Corporate & Professional updates 31st March 2018

Image result for corporate and professionalDirect Tax:

  • Chandigarh ITAT allows Sec. 80IC deduction to assessee-company (running a hotel in Himachal Pradesh under the Eco-tourism project) for AY 2007-08 on account of ‘substantial expansion’ in building, furniture and fixtures; Rejects Revenue’s stand that the expansion in building, furniture and fixtures cannot constitute an investment in plant and machinery for the purpose of reckoning ‘substantial’ expansion’ u/s. 80IC. [TS-145-ITAT-2018(CHANDI)]
  • ITAT holds that TP-adjustment towards notional interest on outstanding AE receivable is required to be made for AY 2004-05, notes that credit period extended to AE was higher than credit period extended to non-AEs; Assessee had argued that it did not charge interest to AE as well as non-AE for delayed payments; However, ITAT rejects interest rate of 6.75% applied by TPO based on cost of capital, directs that adjustment should be made using interest rate for export packing credit of 1.92%.   [TS-199-ITAT-2018(Mum)-TP]
  • ITAT Kolkata holds that “Initial Intention” of the assessee to decide whether an activity amounts to ‘Trading activity’ or ‘Investment activity’. [I.T.O Vs. M/s Nupur Carpets Pvt. Ltd. (ITAT Kolkata)]

INDIRECT TAX

  • 31-3-18 (Saturday) is LAST DATE for eligible assessees to opt for Composition Scheme by filing intimation in Form GST CMP-02 for FY 2018-19.
  • The Central Board of Excise and Customs (CBEC) extended the time limit for filing of GSTR-1 for both entities who have turnover up to 1.5 crores and more than 1.5 crore.
  • Exporters of goods or services or both are hereby informed that they are required to furnish Letter of Undertaking for Financial Year 2018-19 prior to starting issuing export invoices if they opt to export the goods or services or both without payment of tax.

RBI updates

  • RBI rolled out the regulations to allow cross-border mergers and amalgamation that could boost foreign direct investment into the country. The Foreign Exchange Management (Cross Border Merger) Regulations, 2018, will cover both inbound and outbound investments.

SEBI updates

  • SEBI approved changes proposed by the Uday Kotak panel on improving corporate governance standards such as splitting the post of chairman and managing director, tighter rules for independent directors, enhanced disclosure of related-party transactions and mandatory secretarial audits for listed entities & their subsidiaries.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:   Are foreign companies eligible to seek condonation under this Scheme?
  • Answer: Foreign company has been defined in Section 2(42) as “Foreign Company” means any company or body corporate incorporated outside India which,—
  • has a place of business in India whether by itself or through an agent, physically or through electronic mode; and
  • conducts any business activity in India in any other manner.
  • In our view, since the above definition covers any company incorporated outside India whereas the Scheme covers only company under this Act or any previous company law, the provisions of this Scheme shall not be applicable to foreign companies.

Key Dates:

  • Filing of ITR for AY 2017-18: 31.03.2018
  • Filing of ITR for AY 2016-17: 31.03.2018
  • Filing of GSTR-6 for july 2017-feb-2018 :31.03.2018
  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018
  • Filing of GSTR-1 for feb 2018(turnover more than Rs1.50 cr):10.04.2018

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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corporate and professional updates 30th march 2018

Image result for corporate and professionalDirect Tax:

  • Mumbai ITAT rules that non-compete fees paid by SOTC Travel Services Pvt  Ltd. (assessee)  during AY 2002-03 to Director/employee of another travel company for not doing similar business for 5 years, not capital expenditure, allows deduction u/s. 37; [TS-143-ITAT-2018(Mum)]
  • Delhi ITAT rejects PE-constitution in India for Samsung Electronics (a Korean company- assessee) through the seconded expatriate employees operating from the premises of Samsung India (assessee’s subsidiary) for AYs 2004-05 to 2009-10; [TS-142-ITAT-2018( DEL)]
  • Income tax offices and Ayakar Seva Kendras (ASKs) will remain open during holidays from March 29 to 31 to facilitate filing of returns by taxpayers before the end of the current financial year.
  • 31-03-18 is last day for filing of ITR 1 to 7 for AY 2017-18 (Note change in law. ITR cannot be filed later) and for AY 2016-17 with penalty of Rs. 5,000

