CORPORATE AND PROFESSIONAL UPDATES 29TH MAY 2018

Image result for CORPORATEDIRECT TAX

  • SC dismisses Revenue’s SLP against Rajasthan HC judgment in case of a transport contractor (‘assessee’); HC had held that assessee-contractor was not liable to deduct TDS u/s. 194C where freight payments are directly made by third party company (i.e. contractee) to truck-owners; HC had rejected Revenue’s stand that since the contractee-company was making payment to truck owners on assessee’s behalf, assessee was liable to deduct TDS as it was the contractor and the truck owner were subcontractors; HC had clarified that “194(c) read with 204(iii) will come into operation only on the payment made by assessee and as rightly discussed since payment is not made by the assessee if at all there is default the default is of Mangalam Cement (i.e. contractee company).”; Thus, upholding HC order, SC opines that “We do not find any ground to interfere with the impugned order.”[TS-257-SC-2018]
  • ITAT upholds assessee’s selection of foreign AE as tested party and TNMM as MAM to benchmark transaction of payment fees for advisory and other services to AE for AYs 2011-12 and 2012-13; Directs AO to benchmark the transaction by considering foreign comparables selected by assessee and remits matter for limited purpose of verification of assessee’s claim that its margin was withing 5% range of average margin for comparables, follows ITAT order for AY2009-10 and 2010-11; Separately for benchmarking of IT enabled services for AY 2012-13, ITAT directs exclusion of Excel Infoways Ltd as it was in the process of closing its BPO division in relevant year and in view of its fluctuating profit margin, follows Allscripts India Pvt. Ltd., TIBCO Software India Pvt. Ltd and Qlogic India Pvt. Ltd.ruling; Further directs TPO to verify employee cost to sales ratio of Universal Print Systems Ltd. and exclude it as comparable if the same is less than 25% , follows Goldman Sachs Services ruling : Pune ITAT [TS-362-ITAT-2018(PUN)-TP]
  • CBDT Released ITR 6 as well for FY 2017-18, Now All ITRs for AY 2018-19 are available for e-Filing  https://studycafe.in/2018/04/ cbdt-released-itr-1-to-itr-7- forms-for-fy-2017-18-ay-2018- 19.html
  • CBDT notified the 6th Amendment Rules wherein it is provided that only Merchant Bankers are entitled to do Valuation of Unquoted Shares and the Chartered Accountants are no more eligible to do so. Rule 11UA w.e.f. on or after May 24, 2018.
  • In a major relief to Start-ups, CBDT has notified that Income Tax is not payable on issuing share capital at excess premium by eligible start-ups.Notification No. 24/2018/F. No.370142/5/2018-TPL dated May 24, 2018.
  • All seven ITRs are to be filed electronically on the official web portal of the department -https://www.incometaxindiaefigov.in, except for some category of taxpayers, the CBDT had said.
  • 31.5.18 is last date to file AIR in Form 61A by Banks etc & also in Tax Audit cases where cash above Rs 2 lacs received against any sale invoice. Penalty of 500 per day for not filing AIR in time. If no transaction to report, file SFT Preliminary Response at Reporting Portal https://report.insight. gov.in

Indirect Tax:

  • Central Board of Indirect Tax & Customs gives a notification on applicability of Integrated Goods and Services Tax (integrated tax) on goods supplied while being deposited in a customs bonded warehouse-reg. Vide Circular no 3/1/2018 – IGST, dated 25th May 2018.
  • Intra-state e-Way Bill wef 25.05.18 in Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman, Diu, Lakshadweep, Maharashtra & Manipur.
  • CBIC- The Circular clarified that integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption.Circular No. 3/1/2018-IGST dated May 25, 2018

FAQ on E-WAY BILLS:

  • Query:  Which types of transactions that need the e-way bill?
  • Answer: For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including an unregistered person or for reasons other than supply also, e-way bill is mandatory.

Other updates

  • Consumer complaint not maintainable after settlement through Arbitration. National Consumer Disputes Redressal Commission.
  • Employees’ Provident Fund Organization (EPFO) has asked its field offices to credit 8.55% interest rate for 2017-18, the lowest rate since 2012-13 fiscal, into the PF accounts of around 5 crore subscribers.

