corporate and professional updates 7th June 2018

Image result for corporateDirect Tax:

  • Mumbai ITAT rejects applicability of TDS u/s 195 on payment of advertisement expenses and professional and consultancy fees paid to foreign nationals by the UK branch of assessee (a domestic company) during AY 2008-09, deletes Sec. 40(a)(i) disallowance; Observes that UK branch had incurred expenditure in connection with the advertisements in foreign magazines and websites, likewise, consultancy fee was paid in connection with registration of trade mark in UK;[TS-287-ITAT-2018(Mum)]
  • Jaipur ITAT deletes disallowance u/s 40A(3) with respect to cash payment made by assessee-firm (engaged in real estate business) against purchases of land during AY 2013-14, observes that the payment was made out of the explained sources, through the registered document and as a disclosed transaction and the identity of the sellers and genuineness of  transaction was established; [TS-276-ITAT- 2018(JPR)]

INDIRECT TAX

  • GST: A transaction once reported as B2C cannot be amended later to add GSTIN & convert transaction as B2B. CBIC FAQ 7 (Jun 2018) on Financial Services.
  • GST: The location of a supplier will be the state in which the person holds a bank account even if bank branches of other locations are used for rendering services to customers under the GST the government clarified.
  • CBIC has launched a tax refund drive in the first fortnight of June and issued instructions to swiftly settle refund claims of exporters that are held up because of mismatches in the returns filed by them.

FAQ on E-WAY BILLS:

  • Query: What has to be done by the transporter if consignee refuses to take goods or rejects the goods for any reason?
  • Answer:There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons. Under such circumstances, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ with relevant documents, return the goods to the supplier as per his agreement with him.

RBI Update:

  • The Reserve Bank of India has imposed a monetary penalty of Rs. 1.00 lakh (Rupees one lakh only) on Abhyudaya Mahila Urban Co-operative Bank Ltd., Channapatna, in exercise of the powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) for violating directives contained in para 3 of Reserve Bank of India.
  • NBFC Companies are planning to meet the RBI on the issue of implementation of Ind AS. RBI has deferred the implementation of Ind AS for banks by a year, while it is applicable for NBFCs from April 1, 2018.

MCA Update:

  • MCA gives extension for a period of one month for the steering committee on CSR with effect from 3rd June 2018.

SEBI UPDATES

  • SEBI has issued Master Circular for Stock Brokers which is a compilation of relevant circulars issued by SEBI which are operational as on date of this circular.

OTHER UPDATES

  • ICAI has signed the Mutual Recognition Agreement (MRA) with the South African Institute of Chartered Accountants (SAICA) on June 4, 2018, at SAICA HO, Johannesburg, South Africa. Read more at: http://www.icai.org
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)

corporate and professional updates 6th June 2018

Image result for corporateDirect Tax:

  • AAR rules that the Liaison office (‘LO’) of the Applicant (International Zinc Association, a Belgium based International Non-Profit Association) established in India for conducting programmes / conferences / training on importance of zinc, not liable to tax in India under the Income-tax Act or India-Belgium DTAA, holds membership fee and contribution received from Indian members as non-taxable; [TS-284-AAR-2018]
  • AAR rules that Indian hotel managed and operated by Applicant (a Luxembourg based group engaged in operation and management of the hotels) would constitute its fixed place PE in India and income from the Indian hotel owner for provision of global reservation services (‘GRS’) [arising out of Centralised services agreement (‘CSA’)], would be attributable to its PE in India; Rejects applicant’s stand that since the question raised in application is only whether the income from GRS can be taxed as ‘royalty’ or FTS, AAR cannot adjudicate upon the issue of existence of PE, cites its duty as per Rule 12 of AAR Procedure Rules, 1996 to look at ‘all aspects of the questions set forth’ which would enable it to pronounce a ruling;[TS-283-AAR-2018]
  • Mumbai ITAT deletes over Rs. 3,200 cr. capital gains addition made by AO invoking Explanation 5 to Sec. 9(1) [relating to indirect transfers] in case of resident company (‘assessee’) during AY 2011-12; ITAT notes that during relevant AY, Singaporean parent had infused Rs. 148.52 cr. by way of share capital subscription for funding assessee’s acquisition of two Indian entities, however, AO linked the purchasing of shares of fifth degree holding company located outside India (for Rs. 1002 cr) to arrive at the valuation for shares issued by assessee to the Singapore entity, and made alleged capital gains addition;[TS-285-ITAT-2018(Mum)]
  • CBDT announced Information reward scheme under which a person can get reward up to Rs. 50 lakh for giving information to Investigation Directorates in Income Tax Department about substantial evasion of tax on income or assets in India.

