CORPORATE AND PROFESSIONAL UPDATES 1ST OCT 2018

Image result for corporate and professional updates

DIRECT TAX

  • Reopening of assessment – If the Assessing Officer is prevented from carrying out assessment, the serious question of such assessment getting time barred by the time the petitioner’s litigation before the Civil Court achieves finality  – Gujarat High Courtin case of [Abha Vinaykumar Jain Vs. ITOWard 4 (1) (4))
  • Assessment in the hands of representative assessee – The ITAT made a clear mistake in believing that since it was held in an earlier proceeding that the income in question arose in India, a representative assessee could not be liable because it was only liable according to it in respect of the income which was deemed to have arisen in India  – Calcutta High Courtin case of [Director Of Income Tax (International Taxation) Vs. Board Of Control For Cricket In Sri Lanka And Ors. Through Pilcom)
  • Reopening of assessment u/s 147 – bogus purchases – to what exact income had escaped assessment may be open for argument, nevertheless, would not be a ground to quash the notice of reopening  – Gujarat High Courtin case of [Lalitkumar Babubhai Patel Vs.. DY. CIT, Circle 4 (2) Or His Successor )
  • Denial of deduction/exemption under section 54EC – advance received in specified assets before the date of transfer of asset – the Board have decided that if the assessee invests the earnest money or the advance received in specified assets before the date of transfer of asset, the amount so invested will qualify for exemption under section 54E  – ITAT Ahmedabadin case of [Rahul G. Patel Vs. DCIT, CIR. 1 (2) , Baroda)
  • CBDT notifies Ex-Servicemen Contributory Health Scheme for purpose of section 80D of the Income Tax Act, 1961 vide notification number 50/2018 dated 26th September, 2018
  • Penalty under section 271B justified on Assessee who was Partner in M/s. Price Waterhouse which is a partnership firm for his Failure to get his accounts audited as his remuneration was exceeding the limit specified U/s. 44AB.Sagar Dutta Vs DCIT (ITAT Kolkata)
  • Gujarat High Court directs CBDT to respond on Tax Audit Due date Extension filed by All Gujarat Federation of Tax Consultants Versus Union of India (Gujarat High Court)
  • ITAT Kolkata held that partner to get his A/Cs audited if his remuneration from firm exceed audit limit. Sagar Dutta Vs DCIT (ITAT Kolkata)
  • ITAT Delhi held that reassessment on mere audit objections without any tangible material is invalid.Siddhi VinayakAeromatics (P) Ltd. Vs ACIT (ITAT Delhi)

INDIRECT TAX

  • Internal Auditor cannot undertake GST Audit simultaneously : ICAI in an announcement dated 28th September 2018 has clarified that Internal Auditor cannot undertake Goods and Service Tax (GST) Audit simultaneously.
  • Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved increasing of Government ownership in Goods and Services Tax Network (GSTN) and change in the existing structure with transitional plan.

FAQ on GST Audit:

  • Query:Is summary assessment order to be necessarily passed against the taxable person?
  • Answer: 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).

RBI Update:

  • The Reserve Bank of India (RBI) has imposed, by an order dated September 25, 2018, a monetary penalty of Rs 50 million on KarurVysya Bank Limited (the bank) for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms, reporting of frauds, and on need for discipline at the time of opening of current accounts. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

SEBI UPDATES

  • The Securities and Exchange Board of India (Sebi) has sent letters to mutual funds seeking details about their exposure to all NBFCs and housing finance companies, regulatory and industry sources said.

OTHER UPDATES

  • Finance Minister launched a transformative initiative in MSME credit space. The webportal  psbloansin59minutes.comwill enable in principle approval for MSME loans up to Rs. 1 crore within 59 minutes from SIDBI and 5 Public Sector Banks (PSBs).