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE & PROFESSIONAL UPDATES 28TH MAY 2018

Direct Tax:

  • kolkata ITAT rules that assessee (an Indian BPO company) not liable to deduct TDS u/s. 195 on payment of market support fees to US entities​ (including  assessee’s US based wholly owned subsidiary)​ for securing orders and solicit business from foreign customers during AY 2012-13; [TS-265-ITAT-2018(Kol)]
  • SC admits Revenue’s SLP challenging Gujarat HC judgment granting Article 8 relief under India-Singapore DTAA to assessee (a Singapore based shipping company);
  • Delhi HC admits cross appeals filed by NDTV & Income tax Department, frames substantial questions of law & lists the matter for hearing in September; HC to decide whether the Tribunal ‘erred’ in upholding the Rs. 642 cr addition made on NDTV u/s 69A of Income tax Act, with regards to the $150 mn overseas funding raised by the company
  • CBDT has constituted a Task Force vide Office Order with a mandate of drafting an appropriate direct tax legislation keeping in view the direct tax system prevalent in various countries, the international best practices, the economic needs of the country.

Indirect Tax:

  • CBEC has amend the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Vide notification no 45 /2018 – Customs, dated 23rd May 2018.
  • introduced intra-state e-way bill for two states and five Union Territories (UTs) from 25.5.2018. The remaining states — Chhattisgarh, Goa, J&K, Mizoram, Odisha, Punjab, Tamil Nadu and Delhi — would be brought in the system from June 3 to cover the entire country.
  • Government is exploring the possibility of creating new categories in its tariff structure that will allow it to impose import duties on hi-tech products without violating a global agreement that mandates nil duties.
  • 132 of the CGST Act, issuance of an invoice without supply of goods and wrongful utilization of input tax credit is a cognizable and non-bailable offence if the amount involved is over Rs 5 Cr.

FAQ on GST

  • Query:IF EXPORT SALE SHOWN AS DOMESTIC IN GSTR 3B BUT GST 1 FILLED CORRECTLY WHETHER REFUND CAN BE CLAIM .
  • Answer:Refund can be claimed by making necessary adjustments in next month gstr3b As you must be aware, at time of filing the refund , portal is mapping the refund with gstr3b So once you make correction in gstr3b , then you will be able to file form rfd

FAQ on E-WAY BILLS:

  • Query:Whether e-way bill is required for all the goods that are being transported?
  • Answer:The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees. Kindly refer to the e-way bill rules for other exemptions.

MCA updates

  • The insolvency ordinance has specified that the Limitation Act 1963 will apply for proceedings before the NCLT and NCLAT.

OTHER updates

  • NSE and MCX entered into merger talks ahead of the implementation of the universal exchange framework in October. The two entities are planning to approach SEBI) as early as this month.
  • Please submit your Self-declaration Form Online to avail 20 Unstructured CPE Hours for Calendar Year 2017 from the link http://cpeapp.icai. org/member/login. Last Date of submission: 31st May, 2018

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 26TH MAY 2018

Direct Tax:

  • Mumbai ITAT rules that assessee (a stock broking company) cannot be held liable to deduct TDS u/s 194A on borrowing fees paid to National Securities Clearing Corporation Ltd. [‘NSCCL’, a SEBI approved intermediary], if it is found that at the time of payment, assessee was unaware of the identity of the lenders (ultimate recipient of income);  [TS-262-ITAT-2018(Mum)]
  • Kolkata ITAT upholds Sec. 263 revision on assessee-company for AY 2008-09, rejects assessee’s stand that CIT could not have revised the re-assessment since the latter one was a non est order by virtue of non-issue of Sec. 143(2) / 142(1) notices;  [TS-259-ITAT-2018(Kol)]
  • India’s net direct tax collection in 2017/18 stood at Rs 10.03 trillion, up 18 percent on year, the finance ministry said.
  • CBDT has directed the I-T Department to form a special team of officers to complete the task of filing these Appeals under Section 252(1) of the Companies Act, 2013 in various NCLT benches across the country by this month-end.

