CORPORATE AND PROFESSIONAL UPDATES 28TH SEP 2018

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Direct Tax:

  • ITAT Delhi held that reassessment on mere audit objections without any tangible material is invalid.Siddhi Vinayak Aeromatics (P) Ltd. Vs ACIT (ITAT Delhi)
  • ITAT Pune held that AO cannot set-off of brought forward loss before allowing remuneration to partner. Rajmal Lakhichand Vs JCIT (ITAT Pune)

Date of submission of ‘Tax Audit Report and Income Tax Return’ has been extended to 15th of October 2018. Effects of the same would be:

  • Late Fees, of Rs.1000/- and 500/-, u/s 234F will not be levied in case ITR is filed on or before 15th of October 2018
  • Expenses u/s Sec 43B, which are allowed on the basis of actual payment made, will be allowed if paid on or before 15th of October 2018.
  • TDS, which has already been deducted on or before 31st of March 2018, deposited on or before 15th of October 2018 will not result into  disallowance of expenses u/s 40(a)(i) & 40(a)(ia).
  • Loss under the head “Business of Profession” and “Capital Gains” can be carried forward even ITR is filed after 30th of Sep., 2018 but on or  before 15th of October 2018.
  • Profit Linked deductions (Section 80-IA to 80-IE), deduction under Section 10AA of the Income tax Act, 1961 will be allowed even if ITR is filed after 30th of Sep., 2018 but on or before 15-Oct-2018.

Better to pay Self Assessment Tax till 30th of Sep., 2018 in order to save interest u/s 234A of the Act and File Income Tax Return on or before 15th of October 2018.

INDIRECT TAX

  • Amazon, Google, Apple and other foreign companies operating in the ecommerce space will have to register themselves for GST in all the states in the next 10-12 days. The government has said ecommerce companies need to collect tax at source from October 1.

  • The Authority for Advance Rulings (AAR), Maharashtra ruled that 12 percent GST would be applicable to the services provided by sub-contractors to the main contractors in respect of Works Contract Services pertaining to Railways.

FAQ on GST Audit:

  • Query: Is summary assessment order to be necessarily passed against the taxable person?
  • Answer: No. In certain cases, like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax (proviso to Section 64 of CGST/SGST Act).
  • Query: Under what circumstances can a best judgment assessment order issued under section 60 are withdrawn?
  • Answer: The best judgment order passed by the Proper Officer under section 62 of CGST/SGST Act shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.

RBI Update:

  • The Reserve Bank of India has Issued notification regarding Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards. Vide Notification No 4/21.04.098/2018-19, dated 27th September 2018.

 KEY DUE DATES 

  • GSTR-3B (sep 2018)-oct 20th, 2018
  • GSTR-5 (sep 2018)-oct 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (sep 2018)-oct 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
  • Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(sep 2018)-31st oct 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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