corporate and professional updates 6th aug 2018

Image result for professional updatesDirect Tax :

  • Madras HC reverses ITAT order for AY 2000-01, Rejects Revenue’s capital expenditure plea for non-compete fees paid by assessee-company (a television broadcasting co.) to one of its directors for not competing with assessee’s business for 5 years; Though HC acknowledges that the doctrine of enduring benefit is on the wane for determining whether an expenditure is capital or not, it observes that “… the assessee has not acquired any new business, profit making apparatus has remained the same, the assets used to run the business remained the same and there is no new business or no new source of income, which accrue to the assessee on account of its payment”;[TS-429-HC-2018(MAD)]
  • Madras HC (Division Bench) upholds Single Judge’s order dismissing assessee’s writ against DRP order & AO’s final assessment order for AY 2012-13 citing alternate remedy before CIT(A); Notes that DRP rejected assessee’s objections against AO’s draft assessment order on the ground of limitation (citing 1 day delay in filing) on the basis that DRP had no power and/or authority and/or jurisdiction to condone the delay in filing the objection;[TS-759-HC-2018(MAD) -TP]

INDIRECT TAX

  • India could consider offering a one-time settlement to clear legacy central excise duty and VAT issues to ensure they do not linger and act as a drag in the GST regime.
  • Incentives on digital payments-customers making payments through Rupay card and BHIM UPI, would get a cash back of 20 per cent of the total GST amount, subject to a maximum limit of Rs 100,

FAQ on GST :

  • Query:  What are the prescribed offences under CGST/SGST Act?
  • Answer:The CGST/SGST Act codifiesthe offences and penalties in Chapter XVI. The Act lists 21 offences in section 122, apart from the penalty prescribed under section 10 for availing compounding by a taxable person who is not eligible for it.

MCA UPDATES

  • MCA has revised the version of the eForm ADT-1 (Information to the Registrar by Company for appointment of Auditor) and Form DIR – 3KYC (Application for KYC of Directors),

RBI UPDATES

  • RBI has added some gold to its reserves. the central bank bought 2.5 tonnes in March, following a fractional 0.3-tonne addition in December. These increases are the first since November 2009 when it bought 200 tonnes from IMF.

OTHER UPDATES

  • DGFT has issued a Trade Notice stating that Activation of E-com module for applying for SEIS, based on ANF 3B shall be effective from 01-09-2018.

 KEY DUE DATES 

  • GSTR-3B (JULY 2018)-AUG 20th, 2018
  • GSTR-5 (JULY 2018)-AUG 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (JULY 2018)-AUG 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 10TH, 2018.
  • Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(july 2018)-Aug 10th 2018

Disclaimer:

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

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CORPORATE AND PROFESSIONAL UPDATES 10TH JULY 2018

Image result for PROFESSIONAL UPDATESDirect Tax :

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

Indirect Tax:

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

FAQ on GST AUDIT:

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

MCA UPDATES

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

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

KEY DUE DATES

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

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

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CORPORATE AND PROFESSIONAL UPDATES 9TH JULY 2018

Image result for corporateDirect Tax :

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

Indirect Tax:

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

FAQ on GST AUDIT:

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

RBI UPDATES

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

SEBI UPDATES

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

OTHER UPDATES 

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

KEY DUE DATES

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

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

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CORPORATE AND PROFESSIONAL UPDATES 9TH JUNE 2018

Image result for corporate and professionalDirect Tax:

  • Mumbai ITAT holds that Executive Search Services fees (‘ESF’) received by assessee (a Dutch company) not taxable as FTS under Article 12 of India-Netherlands DTAA for AY 2011-12; Rejects Revenue’s stand that ESF, which was received pursuant to Service Agreement (SA) with Indian group entity (SSIPL), was to be treated as ancillary and subsidiary to license fee (taxed as royalty) received from SSIPL under another agreement viz. License Agreement (LA) which was towards use of trade name, trademark, logo and the rights to use software;[TS-288-ITAT-2018(Mum)]
  • Delhi ITAT Special Bench (majority view) rules in favour of Nokia Networks OY (assessee, a Finnish company), holds Nokia India Pvt. Ltd. (NIPL, Indian subsidiary) does not constitute assessee’s PE in India for AYs 1997-98 and 1998-99; [TS-289-ITAT-2018(DEL)]
  • Penalty paid to Stock Exchange is a regular Business Expenditure: ITAT allows Deduction
  • CBDT dedicates Fortnight for Disposal of Pending Appeals.
  • Central Govt has decided to make PAN mandatory for remitting money abroad as the RBI has decided to stringent norms for Liberalized Remittance Scheme (LRS) as per which, anyone who is utilizing the scheme will now have to share PAN details – something that was not applicable earlier with regards to CA transactions up to $25,000.
  • Kolkata ITAT allows Sec. 10AA benefit to assessee in respect of international trading, warehousing and consultancy income for AY 2009-10; ITAT acknowledges that trading activity is not expressly covered u/s 10AA, but observes that as per the Special Economic Zone Act, 2005 (SEZ Act) and its Rules, 2006, definition of ‘service’ included trading activity; [TS-292-ITAT-2018(Kol)]
  • Mumbai ITAT confirms CIT(A)’s Rs. 50cr relief to industrialist Anil Ambani, allows Sec. 37(1) deduction for ‘consent’ fees /”settlement charges” paid by Mr. Ambani w.r.t charges of alleged violation of SEBI Act/Regulations; AO disallowed the said amount, reasoning that the payment was for ‘violation’ of provisions of SEBI Act and hence made for an ‘offence’ and therefore liable to be disallowed by invoking Explanation to Sec. 37(1); [TS-291-ITAT-2018(Mum)]

INDIRECT TAX

  • LAST DATE FOR SUBMITTING GSTR 1 FOR registered persons filing monthly returns for the month of May 2018 is 10th June 2018.

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: How the transporter is identified or assigned the e-way bill by the taxpayer for transportation?
  • Answer:While generating e-way bill the taxpayer has a provision to enter the transporter id in the transportation details section. If he enters 15 digits transporter id provided by his transporter, the e-way bill will be assigned to that transporter. Subsequently, the transporter can log in and update further transportation details in Part B of eway bill.

MCA UPDATES     

  • MCA has sought details from some auditor companies, which resigned their assignment after the companies concerned had reportedly refused to give them adequate information. Officials said explanations had been sought from auditors in 15-odd cases.
  • The President of India gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 which will give relief to Home Buyers and SMSE.

RBI UPDATES

  • RBI extended loan repayments deadline to 180 days from the due date without being classified as a non-performing asset. This latest announcement comes after the regulator’s April diktat which had allowed GST registered MSME borrowers with a turnover of up to Rs. 25 crore to delay loan repayments by 180 days.
  • RBI voted unanimously to hike repo rate by 25 basis points, in a first interest rate hike in a four-and-a-half year, citing a major upside risk to the baseline inflation on the back of high crude oil price. The central bank said that there was a 12% increase in the price of Indian crude basket, which was “sharper, earlier than expected and seems to be durable”

SEBI UPDATES

  • Sebi extended the date for submission of Aadhaar details by those investing in capital markets till a final judgment by the Supreme Court on proposed mandatory linking of 12-digit unique ID for all financial dealings.

OTHER UPDATES

  • last date for online claim of Unstructured CPE hours extended to 30th June – ICAI(Last date for submitting Self Declaration form for claiming CPE Hours under Unstructured Learning Activities for the Calendar Year 2017 – has been extended from 31st May, 2018 to 30th June, 2018)
  • Online Facility for members to update Email ID, Mobile & Address – ICAI has launched an Online Form for Members by which they can update their Mobile number and e-mail ids which are currently available in ICAI records.
KEY DATE:
  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 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)

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corporate and professional updates 4th June 2018

Direct Tax:

  • Cochin ITAT rejects assessee’s (a software company) stand that payment to its sister concern (‘USTIPL’) under the sub-contracting agreement amounts to reimbursement of expenses, upholds applicability of TDS u/s 194J; Perusing agreement between assessee and USTIPL, ITAT notes that assessee had engaged USTIPL to depute resources and provide other administrative support to manage its project requirements with clients and in consideration, assessee had to reimburse all expenses incurred by USTIPL on the resources deputed to assessee and the apportioned cost of specific support services; [TS-278-ITAT-2018(COCH)]
  • ITAT upholds TNMM as most appropriate method (MAM) rejecting assessee’s CUP/CPM for AY 2011-12, follows Tribunal ruling in assessee own case stating that comparability under CUP method was not only faulty but devoid of proper analysis due to various assumptions and in absence of reliable data; Admits additional grounds in relation to inclusion / exclusion of comparables being fundamental and necessary for adjudication; Rejects assessee’s contention to exclude E-Zest solution as it was engaged in end-to-end development and software project development services; Remits comparability of 15 companies on various grounds such as contradicting observations of DRP and assessee, non-adjudication by lower authorities etc.; [TS-208-ITAT-2018(Bang)]
  • CBDT issued official notification for reward schemes for Income Tax Informants https://studycafe.in/2018/05/cbdt-issues-reward-schemes-for-income-tax-informants.html

Indirect Tax

  • CBEC has extended the time the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 under sub-section (4) of section 39 of the said Act read with rule 65 of the Central Goods and Services Tax Rules, 2017, for the months of July, 2017 to June, 2018, till the 31st day of July, 2018. Vide notification no 25/2018
  • For GST Refund GSTR-1 & 3B not must for all. Composition taxpayer to file GSTR-4, ISD-GSTR-6 & non-resident-GSTR-5. Circular 45/19/2018-GST of 30.5.18.
  • The Central Board of Indirect Taxes and Customs (CBIC) have asked its field offices to levy GST on goods in customs warehouse only at the time of final clearance.
  • CBEC issued procedure for sanction of pending IGST refund claims where records have not been transmitted from GSTN to DG systems.CIRCULAR NO.12/2018-CUSTOMS [F.NO.450/119/2017-CUSIV], DATED 29-5-2018
  • Eight state governments on Thursday announced their plans to roll out the electronic way bill (e-way bill) mechanism for transport of goods within their territories by June 3, a move that would lead to pan-India implementation of the crucial ant-evasion system under the goods and services tax (GST)

FAQ on E-WAY BILLS:

  • 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 

  • Delhi High Court has sought a formal explanation from the MCA for its twin circulars of September 2017 that deregistered over 1 lakh companies for failure to file annual returns for three years and disqualified their directors.

RBI updates

  • RBI has ended the special dispensations granted earlier for NBFCs owned by the government. Instead, it has specified a roadmap, stretching till 2021-22, for these lenders to meet the norms on capital adequacy, provisioning and corporate governance.
KEY DATE:
  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 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)

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CORPORATE AND PROFESSIONAL UPDATES 18TH MAY 2018

Image result for corporate and professional updatesDirect Tax:

  • Gujarat HC reverses ITAT order, holds that payment to education society for recouping deficit in payment of tuition fees of employees’ children does not amount to perquisite for AY 2000-01 and 2001-02; Notes that the children of the employees were studying in that Education Society and were paying fees at a subsidized rate and burden borne by assessee per child per month never exceeded Rs. 1000; [TS-246-HC-2018(GUJ)]
  • Ahmedabad ITAT opines that location of AO, at the point of time when Tribunal hears and determines the case, is relevant for determining jurisdiction of bench to hear stay/appeals, however,  directs registry to place matter before the President for final decision on transfer of assessee’s case to Delhi benches ; [TS-240-ITAT-2018(Ahd)]
  • Where asssessee had charged depreciation for wind mills at a higher rate than what is mentioned in Schedule XIV of Companies Act, 1956,as windmill had not performed at expected level and nothing was brought on record to show how and on what basis, higher rate of depreciation was arrived,while computing book profit AO had restricted the depreciation as per Schedule XIV of Companies Act, 1956 and holding that assessee had no reason to provide depreciation at a higher rate.-Indus Finance Corporation Ltd. v. Deputy Commissioner of Income Tax.
  • HUF does not come under specified category of relative under section 56(2) (vii), Explanation (e); therefore, money received by an individual from HUF as gift would not considered as valid gift.-Gyanchand M. Bardia v. Income Tax Officer.
  • Incurred in connection with issue of shares was to be held as capital in nature: Madras- HC Sterling Holiday Financial Services Ltd. v. Assistant Commissioner of Income Tax.
  • Income Tax could be levied only when real income would accrue to assesse. Where a dispute was pending between assessee-contractor and builders, only income that had come to assessee in relevant assessment year would be taxable and not income that would have come to it if claims against builders were allowed.-HC of Kerala- Commissioner of Income Tax v. Sushil Thomas Abrahum.
  •  for individuals and HUF having income from any sources except profits and gains of business and profession, including NRIs.
  • ITR-1 Sahaj was activated earlier by the department for resident Indians having income from salaries, house property and bank interest with total income of up to Rs 50 lakh.

INDIRECT TAXES

  • Constructing residential accomodation for police couldn’t be classified as construction of complex services.-CESTAT New Delhi BENCH, Gupta Construction Company v. Commissioner of Central Excise.
  • Replacing old damaged water lines of villages was classifiable as commercial construction services.-CESTAT New Delhi- Vijay Kumar Kataria v. Commissioner of Central Excise, Delhi.
  • Where applicant is a supplier of materials for erection of towers, testing etc. called Tower Package and supply of allied services like survey and erection of towers etc. and wants a ruling on whether he is liable to pay tax on freight bills, it is held that applicant supplies works contract service and GST is to be paid at 18 per cent on entire value of composite supply, including supply of materials, freight and transportation, erection, commissioning etc.and it is merely a composite supplies.-AAR West Bengal-EMC Ltd.,In re.
  • GST waives off late fees from October for taxpayers who were unable to file GSTR-3B due to technical issues of Trans-1 filing, failed to file TRANS-1 before December 27, 2017.
  • Accommodation and restaurant services provided by applicant engaged in hotel business within premises of Hotel, to employees and guests of SEZ units cannot be treated as supply of goods and / or services to SEZ units in State; said services constitute ‘intra-State’ supplies and are taxable accordingly-AAR Karnataka.
  • 31 May is last day to file GSTR-1 for April if turnover 1.5 cr or more. For May file by 10 June & for June by 10 July i.e before GSTR-3B. Notification No. 18/28 March.
  • No late Filing fee if GSTR-3B from October 17 – April 18 filed by 31 May, where TRAN-1 submitted by 27 December but filed by 10 May due to technical issues.

FAQ on E-WAY BILLS:

  • Query: How is the validity of the e-way bill calculated?
  • Answer:The validity period of the EWB is calculated based on the ‘approx. distance’ entered while generating the EWB. For every 100kms one day is a validity period for EWB as per rule and for part of 100 KM one more day is added. For ex. If approx. distance is 310KMs then validity period is 3+1 days.

OTHER UPDATES

  • Aadhaar not mandatory for central govt. employees for getting pension: Minister of State for Personnel. Press Trust of India.
  • DGFT has issued trade notice w.r.t Non-submission of complete Appendix 4E, containing technical details, chemical reactions and data sheet for advance authorisation applications on self declaration basis under Para 4.04 and 4.07 of HBP for cases relating to NC-4.