Indirect Tax:

  • CBEC has made amendment by way of notification no 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 785(E), dated the 30th June, 2017. Vide notification no 46 /2018-Customs, dated 23rd May 2018.
  • 31.05.18 is last date to file GSTR-6, Furnish of Return by Input Service Distributor for the months from July 2017 to Apr 2018.
  • DVAT has allowed extension for filing of online return for 4th Quarter of 2017-18. Thereby, the last date of filing of online/hard copy of fourth quarter return for the year 2017-18 in form DVAT-16 has been extended to 28/05/2018.

FAQ on E-WAY BILLS:

  • Query:Why the transporter needs to enroll on the e-way bill system?
  • Answer:There may be some transporters, who are not registered under the Goods and Services Tax Act, but such transporters cause the movement of goods for their clients. They need to enroll on the e-way bill portal to get 15 digit Unique Transporter Id.

Other updates

  • Union Cabinet approved, via an Ordinance, amendments to the Insolvency and Bankruptcy Code (IBC), giving homebuyers the status of creditors in the insolvency process.
  • The government has proposed rates for over 1,350 treatment packages ranging from Rs 1,000 to over Rs 1.50 lakh, for the Pradhan Mantri Rashtriya Swasthya Suraksha Mission.The government issued a 205-page model tender document.

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 25TH MAY 2018

Image result for corporate personalityDirect Tax:

  • Calcutta HC upholds ITAT order for AYs 2008-09 and 2009-10,  rules that provision for bad and doubtful debt deduction u/s 36(1)(viia) incase of assessee-bank (a regional rural bank) ​has to be computed @ 10% of the aggregate monthly average advances by taking ​’cumulative​’​  outstanding advances by rural branch; [TS-261-HC-2018(CAL)]
  • Gujarat HC upholds ITAT order for AY 2009-10, denies capital gains exemption benefit u/s. 54F to assessee-individual as the construction of the flats for personal use was completed before the sale of the capital asset (i.e. land); Assessee owned a land with a bungalow on it, which was demolished to construct 8 flats, 4 of which were sold to buyers and rest were occupied by assessee for her own residence, assessee considered the proportionate land apportioned to 4 flat purchasers as sale of land belonging to her and claimed Sec. 54F benefit; [TS-258-HC-2018(GUJ)]
  • Mumbai ITAT rules that Dominos Pizza International Franchising Inc (a US based company) does not create a PE in India for AY 2012-13 by virtue of the Master Franchises Agreement (MFA) entered with Jubilant Food Works Ltd. (‘Jubilant’) for the franchise of Dominos Pizza Store in India; Rejects Revenue’s stand that Jubilant constitutes assessee’s dependent agent PE in India, referring to various clauses of MFA, ITAT observes that no activities are carried out by Jubilant on behalf of assessee; [TS-260-ITAT-2018( Mum)]
  • Task force rewriting the income-tax laws has been granted three months more till August to submit its report to the government. CBDT set up to draft a law to replace the income Tax Act, which has been in force since 1961, was to submit its report by this month-end.
  • Due Date for Quarterly statement of TDS deposited for the quarter ending March 31, 2018 is May 31, 2018.

INDIRECT TAX

  • E-way bill for moving goods within a state will become mandatory from June 3, with the country-wide roll out of the mechanism. The government had launched the electronic-way or e-way bill system from April 1 for moving goods worth over Rs 50,000 from one state to another.
  • If turnover 1.5 cr or more, Last Day to file GSTR-1 for Apr is 31.5.2018 & for May is 10.6.2018. From May, 10 days to file GSTR-1 i.e. before GSTR3B.

FAQ on E-WAY BILLS:

  • Query: What are the documents that need to be carried along with the goods being transported?
  • Answer:The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, bill of entry as the case may be and a copy of the e-way bill number generated from the common portal. Please refer relevant rules for details.

SEBI UPDATES

  • SEBI is planning to ease the norms for mutual funds (MF) participation in the derivative markets. The regulator is considering measuring such as, allowing domestic funds to ‘write’ options and increasing cap on F&O investments.

OTHER UPDATES

  • Cabinet cleared the IBC Ordinance paving way to a host of changes in the modality of the Insolvency and Bankruptcy Code (IBC).  The Ordinance is based on the changes suggested in a report by a 14-member Insolvency Law Committee.

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

Facebooktwittergoogle_plusredditpinterestlinkedinmail

AUDIT UNDER GOODS AND SERVICES TAX

Image result for GST AUDITAudit under GST is the process of examination of records, returns and other documents As per sub-section (13) of section 2 of CGST Act 2017, Audit means examination of records, returns and other documents maintained or furnished by the registered person under this Act or the 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 . maintained by a taxable person.

