corporate and professional updates 11th july 2018

Image result for corporate and professionalDirect Tax :

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

INDIRECT TAX

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

FAQ ON GST

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

MCA UPDATES

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

OTHER UPDATES

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

KEY DUE DATES

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

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

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This update has generic information that is given on the basis of "as is" and does not warranty it in any kind, nor does it imply, express or intend to aim a specific situation. The information given here might not be understood and shouldn't be considered as a particular opinion or advice. This write up shouldn't also be replaced for any service or professional advice and it also shouldn't be relied upon or used it acted as grounds for any action or decision that might affect your business or you. It is also distinctly clarified that this update has no intentions to be a form of advertisement or invitation or solicitation to generate any client-advisor relationship.

The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. All efforts and measures have been taken to assure the accuracy and correctness of the information presented in this update but cannot be guaranteed in any manner. We are not obligated to any responsibility or liability to any one for any damage or loss incurred by going with the information given in this update.

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