CORPORATE AND PROFESSIONAL UPDATES 16TH JUNE 2018

Image result for corporateDIRECT TAX

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

INDIRECT TAX 

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

FAQ on E-WAY BILLS:

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

MCA Updates:

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

RBI UPDATE

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

OTHER UPDATES

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

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
  • DUE DATE FOR GSTR-3B -20.06.2018
Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 15TH JUNE 2018

Image result for corporate and professional

Direct Tax:

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

 Indirect Tax:

  • CBEC has made amendment in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Fifth Amendment) Rules, 2018 which shall come into force on the date of their publication in the Official Gazette. Vide notification no 26/2018, dated 13th June 2018.
  • The Central Board of Indirect Taxes and Customs (CBIC) has extended the refund fortnight for fast track clearance of pending dues to exporters by two days till June 16.
  • Last date to file GSTR-3B for the month of May 2018 is June 20,2018.
  • CBIC- The Circular clarified that integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption.Circular No. 3/1/2018-IGST

FAQ on E-WAY BILLS:

  • Query: If the vehicle, in which goods are being transported, having e-way bill is changed, then what is required to be done?
  • Answer:. The e-way bill for transportation of goods should always have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods, due to trans-shipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the new vehicle number in Part B of the EWB.
  • Query:  Which types of transactions that need the e-way bill
  • Answer: For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including an unregistered person or for reasons other than supply also, e-way bill is mandatory.

RBI UPDATES

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

OTHER UPDATES

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

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
Disclaimer:

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

corporate and professional updates 14th JUNE 2018

Direct Tax:

  • Mumbai ITAT rules that consideration received by assessee (a Dutch company, part of the Marriott group) for the services rendered to the Indian Hotels under the Training and Computer Systems Agreements (‘TCSA’) during AY 2009-10, not FTS under Article 12 of India-Netherlands DTAA; Assessee had entered into TCSA with 2 Indian hotels for conducting training programs of their employees and for providing access to Centralized Reservation System (‘CRS’), Property Management Systems (‘PMS’) and Other Systems;[TS-303-ITAT-2018(Mum)]
  • Bangalore ITAT upholds CIT(A) order for AYs 2008-09 to 2011-12, TDS u/s. 194C is not applicable on consideration paid by ITC Employees Housing Society (assessee) pursuant to a tripartite agreement/MOU entered with vendor (land owner) and a developer for developing vendor’s property into residential sites;[TS-301-ITAT-2018(Bang)]
  • Income Tax Dept had served notices on nearly 3 lakh non-filers who deposited Rs.10 lakh or more in their bank accounts following the demonetization announcement. “Of these, nearly 2.1 lakh filed their returns by the March 31, 2018 deadline. The rest will now face action.

INDIRECT TAX

  • GST: Update eway bill with Change to Multi vehicle Option where all goods move to a location in one vehicle & then moved in parts in multiple vehicles.
  • The revenue dept is working on a mechanism under which foreign tourists may soon get to claim GST refunds paid by them on local purchases at airports at the time of exit.

FAQ on E-WAY BILLS:

  • Query: Can the e-way bill entry be assigned to another transporter by authorized transporter?
  • Answer:The authorized transporter can assign the e-way bill to any enrolled or registered transporter for further transportation of the goods. Subsequently, the new transporter can only update the Part-B of the EWB.

SEBI UPDATES

  • NSE & BSE have issued a circular on all Listed Companies w.r.t Compliance and Disclosure Requirements for Listed Companies undergoing Corporate Insolvency Resolution Process (CIRP).