KEY DUE DATES 

  • GSTR-3B (SEP  2018)-OCT 20th, 2018
  • GSTR-5 (SEP 2018)-OCT 20th, 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)-OCT 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 29TH SEP 2018

Image result for corporate and professional updatesDIRECT TAX

  • Income Tax :  Disallowance of artificial loss made on account of fictitious transactions – CIT(A) has deleted the addition merely by observing that the books of accounts of the assessee were audited and have not been rejected by the AO. – Matter restored before the CIT(A)  – ITAT Mumbai  in case of [ACIT 12 (2) (2) , Mumbai Vs. M/S. Highland Industries Ltd.]
  • Income Tax : TDS Credit – Wherever the payer-deductor had made the payment to the company but by error deposited tax in the account of the firm, the petitioner company must get benefit of such tax deducted at source  – Gujarat High Court in case of [Anish Infracon India Pvt. Ltd. Vs. DCIT]
  • Income Tax : Claim of credit of TDS deducted on salary – Employer failed to deposit the TDS amount with the Government – Department cannot deny the benefit of tax deducted at source by the employer of the petitioner during the relevant financial years. Credit of such tax would be given to the petitioner for the respective years  – Gujarat High Courtin case of [Devarsh Pravinbhai Patel Vs. ACIT Circle5 (1) (1)]
  • Income Tax: Addition u/s 41 – remission or cessation of liability – when the software library was capitalized, it cannot be said that any benefit or remission or cessation of liability occurred  – Madras High Courtin case of [The CIT Vs. Smt. R. Radhika]
  • Credit of TDS deducted from salary – Revenue directed to give the credit even if employer failed to deposit TDS amount with the Government – Devarsh Pravinbhai Patel Vs ACIT (2018 (9) TMI 1635 – Gujarat High Court).

Calculation of Turnover for Tax Audit  u/s 44 AB of Income Tax Act, 1961: 

  • For Assessee in share trading business to give them clear understanding whether they are liable to get their accounts audited for tax audit u/s 44AB of the Income Tax Audit. So, let’s check what law dictates about it.

Tax Audit Applicability under section 44AB:

  •  An individual who is engaged in business and the annual turnover of his/her business is Rs 1 crore and above.
  • Determination of turnover u/s 44ab of income tax act,1961, in case of trading of shares either on speculation or non speculation basis
  • “As per Section 43(5) of the Income Tax Act, 1961, INTRA-DAY TRADING shall be considered as SPECULATIVE BUSINESS TRANSACTIONS and the income therefrom would be either speculation gains or speculation losses. Income from speculation gains is taxed at the normal rates.”
  • However, Income from trading F&O (both intraday and overnight) on all the exchanges is considered as NON-SPECULATIVE BUSINESS TRANSACTIONS as it has been specifically defined this way.
  • Income from shorter term equity delivery based trades (held for between 1 day to 1 year) are also best to be considered as non-speculative business income if frequency of such trades executed by you is high or if investing/trading in the markets is your main source of income.

Turnover or gross receipts in respect of transactions in shares,securities and derivatives may be determined in the following manner:

  • As per  Para 5 of “Guidance Note on Tax Audit under Section 44AB of the Income Tax Act,1961″ issued by The Institute of Chartered Accountants of India (ICAI):

(a) For Speculative Transactions:

“The Turnover is net of all positive and negative income from various transaction and not total of all Sales transaction.So if your Net Income > 1 Crores rs., you are liable to tax audit.”

(b) Derivatives, Futures And Options (Non- Speculative Transactions)

“The turnover in such types of transactions is to be determined as follows:
(i) The total of favourable and unfavourable differences shall be taken as turnover.(i.e suppose in 1st transaction you have incurred loss of Rs 65 Lacs and after that you entered in profit transaction in which you have earned Rs 36 lacs, Then as per this guidance note you are liable to tax audit because total of  of Profit and Loss a/c exceed Rs 1 Crore)

(ii) Premium received on sale of options is also to be included in turnover.(Call or Put Premium paid/received)

(iii) In respect of any reverse trades entered, the difference thereon, should also form part of the turnover.”

INDIRECT TAX

  • MoF issues a circular clarifying applicability of GST on Residential programs or camps meant for advancement of religion, spirituality or yoga by religious and charitable trusts – Circular No. 66/2018, dt.26.09.2018.
  • Marg Sudharan Shulk – charged and collected by applicant for the maintenance of forest road, from non-government, private and commercial vehicles engaged in mining work in lieu of use of forest road – Levy of GST confirmed – AAR, UK in Divisional Forest Officer, Dehradun (2018 (9) TMI 1647).
  • CBEC has issued circular regarding GST on Residential programmers or camps meant for advancement of religion, spirituality or yoga by religious and charitable trusts. Vide circular no 66/40/2018-GST, dated 26th September 2018.
  • GST: Post GST regime, the pending refund claim of CENVAT credit under Central Excise, if sanctioned, will necessarily have to be paid in cash –Toshiba Machine (Chennai) Pvt. Ltd. Vs CCE (2018 (9) TMI 1576 – CESTAT Chennai).

