corporate and professional updates 25th JUNE 2018

Image result for corporateDirect Tax :

  • Kolkata ITAT dismisses Revenue’s appeal for AY 2009-10, deletes long term capital gains (‘LTCG’) addition u/s. 50B, made by the AO on transfer of Trading and Distribution (‘T&D’) division of assessee-company (GE Healthcare OY’s wholly owned subsidiary) to Wipro GE Healthcare vide demerger (approved w.e.f. April 1, 2008); [TS-320-ITAT-2018(Kol)]
  • Calcutta HC sets aside ITAT order for AY 1983-84, allows Brooke Bond India’s investment allowance claim u/s. 32A on weighing machines, electrical equipments, other machineries and computers; Rejects Revenue’s stand that to qualify for allowance,  a plant / machinery has to be directly used in the manufacture of an article or thing;  [TS-318-HC-2018(CAL)]
  • Mumbai ITAT rules that capital gains of Rs. 455.70 Cr. arising to assessee-company (a tax resident of Singapore), pursuant to trading in Indian securities during AY 2011-12, not taxable in India under Article 13(4) of India-Singapore DTAA; [TS-321-ITAT-2018(Mum)]
  • CBDT proposes clear-cut timelines under transfer pricing, through a draft notification, suggested that the amount should be returned within 90 days of signing of APAs and MAPs.
  • Due date for furnishing challan-cum-statement in respect of tax deducted U/s 194-IA & 194-IB for m/o May’18- June30,

INDIRECT TAX

  • CBIC has issued a circular clarifying the procedure for interception of conveyances for inspection of goods in movement,and detention, release, and confiscation of such goods and conveyances.
  • Goods without eway bill, bill etc can be confiscated/detained. Others in same vehicle, with proper papers can’t be held. Circular 49 of 21.6.18.

FAQ on E-WAY BILLS:

  • Query:In case of movement of goods by Railways, is there a requirement for railway to carry e-way bill along with goods?
  • Answer: In case of movement of goods by Railways, there is no requirement to carry e-way bill along with the goods, but railways has to carry invoice or delivery challan or bill of supply as the case may be along with goods.

SEBI UPDATES

  • Sebi is set to revamp IPO norms to make them less onerous for legitimate sellers while clamping down on possible misuse. These include recognizing a wider set of institutional investors such as alternative investment funds (AIFs) as counting toward promoters’ contribution in startups, requiring financial disclosures for three years rather than five and reducing disclosure of the price band to two days before the issue opens from five now.

OTHER UPDATES

  • The Insolvency and Bankruptcy Code, 2016 consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
  • NSE is in the process of introducing a corporate governance code that will be stricter than the existing laws and regulations.

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
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 23rd JUNE 2018

Image result for corporate and professionalDirect Tax :

  • Delhi ITAT rules that assessment made u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (‘the Act’), on a Cyprus based Company (assessee, which had voluntarily wound up in May, 2013) for AY 2012-13, not a nullity, despite assessee being non-existent as on the date of issuance of order in 2017, follows Gujarat HC ruling in Sumantbhai C. Munshaw;
    [TS-319-ITAT-2018(DEL)]
  • Mumbai ITAT upholds disallowance u/s. 40(a)(i) for the entire amount of testing charges paid by assessee-company to German party without TDS during AY 2012-13; Rejects assessee’s stand that in view of CBDT circular 3/2015, only appropriate portion of such sum which is chargeable to tax under the Act shall be disallowed u/s. 40(a)(i);[TS-317-ITAT-2018(Mum)]
  • A tax benefit claimed by a taxpayer in his revised income-tax return cannot be denied outright by an income-tax (I-T) officer merely because the revised return has been filed after issue of notice – ITAT, Mumbai inMahesh Hinduja.
  • Addition u/s.68 – gift – When however, large amounts are stated to have been gifted, that too by a person having no blood relation with the assessee, the question of genuineness of the gifts would require closer scrutiny – Tribunal has made superficial observations and mechanically accepted the genuineness of the gifts – CIT Vs. Mukesh M Sheth (2018 (6) TMI 1056 – Gujarat High Court).
  • Taxpayer can file revised return after notice issued by Income Tax Department- ITAT. However, the revised return needs to be filed within the time limits set out in Income Tax Act.
  • The income tax department has proposed clear-cut timelines by which excess amount assessed by Transfer Pricing Officials over what was declared by associated enterprises of multinational corporations has to be brought in India. These timelines relate to advance pricing agreements and mutual agreement procedure.