OTHER UPDATES

  • The Institute of Chartered Accountants of India (ICAI) issues Valuation Standards as a benchmark for Valuation Practices applicable for Chartered Accountants.
  • The Board has introduced the reward scheme for informants giving information of benami property actionable under Prohibition of Benami Property Transactions Act, 1988, as amended by Benami Transactions (Prohibition) Amendment Act, 2016

RBI Update:

  • The Reserve Bank of India today released draft guideline on loan system for delivery of bank credit which stipulate a minimum level of ‘loan component’ in fund based working capital finance and a mandatory Credit Conversion Factor (CCF) for the undrawn portion of cash credit/ overdraft limits availed by large borrowers, with a view to enhancing credit discipline among large borrowers.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

Disclaimer:

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

Advantage and know details about Startup India scheme

Image result for startup

  • Compliance regime based on self certification
  • The objective of compliance regime based on self certification is to reduce the regulatory burden on startups. This self-certification will apply to laws like payment of gratuity, contract labour, employees provident fund, water and air pollution acts.
  • Startup India hub
  • A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding.
  • Simplifying the startup process
  • A startup will be to able to set up by just filling up a short form through a mobile app and online portal.  A mobile app will be launched on April 1 through which startups can be registered in a day. There will also be a portal for clearances, approvals and registrations
  • Patent protection
  • The government is also working on a legal support for fast-tracking patent examination at lower costs. It will promote awareness and adoption of Intellectual Property Rights (IPRs) by startups and help them protect and commercialise IPRs.
  • Funds of funds with a corpus of Rs 10,000 crore
  • In order to provide funding support to startups, the government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years. The fund would be managed by private professionals drawn from the industry while LIC will be a co-investor in the fund. The credit guarantee fund for start-ups would help flow of venture debt from the banking system to start-ups by standing guarantee against risks.
  • Credit Guarantee Fund
  • A National Credit Guarantee Trust Company is being envisaged with a budgetary allocation of Rs 500 crore per year for the next four years.
  • Exemption from Capital Gains Tax
  • Currently, investments by venture capital funds in startups are exempt from this law. Now, the same is being extended to investments made by incubators in startups.
  • Tax exemption for startups
  • Income tax exemption to startups announced for three years
  • Tax exemption on investments above Fair Market Value
  • Startup fests
  • Innovation core programs for students in 5 lakh schools. There will also be an annual incubator grand challenge to create world class incubators
  • Launch of Atal Innovation Mission
  • Atal Innovation Mission started to give an impetus to innovation and encourage the talent among the people
  • Setting up of 35 new incubators in institutions
  • PPP model being considered for 35 new incubators, 31 innovation centres at national institutes
  • Setting up of 7 new research parks
  • Government shall set up seven new research parks – six in IITs, one in IISc with an initial investment of Rs 100 crore each.
  • Promote entrepreneurship in biotechnology
  • Five new bio clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.
  • Innovation focused programmes for students
  • There will be innovation core programs for students in 5 lakh schools.
  • Panel of facilitators to provide legal support and assist in filing of patent application
  • 80 per cent rebate on filing patent applications by startups
  • Relaxed norms of public procurement for startups
  • Faster exits for startups

Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 13TH JUNE 2018

Image result for corporateDirect Tax:

  • Mumbai ITAT grants Sec. 10B benefit to assessee (a pharma company) on export profits earned by its contract manufacturing and research division (STAR unit, an approved EOU) during AY 2007-08 with respect to creation of  ‘dossier’; Rejects revenue’s stand that the activity of preparation of dossier cannot be treated as ‘manufacture or production of an article or thing’ as contemplated in Sec. 10B; ITAT holds that dossier has all the attributes of product being an article or thing, remarks that “creation of dossier entails the actual production of the formulation initially in the laboratory and therefore upto a batch size”;  [TS-300-ITAT-2018(Mum)]
  • Chandigarh ITAT raises an alarm over illegal coercive recoveries by Departmental officials in order to achieve their targets at the close of the financial year i.e. by 31st March of the year, in complete violation of the directions / orders issued by their higher judicial authority,  remarks that, “This type of practice…..in our view, may lead to severe consequences affecting the administration of justice.”,  directs the Department / CBDT to take necessary steps in this respect;[TS-296-ITAT-2018(CHANDI)]
  • 15-06-18 (Friday) is LAST DAY for Payment of Advance Income Tax: All Assessees (15%) except 44AD cases. Challan No.ITNS-280.
  • LATE FEE ON DELAY IN FILING INCOME TAX RETURN FOR THE YEAR ENDED 31ST MARCH, 2018 (Asst.Yr: 2018-19) under sec. 234F:  If ITR filed during 01/08/2018 – 31/12/2018 : Rs. 5000 and If total income does not exceed Rs.5 Lakhs then Rs. 1000.
  • Late fee for Return filed during 01/01/2019 – 31/03/2019 : Late Fee Rs. 10000. If total income does not exceed Rs. 5 Lakhs then this Late Fee will be restricted to Rs. 1000.