INDIRECT TAX

  • announced Benami Transactions Informants Reward Scheme, 2018; a person can get reward up to Rs. One crore for giving specific information to Income Tax Dept about benami properties as well as proceeds from such properties.
  • GST: For refund in case of export of non-GST & exempted goods without payment of IGST, LUT/bond is not required. Circular 45/19/2018-GST of 30.5.18.
  • International passengers buying goods at airport ‘duty-free’ shops will not be subject to GST and the revenue department will soon clarify on this exemption. They will have to only collect a copy of the passport from the passenger to whom it sells the goods.

FAQ on E-WAY BILLS:

  • Query:How the distance has to be calculated, if the consignments are imported from or exported to other country?
  • Answer:The approximate distance for movement of consignment from the source to destination has to be considered based on the distance within the country. That is, in case of export, the consignor place to the place from where the consignment is leaving the country, after customs clearance and in case of import, the place where the consignment is reached the country to the destination place and cleared by Customs.

IBBI UPDATES

  • Insolvency and Bankruptcy Board of India (IBB) has issued Insolvency Professionals to act as Interim Resolution Professionals or Liquidators (Recommendation) Guidelines, 2018 to streamline the procedure for recommendation and appointment of Interim Resolution Professional (IRP) or liquidator.

OTHER UPDATES

  • govt is considering merging at least four state-run banks, including Bank of Baroda, IDBI Bank Ltd, OBC and Central Bank of India.  If the plan goes through, the merged entity will become the second-largest bank in the country with combined assets of ₹16.58 trillion.
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)

corporate and professional updates 4th June 2018

Direct Tax:

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

Indirect Tax

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

FAQ on E-WAY BILLS:

  • Query:How the distance has to be calculated, if the consignments are imported from or exported to other country?
  • Answer:The approximate distance for movement of consignment from the source to destination has to be considered based on the distance within the country. That is, in case of export, the consignor place to the place from where the consignment is leaving the country, after customs clearance and in case of import, the place where the consignment is reached the country to the destination place and cleared by Customs.

MCA UPDATES 

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

RBI updates

  • RBI has ended the special dispensations granted earlier for NBFCs owned by the government. Instead, it has specified a roadmap, stretching till 2021-22, for these lenders to meet the norms on capital adequacy, provisioning and corporate governance.
KEY DATE:
  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

Disclaimer:

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

corporate and professional updates 2nd june 2018

Image result for corporate and professional updatesDirect Tax:

  • Jaipur ITAT deletes disallowance u/s 40A(3) with respect to cash payment made by assessee-firm (engaged in real estate business) against purchases of land during AY 2013-14, observes that the payment was made out of the explained sources, through the registered document and as a disclosed transaction and the identity of the sellers and genuineness of  transaction was established; Notes that only at the insistence of specific sellers, assessee withdrew cash and made payment to them despite having sufficient bank balance, observes that in order to secure the deal, assessee had no other option but to make the payment in cash; [TS-276-ITAT-2018(JPR)]
  • Delhi ITAT refuses to delete Rs. 489 cr capital gains addition, however gives one more chance to assessee (Gagan Infraenergy) to establish the ‘genuineness’ and ‘validity’ of  the  transaction that it claims, is ‘gifting’ of 1.76 cr shares to another co.; Gagan Infra’s counsel argued that the company gifted 1.76 cr shares that it held in Jindal Steel (flagship operating co. of O.P. Jindal group), to another co., pursuant to a “family realignment” of O.P. Jindal Group;[TS-275-ITAT-2018(DEL)]
  • Income Tax Deptt launched and activated all the seven ITR forms for e-filing by taxpayers, after more than a month of them being notified.