Key Date:

  • GSTR Return summary for April: 20.05.2018
  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

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Corporate and Professional Updates 17th April 2018

Image result for CORPORATE AND PROFESSIONALDirect Tax:

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

Indirect Tax:

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

FAQ on E-WAY BILLS:

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

MCA updates

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

Key Dates:

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

Disclaimer:

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

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CORPORATE AND PROFESSIONAL UPDATES 13TH APRIL 2018

Image result for CORPORATE AND PROFESSIONALDirect Tax:

  • Delhi High Court held that Reopening after 4 years with approval of DIT instead of JCIT is invalid Yum! Restaurants Asia Pte. Ltd. Vs. Dy. DIT & Ors. (Delhi High Court)
  • HC: Dismisses Revenue’s appeal; Confirms location savings, human & supply-chain intangibles TP-adjustment deletion[TS-230-HC-2018(DEL)-T P]
  • ITAT: Can’t exclude companies with operating losses considering functional similarity and profits at GP-level [TS-188-ITAT-2018(Kol )-TP]
  • Madras HC refuses to lift attachment on immovable property purchased by petitioner from a tax defaulter, noting that demand notice under Rule 2 of second schedule (as mandated u/s. 281) was served upon tax defaulter prior to the execution of the sale transaction, remarks that “The moment such a notice was served …, by virtue of Rule 16(1) of the second schedule, he became incompetent to deal with the property.”[TS-166-HC-2018(MAD) ]
  • CBDT gives Clarification regarding applicability of standard deduction to pension received from former employer
  • Shares of unquoted shares to be taxed at (deemed) fair value

Indirect Tax:

  • CESTAT Delhi held the finished products which are different types of food preparations and are new marketable products and are liable to excise duty subject to due classification as available in the Central Excise Tariff.M/s Bharat Hotel Limited Vs CCE (CESTAT Delhi)
  • Central Board of Indirect Taxes and Customs gives Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports – Reg.

FAQ on E-WAY BILLS:

  • Query: In case the consignor or consignee is not having, what is to be entered in GSTIN column?
  • Answer: If the consignor or consignee is unregistered taxpayer and not having GSTIN, then the user can enter URP (Unregistered Person) in the corresponding GSTIN column.

MCA Updates

  • Directors disqualification is being removed by filing writ petition in the High court.  Last date to approach High court isApril 30, 2018.
  • Extension to 30.04.2018 of last date to file AOC-4 XBRL e-Forms using Ind AS. MCA General Circular No. 01/2018.

RBI updates

  • RBI increased the bond investment limit for foreign portfolio investors (FPI) by 0.5 per cent to 5.5 per cent of outstanding stock of securities in 2018-19 and 6 per cent of outstanding stock of securities in 2019-20.

Key Dates:

  • Due date for payment of PF for the month of March: 15.04.2018
  • Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018

Disclaimer:

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

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How to file return under UAE VAT

Image result for uae vatAs per the official site of Ministry of Finance, UAE, majority of the business entities will be required to file the VAT returns on quarterly basis, within one month/28 days from the end of the respective quarter.

USE OF ACCOUNTING SOFTWARE

The business in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file.

UPLOAD RETURN

On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form.

After generating the VAT return file, you need to login to the FTA’s e-tax portal using the credentials. Using the e-tax portal upload option, you need to browse and select your return file.

VAT RETURN FORMAT     

The VAT return file should be in XML or MS Excel format.

Auto Fill VAT Return Details.

Once the file is uploaded, you need to click ‘Auto Fill VAT Return’ which will auto-populate the details from the VAT return file to the VAT return form in the FTA’s e-tax portal.

VALIDATE OR AUTHENTICATE

Once this button is clicked, the FTA portal will validate or authenticate whether the uploaded file has been created by a certified tax accounting software. If the file is authenticated, only then the details will be auto-populated into the VAT return form. If the file is not authenticated, it will be rejected and an appropriate error message will be displayed.

Once the VAT return file is authenticated, you are required to fill the other details required by FTA and submit.

CORRECTION IN RETURN

Correction of errors made in previous return period can be carried out. The taxable person must disclose this error to the FTA within 30 days of becoming aware of this error and include in the  Tax Return to be submitted immediately after noticing and correcting the error.

PENALTY FOR LATE FILLING OF VAT RETURNS

Late filing of return may attract penalty. The administrative penalty will not be less than 500 Dirhams but not exceeding three times the amount of tax in respect of which the administrative penalty was levied.

