corporate and professional updates 11th july 2018

Image result for corporate and professionalDirect Tax :

  • Karnataka HC dismisses Revenue’s appeal against Tribunal’s allowance of assessee’s [Kirloskar Toyota Textile Machinery Private Ltd] claim that gross profit over sales (PLI) can eliminate difference in depreciation claim due to machinery age, rate / method difference; ITAT had directed AO/TPO to adopt comparison of profitability ratios using gross profit over sales to benchmark international transaction of purchase of auto-components from AE for AY 2010-11; [TS-502-HC-2018(KAR)-TP]
  • Hyderabad ITAT denies Sec. 36(1)(iii) deduction for finance cost of Rs. 164 cr. incurred by assessee-company (a promoter company for the GVK group of companies) for advancing interest-free loan to sister concerns out of interest-bearing borrowings from banks / financial institutions during AY 2012-13; Notes that assessee made interest-free advance to the two sister concerns i.e., level-2 companies, which in turn respectively made investment in the equity capital of level-3 companies i.e. two SPVs which are ultimately involved in construction and maintenance of Mumbai and Bangalore airports; [TS-363-ITAT-2018(HYD)]
  • Reopening of assessment – validity of reasons to believe – Just by stating absence of information’, the Respondent revenue cannot get over the jurisdiction bar. – Notice u/s 148 is without jurisdiction – Goa State Co-Op. Bank Ltd. Vs ACIT (2018 (7) TMI 464 – Bombay HC).

INDIRECT TAX

  • GST Councilunveiled the draft of 46 changes proposed to the GST law before they are introduced in the upcoming monsoon session of parliament.
  • Mere inclusion of Rakhi in a Puja Thali does not make it an integral and essential part of Puja Samagri – Rakhi is not exempt from GST – AAR, West Bengal inM D Mohta (2018 (7) TMI 390).
  • Levy of GST – job-work – Whether the processing of goods belonging to another person qualifies as job work even if it amounts to manufacture? -Held Yes– AAR, Maharashtra in JSW Energy Ltd. (2018 (7) TMI 511).
  • The next meeting of Goods and Services Tax (GST) Council scheduled on July 21 is likely to endorse 3 per cent cess on sugar.

FAQ ON GST

  • Query:  When can a taxpayer pay tax on a provisional basis?
  • Answer: Under the GST regime, the taxpayer normally pays tax on a self-assessment basis. If a taxpayer is unable to determine the value and tax rate applicable to the goods/services they supplied, they should raise a request for provisional assessment, citing the reasons why they need to pay tax on a provisional basis. This request will be processed by a tax officer.

MCA UPDATES

  • The e-form DIR-3-KYC (Directors KYC) to be filed by 30th April every year. For the individual who has DIN as on 31.03.2018, the due date is 31 AUG 2018.

OTHER UPDATES

  • ICAI introduces Unique Document Identification Number (UDIN) to be generated for documents / certificates issued by CA’s. UDIN is a unique number, which will be generated by the system for every document certified / attested by a Chartered Accountant and registered with the UDIN portal available at https://udin.icai.org/.
  • Cost accountants’ apex body ICAI has suggested constituting a central agency, with cost accountants and experts from other fields, to evaluate applications for large loans before banks give their approval.
  • To ensure transparency in the allotment of chartered accountants (CAs) for bank audits, the Institute of CharteredAccountants of India (ICAI) has developed a software that randomly selects the auditors and allots them to banks.

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 10TH JULY 2018

Image result for PROFESSIONAL UPDATESDirect Tax :

  • Madras HC reverses ITAT order for AYs 1998-99 and 1999-2000, allows deduction to assessee-company for expenses incurred on abandoned project, holds the same as revenue in nature as the venture did not fructify; Assessee was invited to take over the Chemical Beneficiation Project by the Government of Tamil Nadu, however, due to several reasons, Government decided to abandon the project and consequently, assessee claimed revenue deduction for major portion of intangibles which was disallowed by AO; [TS-332-HC-2018(MAD)]
  • Karnataka HC allows assessee’s (distributor of diabetic care and other products) writ, quashes reassessment notice for AY 2006-07; Notes that during assessment proceedings u/s 143(3), TPO had accepted assessee’s transactions to be ALP, however, assessment was reopened on March 28, 2013 alleging that assessee’s transaction would qualify as ‘deemed international transaction’ and assessee failed to report the same in Form 3CEB; [TS-501-HC-2018(KAR)-TP]