 Indirect Tax:

  • CBEC has made amendment by way of notification no No.69/2011-Customs, dated the 29thJuly, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 593 (E), dated the 29th July, 2011.
  • CBEC extended the time limit for filing GSTR-1 for turnover above 1.5 crores for the months
    • Apr 18 – 31st may 18
    • May 18 – 10th June 18
    • June 18 – 10th July 18
    • For turnover below 1.5 crores, for the quarter Apr to June 18 to 31st July 18 Vide notification no 17/2018 and 18/2018 dated 28/3/18
  • TRANS-2 date extended from 31st march 18 to 30th June 18 due to technical glitches vide order no 1/2018 dated 28/3/18
  • Circular 38/12/2018 dt 26.3.18 clarifies job work issues. Reverse charge provisions in case of supplies from unregistered persons deferred-30.6.2018
  • Finance Ministry has simplified and reduced the number of columns in the complaint form to make it easier for consumers to report any profiteering activity by businesses post GST rollout

RBI Update:

  • The Reserve Bank of India has communicated that the applicable average base rate to be charged by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning April 01, 2018 will be 8.99 per cent. Vide press release 2017-2018/2580, dated 28th March 2018.

 SEBI updates

  • Kotak Committee on 5th Oct., 2017 has submitted to SEBI that “Secretarial Audit” to be mandatory for material unlisted subsidiaries of listed companies under SEBI LODR Regulation.
  • SEBI New penalty provisions are proposed to be inserted into the SCRA, the SEBI Act and the Depositories Act in cases where market intermediaries fail to conduct their business in accordance with prescribed rules or regulations.

FAQ on Condonation of Delay Scheme (CODS):

  • Query: Implication of Non Compliance of this scheme?
  • Answer: The DINs of the Directors associated with the defaulting companies that have not filed their overdue documents and the eform CODS, and these are not taken on record in the MCA21 registry and are still found to be disqualified on the conclusion of the scheme in terms of section 164(2)(a) r/w 167(1)(a) of the Act shall be liable to be deactivated on expiry of the scheme period

  Key Dates:

  • Filing of ITR for AY 2017-18: 31.03.2018
  • Filing of ITR for AY 2016-17 with penalty of Rs. 5000: 31.03.2018
  • Filing of GSTR-6 for july 2017-feb-2018 :31.03.2018
  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018
  • Filing of GSTR-1 for feb 2018(turnover more than Rs1.50 cr):10.04.2018

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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Corporate and Professional Updates 29th March 2018

Image result for corporate and professionalDirect Tax:

  • Mumbai ITAT upholds Sec.69A addition in the hands of individual-assessee (non-resident) towards Rs. 2.85 Cr claimed to be received from US based TV production company for AY 2005-06 citing assessee’s failure to prove creditworthiness of US company; [TS-135-ITAI-2018(Mum)]
  • Delhi ITAT holds the profit arising on sale of shares (i.e. penny stock in  present case) taxable as business income for AY 2011-12, and not short term capital gains (‘STCG’) in hands of assessee-individual; [TS-141- ITAT-2018(DEL)]
  • Uttarakhand HC upholds ITAT order, accepts Indian Oil Corporation’s (‘assessee’) plea that  payment made to the carrier under the contracts for transporting the petroleum products shall be subject to TDS u/s. 194C and not u/s. 194I ; [TS-140-HC-2018(UTT)]
  • CBDT extended deadline for PAN-Aadhaar linking from 31 March to June 30-2018. https://www.moneycontrol.com/ news/india/pan-aadhaar- linking-deadline-extended-to- june-30-cbdt-2537831.htmlCBDT issues clarification regarding requirement for furnishing of country by country report under section 286(4) of IT Act, 1961.

Indirect Tax

  • CBEC has issued Clarification on issues related to Job Work. Vide Circular No.38/12/2018, dated 26th March 2018.
  • CBEC has issued a notification that the return in FORM GSTR-3B for the month of April, May, and June, 2018 shall be furnished electronically through the common portal, on or before 20th May, 20th June & 20th July, 2018 respectively.