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)

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CORPORATE AND PROFESSIONAL UPDATES 28TH FEB 2018

Image result for corporate and professionalDirect Tax: 

  • 153A proceedings not restricted to those materials which were already available with dept. before search -Where pursuant to search and enquiry unaccounted consideration from purchaser had been unearthed, it could not be said that other material already available with Department had been relied upon in proceedings.Kerala HC- DR. A. V. Sreekumar v. CIT
  • No reassessment merely to investigate into accommodation entries without holding prima facie belief of escaped income- Reopening was not permissible merely to investigate facts (information about accommodation entry transactions availed by assessee) without holding prima facie belief based on relevant material towards escapement of income.ITAT Ahmdbd- Mrs. Sejal J. Panchal v. Income-tax Officer.
  • Mumbai ITAT allows set off of brought forward house property losses of AY 2009-10 and 2010-11 against income of relevant AY 2012-13 to assessee, holds Sec. 79 provisions inapplicable observing that 2 individual shareholders who became direct shareholders of assessee in AY 2012-13 (50% each) also beneficially held more than 51% of voting power through intermediate companies as at the end of previous year relevant to AY 2009-10 and 2010-11;[TS-82-ITAT-2018(Mum)]
  • ITAT Jaipur held that exemption u/s 54F cannot be denied merely for property purchase in wife name. Shri Vivek Jain Vs. DCIT (ITAT Jaipur)
  • CBDT set higher target for zones which are performing well. It said we are looking at better advance tax collection for January-March quarter. We will be able to achieve the landmark Rs 10 lakh crore targets.

Indirect Tax:

  • CESTAT Delhi held that without marketability excise duty not leviable on semi- finished Granules, Extracts and oils.  M/s The Himalaya Drug Co. Vs. CCE (CESTAT Delhi)

Gst updates

  • CBEC has introduced an alternative mechanism enabling the exporters to rectify the mistakes in cases where IGST refund is stuck due to invoice mismatch.
  • Online filing enabled at GST Portal, of Letter of Undertaking (LUT) GST RFD-11, to be filed in case of Exports without GST.
  • CBEC has sanctioned Rs 4,000 cr worth refunds to exporters since October. Still 10,000 crore worth claims are stuck due to discrepancies in the information furnished by exporters to GST Network (GSTN) in filing GSTR 1 or Table 6A or GSTR 3B and shipping bill filed with Customs.
  • issues directions on non-utilization of disputed credit & non-transition of blocked credit- Circular No. 33/07/2018-GST, 23rd Feb., 2018.
  • GST/Excise:Government has directed jurisdictional deputy commissioner to release security lying in form of bank fixed deposits proportionately as per the proportionate mega certificate issued by Ministry of Power for excise duty exemption. Circular No. 1064/03/2018-CX

MCA Update:

  • MCA specified that Chapter IX, Section 129 of Companies Act, 2013 Shall not apply to the companies engaged in defense production to the extent of application of relevant Accounting Standard on segment reporting. Dated 23rdFebruary 2018.
  • The Insolvency and Bankruptcy Board of India has issued a circular to designate the website ibbi.gov.inand details of the manner of publishing such Forms on the designated website.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:Defaulting companies and their disqualified directors who have not filed application before NCLT for revival, What is the remedy available?
  • Answer: such companies and disqualified directors shall not be eligible to avail benefits under this Scheme as the Scheme clearly lays down that only companies whose application of revival has been filed before NCLT u/s 252 can avail benefits of this Scheme, subject to favourable order from NCLT for revival. Hence, in order to avail benefit under this Scheme, first application has to be made to NCLT u/s 252 and favorable order for revival is also to be obtained during the validity of the Scheme and thereafter overdue documents to be filed within the prescribed time limit under the Scheme.

Other updates

  • EPFO raises minimum life insurance for EPF-covered employees to Rs 2.5 lakh w.e.f. Feb 15, 2018. EFPO Notification dated 15.02.2018.
  • Commerce and industry ministry has appointed four institutes, including IIFT and ICAI, to interact with stakeholders and suggest measures to push India’s ranking in World Bank’s ease of doing business index.

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)

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