INDIRECT TAX

  • Transporter registered in multiple states with same PAN may apply for common enrolment no. for eway bill by filing GST ENR-02, using any GSTIN.
  • GST has been spoken of as a panacea for high fuel prices but the structure in works would ensure rates remain almost at same levels. A peak tax rate of 28% plus states levying some amount of local sales tax or VAT on petrol and diesel.
  • CBIT&C modifies the procedure for interception of vehicle for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular, dt.13.04.2018 – Circular No.49/23/2018-GST, dt.21.06.18.
  • GTA Service – The document issued by District Supply Officer conveying the goods transported cannot be construed as a consignment note – Gade Transport Vs. CCE (2018 (6) TMI 1010 – CESTAT Mumbai).
  • Transporter registered in multiple states with same PAN may apply for common enrolment no. for eway bill by filing GST ENR-02, using any GSTIN.

FAQ on E-WAY BILLS:

  • Query:Whether e-way bill is required for intra -State movement of goods?
  • Answer:At present e-way bill is required only for inter-State movement of goods. For intra-State movement of goods the requirement for e-way bill will be introduced in a phased manner, for which rules will be notified by respective states separately.

MCA UPDATES

  • MCA issues The Companies (Significant Beneficial Owners) Rules, 2018; &, The Companies (Management & Administration) 2nd Amendment Rules, 2018. MCA Ntfcns of 13.06.18.
  • MCAacross India have initiated the action (II Stage) against the non working companies for striking off of all such companies under Section 248(1) of the Companies Act, 2013. Public Notice in Form No. STK — 5, Pursuant to sub-section (1) and sub-section (4) of section 248 of the Companies Act, 2013 and rule 7 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 has been issue by the Registrar of Companies, Delhi to 31,250 Companies.
  • The Registrar of Companies across India have initiated the action (II Stage) against the non working companies for striking off of all such companies under Section 248(1) of the Companies Act, 2013.

SEBI UPDATES

  • SEBI has issued a circular w.r.t Enforcement of SEBI Orders regarding appointment of Directors by listed companies.SEBI has referred to enforcement of its Orders debarring entities/individuals from accessing the capital markets and / or restraining from holding position of directors in any listed company.
  • SEBI has issued acircular w.r.t Enforcement of SEBI Orders regarding appointment of Directors by listed companies

RBI Update:

  • The Reserve Bank of India has imposed a monetary penalty of Rs. 50,000/- (Rupees fifty thousand only) on City Co-operative Bank Ltd., Hassan, in exercise of the powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949.

OTHER UPDATES

  • Indian Valuation Standards as issued by the Institute of Chartered Accountants of India effective for the valuation reports issued on or after 1st July, 2018.

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
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 & PROFESSIONAL UPDATES 22ND JUNE

Image result for corporate and professionalDirect Tax :

  • Madras HC dismisses Revenue’s writ appeal against the order of Single Judge for AY 2009-10 holding the final assessment order passed, without issuing draft order, and the subsequent corrigendum treating the earlier assessment order as “draft order” u/s 144C, as invalid;[TS-469-HC-2018(MAD)-TP]
  • Kolkata ITAT upholds CIT(A)’s acceptance of assessee’s TNMM over TPO’s CUP-method for benchmarking assessee’s (manufacturer in FMCG Industry) sale of finished goods transaction for AY 2012-13; Noting that prices at which assessee had sold its products to third party distributors in countries like Kenya, Congo, Sri Lanka etc. were compared by TPO with those sold to assessee’s AEs in Bangladesh, Dubai and UK without any adjustments to difference in economies of these countries;[TS-468-ITAT-2018(Kol)-TP]
  • The central board of indirect taxes and customs has notified the central goods and services tax (sixth amendment) rules, 2018 which shall come into force on the date of their publication in the official gazette.
  • Chennai ITAT confirms CIT(A) order, rejects deemed dividend addition u/s. 2(22)(e) in hands of assessee-individual during AY 2014-15, in respect of outstanding balance payable by assessee’s proprietary concern to a publishing company (in which assessee is a substantial shareholder); [TS-316-ITAT-2018(CHNY)]
  • Madras HC allows petitioner’s (deceased assessee’s spouse) writ, quashes re-assessment notice issued u/s 148 in the name of deceased-assessee, holds that petitioner cannot be compelled to participate in the proceedings and respond to Sec. 148 notice; In response to Sec. 148 notice issued in the name of assessee (within prescribed time-limit), petitioner intimated about assessee’s death and the subsequent notice was issued by Revenue beyond the limitation period.[TS-315-HC-2018(MAD)]