RBI Update:

  • RBI has issued notification regarding Annual Closing of Government Accounts – Transactions of Central / State Governments – Special Measures for the Current Financial Year (2017-18). Vide notification no RBI/2017-18/144, dated 27th March 2018.

Icai updates

  • ICAI has formed a special group to interact with the Government on day-to-day basis for the formation of National Financial Reporting Authority (NFRA) Rules.
  • ICAI has decided to give an opportunity by way of Scheme for restoration of their members names retrospectively upto 31 March, 2018

Other updates

  • RERA has made it compulsory for developers to get title insurance for all projects, opening a new segment of over Rs 10,000 crore for insurance companies.
  • A high-level panel set up to review the Insolvency and Bankruptcy Code (IBC) is likely to have recommended against extending a 270-day moratorium for restructuring a company after its case is admitted by the NCLT

FAQ on Condonation of Delay Scheme (CODS):

  • Query:Disqualification of directors of Companies which have been struck off can be removed?
  • Answer: In the event of defaulting companies whose names have been removed from the register of companies under section 248 of the Act and which have filed applications for revival under section 252 of the Act up to the date of this scheme, the Director’s DIN shall be re-activated only NCLT order of revival subject to the company having filing of all overdue documents.

Key Dates:

  • Filing of ITR for AY 2017-18: 31.03.2018
  • Filing of ITR for AY 2016-17 with penalty of Rs. 5000: 31.03.2018
  • Filing of GSTR-6 for july 2017-feb-2018 :31.03.2018
  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018
  • Filing of GSTR-1 for feb 2018(turnover more than Rs1.50 cr):10.04.2018

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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corporate and professional updates 28th march 2018

Image result for corporate and professional updatesDirect Tax:

  • Kerala HC reverses ITAT order, upholds re-assessment initiated (beyond 4 years) for AY 1994-95 on Tata Ceramics  Ltd. (‘assessee’, which did not commence production in subject AY), due to assessee’s failure to disclose the entire interest income from Bank deposits in its return of income; [TS-138-HC-2018(KER)]
  • SC dismisses CBDT’s SLP against Meghalaya HC ruling allowing Sec. 244A interest on TDS refund  to assessee-deductee (a co-operative bank) for AYs 2000-01 to 2003-04; [TS-127-SC-2018]
  • Mumbai  ITAT deletes penalty imposed u/s 221(1) r.w.s. 140A(3) (for failure to pay self-assessment tax [‘SA tax’] within the stipulated time) for AY 2009-10, holds that amended Sec. 140A(3) does not envisage any penalty for non-payment of self-assessment tax; [TS-139-ITAT-2018(Mum)]
  • 31-03-18 is last day for filing of ITR 1 to 7 for Financial Year 2016-17 (Note- change in law  ITR cannot be filed later) and for Financial Year 2015-16 with penalty

 Indirect Tax

  • CBEC has made amendment in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Third Amendment) Rules, 2018 which shall come into force on the date of their publication in the Official Gazette. Vide notification no14/2018 – Central Tax, dated 23rd March 2018.
  • 31-03-18 is last date to file GSTR-6 (return by an input service distributor) for the month of July, 2017 to February, 2018.
  • Businesses having zero tax liability for six consecutive months under GST may soon get relief once the proposal to allow such entities to file returns only twice a year gets the GST Council’s nod.
  • CBEC prescribes due dates for filing GSTR-3B for April to June Notification March 23, 2018.

MCA updates

  • Delhi High Court allows Manual Filing of Returns by Disqualified Directors under Condonation of Delay Scheme ( COD Scheme ) manually instead of online.
  • MCA has notified the Companies (Incorporation) Second Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette i.e 23-03-2018.

SEBI updates

  • SEBI has completed the investigation against 20 brokers, who allegedly gained unfair access to NSE’s trading facility and colocation (colo) controversy

Other updates

  • UIDAI introduces face authentication as means of verifying Aadhar users alongwith iris or fingerprint scan w.e.f. 01.07.2018. PTI.
  • ICAI given an opportunity to get name restored with retrospective effect. The benefit of the scheme may be availed by submitting the prescribed application in Form 9 on or before 31st March, 2018 in order to be eligible for inclusion of name in the List of Voters as on 1st April 2018

FAQ on Condonation of Delay Scheme (CODS):

  • Query:Can documents which had earlier been filed with some wrong information be revised under this Scheme?
  • Answer: Reason being, Scheme clearly specifies that only overdue documents due for filing upto 30.06.2017 should be filed under this Scheme and therefore revision of previously filed annual filing e-forms shall not be taken on record.

