Corporate And Professional updates on 17th January 2019

Direct Tax updates:

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  • The Return Of Income tax may get processed In 1 day now while earlie rafter 63 days, making refunds more expeditious, after a proposed integrated e-filing and Centralised Processing Centre.
  • The New system will permit issue of refunds to the taxpayer’s bank account without any face to face communication with Government. The tax department, provide processing status updates, and speedy communication using mobile app, email, SMS and on the department website to ensure transparency and accountability. This will assure fairness in tax treatment to every taxpayer irrespective of their status.
  • The cabinet has approved the expenditure sanction for the consolidated cost of Rs.1,482.44 crore of the existing CPC-ITR 1.0 project up to 2018-19. The Centralised Processing Centre in Bangalore, which processes paper-based and e-returns, has processed 23 crore returns so far.
  • The startups commenced before April 2016 covered,” Department of Industrial Policy and Promotion (DIPP) secretary Ramesh Abhishek told ET. To claim the exemption startups and investors need to make an application from DIPP in a prescribed format along with necessary documents. The Central Board of Direct Taxes will then issue certificate of exemption within 45 days of the application.
  • The application will no longer be required to be cleared by the interministerial committee. The application only seeks justification for the valuation of shares along with supporting document.
  • “A simplified form to be filled by startups, which needs only the PAN details from investors, and some other simplified and basic information which can be easily provided to the regulators,” said Rajat Tandon, president of IVCA.

Indirect Tax:

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  • The GST Council constitutes an Eight-Member Group of Ministers which will suggest whether a Uniform Tax Rate should be imposed on Lotteries or the current differential tax rate system be continued. Currently, a State-Organised Lottery attracts 12% GST while a State-Authorised Lottery attracts 28% tax.

SEBI UPDATES:

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  • SEBI issues norms for Mutual Funds’ Investments in Derivatives & allows Mutual Funds to write Call Options subject to certain conditions. Currently, mutual fund schemes are permitted to undertake transactions in equity derivatives but cannot write options or purchase instruments with embedded written options.
  • The Security Exchange Board of India may strict the norms for liquid funds, the most popular mutual fund product among institutional investors with average assets under management. The Proposal that the capital market regulator is considering for liquid schemes are mandatory minimum investments in short-term government bonds, a plan to introduce a lock-in for investments in liquid funds is also being discussed.
  • The Security Exchange Board of India, appointed by the regulator to decide on reforms for mutual funds, is yet to formally meet to discuss these measures it is not clear how the final rules would take shape. The regulator’s decision to tighten rules for mutual funds comes in the wake of the crisis at the IL&FS Group, which defaulted on its payments to various investors including mutual funds.
  • The Regulatory yet has to decide the investment, but as Per the Professionalist the scheme is required to invest minimum 15-20% of the assets under management in treasury bills with 90 days maturity. “It will be prudent because with treasury bills, mutual funds can always tap the CBLO market to borrow.
  • The plan of introducing a minimum investment period for liquid funds there was a suggestion to bring in a seven-day lock-in for liquid funds to ease the volatility in flows, but this proposal has met with maximum opposition from the MFAC and the industry.
  • According to Fund Manager Borrowers would reduce dependence on Liquid funds due to pressure on retiring debt in 30 days. “Borrowers can effectively keep the money for 21-22 working days. It is going to be stressful for companies,”

Case Laws on Income Tax:

Case 1:

Supreme Court in case of [CIT (Exemptions) –Pune Vs. Progressive Education Society

Condonation of delay – delay of 362 days – the main cause of delay was difference of opinion between the two Officers and ultimately legal opinion was taken and it was decided to file the appeal – delay condoned.

Case 2:

Madras High Court in case of [CIT, Chennai Vs. M/S. Savera Industries Ltd.

Nature of expenditure – expenditure for re-place of flooring and purchase of air conditioner, dish washing machine, and audio/video equipments in the pub etc. – Held as revenue expenditure allowable as deduction u/s 37.

Case 3:

ACIT, Central Circle 6 (1), New Delhi Vs.Maruti Countrywide Auto Financial Services Pvt. Ltd.

Loss on foreclosure of loans – Whether equivalent to write off of an asset which is capital in nature and not allowable u/s. 37(1) since it is not a Revenue write off? – The assesse satisfies all the conditions of allowabaility of this sum as deduction u/s 36(1) (vii) rws 36(2).

Case 4:

CEC International Corporation (INDIA) Pvt. Ltd. Vs. The DCIT, Circle-3 (1), New Delhi

Allowable expenditure u/s 37(1) – The assessed at the initial stage could not file any reply on this issue. The DRP has given a specific finding that this amount have been incurred on salary advance and other payments which are neither in the nature of trading loss nor the bad debts

FAQ’s on GST:

QUES. What will be the “place of supply of services” in case of stock brokers?

ANS. In case of stock broking, the details of the address of the client are required to be updated with the Stock Exchange as part of the “Unique Client Code” details. Therefore, in case of domestic supplies of such services, address on record with the stock brokers shall be the “location of the recipient of services” in terms of section 12(12) of the IGST Act, 2017. However, in cases where the the location of the recipient is outside India, the place of supply shall be determined as per section 13(8) of the IGST Act, 2017 i.e. as an intermediary.

QUES. What is the “place of business” for a stock broker?

ANS. Section 2(85) of the CGST Act, 2017 defines “place of business” to include: (i) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or (ii) a place where a taxable person maintains his books of account; or (iii) a place where a taxable person is engaged in business through an agent, by whatever name called. In case of operations of a stock broker, it is required by law that all transactions would be via screen based trading on the Stock Exchanges. Therefore, the Page 29 of 32 following would be the “place of business” in case of stock brokers: (i) All the branches of the stock broker where the Stock Exchange Trading terminals are located and where trade is carried out on behalf of clients; (ii) Main office/ Head office/ Registered Office/ Branch office where back office operations are carried out including issuing of bills/ contracts/ tax invoices/ account statements to the clients. In case of sub-brokers’ / Authorised Person office, where the premises are neither owned by the stock broker nor rented/ leased in favour of the stock broker and there are no employees on the payroll of the stock broker in such an office, then such premises shall not be considered a place of business of the stock broker.