Various measures have been taken by the government to ensure compliance of GST law and audit is one them.

Every registered person is required to keep accounting books up to 72 months the due date of filing annual return for a particular year.

When GST Audit is required to be conducted?

Audit by CA/CMA mandatory if Turnover exceeds Rs. 2 Corers.

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 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. 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.

Normal Audit by the Commissioner (Tax Authority)

as per Section 65(1) of the CGST Act 2017 the Commissioner or any officer authorized by him can undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed,

the officer may conduct audit at the place of business of the registered person or in their office, and

shall be informed, by way of a notice not less than 15 working days prior to the conduct of audit in FORM GST ADT-01.

The audit under sub-section (1) shall be completed within a period of 3 months from the date of commencement of the audit , which may be extended by further period not exceeding 6 months,

On conclusion of audit, the registered person shall be informed by proper office, within thirty days in Form GST ADT-02[as per rule 101(5) of CGST Rules 2017], about the findings, his rights and obligations and the reasons for such findings.

Special Audit by Chartered Accountant.

At any stage of scrutiny, inquiry, investigation or any other proceedings, any officer not below the rank of Assistant Commissioner, 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 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 officer will issue direction in Form GST ADT-03 to the registered person in this regard.

The Chartered Accountant or Cost Accountant so nominated shall submit a report of such audit duly signed and certified by him to the said Assistant Commissioner, within the period of 90 days, which can be further extended by ninety days.

Special audit can be conducted even if 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.

The expenses of the examination and audit of records, including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner. On conclusion of the special audit, the registered person shall be informed of the findings of the special audit in FORM GST ADT-04.

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. 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 24 TH MAY 2018

 Image result for CORPORATEDirect Tax:

  • Pune ITAT rejects Revenue’s plea for AY 2009-10 that deduction with respect to Research & Development (R&D) expenditure u/s 35(2AB) is restricted only to the extent of approval granted by Department of Industrial and Scientific Research (DSIR) in form No.3CL;[TS-251-ITAT-2018(PUN)]
  • SC admits assesses SLP against Delhi HC judgment directing attachment of assesses bank accounts pursuant to search carried on in respect of the ‘third person’;Based on the facts,HC had observed that prima facie there is a strong case made by the Department that the money in assesses bank accounts is an undisclosed income of the ‘third person’ in respect of whom ‘search’ was carried out;
  • Share certificate of permanent establishment (PE) in case when as agent/representative file return on behalf of foreign Co. and if no PE -Format for non PE certificate and to whom it will mark and by whom it is get signed for income tax purpose
  • Share draft letter for declaration from foreign Co-as no other income than mentioned/filed in Indian IT return for sending attachment in relation to defective return.

Indirect Tax:

  • CBEC has rescinded  the notification number G.S.R. 319(E) dated the 31st March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 31st March, 2018, with effect from the 25th day of May, 2018. Vide notification no 11/2018 – Union Territory Tax, dated 21st May 2018
  • DVAT has allowed extension for filing of online return for 4th Quarter of 2017-18. Thereby, the last date of filing of online/hard copy of fourth quarter return for the year 2017-18 in form DVAT-16 has been extended to 28/05/2018.

FAQ on E-WAY BILLS:

  • Query:Which types of transactions that need the e-way bill?
  • Answer:For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including an unregistered person or for reasons other than supply also, e-way bill is mandatory.

MCA UPDATES

  • CBDT has directed the I-T department to form a special team of officers to complete the task of filing petitions against Shell Companies to recover Dues in various NCLT benches across the country by this month-end, and has written to MCA also.

SEBI UPDATES

  • SEBI has issued circular w.r.t Investment of own funds (excluding funds lying in Core Settlement Guarantee Fund) by Clearing Corporations in International Financial Services Centre (IFSC).

RBI UPDATES

  • The RBI has increased the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under the automatic route from 4:1 to 7:1. However, this ratio will not be applicable if total of all ECBs raised by an entity is up to USD 5 million or equivalent.