Key Dates:

  • Filing of ITR for AY 2017-18: 31.03.2018
  • Filing of ITR for AY 2016-17 with penalty of Rs. 5000: 31.03.2018Filing of GSTR-6 for july 2017-feb-2018 :31.03.2018
  • Filing of GSTR-6 for july 2017-feb-2018 :31.03.2018
  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018
  • Filing of GSTR-1 for feb 2018(turnover more than Rs1.50 cr):10.04.2018

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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corporate and professional updates 26th march 2018

Image result for corporate and professional updates

Direct tax

  • ITAT holds that assessee (a builder and developer) can claim deduction u/s 80-IB(10) for the first time in return filed u/s 153A (even though such claim not made in original returns), holds that assessments for these years were abated in terms of provisions of Sec 153A; [TS-137-ITAT-2018(Mum)]

Indirect tax

  • Kerala High Court permitted the assessee, M/s Vajra Rubber Products (P) Ltd to release goods detained by the State GST department by furnishing a simple bond.

GST updates

  • Ministry of Finance has exempted various kinds of services in relation to skill development. Decision pertaining to rates of GST and exemption on skill development, start-ups, and tourism is taken after due deliberation in GST Council.
  • E-way bill shall be required wef 01.04.2018 for inter-state supplies where value of consignment  Excluding Exempted goods exceeding Rs. 50000.
  • GST has set up camps across India for Exporters refund beginning March 15, CBEC Chairperson Vanaja Sarna said they has already given refunds to the tune of Rs 50 billion but as much as 70 per cent of total refunds to exporters is still stuck even after eight months of GST roll out.

MCA updates

  • MCA has notified the national financial reporting authority manner of appointment and other terms and conditions of service of chairperson and members rules, 2018.
  • MCA has made amendment in the Companies (Incorporation) Rule, 2014. These rules may be called The Companies (Incorporation) Second Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette.  
  • As part of the Ministry’s commitment for continuous improvement of processes and providing greater ease to stakeholders, it has been decided to permit (w.e.f 24.03.2018) two proposed names and one Resubmission (RSUB) while Reserving Unique Names for companies through the RUN web service. Stakeholders may plan accordingly.

Other updates

  • Govt asked NBFC Cos. to register with the country’s financial intelligence unit (FIU-IND) and report details of clients as per the requirements under the Prevention of Money Laundering Act.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:  what shall be the filing fees for registering under this scheme?
  • Answer: The filing fee for availing benefits under this Scheme is Rs.30,000/- which is the fee required to be paid at the time of filing the e-Form CODS 2018. However, before filing e-Form CODS 2018, the defaulting companies shall be required to upload all their overdue documents with additional fee for the delayed period for each one of them, as may be leviedas per section 403 of the Act read with Companies (Registration Offices and fee) Rules, 2014.

Key Dates:

  • Filing of ITR for AY 2017-18: 31.03.2018
  • Filing of ITR for AY 2016-17 with penalty of Rs. 5000: 31.03.2018
  • Filing of GSTR-6 for july 2017-feb-2018 :31.03.2018
  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018
  • Filing of GSTR-1 for feb 2018(turnover more than Rs1.50 cr):10.04.2018

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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corporate and professional updates 25th march 2018

Image result for corporate and professional updatesDirect tax

  • Income tax returns cannot be e-filed without quoting an Aadhaar number despite the March 13 Supreme Court order directing the govt. should not make it mandatory to quote Aadhaar till the final verdict.
  • Mumbai ITAT holds that taxability of Rs. 150 cr. received by assessee-company (part of the Mckinsey Group based in US) in India during AYs 2011-12 and AY 2012-13 shall be determined as per the MAP settlement for earlier years; [TS-129-ITAT-2018(Mum)]
  • Kerala HC upholds ITAT order, confirms Sec.  40(a)(ia) disallowance for TDS default on lease rent paid / payable  by assessee (an educational institution)  during AYs 2007-08 to 2009-10​, HC rejects assessee’s contention that second proviso to Sec. 40(a)(ia)  inserted by Finance Act, 2012 is curative in nature; [TS-128-HC-2018(KER)]

GST updates

  • GST: Since CGST Act, 2017 came in force with effect from 1-7-2017, contract work for which agreements were executed prior to 1-7-2017, GST would not be imposed on same and 2 per cent VAT alone was applicable. High Court of Madras: Coimbatore Corp Cont Welfare Assv. Tamil Nadu State.

