Direct Tax :
- Delhi ITAT held that the AO proceeded to initiate reassessment proceedings u/s. 147 of the Act and to issue notice u/s. 148 of the Act on the basis of borrowed satisfaction and without any application of mind and examination of the so called material and information received from the investigation wing to establish any nexus, even prima facie, with the such information.Pioneer Town Planners Pvt. Ltd vs. DCIT (ITAT Delhi)
- Delhi HC upholds ITAT’s characterization of research and information services rendered by McKinsey India to its AE as high-end knowledge-based research services (KPO) for AYs 2011-12 & 2012-13; Noting that the services rendered by assessee were “specialized and require specific skill based analysis and research that is beyond the more rudimentary nature of services rendered by a BPO”, HC concludes that “it would be incorrect to slot the services provided by the Assessee into that of a BPO, when it is more akin to a KPO”; [TS-812-HC-2018(DEL)-TP]
- Ahmedabad ITAT quashes Pr. CIT’s revisionary order u/s. 263 in case of a Pharma co. (assessee) for AY 2014-15, holds that “the foundation for exercise of revisional jurisdiction is sorely missing” as all the issues raised by Pr.CIT have been duly touched by AO in his detailed order (running into over 100 pages and resulting in additions/disallowances of whopping Rs.131 Cr.); Considering that assessee is a very big player in the pharma sector, ITAT remarks that “having regard to the staggering turnover and scale of operation, it is virtually impossible for any adjudicating authority to examine and reexamine all the points in a given assessment year to the hilt as perceived by thePr.CIT”;[TS-443-ITAT-2018( Ahd)]
- GST Audit: As per section 16(4) of the GST Act a registered person shall not be eligible to take adjustment of any input tax credit in respect of any invoice pertaining to FY 2017-18 after the due date of filing GSTR3B for the month of Sept 2018 i.e. 20.10.2018.
- Reverse Charge Mechanism on purchases from unregistered persons u/s 9(4) deferred till 30.09.19. Notification 22/2018-CT (Rate) of 6.8.18.
- CBIC has modified the due date for filing of final GST sales returns by businesses with turnover exceeding Rs 1.5 crore to the 11th day of the succeeding month. Currently, such businesses are required to file GSTR-1 or final sales return of a particular month by the 10th day of the succeeding month.
- Lok Sabha approved GST Cess surplus: changes to the relevant law to allow both to dip into the surplus in the GST Compensation Fund at any time during a financial year. The law has hitherto allowed division of the surplus only after a five-year “transition period” (till June 2022), during which states are constitutionally guaranteed a GST revenue growth (over the base year, 2015-16) of 14% per year.
FAQ on GST Audit:
- Query: What is the consequence of compounding of an offence under CGST/SGST Act?
- Answer:Sub-section (3) of section 138 provides that on payment of compounding amount no further proceeding to be initiated under this Act and criminal proceeding already initiated shall stand abated
- Form DIR3-KYC is likely to be revised on MCA21 Company Forms Download page w.e.f. 13th AUG 2018. Stakeholders are advised to check the latest version before filing.
KEY DUE DATES
- GSTR-3B (JULY 2018)-AUG 20th, 2018
- GSTR-5 (JULY 2018)-AUG 20th, 2018
- GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
- GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
- GSTR-5A (JULY 2018)-AUG 20th, 2018
- Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST 2018.
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