INDIRECT TAX

  • Goods can’t be Seized for Non-Filling of Part B of E-Way Bill transported within a distance of 50 Kms, rules Allahabad High Court.
  • CBEC has made in Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Sixth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette. Vide notification no 28/2018, dated 19th June 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.
  • Query:  What is a detention report under grievance menu?
  • Answer:  If the goods or the vehicle of the taxpayer or transporter has been detained by the tax officers for more than 30 minutes, then the transporter can enter the detention report on EWB Portal, which will reach the designated officer immediately, so that he can take an appropriate action accordingly.

 MCA Update:

  • MCA has made amendment in the Companies (Accounting Standard) Rules, 2006. These rules may be called Companies (Accounting Standard) Amendments Rules 2018, which shall come into force on the 1st Day of April 2018.
  • Form DIR-3 is likely to be revised on MCA21 Company Forms Download page w.e.f 21st JUNE 2018. Stakeholders are advised to check the latest version before filing.

RBI UPDATES

  • RBI has tweaked priority sector eligibility and classification norms following an announcement in the second bi-monthly policy statement on June 6 for Priority Sector Lending guidelines for housing loans with the Affordable Housing Scheme to low-cost housing for the Economically Weaker Sections.

SEBI UPDATES

  • Sebi is set to revamp IPO norms to make them less onerous for legitimate sellers while clamping down on possible misuse. These include recognizing a wider set of institutional investors such as alternative investment funds (AIFs) as counting toward promoters’ contribution in startups, requiring financial disclosures for three years rather than five and reducing disclosure of the price band to two days before the issue opens from five now.

OTHER UPDATES

  • The Employees’ Provident Fund Organisation (EPFO), a $165-billion behemoth that is also India’s biggest bond buyer, could raise borrowing costs for local companies if its participation is limited by restrictive rules on transaction settlement.

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
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 18TH JUNE 2018

Image result for corporate and professionalDIRECT TAX

  • Cost Inflation Index for FY 2018-19 (AY 2019-20) notified as 280. Notification No.26/2018/F.No.370142/3/2018- TPL of 13.6.2018.

INDIRECT TAX

  • GST registrants can approach jurisdictional tax officer with valid documents to change the e-mail and mobile number recorded against their GST identification number (GSTIN).
  • Sale of pre-GST packaged goods has now been allowed with stickers of revised ratestill July 31. The deadline has been extended several time and the latest was April 30. 

FAQ on E-WAY BILLS:

  • Query:How to enter multiple modes of transportation, i.e., road, rail, ship, air for the same e-way bill?
  • Answer:.One e-way bill can go through multiple modes of transportation before reaching destination. As per the mode of transportation, the EWB can be updated with new mode of transportation by using ‘Update Vehicle Number’.

MCA Updates:

  • MCA has amend the Companies (Management and Administration) Rules, 2014.These rules may be called the Companies (Management and Administration) Second Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette
  • MCA has made the Companies (Significant Beneficial Owners) Rules, 20l8, which shall come into force on the date of their publication in the Official GazeIte.
  • MCA has amend the Companies (Registered Valuers and Valuation) Rules, 2017. These rules may be called the Companies (Registered Valuers and Valuation) Second Amendment Rules, 2018, which shall come into force on the date of their publication in the Official Gazette.
  • MCA has notified 5 Sections of companies Amendment Act, 2013.
  • The corporate affairs ministry wants all unlisted companies with paid-up capital of more than Rs 50 million to digitalize shares by June-end. Others can do so by September. The aim is to make transactions more transparent.

SEBI UPDATES

  • Sebi vides its notifications dated May 31, 2018, amended the provisions of Takeover Code, Issue of Capital and Disclosure Requirements (ICDR) Regulations, Delisting Regulations and Listing Obligations and Disclosure Requirements (LODR) Regulations to facilitate the resolution process under IBC.