Indirect Tax:

  • CBEC has made amendment by way of notification no 4/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 676 (E), dated the 28th June, 2017.
  • Due date for filing GSTR-6 by ISD for July, 2017-June, 2018 is extended till 31.07.2018. Notification to be issued shortly. Source: twitter- cbic.gov.in
  • Government has refuted exporters’ claim that Rs 20,000 crore of GST refund is pending, and said there has been no dip in refunds as it announced a special refund fortnight beginning May 31.

FAQ on E-WAY BILLS:

  • Query:How does taxpayer enter Part-A details and generate e-way bill, when he is transporting goods himself?
  • Answer:Sometimes, taxpayer wants to move the goods himself. E-way bill Portal expects the user to enter transporter ID or vehicle number. So if he wants to move the goods himself, he can enter his GSTIN in the transporter Id field and generate Part-A Slip. This indicates to the system that he is a transporter and he can enter details in Part-B later when transportation details are available.

RBI Update:

  • RBI has issued notification regarding Withdrawal of Exemptions Granted to Government Owned NBFCs. Vide notification no RBI/2017-18/181, dated 31st May 2018.

SEBI updates

  • SEBI directed rating agencies to set up committees to hear the appeals of issuers aggrieved by the ratings assigned to them. Currently, there is no stipulated mechanism to review such issues.

MCA UPDATES

  • ROC, Delhi & Haryana in its drive to clean the registry has issued notice of striking off of 1171 LLP’s under Section 75 of LLP Act, 2008 read with Rule 37 of LLP Rules, 2009.
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)

CORPORATE AND PROFESSIONAL UPDATES 29TH MAY 2018

Image result for CORPORATEDIRECT TAX

  • SC dismisses Revenue’s SLP against Rajasthan HC judgment in case of a transport contractor (‘assessee’); HC had held that assessee-contractor was not liable to deduct TDS u/s. 194C where freight payments are directly made by third party company (i.e. contractee) to truck-owners; HC had rejected Revenue’s stand that since the contractee-company was making payment to truck owners on assessee’s behalf, assessee was liable to deduct TDS as it was the contractor and the truck owner were subcontractors; HC had clarified that “194(c) read with 204(iii) will come into operation only on the payment made by assessee and as rightly discussed since payment is not made by the assessee if at all there is default the default is of Mangalam Cement (i.e. contractee company).”; Thus, upholding HC order, SC opines that “We do not find any ground to interfere with the impugned order.”[TS-257-SC-2018]
  • ITAT upholds assessee’s selection of foreign AE as tested party and TNMM as MAM to benchmark transaction of payment fees for advisory and other services to AE for AYs 2011-12 and 2012-13; Directs AO to benchmark the transaction by considering foreign comparables selected by assessee and remits matter for limited purpose of verification of assessee’s claim that its margin was withing 5% range of average margin for comparables, follows ITAT order for AY2009-10 and 2010-11; Separately for benchmarking of IT enabled services for AY 2012-13, ITAT directs exclusion of Excel Infoways Ltd as it was in the process of closing its BPO division in relevant year and in view of its fluctuating profit margin, follows Allscripts India Pvt. Ltd., TIBCO Software India Pvt. Ltd and Qlogic India Pvt. Ltd.ruling; Further directs TPO to verify employee cost to sales ratio of Universal Print Systems Ltd. and exclude it as comparable if the same is less than 25% , follows Goldman Sachs Services ruling : Pune ITAT [TS-362-ITAT-2018(PUN)-TP]
  • CBDT Released ITR 6 as well for FY 2017-18, Now All ITRs for AY 2018-19 are available for e-Filing  https://studycafe.in/2018/04/ cbdt-released-itr-1-to-itr-7- forms-for-fy-2017-18-ay-2018- 19.html
  • CBDT notified the 6th Amendment Rules wherein it is provided that only Merchant Bankers are entitled to do Valuation of Unquoted Shares and the Chartered Accountants are no more eligible to do so. Rule 11UA w.e.f. on or after May 24, 2018.
  • In a major relief to Start-ups, CBDT has notified that Income Tax is not payable on issuing share capital at excess premium by eligible start-ups.Notification No. 24/2018/F. No.370142/5/2018-TPL dated May 24, 2018.
  • All seven ITRs are to be filed electronically on the official web portal of the department -https://www.incometaxindiaefigov.in, except for some category of taxpayers, the CBDT had said.
  • 31.5.18 is last date to file AIR in Form 61A by Banks etc & also in Tax Audit cases where cash above Rs 2 lacs received against any sale invoice. Penalty of 500 per day for not filing AIR in time. If no transaction to report, file SFT Preliminary Response at Reporting Portal https://report.insight. gov.in