FAQ on GST Audit:

  • Query:What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
  • Answer: Section 63 of CGST/SGST Act provides that in such a case, the proper officer can assess the tax liability and pass an orderto his best judgment for the relevant tax periods. However, such an order must be passed within a period of five years from the due date for furnishing the annual return for the financial year to which non-payment of tax relates.

RBI Update:

  • The Reserve Bank of India has issued notification regarding Voluntary Transition of Primary (Urban) Co-operative Banks (UCBs) into Small Finance Banks (SFBs). Vide notification no RBI/2018-19/52, dated 27th September 2018.

OTHER UPDATES

  • ICAI Elections 2018: Nominations for 32 Central Council (CC) Seats and 64 Regional Council (RC) Seatshave been completed y’day. The Region wise list of valid candidates is expected soon.
  • ICAI has launchedA unique and exclusive Job Portal for Chartered Accountants https://cajobs.icai.org where no. of companies and vacancies increasing every day. Members can find a best job on this portal that matches their interest.

KEY DUE DATES 

  • GSTR-3B (SEP 2018)-OCT 20th, 2018
  • GSTR-5 (SEP 2018)-OCT 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- OCT 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-(AUG 2018)-OCT 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 28TH SEP 2018

Image result for CARPORATE

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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 27TH SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Ahmedabad held that deduction under section 54 cannot be denied proportionately merely for joint ownership. Shri Chitrang M. Dave Vs the DCIT (ITAT Ahmedabad)
  • ITAT Mumbai held that assets holding period should be computed from the date of allotment letter.Shri Sanjaykumar Footermal Jain Vs ITO (ITAT Mumbai)
  • Registration u/s 12A – Condonation of delay – Ignorance of law is no excuse. The provision of Section 12A, being a beneficial provision to the Assessee, requires strict interpretation. Therefore, the Assessee should have been in a position to explain the delay, which is more than 18 years in the instant case – CIT Vs. Hemla Trust (2018 (9) TMI 1413 – Madras High Court).
  • Share capital cannot regard undisclosed income of the company u/S 68 of the Income Tax Act in V. R. Global Energy Pvt. Ltd Vs ITO (Madras High Court) when there was no cash involved in the transaction of allotment of shares, provisions of Section 68 of the said Act treating it as unexplained cash credit are not attracted.
  • ITR /TAR: Though the CBDT has extended the Due Date for filing of TAR & ITR from 30 SEP 2018 to 15 OCT 2018*, the Liability to pay interest u/s 234A of IT Act will remain applicable. Hence to save a month interest, pay the taxes by 30 SEP 18.

INDIRECT TAX

  • Jurisdiction – Competency to issue SCN – Officers appointed under State GST Act are authorized to be proper officers for the purpose of IGST – Advantage India Logistics Pvt. Ltd. Vs Union Of India & Others (2018 (9) TMI 1417 – Madhya Pradesh High Court).
  • Last date to furnish ITC 04 for compliance of goods sent to *job worker* and received back there after is 30th September 2018* the period covered is 1st of July 2017 till 30th June 2018.
  • The Government has made some new enhancements in the E-Way Bill (EWB) generation form and is being released on 1st of Oct. 2018. Read more at: http://www.taxscan.in/e-way-bill-form-modified-changed-form-rollout-1st-october/28839/

FAQ on GST Audit:

  • Query: Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
  • Answer: The best judgment order passed by the Proper Officer under section 46 of MGL 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.

MCA Update:

  • MCA has amend the companies (Registered valuers and Valuation) Rules, 2017. These rules may be called the companies (Registered valuers and Valuation) Third Amendment Rules, 2018 which shall come into force on the date of their publication in the official Gazette.
  • DIR-3 KYC: As you are aware the last date for filing form DIR-3 KYC without fee has expired on 15th September 2018. The process of deactivating the non-compliant DINs has since been completed and their status has been updated as ‘Deactivated due to non-filing of DIR-3 KYC’. However, the non-compliant DIN holders may file DIR-3 KYC with a fee of Rs.500 from 21 SEP till 5 OCT 2018 (both days inclusive) to get their DINs reactivated. From 6th OCT 2018 onwards, a fee of Rs.5000 becomes payable for reactivation.
  • MCA is likely to deregister another 50,000 companies this fiscal because These firms have not been carrying out business activities for long.