Key Due Dates:

  • Quarterly return for composition dealer GSTR-4 is 18-01-2019.
  • GSTR-3B for the m/o December 2018 is 20-01-2019.

Other Industry Updates:

  • RBI further eases External Borrowing Norms.
  • Shares of IDFC First Bank, combined entity formed after the merger of Capital First with IDFC Bank, got listed on the NSE & BSE yesterday.
  • Microsoft to include India in Venture Fund.
  • Mukesh Ambani in Top Global Thinkers list of Foreign Policy.
  • Infosys gets Mandate for next-gen ITR filing system.
  • Ashok Leyland set to ply 50 Electric Buses for Ahmedabad BRTS by May.
  • Skoda India Profit after Tax plunges 66% in FY18, hit by Higher Expenses and Lower Financial Support from the Parent Entity.
  • India to bar Private Refiners from tapping Iran Oil Quota.
  • Patanjali only suitor for Ruchi Soya as Adani opts out.
  • Bond slide in India reflects fiscal jitters about Farm Stimulus.
  • Maha Govt keen on buying Air India building in Mumbai.
  • Fortis Healthcare completes acquisition of Religare Health Trust’s Indian Assets.
  • Cabinet clears Rs 22,594 Crore plan for expansion of Numaligarh refinery.
  • SBI-led Consortium of Lenders likely to bag biggest stake in Jet Airways, Founder Chairman Goyal’s stake could possibly fall to around 24 %.
  • Cabinet approves Rs 6,000 Recapitalisation of EXIM Bank.
  • E-comm curbs could hit Online Sales by $46-bn: PwC.

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480.

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Corporate and Professional Updates on 15th January 2019

Indirect Updates:

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  • The GST council Has Announced allowing the composition schemes to file one annual return with a simple explanation, while earlierb they have to file the return quarterly is a relief for many small and medium-sized enterprises. The payment of taxes still needs to be done on a quarterly basis. As per the analysts it will take some pressure off from the SMEs working Capital cycles.
  • Compliance and relaxation in GST applicability by the GST Council in terms of the return filing process could provide some relief for SMEs. Reserve Bank of India’s one-time restructuring scheme for MSME loans could provide some breather to SMEs in terms of easing a part of their working capital requirements, having continuity in maintaining credit lines and thereby prevent defaults to banks.
  • Increased tax compliance led to a spike in the working capital requirements of SMEs post-GST implementation in 2017. Technology glitches while filing monthly returns led to delayed tax refunds. These factors weighed on the credit profiles of SMEs.

RBI Updates:

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  • The Inflation Rate of Retail declined to an 18-month low of 2.19 per cent. The wholesale inflation rate also came down to 3.8 per cent, the lowest in eight months. Falling fuel and food prices caused inflation to fall, according to the data. Inflation at 18-month low, gives RBI room to ease monetary policy The core retail inflation rate touched a nine-month low of 5.6 per cent
  • As per the Advance Estimates, gross domestic product (GDP) growth for 2018-19 or FY19 was pegged at 7.2 per cent. This is lower than the RBI’s projection of 7.4 per cent and the finance ministry’s estimate of 7.5 per cent growth.
  • In the monetary policy statement, the RBI had forecast the retail inflation rate to be between 2.7 per cent and 3.2 per cent in the second half of FY19. The consumer food price index contracted 2.51 per cent in December; in November, it had contracted 2.61 per cent. Food prices were dragged down by a decline in prices of pulses and vegetables, sugar and eggs. The pulses and products index has been contracting since December 2016, while vegetables have been contracting since July 2018.
  • The former contracted 7.13 per cent in December; the latter 16.14 per cent. At the aggregate level, the consumer food and beverages index has now contracted for three straight months. Softer global crude oil prices also dragged down the fuel and light inflation rate to 4.5 per cent in December from 7.39 per cent in November. We are expecting further moderation in inflation in the coming months.

Other Updates:

  • December retail inflation at 18-month low of 2.19%.
  • FinMin wants PSU banks to reduce govt equity to 52%.
  • REITs may generate 14% return annually to investors.
  • may fall short of Rs 2.45-trn non-tax revenue target despite RBI funds.
  • Listed realty developers saddled with unsold properties worth Rs 1 trillion.
  • Crude steel output falls 1.4% to 8.936 mt in Dec.
  • Storage norms in e-commerce policy: Govt asks e-retailers to store payments data within India.
  • Only 12-13% of workforce under pension covers: Hemant G Contractor, As per PFRDA chairman.

FAQ’s On GST:

QUES.  When service tax was paid on or before 30th June, 2017 for the services to be provided, but subsequently not provided, whether refund claim can be made under Section 142(5) of the CGST Act?

ANS. Section 142(5) of the CGST Act, 2017 specifically provides for refund of tax paid under the Finance Act, 1994 in respect of services not provided. The same shall be disposed off in accordance with the provisions of the Chapter V of the Finance Act, 1994.

QUES. Can the input tax credit of Krishi Kalyan Cess be carried forward?

ANS. No. It is not permitted in terms of section 140(1) of the CGST Act, 2017 read with Rule 117(1) of the CGST Rules, 2017.

KEY Due Dates:

  • Due date of GSTR 3B for the month of December 2018 is 20th January 2019.
  • Payment of ESI of December is 15th January 2019.
  • TDS Return By all the Deducter for December Quater is 30th January 2019.