OTHER UPDATES

  • Finance ministry has tied up with 40 entities, including Flipkart, Swiggy, Patanjali and Amul, which are big job creators, for extending loans to small entrepreneurs under the Mudra scheme.

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

Facebooktwittergoogle_plusredditpinterestlinkedinmail

corporate and professional updates 23rd may 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Delhi held that addition cannot be made for mere non- production of Directors and non- furnishing of their residential address. M/s Om Shubham Investment & Finance Pvt. Ltd. Vs. ITO (ITAT Delhi)
  • ITAT Delhi held that Depreciation on brand value allowed taking it as intangible assets. DCIT Vs. Kuantum Papers Ltd. (ITAT Delhi)
  • Pune ITAT rejects Revenue’s plea for AY 2009-10 that deduction with respect to Research & Development (R&D) expenditure u/s 35(2AB) is restricted only to the extent of approval granted by Department of Industrial and Scientific Research (DSIR) in form No.3CL;
  • Due date for Quarterly statement of TDS deposited for the quarter ending March 31, 2018 is May 31, 2018
  • ITAT Kolkata decided that Section 269SS Restricting Cash Transaction not applicable to Capital contributed by Partner in Partnership Firm- In ITO vs. M/s. Dayamayee Marble & Granite.
  • The Income Tax Department has enabled ITR-3 which is applicable for individual and HUF who have income from profits and gains from business or profession. A total of four ITR Forms including ITR-1, 2, 3 and 4 has been launched by the department so far
  • Income Tax Department Cautions TDS Deductors against Quarterly Filing Default failing which, would invite a penalty of Rs 200 for each day of default

Indirect tax

  • Official portal of GST Dept, GSTN has added Two New Features including Additional details are now available in Form GSTR-2A and Auto drafted Form GSTR-4A
  • The Maharashtra Authority for Advance Ruling (AAR) held that Liquidated Damages are Classifiable as ‘Other Services’ and is taxable at the rate of 18% GST

FAQ on E-WAY BILLS:

  • Query:How can the taxpayer use the Android App to generate the e-way bill?
  • Answer:The taxpayer has to register the EMEI numbers of the mobiles through which he wants to generate the e-way bill on the e-way bill system. Please see the user manual for Mobile App based e-way bill generation, on the portal.

 Other updates

  • DGFT has extended the last date for mandatory digital payment through e-MPS.A facility for digital payment for miscellaneous applications (e-MPS) was launched recently and was made mandatory w.e.f 01-05-2018.
  • PNB scam: ED issues summons to Nirav Modi’s father Deepak Modi, Sister Purvi Mehta and her husband Mayank Mehta
  • PNB case: Enforcement Directorate seizes Rs 85-Crore Worth Jewellery of Choksi’s firm brought from Dubai
  • Supreme Court of India has decided to Hear All Matters Relating to the RBI Directive Stopping Banks from Dealing with Virtual Currencies
  • Bank fraud: ED attaches Rs 184.68-cr worth assets of Rajasthan -based Chartered Accountant (CA) Bharat Bomb and others in connection with its probe into an alleged Bank Fraud worth over Rs 1,000 Crore
  • Barely two months after it registered a case against Hyderabad-based Totem Infrastructure Limited for allegedly duping Union Bank of India of Rs 313.84 Crores, CBI filed a charge sheet against three accused., M/s Totem Infrastructure Limited, Hyderabad, its Promoter and Director

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

Facebooktwittergoogle_plusredditpinterestlinkedinmail

corporate and professional updates 22nd may 2018

Image result for corporate and professional updatesDirect Tax:

  • SC reverses HC’s conclusion, allows assessee’s claim for area-specific deduction u/s 80-IC in respect of its industrial undertaking located at Himachal Pradesh, rejects Revenue’s claim that tax-holiday eligibility period of 10 years had expired in assessee’s case;[TS-256-SC-2018]
  • SC dismisses assessee’s SLP against Uttarakhand HC decison denying Sec.80-IC deduction on interest earned on fixed deposit with bank for AY 2009-10 as it is not ‘dervied from’ eligible business; HC had observed that the Legislature has chosen to employ the word ‘derived’ in sec.80-IC as distinguished from ‘attributable to’; [TS-250-SC-2018]
  • CBDT has notified the Revised Procedure for Registration and online Submission of ‘Statement of Financial Transactions (SFT)’ in Form 61A under IT section 285BA read with IT Rule 114E. For procedure/ (https://report.insight.gov.in).Due date for submission: On or before 31st May 2018
  • Income Tax department cautioned tax deducted at source (TDS) deductors to adhere to the stipulated deadline of 31 May for filing their statements failing which they would invite a penalty of Rs 200 for each day of default.