SEBI UPDATES

  • SEBI has told credit rating agencies some of which were blindsided by the aura and size of IL&FS to review borrowers as soon as their bond prices crash, and even place such securities on ‘rating watch’ if prices continue to languish.

OTHER UPDATES

  • ICAI Membership/COP fees not paid* Please pay your Membership / COP Fees for the year 2018-19 latest by *30th September, 2018. http://memfee.icai.org/memfee.htm

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-(AUG 2018)-OCT 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

corporate and professional updates 25TH DAY OF SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • Gujarat High court held that tax cannot be levied on gain from sale of agricultural land based on intention of buyer to use the land for business purpose.  Principal CIT Vs Heenaben Bhadresh Mehta (Gujarat High Court)
  • ITAT Jaipur held that interest on income tax refund not eligible for deduction under section 80IE. M/s. OMIL JSC (JV) Kameng Kota. Vs Dy. CIT (ITAT Jaipur)
  • No Income Tax sec. 68 addition if assessee failed to produce persons who had applied as shareholders; SC dismissed SLP. CIT v. Jalan Hard Coke Ltd. in SLP Civil Diary No. 16078 of 2018.
  • Assessee filed details of share capital money before AO showing that there are number of share applicants who applied for allotment of shares and most of them were residing in Delhi and each application was for Rs.2 lakhs each and payment was made by DDs.
  • Gujarat High Court Just Admited  Petition and issue notice to CBDT, CHIEF COMMISSIONR AND UNION OF INDIA by  of All Gujarat  Federation of Tax Consultants, to extend Due date from 30 Sept to 30 Nov, as 3cd 3cb and other forms keeps changes. Next Date of hearing is Listed 26.09.2018
  • SLP filed before the SC against the order of HC has been dismissed. [2018] 95 com331.
  • CBDT extends due dt for filing of Income Tax Returns & audit reports from 30th Sept,2018 to15th Oct, 2018 for all assessees liable to file ITRs for AY 2018-19 by 30.09.2018,after considering representations from stakeholders. Liability to pay interest u/s234A of ITAct will remain .

INDIRECT TAX

  • 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:What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
  • Answer:Section 47 of MGL provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgment for the relevant tax periods. However, such an order must be passed within a period of five years from the due date of filing of the annual return for the financial year to which non-payment of tax relates.

MCA UPDATES

  • Assessee also filed photocopies of share applications. AO required assessee to produce all persons/share applicants for examination.
  • Assessee expressed its inability to produce share applicants, however, submitted that since share application had been received from identifiable persons having capacity and creditworthiness of making share application, no addition u/s 68 should be made.
  • High Court by impugned order held that view taken by Tribunal in deleting the addition was just and proper as assessee could not have been assessed to tax to find out person who had applied as shareholder.

RBI Update:

  • The Reserve Bank of India has issued notification regarding Co-origination of loans by Banks and NBFCs for lending to priority sector.

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)-OCT 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 22ND SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Jaipur held that section 50C not applies if assesse invest entire sale consideration in new house property under section 54F.ITO Vs Raj Kumar Parashar (ITAT Jaipur)
  • Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) has held that no penalty can be initiated against the assessee under section 271(1)(c) of the Income Tax Act, 1961 for a bonafide mistake committed on the part of the Chartered Accountant. ALP Overseas Pvt. Ltd Vs DCIT.
  • 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.

FAQ on GST Audit:

  • Query: Under what circumstances can a best judgment assessment order issued under section 60 be 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.

MCA Update:

  • As you are aware the last date for filing form DIR-3 KYC without fee has expired on 15th September 2018. The process of deactivating the non-compliant DINs has since been completed and their status has been updated as ‘Deactivated due to non-filing of DIR-3 KYC’. However, the non-compliant DIN holders may file DIR-3 KYC with a fee of Rs.500 (RupeesFive Hundred Only) from 21st September till 5th October 2018(both days inclusive) to get their DINs reactivated. From 6th October 2018 onwards, a fee of Rs.5000 (Rupees Five Thousand Only) becomes payable for reactivation.
  • MCA has amend the Companies (Appointment and Qualification of Directors) Rules, 2014. These rules may be called the Companies (Appointment and Qualification of Directors) Sixth Amendment Rules, 2018 which shall come into force from the date of their publication in the Official Gazette.
  • MCA has amend the Companies (Registration Offices and Fees) Rules, 2014. These rules may be called the companies (Registration 0ffices and Fees) Fifth Amendment Rules, 2018 which shall come into force from the date official publication in the Official Gazette.
  • MCA has amend the Companies (Corporate Social Responsibility Policy) Rules, 2014. These rules may be called the Companies (Corporate Social Responsibility Policy) 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 Rule, 2009. These rule may be called the Limited Liability Partnership (Second Amendment) Rules, 2018 which shall come into force with effect from the 2ndOctober, 2018.