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480.

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Corporate and Professional Updates on 14th January 2019

Indirect Tax Updates:

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  • Indian businesses may soon be able to amend goods and services tax (GST) return mandated for carrying forward tax credit from the previous regime for non-IT related errors as well. The GST Council has directed a committee for IT grievance Redressal to quickly draw up a solution that will give relief to industry. Thousands of crores of tax credit claimed by businesses have been denied because of errors in the filing of returns, prompting many to approach judiciary.
  • In Favour of Consumer the revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers. The measure, once implemented, would check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer.
  • The Department of Revenue is also planning to launch a campaign to educate consumers that the dealers opting for composition scheme are not required to charge the goods and services tax (GST) from purchasers.
  • The GST composition scheme, traders and manufacturers are required to pay only 1per cent GST on goods which otherwise attract a higher levy of 5, 12 or 18%. Such dealers are also not permitted to charge GST from the purchaser Of the 1.17 crore businesses registered under GST, about 20 lakh have opted for composition scheme.
  • The Central Board of Indirect Taxes and Customs (CBIC), businesses will have to mandatorily mention in the invoice generated by them that they are composition dealers and, hence, are not required to charge GST. “Simultaneously, we will educate consumers that they should not pay GST while buying goods from composition scheme dealers,” the official said. To ease compliance burden for small businesses, the GST law provides for composition scheme.
  • The GST law does not provide for any appeal on issues related to TRAN1 or TRAN2 and thus many taxpayers filed writs in high court and also secured favorable orders holding the view that bona fide errors should be considered by the government. A number of taxpayers had lobbied the government and the GST Council to allow amendments.
  • Businesses looking to claim tax credit of the pre-GST period under GST could file TRAN1. The government had allowed revision of TRAN1 until December 27, 2017. Many businesses missed doing so and ended up losing large transitional credits, even for typographical errors. The GST Council had allowed a liberal scheme for claiming credit in lieu of taxes paid under the previous regime against GST liabilities. Businesses could claim credit even if they did not have proof of payment under the deemed benefit provision.
  • “Transition credits have been challenging for all businesses and the IT grievance Redressal committee should ideally be considering all issues for the entire period instead of a sunset period and clarify that all genuine errors, whether arising from the GSTN portal issues or committed by the taxpayers would be condoned unless there is mala fide intent according to MS Mani, partner, at Deloitte India.

RBI Updates:

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  • Reserve Bank of India is working towards setting a rule that would link the remuneration of bank CEOs to parameters like balance sheet size of a bank, loan delinquency, profits and governance record. The proposed framework is expected to provide a broad template to the board of directors of banks while approving increase in salary, performance bonus and stock options to the senior most executive. The regulatory guidance that exists today is a general directive on the remuneration of senior officials in broad functions like ‘business’, ‘control’ and ‘risk’.
  • RBI clears the remuneration of a bank CEO and has the powers to claw back a slice of it in case of non-performance or governance lapses. However, a framework would ensure that the board does not have to shoot in the dark while approving the package for the CEO and referring it to RBI for its clearance,” a person aware of the plan told ET.

Other Updates:

  • Fiscal deficit target for 2018-19 likely to be breached.
  • Only 22% shareholders exit IDBI Bank following open offer by LIC.
  • Govt to construct 44 strategic roads along the India-China border.
  • CII calls for agri sector tax sops in Budget 2019.
  • FICCI for cut in corporate tax rate in Budget.
  • Oil output cut: Saudis say OPEC+ move provided a lifeline to US shale.

FAQ’s INSURANCE SECTOR:

QUES. Will the requirements of Letter of Undertaking or Bond be required to be complied with in the case of Life Insurance Premium where the conditions of export of services are satisfied before or at the time of supply of the Life Insurance Service?

ANS. Yes. As per Section 16(3) of the IGST Act, 2017, read with Rule 96A of the CGST Rules, 2017, an exporter is required to submit a Letter of Undertaking or Bond in case the export of service is made without payment of integrated tax.

QUES. When service tax was paid on or before 30th June, 2017 for the services to be provided, but subsequently not provided, whether refund claim can be made under Section 142(5) of the CGST Act?

ANS. Section 142(5) of the CGST Act, 2017 specifically provides for refund of tax paid under the Finance Act, 1994 in respect of services not provided. The same shall be disposed off in accordance with the provisions of the Chapter V of the Finance Act, 1994.

Key Due Dates:

  • TCS return for Dec Quarter for all tax collectors is 15/01/2019.
  • E-Payment of PF for the month of December is 15/01/2019.
  • Payment of TDS for the purchase of Property for December is 30/01/2019.

Quote of the Day:

A professional who doesn’t deliver as committed is not just lazy, he is a liar.

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480.

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Corporate & Professional Updates on 11th January 2019

Indirect Tax Updates:

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  • All the Business having turnover up to Rs. 1.5 crore can now avail for the composition scheme. Millions of additional micro, small and Medium enterprises (MSMEs) in India will be eligible to choose out of the goods and services tax (GST) system from next Financial year, The Council took a slew of measures for MSMEs by increasing the annual turnover threshold for exemption from GST registration to Rs 40 lakh from the current Rs 20 lakh, introducing a composition scheme for services, easing return filing procedures, and raising the composition threshold for traders and manufacturers. But for services providers, the threshold remains the same at Rs 20 lakh. The revenue impact of this move is estimated to be more than Rs 6,000 crore on an annual basis.
  • GST council has allowed Kerala to impose the calamity cess of up to 1 per cent for a maximum period of Two years, said by the finance minister Arun Jaitely. It referred the much-awaited decision on reducing the GST rate on under construction property and lotteries to two groups of ministers. There was no decision on cutting the 28% GST on Cement.
  • The threshold will be raised from the current Rs 10 lakh to Rs 20 lakh on April. They will have an option to “move up” to the Rs 40 lakh threshold. Prime Minister Narendra Modi had expressed a view that the threshold needed to be increased to Rs 75 lakh. In place of increasing threshold limit to 75 lakh Finance Minster Arun Jaitely increased it to 40 lakhs because speculated is better while we need to provide relief to small taxpayers, it is equally important to expand the tax base. The decision is likely to have been taken on the basis of the data that only 1.1 million of the roughly 5 million GST filers below a turnover of Rs 20 lakh pay the GST, contributing only 1.5 per cent of overall GST collection.
  • Companies with a turnover of Rs 20-40 lakh form 20 per cent of GST filers and contribute less than 3 per cent of overall collection, officials told Business Standard. “Of the GST filers with a turnover of Rs 20-40 lakh, only those whose cost of compliance is higher than the tax they pay will opt out. A composition scheme was introduced for small service providers with a turnover of up to Rs 50 lakh per year, with a GST rate of 6 per cent.
  • Scheme would be beneficial for companies providing electrical and other household services, businesses such as beauty parlours, whose rental cost is high, would not opt to save the available input-tax credit. But the Limit for service sector is of Rs 50 lakh for registering under the composition scheme and increasing the exemption threshold to Rs 40 lakh at the same time do not make much sense for those having a high ITC (input tax credit) available at their disposal.
  • The upper limit of turnover to become eligible for the composition scheme will be increased to Rs 1.5 crore from the next financial year. This will not be available for dealers involved in inter-state trade. Further, composition dealers will need to file GST returns only annually, but pay tax quarterly, from 2019-20.
  • The government extended the exemption to imports from integrated tax and compensation cess under the advance authorisation scheme on Thursday till March 31.

SEBI Updates:

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  • SEBI on Thursday put in place a robust and stricter cyber security framework for mutual funds and asset management companies (AMCs) to guard against breaches of data leak. The new norms would be effective from April 1, 2019, as per SEBI.
  • The move comes after SEBI observed that rapid technological developments in securities market have highlighted the need of a robust cyber security and cyber resilience framework to protect the integrity of data and guard against breaches of privacy. According to the circular, the entities need to formulate a cyber security and cyber resilience policy document adhering to the required framework and document needs to be approved by the board of AMC and trustees. The watchdog has said no person should have any intrinsic right to access confidential data by virtue of their rank or position. The recommendations are in line with that of SEBI high-powered steering committee on cyber security.
  • The Securities and Exchange Board of India Thursday announced portfolio concentration norms for equity exchange-traded funds and index funds. SEBI new guidelines are meant to address risks related to portfolio concentration in ETFs and index funds.
  • The index shall have a minimum of 10 stocks as its constituents. For a sectoral or thematic index, no single stock shall have more than 35 per cent weightage in the index. For non-thematic indices, no single stock shall have more than 25 per cent weightage. Moreover, the weightage of the top three constituents of the index should cumulatively not exceed 65 per cent.
  • The individual constituent of the index shall have a trading frequency greater than or equal to 80 per cent, and an average impact cost of 1 per cent or less over the previous six months.

FAQ’s on Financial Sector:

QUES.  Is the condition to make payment for the value of supply plus the GST thereon required to be complied with by the recipient to claim the input tax credit where supplies for services are made between distinct persons?

ANS.  No, this condition is not required to be complied with by the recipient. As per the proviso to sub rule (1) of Rule 37 of the CGST Rules, 2017 the value of supplies made without consideration as specified in paragraph 2 of Schedule I of the CGST Act, 2017 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of Section 16 of the CGST Act, 2017.

QUES. Whether a Bank / insurer is required to charge GST on the taxable services provided to United Nations or a specified international organization or, services provided for official use of a foreign diplomatic mission or consular post in India or for personal use or for the use of the family members of diplomatic agents or career consular officers posted therein?

ANS. Yes, the bank / insurer is required to charge GST in such cases. However, as per section 55 of the CGST Act, 2017, subject to such conditions and restrictions as may be prescribed, such service recipients would be entitled to claim a refund of taxes paid on the notified supplies of services received by them.

QUES. What is the nature of income / expenditure on Collateralized Borrowing and Lending Obligations (CBLO) transactions?

ANS.. In CBLO transaction, the borrowing bank pays an amount as consideration to the lending bank for funds provided by it for a short term. Such amount would qualify as ‘consideration represented by way of interest or discount’ and hence, would not be subject to GST [serial no. 27 of the table of notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017, as amended]. However, if any charges or fees are levied for such transactions, the same would be a consideration and would be chargeable to GST.

Key Due Dates:

  • E-Payment of Pf for December is 15th January 2019
  • ISD return for the month of December is 13/01/2019.
  • Payment of TDS for purchase of property for December is 30th January 2019.
  • Quarterly Return for registered person for aggregate turnover 1.5 crore is 31st January 2019.

Quote of the Day:

“Success is not a summit to climb it is equilibrium where work and life are balanced”.

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480.

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Corporate & Professional Updates on 10th January 2019

Direct Tax Updates:

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  • In the case of congress “The withdrawal of the clarification would mean all those who have received tax demands will have to litigate and apply for a stay on the demand.” ET had on January 3 reported that several companies that had received tax notices and faced tax outgo over valuations would get relief thanks to the clarification issued on December 31. It was withdrawn through another circular issued on the night of January 4. Experts said the original clarification only dealt with unintended implications of income tax rules.
  • IT is said by many Experts that the shift on the valuation issue was mainly due to the press conference by Congress. Party leader Ahmed Patel and Vivek Tankha, head of Congress’ legal cell, had said that the December 31 clarification had vindicated the party’s stand. Tax demands raised on party chief Rahul Gandhi and Sonia Gandhi for receiving shares of AJL’s National Herald were not justifiable, it said. “This vindicates our position that there never was an issue about issuance of such shares as a taxable event as it was being projected by way of harassment.