Indirect Tax:

  • Punjab & Haryana High Court held that GST appeal should not be dismissed for delay if No Appellate Authority constituted. [R.S. Steel Traders Vs State of Haryana (Punjab & Haryana High Court)]

FAQ on GST AUDIT:

  • Query: When will a best judgement assessment order be withdrawn?
  • Answer:After a taxpayer receives a best judgement assessment order issued by a tax official, they have 30 days to file their returns for the tax period and pay the tax shown on the assessment. As soon as they have done so, the best judgement assessment order will be withdrawn. 

MCA UPDATES

Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatory required to file form DIR-3 KYC on or before 31st August, 2018. Otherwise LATE FEES PENALTY 5000 FROM 1 SEPTEMBER 2018 AND DIN WILL BE DEACTIVATED.

  1. Documents Required:
  • 1. DSC of Director duly Registered;
  • 2. Self attested PAN card;
  • 3. Self attested Aadhar card with updated Mobile number with UIDAI;
  • 4. Self attested Electricity Bill, Mobile Bill, Bank statement of Director (latest 2 Months) of his/her present address;
  • 5. Latest Passport size photo;
  • 6. DIN declaration cum KYC.
  • DIR-3 KYC Will be deploy from 10.07.2018.

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018
Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 9TH JULY 2018

Image result for corporateDirect Tax :

  • Delhi ITAT deletes Sec. 40(a)(i) disallowance of Rs. 120 cr. for airfreight payments made by assessee (a logistic and Cargo handling company) without TDS to non-resident parties during AY 2014-15; Observes that assessee did not claim the airfreight as expenses in the P & L account as the payments were made on behalf of its Indian clients/customers (who reimbursed the amount to assessee); [TS-354-ITAT-2018( DEL)]
  • Kolkata ITAT allows the long term capital loss claim on off-market sale of shares by assessee to its group company during AY 2009-10; Rejects Revenue’s stand that the off market transaction with group company was a colourable device only to claim the loss and reduce the tax burden;Observes that in present case, the share-sale transaction was duly supported by the required documentary evidence, delivery instructions were also issued to the depository participant evidencing that there was actual delivery of shares; [TS-349-ITAT-2018(Kol)]
  • CBDThas issued Final Notification (applicable from AY 2017-18) for exception, modification and adaptation in respect of a foreign company said to be resident in India due to its place of effective management (POEM) being in India, u/s 115JH of IT Act.
  • When the revenue has accepted the amount as loan in the hands of other party, it cannot take up a contrary stand and treat the same loan in the hands of the assessee as a gift or a sum received without consideration taxable u/s-56(2)(vii)(a) – ITO Vs. Shri Paramveer Abhay Sancheti (2018 (7) TMI 215 – ITAT Nagpur).

Indirect Tax:

  • CBEC has amended the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Seventh Amendment) Rules, 2018, which shall be deemed to have come into force with effect from the 12th day of June, 2018. Vide notification no 29/2018, dated 6th July 2018.
  • GST: CBIT notifies CGST (Seventh Amendment) Rules, 2018 and amended Rules 125, 129, 130, 131, 132 & 133 effective from 12.06.2018 –N.29/2018-CT, dt.06.07.2018.
  • Alternate accommodation to be paid to the tenant of the old building by the developer / owner – compensation for alternate accommodation / damages for delayed handover of possession of the new premises – Levy of GST confirmed – AAR, in Zaver Shankarlal Bhanushali (2018 (7) TMI 227).
  • CBIC has developed a mobile app ‘GST Verify’ to protect interest of consumers. It is an android app to verify if the person collecting GST from the consumer is eligible to collect it or not. It also provides the details of the person collecting GST.
  • Electricity bills can have GST component at times. Non-tariff charges, which include application fee for releasing connection, rentals charged against metering equipment and labour charges for shifting of meters and service lines, are liable to taxed at 18% under the GST.

FAQ on GST AUDIT:

  • Query: Is a summary assessment order always passed against the taxpayer?
  • Answer:No, the order is not always passed against the taxpayer. If the goods are being transported or stored in a warehouse, the taxpayer cannot be held responsible for them. In such cases, the order is passed against the person in charge of the goods at that point, per Section 64 of the CGST/SGST Act.