Indirect Tax:

  • CBEC has made amendment by way of notification no16/2018- Central Tax, dated the 23rd March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 268(E), dated the 23rd March, 2018
  • GST Dept. arrests two persons Amit Upadhyay & Asad Anwar Sayed for allegedly Duping the Exchequer of Rs 127 Crore by Issuing Fake GST Invoices and Not Paying the Service Tax.
  • TODAY is last date to pay GST and file GSTR-3B of April 2018. Notifications 23/2018. Central Tax of 18.5.2018 & 16/2018 of 23.3.2018.
  • Union territories E way bill mandatory wef 25-05-2018

FAQ on E-WAY BILLS:

  • Query:Whether e-way bill is required for all the goods that are being transported?
  • Answer:The e-way bill is required to transport all the goods with the value exceeding fifty thousand rupees except the goods specified in Annexure to the notification.

MCA UPDATES

  • Jaiprakash Associates to Appeal Against NCLT Order, that directed the company to return nearly 760 acre land to its subsidiary Jaypee Infratech, while declaring the transfer of the land as “Fraudulent” and “Undervalued”
  • Bank of India (BoI) to realise Rs 1993 Crore from the First Successful NCLT Resolution concerning Tata Steel and Bhushan Steel
  • NCLT appoints 3 separate Interim Resolution Professionals (IRPs) to run Reliance Communications (RCom) and its two units, Reliance Telecom Ltd (RTL) and Reliance Infratel
  • LLP has to file form 11 (Annual Return) for the FY 2017-18 on or before 30th may, 2018.Otherwise Additional fees of Rs. 100/- per day in case of delay in filing of Form 11.
  • Banned Shell Companies come under Tax Scanner; CBDT asks MCA and RoCs to give details

SEBI UPDATES

  • Amendment to SEBI Circular No. IMD/FPIC/CIR/P/2018/61 dated April 5, 2018 and Circular No. IMD/FPIC/CIR/P/2018/74 dated April 27, 2018 on Monitoring of Foreign Investment limits in listed Indian companies.

RBI UPDATES

  • The Reserve Bank of India (RBI) has imposed, by an order dated May 14, 2018, a monetary penalty of Rs. 50 million on South Indian Bank Limited (the bank) for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms, Know Your Customer (KYC) norms and treasury function and for deficiencies in its compliance function and compliance culture. Vide press release 2017-2018/3038, dated 18th May 2018.

OTHER UPDATES

  • Asia’s Oldest Stock Exchange BSE Ltd. has been Recognised as a Designated Offshore Securities Market by the U.S. Securities and Exchange Commission(SEC) for Sale of Securities to American Investors
  • National Stock Exchange (NSE) received nod from US Derivatives Regulator, Commodity Futures Trading Commission (CFTC), to sell its product to US investors. Hence, US investors will now be able to trade in Indian Derivatives Market Directly
  • CBI likely to Approach INTERPOL for Red Corner Notice Against Nirav Modi and Mehul Choksi
  • Walmart approaches CCI for approval of Flipkart Acquisition
  • UltraTech to acquire Century Textiles’s Cement Business. Shareholders of Century Textiles will receive one share of UltraTech for every eight shares held in the Cement Unit according to the acquisition plan

Key Date:

  • GSTR Return summary for April: 22.05.2018
  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Due Date for Annual Return OF COMPANY

All companies registered in India must file annual return each year, irrespective of business turnover or activity. Annual return must be filed in Form MGT-7 and Form AOC-4 is also filed along with the annual return. In this article, we look at the due date for annual return for a company.

Filing Annual Return

A company’s annual return has to be filed with the MCA within 60 days from the date of Annual General Meeting. All companies are required to conduct an Annual General Meeting within 6 months of closing of financial year. Hence, the last date for conducting Annual General Meeting would be 30th September and the due date for filing annual return would be 29th November.