Indirect Tax Updates:

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  • The unveiling package is looking by India to aid small Business. It includes raising the exemption threshold for goods.
  • The 32nd GST council Meeting on January 10, 2019 would consider a numbert of steps some of them are cut in Tax Rate for construction sector and state authorised lottery.

RBI Updates:

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  • The latest Instruction of Reserve Bank of India is on Tokenisation service. This is for that card payment could open a new frontier for Digital Payment, expand its use and for making card payment safer, said industry observers. This is said by the central bank that card companies would be allowed to offer Tokenisation services to third-party service providers as well and customers can avail themselves of these services by registering through third party.
  • By this order of RBI, consumers will be able to create a virtual number against their real card number. Through this they will not have to share their actual details of card on every transaction. This will make card transactions safer. That card companies would be allowed to offer Tokenisation services to third-party service providers as well and customers can avail themselves of these services by registering through a third-party application recommend by the TR Ramachandran. It would also prevent from the frauds in which card details are captured in the course of transaction by hackers
  • To keep the security on higher level the regulator has inserted on second factor of authentication during such transactions, although tokenisation adds a new layer of security. The first step by the central bank in ensuring the safety of card payments.
  • The Reserve Bank of India has recommended non-bank lenders to adjust to the current state of liquidity even as the sector lobbies for bank loans at easier terms for lending to the small and medium enterprises sector which is known for creating jobs. The Governor of RBI Shaktikanta Das held discussions with leaders from the NBFC sector on Wednesday and listened to the issues troubling the sector. The issue is raised by them on higher borrowings cost from banks as the liquidity situation is improved from last October and November.
  • Where the industry representative Have asked regulatory intervention to ensure the cash availability for non-banking entities, the RBI assured them of the same “as and when required”. “It has ruled out possibility of any special liquidity window for now,” said a person present in the meeting. The RBI has Decided to have discussion on this once in every month.

FAQ on Financial Sector:

QUES.  Is a “Bill of Supply” to be issued by a bank for exempt services like interest on loans and advances, inter-se sale or purchase of foreign currency amongst banks?

ANS.  As per clause (c) of sub-section (3) of section 31 of the CGST Act, 2017 read with Rule 49 of the CGST Rules, 2017, there is a requirement for issuance of bill of supply for supply of exempt services by Banks. It may be noted, however, that there is no need to issue a separate bill of supply in case any invoice or document has already been issued in accordance with the provisions of any other law. Further, in view of the provisions contained in sub-rule (5) of rule 54 of the CGST Rules, 2017, banks may issue any other document in lieu of bill of supply.

QUES.Where a Bank takes a separate registration for a separate business vertical, say for Bullion business, whether the requirement for reversal of 50 percent will also apply to bullion purchased by the Bank?

ANS.In terms of Section 2(94) read with Section 25(4)&(5) of the CGST Act, 2017, a person required to obtain more than one registration within a State or more than one State shall be treated as a distinct person for each such registration. Section 17(4) of the CGST Act, 2017 is applicable qua each registration and not for the Bank as a whole, provided each of the business verticals is separately registered. Therefore, a bank engaged in trading in bullion may not opt for 50 percent reversal in respect of its purchases of bullion, where it is separately registered as a business vertical.

QUES. Whether for the services received from a related person / distinct person outside India, the recipient of services would be eligible for full input tax credit?

ANS. In terms of the second proviso to section 17(4) of the CGST Act, 2017, the restriction of reversal of 50% credit would not apply to the tax paid on supplies made by one registered person to another registered person having the same PAN. The non-applicability of 50% reversal is only to the extent of inter-branch services between registered branches having the same PAN in India. Thus, tax paid on services received from a related person / distinct person located outside India would be liable to 50% reversal.

Key Due Dates:

  • Return of Outward supplies by Regular & Casual suppliers for the month of December 2018 Turnover Exceeds 1.5 crore i.e. (GSTR-1) is 11th January, 2019.
  • Due Date of GSTR-3B is 20th January 2019.
  • TCS return for December Quarter by all collector is 15th January 2019.
  • Payment of PF for December is 15th January 2019.
  • Due Date for Payment of ESI is 15th January 2019.

Quote of the Day:

“A coach is someone who tells you what you don’t want to hear, who has you see what you don’t want to see, so you can be who you have always known you could be.”

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480.

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Corporate & Professional Updates on 9th January 2019

Direct Tax Updates:

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  • The Details of the Income tax circular is asked by the Government. The Circular was issued and then Reverted By the CBDT (Central Board Of Direct Tax) showing the ongoing case on Rahul Gandhi and Sonia Gandhi. A latest assessment order is asked By the Government Form the Income Tax Department Stating the latest assessment order.
  • The Representing lawyer of Gandhi’s is asked to send their reply on the CBDT circular which was issued on 31st December 2018 and then withdraw on 4th January 2019.
  • A Group of Lawyers including P. Chidambaram, kapil Sibal, Arvind P Datar and Kavita Jha, are there for Representing Gandhi in the case. The Lawyers explains court about how the Circular was issued and Withdraw by the Government. The circular that was issued and then withdrawn was for applicability of section 56 (2) (viia) of the income tax act that deals with black money transactions in investment situations. The lawyer of Income Tax Department Tushar Mehta said that even the first circular that was issued on December 31, is not relevant to the case and this income tax section was not applied in the ongoing cases including Gandhi Chidambaram asked for one week time from the Supreme Court for replying in this regard.
  • The Experts Recommended that the circular withdrawn has made certain confusions in the mind of the companies that has received tax demands on valuations and added that some tax regulations has been modified in 2010 for the prevention from money Laundering The government had inserted a regulation-Section 56(2)(viia)-in the income tax Act to tackle black money transactions in the situation of investment.