RBI UPDATES

  • RBI has decided to put in place a graded enforcement action framework to enable appropriate action in respect of statutory auditors for any lapses observed in conducting a bank’s statutory audit. The framework would cover, instances of divergence identified in asset classification and provisioning during the RBI inspection vis-à-vis the audited financial statements of banks above the threshold specified etc.

SEBI UPDATES

  • SEBI reviewed the mechanism of dividend adjustment for stock options and allowed alteration in strike price. According to the regulator, adjustment in strike price will be carried out in case dividend declared by a company is above 5 per cent of the underlying stocks.

OTHER UPDATES 

  • IBBIhas notified, the IBBI (IRP for Corporate Persons) (Third Amendment) Reg., 2018.
  • DGFThas Notified the office address of DGFT and its Regional Authorities and their Jurisdiction and Private SEZs under the Foreign Trade Policy, 2015-20.

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018
Disclaimer:

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

corporate and professional updates 20th JUNE 2018

Image result for corporateDirect Tax :

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

FAQ on E-WAY BILLS:

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

RBI Update :

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

MCA UPDATES

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

OTHER UPDATES 

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

KEY DATE:

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

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

CORPORATE AND PROFESSIONAL UPDATES 19TH JUNE 2018

Direct Tax :

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

INDIRECT TAX

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

FAQ on E-WAY BILLS:

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

MCA UPDATES

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

RBI UPDATES

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

OTHER UPDATES

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

KEY DATE:

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

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

CORPORATE AND PROFESSIONAL UPDATES 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)

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)

corporate and professional updates 3rd may 2018

Image result for corporate and professional updatesDirect Tax:

  • Delhi ITAT holds that services provided by US entity did not make available technical knowledge, skill, know-how etc to the assessee and thus, does not qualify as fee for included services as per the India-US DTAA and thus not liable to TDS u/s 195, deletes disallowance u/s 40(a)(i). [TS-212-ITAT-2018(DEL)]
  • Mumbai ITAT dismisses Revenue’s appeal and allows exemption u/s 11 to assessee-trust during AY 2009-10, rules that activities of the trust were directed for promoting its objects of vegetarianism and distribution of Prasadam and food to the general public to facilitate the furtherance of the very interest of the Lord Krishna consciousness in the society ; During the relevant AY, Revenue had disallowed donation and payment of rent to ISCON by contending that there was no element of any charity conducted by the assessee as the activities and receipts are on commercial line ; Observes that assessee-trust follows the principle of Bhagwat Gita while Cooking, selling and preparation of vegetarian Prasadam and the activities of trust are essential to spread the thought of understanding the Lord Krishna consciousness and vegetarianism Bombay HC [TS-213-ITAT-2018(Mum)]
  • ITAT Mumbai held in the case of Parle Products Pvt. Ltd. vs. ACIT that Making addition on estimate basis by rejecting the books of account in the absence of any adverse material brought on record cannot stand. [Parle Products Pvt. Ltd. vs. ACIT (ITAT Mumbai)
  • CBDT to recognise transgenders as independent gender, new category amended in PAN formNow, there will separate column for male, female and transgenders.
  • CBDT has proposed changes in the application process for obtaining advance ruling to bring it in line with Base Erosion and Profit Shifting (BEPS) Action 5 objectives.
  • Income tax (I-T) department has seized nearly Rs 15 crore in the last two days across Bengaluru, Hyderabad and Punjab. The tax department started its crackdown on cash hoarders amid a cash crunch reported in several states earlier this month.

Indirect tax

  • Date for the filing of DVAT Return for Q-4, 2017-18, Pertaining to Petroleum and Liquor Dealers,  has been extended up to 13-05-2018, Vide Circular No. 23, dated 27-04-2018.
  • GST Council has set Rs 12 trillion as the target for goods and services tax collections for the current financial year, buoyed by rising tax compliance in the first year of the new indirect tax regime.
  • Due dates forGSTR-1 for the month of March for Aggregate Annual Turnover Exceeding Rs. 1.5 Cr or opted to file Monthly Return is 10 MAY, 2018.
  • To avoid GST Notice, Reconcile ITC in GSTR-3B with GSTR-2A. Pay GST excess claimed with Interest @ 24% pa. Use Web-GST for automated report

FAQ on E-WAY BILLS:

  • Query: How does the taxpayer enter the Part-A details and generate the e-way bill later by entering Part-B?
  • Answer: The taxpayer can enter Part-A details and generate the Part-A slip. Sometimes, the taxpayer wants to move the goods himself but wants to update the Part-B later as vehicle number is not available at that point of time. E-way bill expects the user to enter transporter ID or vehicle number. If he wants to move the goods himself, he can enter his GSTIN as transporter Id and generate Part-A Slip. This indicates to the system that he is a transporter and is going to enter Part-B later.