MCA updates

  • MCA has decided to permit w.e.f. 24.03.2018 two proposed names and one Resubmission (RSUB) while Reserving Unique Names for companies through the RUN web service.
  • Section 132(3) & (11) of the Companies Act, 2013 regarding the constitution of NAFRA notified w.e.f. 21.03.2018.
  • MCA make The National Financial Reporting Authority (Manner of Appointment and other Terms and Condition of Service of Chairperson and Members) Rules, 2018 which shall come into force on the date of their publication in the official gazette.

Other updates

  • Parliament passed the Payment of Gratuity (Amendment) Bill which will increase the ceiling of tax-free gratuity amount to Rs 20 lakh from Rs 10 lakh. It also allows the government to fix the period of maternity leave for female employees.
  • Telecom department has extended the time limit for re-verifying mobile No through Aadhaar till the time the Supreme Court decides ongoing case on the validity of the identification number and its enabling law.
  • The Cabinet has approved National Health Protection Scheme with budgetary support of Rs 160 billion. The scheme is intended to provide health care for at least 40% of the population. Each family will be entitled to health cover up to Rs 500,000 a year.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:   Can documents which had earlier been filed with some wrong information be revised under this Scheme?
  • Answer:  Reason being, Scheme clearly specifies that only overdue documents due for filing upto 30.06.2017 should be filed under this Scheme and therefore revision of previously filed annual filing e-forms shall not be taken on record.

Key Dates:

  • Filing of ITR for AY 2017-18: 31.03.2018
  • Filing of ITR for AY 2016-17 with penalty of Rs. 5000: 31.03.2018
  • Filing of GSTR-6 for july 2017-feb-2018 :31.03.2018
  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018
  • Filing of GSTR-1 for feb 2018(turnover more than Rs1.50 cr):10.04.2018

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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Corporate & Professional Updates 22nd March 2018

Image result for corporate and professional updatesDirect Tax:

  • Gujarat HC dismisses assessee’s writ, upholds reassessment initiated (beyond 4 years period) on the basis of information received from Investigation Wing of the Department for AY 2010-2011; [TS-123-HC-2018(GUJ)]
  • Delhi ITAT dismisses Revenue’s appeal and deletes addition u/s 68 on assessee-company during AY 2006-07, holds that the entire assessment proceedings are vitiated because of non-service of notice u/s 143(2) within the period of limitation by the AO having jurisdiction over the case of the assessee; [TS-120-ITAT-2018(DEL)]
  • Mumbai ITAT deletes  notional income addition  u/s. 23  towards annual letting value of unsold flats of Runwal builders (‘assessee’) during AY 2012-13; ITAT observes that flats sold by assessee were assessed under the head ‘income from business’ and the unsold flats were treated as its stock-in-trade, therefore holds that AO was incorrect in taxing notional value of unsold flats under the head ‘income from house property’; [TS-124-ITAT-2018( Mum)]

Indirect Tax:

  • CBEC issues advisory to field formations upon noticing IGST refunds being held up on exports from Inland Container Depots (ICDs) either due to non-filing of Export General Manifest (EGM) at gateway port or information mismatch between local and gateway EGMs;
  • CBEC to verify 50,000 Transitional Credit Claims. In a bid to tackle fraudulent transitional credit claims by the taxpayers in their TRAN-1 return.
  • CBEC has issued circular regarding refund of IGST on export- EGM Error related cases. Vide Circular No. 06/2018, dated 16th March 2018.
  • Kerala High Court quashed order of CESTAT since it failed to decide the issue that SCN is barred by time specifically raised by the party and directed to issue afresh. Excell Corrogogated Boxes P Ltd. Vs CCE 2018 (359) 639 Kerala.