Indirect Tax Updates:

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  • The applicability of GST in the Indian taxation system was a move aimed towards ‘one nation, one tax’. Post land abetment, the applicable GST for under-construction properties was 12% while ready-to-move-in flats were kept out of the GST ambit. Even for under-construction properties, there was a ruling of Input Tax Credit (ITC) pass-over to the buyer to ensure that it becomes a tax neutral proposition. While calculations and ITC pass-over still remain a challenge after 1.5 years of GST regime, a recent announcement stated that there is no GST applicable only on ready-to-move-in flats wherein sales took place after the issue of completion certificate. This is likely to add woes to buyers as well as developers.
  • The fee for late filing of the returns is Rs 25 per day for Central GST and an equal amount under State GST. The government has waived late fees for non-filers of summary and final sales returns for the July 2017-September 2018 period by businesses registered under the goods and services tax (GST). However, these businesses would have to file their returns for the 15-month period by March 31, 2019, the Central Board of Indirect Taxes and Customs (CBIC) said.
  • The fee for late filing of the returns is Rs 25 per day for Central GST (CGST) and an equal amount under State GST (SGST). However, those businesses who have to file returns but have ‘nil’ tax liability would have to pay a fine of Rs 10 under CGST law, and an equal amount under SGST law. The CBIC said “the amount of late fee payable under Section 47 of the said (CGST) Act shall stand waived for the registered persons who failed to furnish the return” in Form GSTR-3B GSTR-1, for the months between July 2017 and September 2018, by the due date but furnishes the said return between the period from December 22, 2018 to March 31, 2019.

RBI Updates:

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  • The RBI may introduce a new Committee which will work for the state of Digitalisation of payment in the country to identify gaps and how to bridge them. The idea is to encourage digitisation of payments and enhancing of financial inclusion through digitalisation.
  • The payments space has seen much of change in the past year, on rules and in other aspects, from data localisation to wallet interoperability. And, the Supreme Court’s (SC’s) Aadhaar judgment which barred private companies from using that database for paperless verification of customers. Payments executives say the regulator needs to come up with a solution for electronic Know Your Customer (KYC) norms. Leading banks and wallet companies have been unable to perform KYC verification since that October order of the SC, and unable to digitally enroll customers. The panel will also assess the current levels of digital payments in financial inclusion and suggest a medium-term strategy for deepening of digital payment.
  • The Card transactions in December saw a drop of four per cent in volume against November and five per cent in volume, to 1.3 billion transactions and Rs 3.8 trillion respectively. The Unified Payments Interface saw growth of 18 per cent in volume and 12 per cent in value to 620 million transactions worth Rs 1 trillion in the same period. The committee would suggest measures to strengthen the safety and security of digital payments, and how to raise customer confidence and trust while accessing financial services through digital modes. Last week, RBI extended the limited liability of customers to payment entities not covered by previous guidelines. In December, it had said it would implement an ombudsman scheme for digital transactions, to be notified by the end of January.

FAQ’s on financial sector:

QUES.  Can a Bank / insurer defer the availment of input tax credit for a month or quarter and avail of the same in subsequent months?

ANS.   Yes. As per section 16(4) of the CGST Act, 2017, availment of input tax credit can be deferred and availed upto the due date of furnishing of return for the month of September following the end of financial year to which relevant invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.

QUES. Would intermediary services provided to an offshore client and services provided by a banking company to its offshore account holders be treated as an intra-State supply or an inter-State supply for payment of GST?

ANS.  Under clause (b) of section 13(8) of the IGST Act, 2017 the place of supply of such services is the location of the provider of services. As the location of supplier and place of supply are in same State, such supplies will be treated as intra-State supply and Central tax and State tax or Union territory tax, as the case may be, will be payable.

QUES. Who is the ‘supplier’ of service of purchase or sale of foreign currency?

ANS. The ‘supplier’ of service of purchase or sale of foreign currency is the Authorised Dealer or authorized moneychangers who are getting the commission. For example, in case of a purchase or sale of foreign currency between a Bank and a Corporate, the bank is the ‘supplier’ of the service.

Key Due Dates:

  • TDS return of December Quarter for all buyers is 31st January 2019.
  • Issue of TDS Certificate in case of payment made in November for purchase of property under 194IA is 14th January 2019.
  • Issue of TDS Certificate in case of payment made in November for purchase of property under 194IB is 14th January 2019.

QUOTE OF THE DAY:

“….a professional is someone who can do his best work when he doesn’t feel like it.”

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480.

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RBI Updates on 8th January 2019

RBI Updates:

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  • After a great run in building a liquor business of Vijay Mallya is became the poster boy of India in 21st century. If Banks are blamed partly for the magnitude of the losses in Kingfishers Airlines Default But which remains is present on the doorstep of RBI.
  • It Increased the Corporate Debt Restructuring scheme to the services sector too as it attempted to save an airline that was about to run aground instead of flying. Instead of presenting the noble intentions, it was his fate that during the Extension of that restructuring provision might be justified in the absence in the Law of Bankruptcy, its still Reflecting the regulatory weakness which remains itself to be attracted in the direction of vested intrest Desire.
  • It leads some inflating up to ‘Kingfisher Airlines’ Debt and Default. Depositors Money Got Waste and vanished in the air and this fallout was also worse for the bankers also and Also have to Face the jail either they deserve and are responsible of the doing or not. As the Jet Airways, the second biggest domestic carrier, has Defaulted. A few years ago, No one knows about its default. Before some years Its default was not even public. Transparency has increased and the regulator has learnt from mistakes to plug the gaps that borrowers gamed at will. At least on paper, ‘this time is different. The company is now Focusing on the bankruptcy law.
  • The governor of RBI shaktikanta Das said this on Monday dealing with issues of liquidity was one of the central bank’s biggest priorities. However, any infusion would be strictly based on the need to ensure that it was not seen as “easy money” by the markets. This Happened when Das meets the representative of NBFCs in Mumbai.
  • RBI constantly monitoring on the situation and will take step whenever a liquidity deficit is Noticed. The RBI will not like a situation where liquidity becomes a kind of loose money. Sometime excess liquidity has adverse consequences.

