application made to him in this behalf by the registered person or the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by a further period of ninety (90) days.

The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the registered person have been audited under any other provisions of this Act or any other law for the time being in force.

opportunity of being heard

The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit under sub-section (1) which is proposed  to be used in any proceedings against him under this Act or the rules made there under.

The expenses of the examination and audit of records under sub-section (1), including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner and such determination shall be final.

Where the special audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilized, the proper officer may initiate action under section 73 or section 74.

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.

We at Consultant help you to secure your Trademark before someone else takes that opportunity away from you. To know more about the Trademark Registration process you can contact. 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 09811322784 9555 5555 480)

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WHY TRADEMARK REGISTRATION???

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A Trademark is one of the most important business asset you’ll ever own. It distinguishes your company and its products in the marketplace.
The marketplace is crowded and it’s hard to distinguish your business from your competitors.Trademarks/brands are an efficient commercial communication tool to capture customer attention and make your business, products and services stand out.
While it is not required by law, it is a good idea to register the name of your business as a trademark. In the event that another business tries to use the same or similar name, you will have legal recourse to stop it. A trademarked name marks all of your products and services as yours and no one else’s and can also protect you from counterfeit products. Here are the seven top reasons of why trademarks are important to your business.

  • Trademarks are an effective communication tool.
  • Trademarks make it easy for customers to find you.
  • Trademarks allow businesses to effectively utilize the Internet and social media.
  • Trademarks are a valuable asset.
  • Trademarks can make hiring easier.
  • Trademarks are a bargain to obtain.
  • Trademarks never expire.

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.

We at Consultant help you to secure your Trademark before someone else takes that opportunity away from you. To know more about the Trademark Registration process you can contact. 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 09811322784 9555 5555 480)

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CORPORATE AND PROFESSIONAL UPDATES 21ST FEB 2018

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Direct Tax:

  • Delhi High Court has refuses to set aside re-assessment notice U/s. 147/148 issued by Income Tax Department to the partnership firm  Sky Light Hospitality, in which Robert Vadra is a partner, in connection with the DLF- Sky Light Hospitality land deal. SKY Light Hospital LLp Vs Assistant Commissioner of Income Tax (Delhi High Court)
  • Mumbai ITAT denies carry forward of losses for AYs 2007-08 to 2010-11 applying provisions of Sec. 79 in case of assessee (which is a subsidiary of HDFC Ltd., a public company) however, allows set off and carry forward of losses of AY 2011-12 in subject AY 2012-13 absent change in 51% shareholding. [TS-66-ITAT-2018(Mum)]
  • Karnataka HC dismisses Google India’s plea for absolute stay of ITAT order holding Adwords Program payment as royalty; Accepts Revenue’s stand that “the appellant is seeking to obtain stay of liability in proceedings under Section 143(3) of the Act in this indirect manner.”
  • ITAT Jaipur held that merely because the matter was referred for special audit and the assessing officer has made certain additions based on the observations of the special auditor, it cannot be held that the assessing officer has rejected the books of account of the assessee. There has to be a specific finding given by the assessing officer in terms of satisfaction of any or all of the conditions as specified under section 145(3) before he rejects the books of accounts of the assessee. Further, the assessing officer has to specifthe reasons as to why he feels that the results declared by the assessee as per the books of accounts are not acceptable. {ITO Vs. Babu Lal Somani (ITAT Jaipur)}
  • ITAT Jaipur held that Brokerage and commission income earned by assessee engaged in the field of real estate was to be taxed as business income and not as income from other sources. Further held that assessee cannot be taxed for money received as power of attorney of land owner. {Gyan Chand Agarwal Vs Addl. CIT (ITAT Jaipur)}
  • Notices for  Prosecution u/s 276CC of Income Tax Act for AY 2015-16  have started coming for late filing of IT Return (filed after assessment year) where tax due after advance tax & TDS exceeded Rs. 3000/-.
  • Supreme Court in the case of Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd vs. CIT held that The CIT has no power to cancel/withdraw/recall the registration certificate granted u/s 12A until express power to do so was granted by s. 12AA(3).

GST Updates:

  • A petition has been filed before the Bombay High Court against the central Government seeking a direction from the Court to file a criminal complaint about tampering of the status of Petitioner’s GST TRAN-1 Form online against GSTN.
  • GST/VAT- Work over operations in oil wells not liable to VAT in absence of transfer of right to use work over rigs: Delhi High Court- Deep Industries Ltd. v. State of Gujarat.

MCA Updates:

  • Form DIR-3, SPICe, DPT-3, MGT-6, MGT-15, MGT-14, ADT-1, ADT-2, SH-7 and URC-1 are revised on MCA21 Company Forms w.e.f 17th FEB -2018.
  • Bankruptcy provisions for individuals and proprietorship firms, among others, under the Insolvency and Bankruptcy Code (IBC), are unlikely to be put into effect anytime soon due to a heavy workload on DRT.

FAQ on Condonation of Delay Scheme (CODS):

  • Query: Is any relaxation from prosecution has been provided to defaulting companies under CODS, 2018.
  • Answer:In this scheme a relaxation from prosecution is providing which is vide Para 6 against matters related to filing of the overdue documents only. Under the provision of law provided that the other acts of default under any other provisions shall equally be liable to action.
  • Query: What will be the status of pending proceedings/prosecution post registering into the CODS scheme?
  • Answer: The pending prosecution proceedings w.r.t. the overdue documents shall be withdrawn by the ROCs as stated in Para 6. The applicants availing the benefits of the Scheme shall also withdraw their application from all forums w.r.t. the overdue documents and other non-compliances under the Act. Proof of withdrawal of such applications must be attached in e-Form CODS 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.comor call at 09811322785/4 9555 5555 480)

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