OTHER UPDATES

  • ICAI has decided to obtain information from all the Members holding COP as on 01.04.2018 who presently have or at any time in the past seven financial years had networking relationship or affiliation by whatever name called with any entity.
  • ICAI Members/partners/firms who at present or any time in the past seven financial years had no networking arrangements or affiliation by whatever name called need not submit the information.
  • ICAI young members Committee will organize training programmers for 1000 interested members for developing their public speaking skills as Guest Speaker.Please click the link https://goo.gl/Jmd2xT to access the form. Last date 2nd July 2018. Phone: +91-11-30110431 ; Email: ymec@icai.in

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 16TH JUNE 2018

Image result for corporateDIRECT TAX

  • Income tax payers filing appeals before ITAT will have to provide information relating to the amount locked up in dispute along with a brief case history and the relief claimed. IT Dept today came out with a draft notification saying it is amending Form 36, 36A and Rule 47 under the I-T Act.
  • For Income Tax purpose Cost inflation index for the Financial Year 2018-19 is 280.
  • Update Mobile No., E-mail id, Address etc. in Assesses Profile in IT PAN Login. Can skip it and do it later. Now you can login without Date of Birth. 

INDIRECT TAX 

  • Gst draft circular on certain issues on Services to SEZ units and refund of itc due to inverted duty structure for fabric job workers.

FAQ on E-WAY BILLS:

  • Query Whether e-way bill is required, if the goods are being purchased and moved by the consumer to his destination himself?
  • Answer:. Yes. As per the e-way bill rules, e-way bill is required to be carried along with the goods at the time of transportation, if the value is more than Rs. 50,000/-. Under this circumstance, the consumer can get the e-way bill generated from the taxpayer or supplier, based on the bill or invoice issued by him. The consumer can also enroll as citizen and generate the e-way bill himself.

MCA Updates:

  • MCA has amend the Companies (Appointment and Qualification of Directors) Rules, 2014. These rules may be called the Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette.
  • MCA has amend the Limited Liability Partnership Rules, 2009. These rules may be called the Limited Liability Partnership (Amendment) Rules, 2018 which shall come into force on the date of their publication in the Official Gazette.
  • Forms SPICe MoA and SPICe AoA are likely to be revised on MCA21 Company Forms Download page w.e.f 14th JUNE 2018. Stakeholders are advised to check the latest version before filing.
  • MCA has notified the Liability Partnership (Amendment) Rules, 2018 which shall come into force on the date of their publication in the Official Gazette i.e. 12th June, 2018.
  • DIR-3 and DIR-6 will be revised on MCA21 Company Forms Download page w.e.f 15th JUNE 2018.Stakeholders are advised to check the latest version before filing.

RBI UPDATE

  • RBI released draft guidelines on loan system for delivery of bank credit which stipulate a minimum level of ‘loan component’ in fund based working capital finance and a mandatory Credit Conversion Factor (CCF) for the undrawn portion of cash credit/ overdraft limits availed by large borrowers.

OTHER UPDATES

  • Centre has instructed telecom service providers to tweak their systems and networks to enable the use of Virtual IDs (VIDs) instead of Aadhaar, and migrate to the ‘limited KYC’ mechanism.
  • ICAI and four other accounting associations have written to the CBDT opposing the latter’s move to amend Section 11 UA of the Income Tax Act. The step will pave the way for excluding chartered accountants from carrying out valuation of unquoted shares.

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 15TH JUNE 2018

Image result for corporate and professional

Direct Tax:

  • AAR holds that the non-compete fee received by Applicant [Holding company of Mcmillan Group (a leading publisher) and resident of UK] constitutes business income u/s 28(va), however it is not taxable in India in absence of Applicant having PE under India-UK DTAA; Applicant received non-compete fee pursuant to Share Purchase Agreement (SPA) entered with Indian Company (ADI) for transfer of shares of another Indian company, MPS Limited in which Applicant held 61.46% shares; [TS-305-AAR-2018]
  • AAR rules that the Applicant (a Singaporean based MasterCard group company, which carries out group’s principal business of transaction processing and payment related services) has a fixed place PE, service PE and dependent agent PE in India under Article 5 of the India Singapore DTAA in respect of the services with regard to use of a global network and infrastructure to process card payment transactions for Customers in India; [TS-304-AAR-2018]
  • CIT vs. L&T Finance Ltd (Bombay High Court) S. 271(1) (c) Penalty: Merely using the words that there is concealment of income and / or furnishing inaccurate particulars of income is not sufficient. The same should be particularized by the AO with a finding.