RBI UPDATES

  • RBI eased norms for companies in the manufacturing sector to raise overseas funds and allowed Indian banks to market Masala Bonds in line with the government’s measures to prop up the rupee.

SEBI UPDATES

  • SEBI announced changes to the composition of rating committees at credit rating agencies (CRAs). Going ahead, if an issuer requests for a review of the ratings provided to their instrument, the majority of the rating committee members will have to be different than those who had assigned the rating earlier. Also, at least a third of the rating committee members will have to be independent.

OTHER UPDATES

  • ICAI Members who have shifted/changed their locations after 1st April, 2018 have an option to make an application to get permission to VOTE BY POST. The LAST DATE for receipt of such application is 5th Oct, 2018. https://resource.cdn. icai.org/51675election2018- 41358.pdf
  • ICAI members Please pay your Membership /COP Fee for the year 2018-19 latest by 30th 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)-OCT 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 21ST SEP 2018

Image result for corporate and professional updates

Direct Tax:

  • ITAT Cuttack held that trust cannot be denied exemption for mere receipt of income by way of training and consultancy fee.Xavier Institute of Management Vs ITO (ITAT Cuttack)
  • ITAT Hyderabad held that cash discount cannot be disallowed for mere non-mention of same on invoice. M/s. Sai Krishna Agencies MedakVsAsstt. (ITAT Hyderabad)
  • CBDT has notified the rules relating to the determination of Fair Market Value of inventories converted into capital assets under the Income Tax Act, 2018. The Finance Act, 2018 has inserted clause (via) to Section 28 of the Income Tax Act, 1961.
  • CBDT has notified for the purpose of the clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961)‘Tamil Nadu Water Supply and Drainage Board’, a board constituted under the Tamil Nadu Water Supply and Drainage Board Act, 1970 (Tamil Nadu Act 4 of 1971), in respect of the some specified income arising to that board.

INDIRECT TAX

  • 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:  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).

RBI Update:

  • The Reserve Bank of India has imposed a monetary penalty of Rs. 2, 00,000/- (Rs Two lakh only) on National Urban Co-operative Bank Ltd., Bahraich in exercise of powers vested in it under the provisions of Section 47A (1) (c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for continuous non-submission of the returns u/s 27 of the Act ibid.vide circular no 2018-2019/646, dated 18thSeptember 2018.

SEBI UPDATES

  • SEBI broadly agrees with easier know-your-customer norms suggested by the committee headed by RBI deputy governor. Moreover, the regulator’s board has mandated that large companies must now access the bond markets for a fourth of their borrowings.
  • SEBI said LIC has not sought any exemption from the open offer requirement to take over the crippled state-run lender IDBI Bank for around Rs 11,000 crore

OTHER UPDATES

  • ICAI has for the third time in less than a month made a request for Extension for time for submission of Tax Audit Reports and related returns from 30th September, 2018 to 31st October, 2018. Earlier ICAI has made representation dated 31st August, 2018and 10th September, 2018.

KEY DUE DATES 

  • 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)-OCT 11th 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 20TH SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • Bombay High Court held that deduction under section 80IA can be claimed without excluding deduction under section 80HHC.  M/s. Indian Gum Industries Ltd. Vs  JCIT (Bombay High Court)
  • ITAT Delhi held that depreciation on IPR cannot be disallowed merely for non use in Manufacturing. Commissioner of income tax Vs Sinochem india co. Pvt. Ltd. (ITAT Delhi)
  • The six-member task force appointed by the government to simplify India’s income tax laws is likely to submit its report by end of this month. Earlier this year, the government had formed a task force to draft a new direct tax law to replace the existing Income Tax Act, which has been in force since 1961.
  • CBDT Chairman expressed confidence in exceeding Rs 11.5 lakh crore direct tax collection target in current fiscal. In 2018-19 budget, the government had projected a 14.3 per cent rise in direct tax collections to Rs 11.5 lakh crore.
  • CBDT said no withholding tax will apply on interest payments made by an Indian company or a business trust to a non-resident in respect of offshore rupee denominated bonds issued between September 17, 2018 and March 31, 2019