SEBI updates

  • SEBI has barred 28 entities from the capital markets for sending out unauthenticated SMSes in bulk with misleading ‘buy’ recommendations to pump up trading volumes in the shares of Kalpa Commercial.
  • SEBI has made Amendment to SEBI w.r.t Monitoring of Foreign Investment limits in listed Indian companies.vide its Circular dated April 5, 2018.

MCA updates

  • The Ministry of Consumer Affairs, Food and Public Distribution, has issued the advisory for smooth implementation of the Legal Metrology (Packaged Commodities) (Amendment) Rules, 2017.

Other updates

  • Valuation Standards Board of the ICAI has published exposure drafts for the Valuation Standards. Inputs on the same can be given till May 12, 2018. Email: Comments can be sent to commentsvsb@icai.in
  • Ministry of Labour & Employment extended Last date for giving comments/suggestions on the Draft Code on Occupational safety, Health and Working conditions, 2018 extended upto 31st May, 2018.

Key dates:

  • GSTR-1 for the taxpayers with annual turnover more than Rs 1.5 cr for the March on monthly  basis: 10.05.2018
  • 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)

Corporate and Professional Updates 17th April 2018

Image result for CORPORATE AND PROFESSIONALDirect Tax:

  • Kolkata ITAT grants exemption u/s 54 to assessee (an individual) for AY 2010-11, rules that mere availing of housing loan from bank cannot justify denial of exemption u/s 54 when the primary conditions for exemption have been satisfied ; Revenue denied benefit u/s 54 on the ground that assessee had obtain house building loan and capital gains earned from sale of residential units were not invested in new residential unit; Notes that assessee sold his residential units during FY 2009-10 and purchased a new residential flat whose possession was received in June, 2010, thus clarifies that the transaction was well within time stipulated u/s. 54.  [TS-176-ITAT-2018(Kol)]
  • Allahabad High Court held that Deemed dividend u/s 2(22)(e) not attracted in absence of ‘actual’ payment. [TS-179-HC-2018(ALL)]

Indirect Tax:

  • Central Board of Indirect Taxes and Customs gives clarification on the queriesregarding processing of refund applications for UIN agencies.
  • E-Way Bill system for Intra-State movement of goods, has been implemented from 15.04.18 for the States of Andhra Pradesh, Gujarat, Kerala, Telangana & Uttar Pradesh.
  • Last date for submitting GSTR 3b and payment of taxes for March 2018 is 20th April 2018.
  • The Central Board of Indirect Taxes and Customs, inter-alia, lays down procedure for recovery of central excise duty / service tax and CENVAT credit thereof riasing out of proceedings under existing law, unless recovered thereunder, and that of inadmissible transitional credit, as “arrears of tax” under CGST Act. Circular No. 42/16/2018-GST DT 13/04/2018.
  • CBIC has issued Circular, clarifying the various procedures for interception of conveyances, etc. in the light on compulsory introduction of e-way for inter-state movement of goods w.e.f April 1, 2018 and intra-state movement of goods Circular No. 41/15/2018-GST dt 13/04/2018.
  • GST Rate of Rubber Wood is 18%: In an order by the Authority for Advance Ruling, ( AAR ) Kerala, the authority clarified that rate of GST on rubber wood as 18% under the HSN4403

FAQ on E-WAY BILLS:

  • Query: How to generate the e-way bill from different registered business places?
  • Answer: The registered person can generate the e-way bill from his account from any registered business place. However, he/she needs to enter the address accordingly in the e-way bill. He/she can also create multiple sub-users and assigned to these places and generate the e-way bills accordingly.

MCA updates

  • It is proposed to amend 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.

Key Dates:

  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018

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)