Indirect Tax:

  • GST on applicable rates to be charged on labour & spares in case of car service where same shown separately. Circular 47/21/2018-GST of 8.6.18.
  • GST applicable on additional interest in case of default in installment payment & late payment charges on credit card dues. CBIC FAQs (Jun 2018).

FAQ on E-WAY BILLS:

  • Query: What has to be done, if the vehicle number has to be changed for the consolidated e-way bill?
  • Answer:There is an option available under the ‘Consolidated EWB’ menu as ‘regenerate CEWB’. This option allows you to change the vehicle number to existing Consolidated EWB, without changing the individual EWBs. This generates a new CEWB, which has to be carried with new vehicle. Old CEWB will become invalid for use.

RBI Update:

  • RBI has issued notification regarding External Commercial Borrowings (ECBs) Monthly reporting through ECB 2 Return.

OTHER UPDATES

  • The recent amendment to the bankruptcy law — that requires shareholder approval before a company files for insolvency and also mandates that the administrator convince the tribunal that the resolution plan is effectively implementable — will benefit small stakeholders but delay resolution.
  • Indian Valuation Standards as issued by the Institute of Chartered Accountants of India effective for the valuation reports issued on or after 1st July, 2018.

 KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 12TH JUNE 2018

Image result for corporateDirect Tax:

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

INDIRECT TAX

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

FAQ on E-WAY BILLS:

  • Query: Whether the e-way bill is required for movement of consignment for weighment to the weighbridge?
  • Answer:No e-Way bill is required for movement of goods up to a distance of 20 Km from the place of business of consignor to a weighbridge for weighment or from the weighbridge back to the place of business of consignor, within the same State, subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with Rule 55.
  • Query:Whether e-way bill is required for all the goods that are being transported?
  • Answer:The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees. Kindly refer to the e-way bill rules for other exemptions.

MCA Update:

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

 KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 11TH JUNE 2018

Direct Tax:

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

INDIRECT TAX

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

FAQ on E-WAY BILLS:

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

MCA UPDATES

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

RBI UPDATES

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

 KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

Disclaimer:

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

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)

National Committee i.e. the Finance Ministry said That Deduction benefit under section 35AC is not available from April 1, 2018 onwards for carrying-out any eligible project or scheme.

Image result for 35 acThis is to update about Deduction benefit under section 35AC, the Government today said the benefit of deduction under section 35AC of the IT Act will only be available till March 31, in respect to the payments made to association or institution approved by the National Committee for carrying-out any eligible project or scheme.

It may be noted that requests received after December 31, 2016, for the grant/modification/extension of approval beyond March 31, 2017 under section 35AC of the Income-Tax Act shall not be considered/entertained by the National Committee,” the Finance Ministry said in a statement.

Section 35AC of the Income Tax Act, 1961, provides for a deduction in computing the business income of an assessee, of the amount paid by him to a PSU or a local authority or to an association or institution approved by the National Committee for carrying-out any eligible project or scheme.

Moreover, it said the Section 35AC, as amended by the Finance Act, 2016, provides that no deduction under this section shall be allowed in respect of any assessment year commencing on or after April 1, 2018.

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; Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 9555 555 980