GST updates

  • E-way bill shall be required w.e.f 1.4.2018 for inter-state supplies where value of consignment excluding Exempted goods, exceeds Rs. 50000.
  • GST Council has decided to extend GSTR-3B return filling up to 30.06.2018

MCA updates

  • The Bombay High Court has directed the Tribunal  to decide the specific issues raised in the rectification application wherein  it was pleaded  that tribunal has not considered vital issues  in the final  order. National Torches and Tubes Vs CCE 2018 (359)669.

SEBI updates

  • SEBI has passed an order providing exit to the Universal Commodity Exchange Limited (UCX)vide its Circular dated January 11, 2016, had issued guidelines for the exit of Commodity Derivatives Exchanges.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:Can active company (non-defaulting) apply for CODS 2018 to file its overdue documents?
  • Answer: As per introduction given in the Scheme, it is clear that the Scheme has been rolled out for defaulting companies only which are yet to file their annual filing documents which are due to be filed upto 30.06.2017.

Key dates

  • ITR Filling last date for Income Tax Returns (ITRs) for FY 2015-16 and FY 2016-17:-31-03-2018
  • Condonation of Delay Scheme 2018 which allows defaulting companies to file its overdue documents which were due for filing.:-31-03-2018

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 That You Need To Know About Limited Liability Partnership

Image result for llpIt is a tactful process and it includes a step by step process. LLP is an emerging small business entity practiced in India under a certain act known as LLP Act, 2008. The relaxation of the FDI rules which concerns with LLP has drastically increased the interest amongst certain NRIs and Foreign Nationals.

Essential documents required for LLP Registration

There are certain essential documents which are required for the Indian Nationals to register. These include the –

  • Pan Card

A copy of the Pan card is essential in the registration process because the pan card number has a unique value.

  • Address Proof

An address proof stands to be an essential document. The name of the person should be same which was seen in the Pan card. The current address of the person should be present in it.

Other documents can also be accepted as address proofs. They are the passport, Election Card, Ration Card, Driving License, Electricity Bill, Telephone Bill and Aadhaar card.

  • Residential proof

 Along with the address proof, it is required for one to give the residential proof which helps to validate the current address of the Partner. One can accept the Bank Statement, Electricity bill, Telephone bill and the Mobile bill as the residential proof.

  • Foreign nationals who are Partner in LLP

It is required for the foreign nationals to present certain essential documents. They are a passport, address proof. The driving license, residence card, bank statement and a form issued by the government which contains your address can be presented as an address proof. As a residential proof the bank statement, electricity bill, telephone bill and the mobile bill is accepted.

  • Registered office proof

There must be some proof which can be used to proof your office address of the LLP.

  • Subscriber sheet

After getting the approval of the name from the Ministry of Corporate Affairs there is a need for preparing the incorporation documents. They also need to fill by the R.O.C.

The Duties And Rights Of The Partner In LLP

There are certain rights and duties of a partner which need to be fulfilled by him/her.

  • General Duties of Partners in LLP

 It is essential for the partners to maintain their business of the LLP. This helps the partner to maintain a just and faithful relationship.

  • Duty to Indemnify for Fraud-

If one makes any loss which is the result of fraud he is required to indemnify for it.

  • Rights of Partners in an LLP
  • Right to conduct the business.
  • Right to maintain the duties which relate to the conduct of his/her business.
  • The majority of partners have the right to settle disputes after hearing the opinion of every partner.
  • Right to inspect and copy accounts of the book if any of the partners dies.
  • Implied authority of partner-

The partner has the authority to bind the LLP in case his business way is carried out by the LLP.

  • Property which belongs to the LLP-

The property of the LLP includes all the interests and the rights. These were originally brought by the LLPDuties and Partner in LLP. The LLP owns all the money which are got by the developed property and assets of the LLP.

  • LLP Compliance Post-Incorporation

There are some compliance and also procedural matters that are to be finished after the incorporation of a Limited Liability partnership. The post incorporation of all the compliance required for the company is much lesser than the overall compliance requirement.

Filing of an LLP Agreement

The rights and the duties of the partners in the LLP are rightfully governed by the LLP Agreement. It is required to file the LLP agreement within 30 days after the incorporation of the LLP has been done. If one fails to file the LLP agreement within the specified time he has to pay a penalty of Rupees 100 every day. One can be charged fine up to any limits.