Indirect Tax:

  • CBEC has extended the period for submitting the declaration in FORM GST TRAN-1 till 31st January, 2019, for the class of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council. Vide order no 4/2018, dated 17th September 2018.
  • Thursday (20 SEP 18)is the last date for filing GSTR-3B, GSTR-5 & GSTR-5A for Aug, 2018.
  • CBIT&C notifies section 51 of the CGST Act to bring provisions related to TDS into force w.e.f 01.10.2018-N.N.50/2018-CT, dt.13.09.18.
  • CBIT&C section 52 of the CGST Act to bring provisions related to TCS into force w.e.f 01.10.2018-N.N.51/2018-CT, dt.13.09.18.
  • GST: Restaurant services – The Applicant is not entitled to pay the GST @ 18% with input tax credit – Liable for GST @ 5%, without ITC – AAR, Karnataka in Coffee Day Global Ltd. (2018 (9) TMI 1042).
  • Form TRAN-1 reopened for the registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council.
  • The GSTPs enrolled on the GST Network under sub-rule (2) of Rule 83 and covered by clause (b) of sub-rule (1) of Rule 83, are required to pass the said examination before 31.12.2018. The examination for such GSTPs shall be conducted on 31.10.2018.It will be a Computer Based Exam. registration portal, link (https://nacin.onlineregistrationform.org/)

FAQ on GST Audit:

  • Query:  If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
  • Answer: The proper officer has to first issue a notice to the defaulting taxable person under section 32 of MGL requiring him to furnish the return within a specified period of time, which has to be a minimum of fifteen days as per section 46 of MGL. If the taxable person fails to file return within the given time, the proper officer shall proceed to assess the tax liability of the return defaulter to the best of his judgment taking into account all the relevant material available with him. This power is given under section 46 of MGL.

SEBI UPDATES 

  • Sebi has revised the regulations for share buyback to provide more clarity on the requirement to make public announcements. Separately, the market regulator said credit rating agencies will not carry out any activity other than the rating of securities offered through public or rights issue.

MCA UPDATES

  • MCA is considering giving another opportunity to 2.1 million company directors who have failed to comply with the ‘know your customer’ (KYC) norms, according to a senior official. The government could give another 15 days for meeting the compliance norms or reduce the penalty for late filing.

RBIUPDATES

  • RBI conceded before the Madras High Court that debt resolution and recovery mechanisms, such as Corporate Debt Restructuring Scheme, Strategic Debt Restructuring Scheme, Scheme for Sustainable Structuring of Stressed Assets, Joint Lenders Forum and 5/25 scheme had proved to be ineffective in resolution of stressed assets.

OTHER UPDATES

  • 30 SEP 2018is the last date for the payment of Annual Membership and Certificate of Practice fee for the year 2018-19.
  • ICAI has further represented to CBDT to extend time for submission of Tax Audit Reports (TAR) and related returns from 30 SEP 2018 to 31 OCT 2018.
  • ICAI RVO: announces Next Batch of Educational Course at Hotel Fortune Select Excalibur, Main Sohna road, Sector-49, Gurgaon from 6 Oct to 28th Oct. 2018

KEY DUE DATES 

  • GSTR-3B (AUG 2018)-SEP 20th, 2018
  • GSTR-5 (AUG 2018)-SEP 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-5A (AUG 2018)-SEP 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)-OCT 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