 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 (Fifth Amendment) Rules, 2018 which shall come into force on the date of their publication in the Official Gazette. Vide notification no 26/2018, dated 13th June 2018.
  • The Central Board of Indirect Taxes and Customs (CBIC) has extended the refund fortnight for fast track clearance of pending dues to exporters by two days till June 16.
  • Last date to file GSTR-3B for the month of May 2018 is June 20,2018.
  • 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

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.
  • 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.

RBI UPDATES

  • RBI has mooted a proposal that at least 40 per cent of the sanctioned limit should be a term loan component. For borrowers with an aggregate fund-based working capital limit of Rs 1.5 billion and above from the banking system wef October 1, 2018.

OTHER UPDATES

  • Government has notified the Officer’s, who may, before institution of any prosecution under FCRA compound the offences, on payment of the amount specified in the notification. In case more than one offence has been committed by a person, the total amount of compounding for such offences shall not be more than the value of the foreign contribution involved.

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
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 12TH JUNE 2018

Image result for corporateDirect Tax:

  • Delhi HC upholds ITAT order, denies deduction u/s 37 to assessee-individual (a lawyer) for litigation/settlement expenses incurred in respect of settlement of dues of the company for which he stood personal guarantor in his capacity as MD of the company; Notes that on company’s inability to repay substantial advances to financial institutions / banks, assessee switched gear and became a lawyer to settle the dues of the company and entered into one time settlement and incurred the alleged expenses; [TS-295-HC-2018(Del)]
  • Mumbai ITAT allows assessee (a salaried employee) to change property declared as Self Occupied Property (‘SOP’) for the purpose of computing Income from House Property for AY 2011-12; ITAT notes that in the return of income, assessee declared Vasai property (from Mumbai) as SOP, however at a later stage of assessment, assessee sought to substitute Juhu Property (from a more developed locality in Mumbai) as SOP, which was rejected by AO; [TS-293-ITAT-2018(Mum)]
  • Mumbai ITAT allows assessee-company’s claim of long term capital loss (LTCL) arising on sale of shares of group companies during AY 2005-06, allows set-off against long term capital gains arising on surrender of tenancy rights; Rejects Revenue’s stand that transfer of shares of some group companies (loss making companies) to another group company was a sham transaction and a tax planning to generate LTCL which could be set off against LTCG; [TS-298-ITAT-2018(Mum)]
  • CBDT has dedicated a fortnight beginning June 1, 2018 for expeditious disposal of pending appeals and rectification matters. The direct tax body in a statement said the assessing officers have been directed to accord top priority to such matters and to give special attention to this area of work.
  • CIT vs. Sunita Dhadda (Supreme Court)  143(3)/ 292C: If the AO wants to rely upon documents found with third parties, the presumption u/s 292C against the assessee is not available. As per the principles of natural justice, the AO has to provide the evidence to the assessee & grant opportunity of cross-examination.
  • Mumbai bench of ITAT upheld the right of a taxpayer to change the selection of a house property that would be treated as self-occupied and having a ‘nil’ annual value. Consequently, the notional rent from such a house will not be taxable.

INDIRECT TAX

  • Authority for Advance Ruling (AAR) in Andhra Pradesh has ruled that warehoused duty-free ship stores, which stock goods imported without payment of duty and sell to outbound ships, will be liable to pay GST on supplies made to Indian naval ships, coast guard ships and ocean-going ships.
  • Union Minister Dharmendra Pradhan said that Petrol, diesel to be under GST soon, says Dharmendra PradhanAs the state owned oil industry is losing Rs 200 billion annually in terms of input credit

FAQ on E-WAY BILLS:

  • Query: Whether the e-way bill is required for movement of consignment for weighment to the weighbridge?
  • Answer:No e-Way bill is required for movement of goods up to a distance of 20 Km from the place of business of consignor to a weighbridge for weighment or from the weighbridge back to the place of business of consignor, within the same State, subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with Rule 55.
  • 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 Update:

  • Forms SPICe MoA and SPICe AoA are likely to be revised on MCA21 Company Forms Download page w.e.f 14th JUNE 2018. Stakeholders are advised to check the latest version before filing.
  • Payment through Union bank Internet Banking has been temporarily disabled. Stakeholders are advised not to choose UBI Internet Banking for making the payment. Stakeholders can still choose any other payment option available.