FAQ’s on financial sector:

Ques. Does Banks needs to record the details of ATMs as a place of business in the certificate of Registration?

Ans.   Banks are not required to provide all the details of ATMs during applying for the registration. In registration, ATMs on its on do not constitute a place of Business as per the CGST Act, 2017.

Ques. According to the RBI guidelines, third parties ATMs, Business Correspondents (BC), Customer Service Points (CSP) or third party warehouses can be used By the Banks. Does Banks required to include these third party places in their GST Registration?

Ans. No, Third party places are neither places of Business nor Fixed establishment from where Banks usually carry on their Business. These are Independent service provider to the banks which are subject to GST hence it’s not necessary to declare these places as the place of business by the banks.

Key Due Dates:

  • E-Payment of Pf for December is 15th January 2019.
  • Payment of TDS for purchase of property for December is 30th January 2019.
  • Quarterly Return for registered person for aggregate turnover 1.5 crore is 31st January 2019.

“Believe passionately in what you do, and never knowingly compromise your standards and values. Act like a true professional, aiming for true excellence, and the money will follow.”

 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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480

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Corporate and Professional updates on 8th January 2019

ICAI Reports Slam Statutory Auditor of IL&FS:

Image result for HD PICS OF icai bhawan

  • ICAI the Authorised Signatory of Auditors the ICAI’s preliminary findings were submitted to the ministry of corporate affairs which presented it before the Mumbai bench of National Company Law Tribunal.
  • As per the Report of ICAI’s Report a copy of which is with FE, the auditors did not conduct a proper examination whether IL&FS complied with the requirements with respect to the managerial remuneration paid to its ousted board of directors as well as a range of other issues.
  • According to the Report the auditors did not examine whether the erstwhile top brass of IL&FS were eligible to draw high salaries given the weak financial performance of the company.
  • The auditors did not check whether the company had taken approval of the concerned authorities to be able to disburse these salaries.

Key Due Dates:

  • Return of Outward Supplies for December by Regulare and Casual Suppliers having turnover more than 1.5 crore is 11/01/2019.
  • ISD return for the month of December is 13/01/2019.
  • GSTR return Summary return date is 20th January 2019.

FAQ:

QUES. It is envisaged that many customers may not provide the GSTIN to the Banks in time. In such cases the Banks / insurers would report the supply as B-to-C transactions in the returns filed by it. Later, in case the customer reverts with the GSTIN, how should this amendment be reflected?

ANS.  A transaction once reported as B2C cannot be amended later to add GSTIN and convert the transaction as B2B.

QUES. Is the condition to make payment for the value of supply plus the GST thereon required to be complied with by the recipient to claim the input tax credit where supplies for services are made between distinct persons?

ANS.  No, this condition is not required to be complied with by the recipient. As per the proviso to sub rule (1) of Rule 37 of the CGST Rules, 2017 the value of supplies made without consideration as specified in paragraph 2 of Schedule I of the CGST Act, 2017 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of Section 16 of the CGST Act, 2017.

QUES. For supply of taxable services, can a digitally signed invoice be issued in duplicate, with the original being marked as “Original” and the duplicate copy being marked as “Duplicate”?

ANS.  In the context of digitally signed documents, the requirement of issuing original and duplicate invoices does not arise. A digitally signed invoice can be retained by the supplier and also be made available to the recipient.

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480

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Corporate and Professional Updates on 3rd January 2019

Income Tax Updates:

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  • It is notified by CBDT that DTAA between India-Hong Kong for avoiding double taxation and Preventing Fiscal Evasion with Respect to taxes on Income.

Indirect Tax Updates:

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  • In GST there would be no profiteering if Base Price of the Product is Not Changed after Reducing the Tax.
  • CBIC has notified new annual GST return forms, which are required to be filed by the all the business which are registered under GST regime by June 30, 2019. Businesses has to disclose the details of sales and purchase and input tax credit (ITC) benefits accrued to them in the financial year 17-18.
  • The collection of GST has reduced to 94726 crore from 97637 crore in the month of December 2018 than the previous month. The Total no. of Returns filed till December 30, 2018 is 72.44 lakh.

RBI Updates:

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  • The RBI’s board, in the session of new governor Shashikanta Das, has set the basic rule that would determine future payout by the central bank to the government. At its last meeting, the board is learnt to have recorded the decision that the central bank will not touch the ‘unrealised gains’ in its balance sheet for dividend distribution to its sole shareholder, the government.
  • The committee for me by RBI governor Bimal Jalan, has been constructed for looking in RBI’s economic capital framework. Its findings would indicate whether RBI has surplus capital that can be distributed to the government, whether the central bank can dip into contingency reserves for payout, and to what extent RBI needs to add to its contingency reserves before arriving at the dividend number in the current financial year as well as in the future.
  • The ‘economic capital’ of a central bank is calculated using mathematical models that consider the nature of risks it may have to grapple with. While some studies have pointed out that RBI’s capital level is one of the highest in the world these banks are Bank of England and US Federal Reserve.
  • RBI is likely to construct a new committee that would look in the matters related to the financial inclusion and recommend ways to overcome the shortcomings. Sources said that former UIDAI chairman and Infosys co-founder Nandan Nilekani may be approached to head the proposed committee.
  • RBI has notified the regulations for lending and borrowing under FEMA where the provisions are related to borrowings by authorised dealer or its branch office and lending in foreign Exchange by person resident in India.
  • The Central Banks will not touch the unrealized gains in their Balance sheet for the distribution of Dividend to its shareholder it’s a decision concerned by the RBI.
  • It is sets up MSME panel under EX-SEBI Chief Sh. U.K. sinha to suggest Long-term Solution for the Economic and financial Sustainability of the MSME Sector.