CORPORATE AND PROFESSIONAL UPDATES 19TH SEP 2018

Image result for corporate and professionalDIRECT TAX

  • ITAT Mumbai held that deemed dividend provision not applicable if assesse is neither registered nor beneficial shareholder of payer company. DCIT Vs M/s. Gilbarco Veeder Root India Pvt. Ltd. (ITAT Mumbai)
  • ITAT Delhi held that TDS under section 194H applicable on discount on repaid product offered to distributors by telecom service provider. Tata Teleservices Ltd. Vs ITO (ITAT Delhi)
  • Pune ITAT rules on selection of MAM and use of internal comparables for benchmarking export and import transactions of assessee (manufacture of heavy commercial vehicles) for AY 2009-10; In respect of assessee’s export of trucks to developing countries (like South Africa, Ethiopia and Indonesia) through its German AE, notes that though assessee was raising bills on German AE for export of trucks the goods were not sent to Germany but to the developing countries directly because Germany had stricter emission norms; [TS-228-ITAT-2018(PUN)-TP]
  • Chandigarh ITAT grants partial stay to GlaxoSmithKline Consumer Healthcare Limited for AYs 2008-09 to 2010-11 in respect of demand raised on account of advertisement, marketing and promotion (AMP) expenses; Noting that 10% of the substantive demand raised for AY 2008-09 was already paid and, also the assessee’s contention that demand would not have survived if directions in ITAT Special Bench ruling in LG Electronics case were followed, ITAT opines that “assessee has made a prima facie case ..[TS-235-ITAT-2018(CHANDI)-TP]

Indirect Tax:

  • CBEC has issued Guidelines for Deductions and Deposits of TDS by the DDO under Vide circular no 65/39/2018.
  • Government has notified the GSTR-9C form for annual GST audit under which every taxpayer above Rs 2 crore turnover in a financial year would need to fill up a reconciliation statement and also obtain a certification of audit.
  • Gujarat High Court struck down provisions of the GST law that forbid transition of excise duty credits on purchases prior to June 30, 2016. The GST law did not allow credit of invoices that were more than one year old i.e., invoices which were dated prior to June 30, 2016. 
  • Now search by PAN will fetch all the GSTINs registered against the entered PAN in different States/ UT’s, along with status of registration in a tabular format. On clicking of GSTIN hyperlink, taxpayer details will be displayed.
  • Around 22.5 crore e-way bills have been generated across India till September 13 since the new electronic billing system was introduced on April 1. The e-way bill system kicked off as part of the new GST regime for transporting goods worth >Rs 50,000.
  • CBEC has issued Clarification regarding processing of refund claims filed by UIN Vide circular no 63/37/2018.

FAQ on GST Audit:

  • Query: Under what circumstances can a best judgment assessment order issued under section 46 are withdrawn?
  • Answer: The best judgment order passed by the Proper Officer under section 46 of MGL 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.
  • Query:What would be the action by the proper officer upon conclusion of the audit?
  • Answer:The proper officer shall, on conclusion of audit, within 30 days inform the taxable person about his findings, reasons for findings and the taxable person’s rights and obligations in respect of such findings.

RBI UPDATES

  • RBI may conduct OMO purchases worth Rs 1 lakh crore this fiscal .Market players expect more open market operations (OMOs) via bond purchase programmes would help offset the fallout of the 30-40 basis points spike in short-term rates at a time when liquidity in the banking system is drying up amid increased outflows.
  • Government announces merger of Bank of Baroda, Dena Bank and Vijaya Bank.  https://www.wbca.st/T73xgvw
  • RBI stepped up its intervention this week Foreign exchange reserves fell below $400 billion, for the first time since November 11, 2017, in the first week of September. As on September 7, foreign exchange reserves stood at $399.28 billion.

MCA UPDATES

  • MCA: last date for filing form DIR-3 KYC without fee has expired on 15th Sep 2018. The process of deactivating the non-compliant DINs is in progress and is likely to be completed by 17th September 2018. 21 lakhs Directors failed to file KYC for DIR3.

OTHER UPDATES

  • ICAI has further requested CBDT to extend time for submission of Tax Audit Reports and related returns from 30th September, 2018 to 31st October, 2018 as CBDT has not followed Norms of Earlier Years of discussing Important Changes in Tax Audit Report with ICAI, there was Constant changes in Utilities relating to Tax Audit Forms,  Delay in release of utilities and Issue in utility of ITR Form No. 5.
  • ICSI Representation to MCA for Extension of DIR 3 KYC filing due dateon September 14, 2018, but it seems MCA is not in mood to extend the Due date Further.
  • ICAI invites Suggestions on evaluation of examination answer books system. The Group formed to review the evaluation of examination answer book system invites Suggestion/ Feedback of the CA students on the evaluation of examination answer books system.
  • IBBI clarified that a person, who is not a member of the CoC, does not have voting right in the CoC. A person, who is not a member of the CoC, cannot be regarded as one who has voted against a resolution plan or abstained from voting.

KEY DUE DATES 

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

Facebooktwittergoogle_plusredditpinterestlinkedinmail