If a company cannot hold Annual General Meeting in any year, the annual return still has to be filed within 60 days from the date on which Annual General Meeting should have been held together with the statement specifying the reasons for not holding the Annual General Meeting. Hence, a company cannot excuse itself from filing annual return on the plea of the Annual General Meeting not having been held.

Statutory Fee for Filing Annual Return

Statutory fee for filing is based on the authorized capital of the Company as follows:

For submitting, filing, registering or recording any document Rs. by this Act required or authorised to be submitted, filed, registered or recorded Rs.
In respect of a company having a nominal share capital of up to  Rs. 1,00,000  Rs.200
In respect of a company having a nominal share capital of Rs. 1,00,000 or more but less than Rs.5,00,000.  Rs.300
In respect of a company having a nominal share capital of Rs. 5,00,000 or more but less than Rs. 25,00,000 Rs.400
In respect of a company having a nominal share capital of Rs.25,00,000 or more but less than Rs. 1 crore or more. Rs.500
In respect of a company having a nominal share capital of Rs. 1 crore or more. Rs.600

Penalty for Late Filing Annual Return

In case a company files its annual return after 60 days of date of Annual General Meeting or after 29th November, a penalty would be applicable date of the event and date of filing. Further, the Ministry of Corporate Affairs has proposed to increase the penalty for late filing of annual return multi-fold as follows from the year 2018:

Number of Days Default Current Penalty Proposed Penalty
Up to 15 days Rs.400 Upto Rs.3,000
More than 15 days and up to 30 days  Rs.800 Upto Rs.6,000
More than 30 days and up to 60 days Rs.1600 Upto Rs.12,000
More than 60 days and up to 90 days  Rs.2400 Upto Rs.18,000
More than 90 days and up to 180 days Rs.4000 Upto Rs.36,000
More than 180 days and up to 270 days  Rs.4800 Upto Rs.54,000
More than 270 days Rs.100 per day penalty Rs.200 per day penalty

Note: The above chart has been worked for a company with a capital of share capital of Rs.1,00,000. The new penalty proposed by the MCA from the year 2018 for late filing of annual return is Rs.100 per day per filing. Since, a company will have to file MGT-7 and AOC-4, the penalty for day of default would be Rs.200.

The MCA announcement about the upcoming changes to the penalty structure has been published on the website as under:

“It is proposed to amend shortly, the Companies (Registration Offices and Fees) Rules 2014 to levy additional fee @Rs.100 per day for filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act, 2013. Once notified, the additional fee @Rs.100 per day (beyond the normal date of filing) shall become payable in respect of 23AC,23ACA,23AC XBRL,23ACA XBRL,20B,21A, MGT-7, AoC-4,AoC-4 XBRL and AoC-4 CFS. Stakeholders are advised to take note and plan accordingly.”

Know more about the increase in penalty for late filing annual return.

Filing Annual Return

Rajput Jain & Associates provides an easy and online process for Entrepreneurs to file their annual return and income tax return along with financial statement and board meeting documents preparation at just Rs.19899. Talk to an Rajput Jain & Associates  Advisor to know more and file Annual Return for your company easily.

Annual Compliance Package for Private Limited Companies Starting @ just 5k

Rajput Jain & Associates offers this unique package starting at an affordable price for the Chartered Accountants who are focussed on taxation aspects rather than on secretarial compliances. This package is specifically offered to the Chartered Accountants who want to outsource the Annual Filing and other secretarial work of their clients. In today’s world it is important to form partnerships in order to expand your reach and attract more clients. Outsourcing your secretarial functions to us will help you to free up time to focus on your core professional services.

We help you meet all the necessary compliance so that you can focus on your core professional activities without worrying about any legal and secretarial hassles. We take care of your compliances and our scope of annual filing services include:

  • Drafting secretarial documents including board report, minutes of AGM, Notices, etc.
  • Providing necessary certifications where required.
  • Filing of ROC returns i.e. AOC-4, MGT-7 and ADT-1.

What we require from your end:

  • Certified Financial Statement of the Client Company.
  • Certified Auditor Report.
  • Any other information regarding the directorship, shareholding, charges or any other material information about the company.

To know more about the scope of service you can contact us on the Email Ids and Numbers given below. We look forward to serving you.For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

Facebooktwittergoogle_plusredditpinterestlinkedinmail