 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

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 11TH JUNE 2018

Direct Tax:

  • Delhi ITAT allows carry forward of business loss claimed by assessee-company in the return of income filed u/s 153A (relating to assessment in search cases), although the same was denied in assessment u/s. 143 on account of belated filing of return u/s. 139 for AY 2010-11; Observes that Sec. 153A starts with non-obstante clause which inter alia overrides Sec. 139, holds that return filed u/s 153A is a separate return and once accepted and assessed, it replaces the original return u/s. 139(1); [TS-299-ITAT-2018(DEL)]
  • Mumbai ITAT rejects long term capital gains (LTCG) treatment to gains arising on sale of industrial unit (‘asset’) during AY 2005-06 which was acquired by assessee-individual on dissolution of partnership firm; Refuses to reckon firm’s holding period (which had purchased asset in 1984) for determining holding period in assessee’s hands, notes that Explanation 1 to Sec. 2(42A) r.w.s 49(1) which provides for inclusion of holding period of previous owner, does not cover situation under consideration; [TS-294-ITAT-2018(Mum)]
  • 15.06.2018 is last date for paying first installment of Advance Tax for FY 2018-19. Non/short payment is liable to penal interest.
  • No bar in Income Tax Act for owner of multiple residential properties to change self occupied property at time of assessment. Case of Venkatavarthan N Iyengar, ITAT.

INDIRECT TAX

  • Central Government vide Circular no. 44/18/2018 dated 2ndMay, 2018 has provided that merely because a transaction or a supply of tenancy rights involves execution of documents which may require registration and payment of registration fee and stamp duty, would not preclude them from the scope of supply of goods and services and from the payment of GST on tenancy premium.Further, it has been clarified that transfer of tenancy rights to a new tenant against consideration in the form of tenancy premium is taxable. However, grant of tenancy rights in a residential dwelling for use as residence dwelling against tenancy premium or periodic rent or both is exempt  [Sl. No.12 of notification no. 12/2017-Central tax (rate)].
  • As per the decision of the GST Council, e-way Bill system for inter-State movement of goods has been rolled out from 01st April, 2018. As on 13thMay, 2018, e-Way Bill system for intra-State movement of goods has been rolled out in the States/ Union Territory of Andhra Pradesh, Arunachal Pradesh, Bihar, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Nagaland, Sikkim, Telangana, Tripura, Uttarakhand, Uttar Pradesh and Pondicherry. E-Way Bills are getting generated successfully and till 13thMay, 2018 more than four crore and fifteen lakh e-Way Bills have been successfully generated which includes more than one crore e-Way Bills for intra-State movement of goods.It is hereby informed that e-Way Bill system for intra-State movement of goods would be implemented in Assam from 16th May, 2018 & Rajasthan from 20th May, 2018.With the roll-out of e-Way Bill system in these States/ Union Territory, it is expected that trade and industry will be further facilitated insofar as the transport of goods is concerned, thereby eventually paving the way for a nation-wide single e-Way Bill system. Trade and industry and transporters located in these States/ Union Territory may obtain registration/ enrolment on e-Way Bill portal namely https://www.gov.in at the earliest without waiting for the last date.

FAQ on E-WAY BILLS:

  • Query: If the goods having e-way bill has to pass through trans-shipment and through different vehicles, how it has to be handled?
  • Answer:Some of the consignments are transported by the transporter through transshipment using different vehicles before it is delivered to the recipient at the place of needs to update the vehicle number in which he is transporting that consignment in part B of the E Way Bill.destination. Hence for each movement from one place to another, the transporter
  • Query:How the distance has to be calculated, if the consignments are imported from or exported to other country?
  • Answer:The approximate distance for movement of consignment from the source to destination has to be considered based on the distance within the country. That is, in case of export, the consignor place to the place from where the consignment is leaving the country, after customs clearance and in case of import, the place where the consignment is reached the country to the destination place and cleared by Customs.

MCA UPDATES

  • Shell Companies: Around 2, 25,910 Companies identified for being Struck-off this Year, Says Finance Ministry.

RBI UPDATES

  • RBI has made changes in the Gold Monetization Scheme (GMS) to make it more attractive. The revamping of the scheme is aimed at enabling people to open a hassle-free gold deposit account. The short-term deposits should be treated as bank’s on-balance sheet liability.

 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

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)