LLP Stationary

LLP Seal: The LLP seal is necessary for opening an account in the bank of a definite company. It is also required for applying for PAN.

Letterhead- A letterhead is created along with the name and the registered office of the particular LLP.

Book of accounts- A book of accounts in an essential requirement. It can be maintained both manually and through electronic devices.

LLP Pan Application- The PAN application to apply for getting the PAN through an online process.

LLP Bank Account Opening

There are certain documents which are essential to open an LLP bank account-

 A copy of the agreement of the LLP, the incorporation document, LLP registration certificate, LLP-IN which is issued by the ROC and Pan Allotment letter is required.

Certain advantages and the creation of the Limited Liability Partnership

  • Limited Liability-

It is seen that all the partners are equally responsible for the development of the firm. No partner alone is responsible alone for the total profit. There tends to arise a dispute when it comes to sharing the profit. This is why many people hesitate to become partners.

  • Separate Entity-

The LLP is considered as a completely separate entity. It can have a personal name and is liable for his actions.

Right to sued and be sued-

It can both sue or be sued in turn.

  • Simplicity-

The process of forming the LLP and maintain it is very simple. The definite meeting, resolution are not essential to carry this out.

Other advantages include its perpetual existence, the limited number of members and a large number of partners.

Creation of the Limited Liability Partnership

2 people are the minimal requirement to form an LLP, whereas no limitations are put when it comes to the maximum number of partners who can participate.

There are certain people like the individuals, limited liability partnerships, companies, Foreign Limited Liability Partnerships and the foreign companies who can participate.

Conversion of Partnership Firm into LLP

The partnership can be converted into LLP. This is done due to the following reasons-

  • Limited Liability for PARTNERS-

This accounts to be one of the most important drawbacks. This is why most of the people are scared to participate in it. On the other hand in the LLP it is seen the partners to be responsible or liable for their contribution to the firm, They are not awarded individually.

  • Perpetual Existence-

There stands to be a perpetual existence of the partners. The existence of the partner is not at all depended on other partners. There occurs a change in the partners who participate in the LLP. Therefore the conversion of the partnership is essential which helps to maintain the individualism.

  • Unlimited partners-

This is another major cause for conversion. The minimum number is always fixed the participation can exceed to any level.

  • Better credit access-

Easier bank loans are provided to the partners. They are given their assets are credits equally and they get their awards for their contribution. They also have a much efficient system of management which is essential in Limited Liability Partnership. Therefore is always preferred.

  • Potential Growth-

The amalgamation and merger of the business greatly help to unlock many business strategies. The LLP, in turn, can also easily merge with other LLP which helps in a notable amount of growth in the business profits.

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 20th March 2018

Image result for corporate and professional updatesDirect Tax:

  • Delhi ITAT dismisses Revenue’s appeal and deletes addition u/s 68 on assessee-company during AY 2006-07, holds that the entire assessment proceedings are vitiated because of non-service of notice u/s 143(2) within the period of limitation by the AO having jurisdiction over the case of the assessee; [TS-120-ITAT-2018( DEL)]
  • Mumbai ITAT allows deduction u/s. 37 for penalty paid by assessee-company (engaged in the business of property development) to Slum Rehabilitation Authority (SRA) during AY 2010-11, rules that penalty was paid for regularization of certain construction work within the permissible byelaws of concerned authority and not for infringement or violation of any law [TS-119-ITAT-2018-(Mum)]
  • Pune ITAT quashes CIT’s order u/s. 263 denying deduction u/s 80IA(4) to assessee (a partnership firm having 3 corporate entities as its partners) for AY 2012-13, rejects Revenue’s stand that deduction u/s 80IA(4) is available only to a company or a consortium of companies and since the assessee is a partnership firm, it is not eligible for impugned deduction; [TS-118-ITAT-2018(PUN)]
  • Benefit of Indexation of cost to be available where shares unlisted on 31.1.18 but are listed on date of transfer which happens on or after 1.4.18

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

  • E-way bill shall be required wef 01.04.2018 for inter-state supplies where value of consignment  Excluding Exempted goods exceeding Rs. 50000.
  • GST has set up camps across India for Exporters refund beginning March 15, CBEC Chairperson Vanaja Sarna said they has already given refunds to the tune of Rs 50 billion but as much as 70 per cent of total refunds to exporters is still stuck even after eight months of GST roll out.
  • The government will not further extend the deadline for selling pre-GST stock with revised maximum retail price (MRP) stickers beyond this month, Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan has said.