Other Updates:

  • In first NCLT allow Govt. to reopen The Book of IL&FS.
  • The Domestic Sales of TATA Motors falls by 8% to 50440 units in December.
  • SEBI takes Aim at Extremist speculators with a new rule.
  • FASSI is focusing on Imposition of Food Standards in 2019.
  • SEBI Directs 13 Entities to disgorge over Rs. 1.6 crore unlawful gains
  • The Sales of passangers Vehicle Is Decrease in the month of December huge stock remains unsold.
  • There is 65% fall in sales of Voda and Idea and worst performing among Asia Pacific Stocks in 2018.
  • Margin gain ahead for Pidilite on lower crude prices, and Rupee became stronger.
  • Tax on Palm oil Imports is cuted by india from Asean nations.
  • Cabinet Clear the merger of Dena Bank, vijaya Bank and Bank of Baroda.
  • Ashok Leyland acquires 27.255 more stake in Ashley Aviation Ltd. (AAL) Now having Shareholding is 76.25% which is a huge percentage.
  • Cash-Strapped Jet Airways defaults on debt payment to Banks led by SBI.
  • Next GST council Meeting is to be held on 10th of January, 2019.
  • GST Council Meeting may realize the rates on Housing, for under-Construction Flats.
  • Revenue of Self-driving Rental Firm Zoomcar’s up 31%.
  • Syndicate Banks are about to raise issuing shares to staff up to Rs. 500 crore.
  • Iran is Going to Invest about Rs. 1500 Crore to Increase the Capacity of Chennai petroleum.
  • India is about to Get the data on swiss banks in 2019.
  • IGST on Gold for export scrapped.
  • PNB Housing raises $265 Million through ECB.

Key Due Dates:

  • Due Date for payment of TDS Deducted and Collected is 7th January 2019.
  • ISD return for the month of December is 13/01/2019.

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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 09811322785/4-9555555480.

 

 

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INCOME TAX UPDATES ON 28th December 2018

Income Tax Updates:

Image result for hd pics on the law

  • The Government has increased the interest income exemption limit on bank and post office deposits from Rs. 10,000 to Rs. 50,000. TDS (Tax Deducted at Source) for senior citizens will not be trigged if interest income is up to Rs. 50,000.
  •  Dividend distribution tax on dividends from equity mutual funds which were earlier tax-free, attracted tax at the rate of 10%. Remember that dividends from equity mutual funds are tax-free in the hands of investors. But dividends from equity mutual funds are paid after deducting a dividend distribution tax (DDT) of 11.648% (including cess), which reduces the in-hand return for investors.
  • 1st April onwards a new long term capital gains (LTCG) regime on equity instruments – listed shares or equity – oriented mutual funds – came into effect. Earlier such gains on equity were exempt from tax. Now investors have to pay 10% tax on gains exceeding Rs 1 Lakh a year. Equity holding beyond a year is considered long term.
  • Rs 40,000 standard deduction, one need not provide any documents and proof. A salaried individual or pensioner can claim standard deduction up to Rs 40,000 from his/her income.
  • The Government has raised the percentage of cess on income tax from 3% to 4% for individual taxpayers on the amount of income tax payable.
  • It is allowed to withdraw up to 40% of the total corpus without any tax at the time of maturity or closure of the account for the employees who are continuously contributing to the National Pension System (NPS).
  • Now senior citizen can avail deduction of up to Rs 50,000 for health insurance premium under section 80D. Earlier the limit was Rs 30,000. Also, the deduction available for payment towards medical treatment of specified disease has been hiked to Rs 1 Lakh for senior citizens.
  • In case of premium for health insurance for multiple years has been paid in one year, the deduction shall be allowed on proportionate basis for the number for years for which the benefit of health insurance is provided.

Case Laws:         

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Madras High Court:

CIT, Chennai vs. M/S Tamilnadu Industrial Investment Corporation Ltd.

Entitlement to deduction of provision made in respect of doubtful and loss assets u/s 36(1) (viia) (c) – Assessee did not have any positive profits to set it off from – scope of amendment – claim of the Assessee allowed – the proper method of interpreting the proviso is to give life to the proviso and the intention behind the insertion of the proviso:

ITAT Delhi:

ACIT, Central Circle- 30, New Delhi Vs. Ankush Saluja, Archana Saluja And Saluja Construction Co. Ltd.

Assessment u/s 153A – Addition u/s 68 – nowhere it is the case of Revenue that the aforesaid additions made in the Assessment Order were based on any incriminating material found in the course of search U/s 132 of I.T. Act. – No additions can be made

ITAT Delhi:

M/S Sony India pvt Ltd Vs. The ADDL. C.I.T, Range – 9, New Delhi

Transfer pricing – ALP – Since the operating profit margin of the appellant company is better than those of the comparable, it can be safely concluded that the Assessee has been suitably remunerated and no further adjustment is required to bench mark the AMP expenses.

ITAT Ahmadabad:

ITO, Ward-3 (3) (1) Surat. Vs. Shri Ghanshyambhai Laljibhai Lukhi

Addition on account of suppression of production – Rate of net profit – For determination of total production, all products and raw-material cannot be clubbed together to arrive at standard or a uniform quantity, because the Assesse is manufacturing different products having different recipe with common raw-material.

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480.

 

 

 

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