SEBI updates

  • SEBI raised the exposure limit under exchange-traded currency derivatives trading for residents and FPIs to USD 100 million across all currency pairs involving the Indian rupee. The move will help entities engaged in forex transactions to maintain their currency risks in a better manner.

Other updates

  • A division bench of the Delhi High Court has admitted an appeal against the order of the Single bench in the CA Final Result mismatch case and asks ICAI to produce Documents.

FAQ on Condonation of Delay Scheme (CODS):

  • Query: Will this scheme apply to Companies whose status is shown “Strike OFF” on MCA portal?
  • Answer: NO, this scheme will not apply to defaulting companies whose names have been removed from the register of companies under section 248 of the Act.

Key Dates:

  • GSTR return summary for February: 20.03.2018
  • Payment of ESI of February: 21.03.2018.
  • ITR Filling last date for Income Tax Returns (ITRs) for FY 2015-16 and FY 2016-17:-31-03-2018

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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Corporate and professional updates 19th march 2018

Image result for corporate and  updatesDirect Tax:

  • Pune ITAT rules that assessee is entitled to Sec 10A deduction on additional income offered on account of suo-moto TP-adjustment for AY 2011-12; Notes that TPO/ CIT(A) disallowed the deduction u/s 10A as assessee failed to bring into country the export proceeds in foreign exchange as contemplated in Explanation 2 to Sec 10A in respect of such additional income offered; [TS-116-ITAT-2018( PUN)]
  • Benefit of Indexation of cost to be available where shares unlisted on 31.1.18 but are listed on date of transfer which happens on or after1.4.18

Indirect Tax:

  • CBEC has issued Clarifications on exports related refund issues.  Inter alia clarifies processing of claims through amendment through Table 9 of GSTR-1, exports without LUT, refunds in case of exports after specified period of 3 months from date of invoice, issuance of deficiency memos, requirement of self-declaration for non-prosecution, refund of transitional credit, discrepancy between values of GST invoice and shipping bill / bill of export, refund of taxes paid under erstwhile laws, requirement of BRC / FIRC for export of goods, and requirement of invoices for processing of refund claims Vide Circular No. 37/11/2018-GST, dated 15th March 2018.
  • E-way bill shall be required wef 01.04.2018 for inter-state supplies where value of consignment  Excluding Exempted goods exceeding Rs. 50000.
  • GST has set up camps across India for Exporters refund beginning March 15, CBEC Chairperson Vanaja Sarna said they has already given refunds to the tune of Rs 50 billion but as much as 70 per cent of total refunds to exporters is still stuck even after eight months of GST roll out.

RBI Update:

  • RBI has issued notification regarding submission of return by the Government-owned Non-Banking Financial Companies. Vide notification no RBI/2017-18/141, dated 15th March 2018.

SEBI updates

  • SEBI raised the exposure limit under exchange-traded currency derivatives trading for residents and FPIs to USD 100 million across all currency pairs involving the Indian rupee. The move will help entities engaged in forex transactions to maintain their currency risks in a better manner.

Other updates

  • The government will not further extend the deadline for selling pre-GST stock with revised maximum retail price (MRP) stickers beyond this month, Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan has said.
  • A division bench of the Delhi High Court has admitted an appeal against the order of the Single bench in the CA Final Result mismatch case and asks ICAI to produce Documents.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:Disqualification of directors of Companies which have been struck off can be removed?
  • Answer: In the event of defaulting companies whose names have been removed from the register of companies under section 248 of the Act and which have filed applications for revival under section 252 of the Act up to the date of this scheme, the Director’s DIN shall be re-activated only NCLT order of revival subject to the company having filing of all overdue documents.

Key dates

  • GSTR-3B for the Month of February 2018: 20-03-2018
  • ITR Filling last date for Income Tax Returns (ITRs) for FY 2015-16 and FY 2016-17:-31-03-2018
  • Condonation of Delay Scheme 2018 which allows defaulting companies to file its overdue documents which were due for filing.:-31-03-2018

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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