Indirect Tax:

  • Central Board of Indirect Tax & Customs gives a notification on applicability of Integrated Goods and Services Tax (integrated tax) on goods supplied while being deposited in a customs bonded warehouse-reg. Vide Circular no 3/1/2018 – IGST, dated 25th May 2018.
  • Intra-state e-Way Bill wef 25.05.18 in Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman, Diu, Lakshadweep, Maharashtra & Manipur.
  • 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 dated May 25, 2018

FAQ on E-WAY BILLS:

  • 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.

Other updates

  • Consumer complaint not maintainable after settlement through Arbitration. National Consumer Disputes Redressal Commission.
  • Employees’ Provident Fund Organization (EPFO) has asked its field offices to credit 8.55% interest rate for 2017-18, the lowest rate since 2012-13 fiscal, into the PF accounts of around 5 crore subscribers.

Key Date:

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

Disclaimer:

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

CORPORATE & PROFESSIONAL UPDATES 28TH MAY 2018

Direct Tax:

  • kolkata ITAT rules that assessee (an Indian BPO company) not liable to deduct TDS u/s. 195 on payment of market support fees to US entities​ (including  assessee’s US based wholly owned subsidiary)​ for securing orders and solicit business from foreign customers during AY 2012-13; [TS-265-ITAT-2018(Kol)]
  • SC admits Revenue’s SLP challenging Gujarat HC judgment granting Article 8 relief under India-Singapore DTAA to assessee (a Singapore based shipping company);
  • Delhi HC admits cross appeals filed by NDTV & Income tax Department, frames substantial questions of law & lists the matter for hearing in September; HC to decide whether the Tribunal ‘erred’ in upholding the Rs. 642 cr addition made on NDTV u/s 69A of Income tax Act, with regards to the $150 mn overseas funding raised by the company
  • CBDT has constituted a Task Force vide Office Order with a mandate of drafting an appropriate direct tax legislation keeping in view the direct tax system prevalent in various countries, the international best practices, the economic needs of the country.

Indirect Tax:

  • CBEC has amend the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Vide notification no 45 /2018 – Customs, dated 23rd May 2018.
  • introduced intra-state e-way bill for two states and five Union Territories (UTs) from 25.5.2018. The remaining states — Chhattisgarh, Goa, J&K, Mizoram, Odisha, Punjab, Tamil Nadu and Delhi — would be brought in the system from June 3 to cover the entire country.
  • Government is exploring the possibility of creating new categories in its tariff structure that will allow it to impose import duties on hi-tech products without violating a global agreement that mandates nil duties.
  • 132 of the CGST Act, issuance of an invoice without supply of goods and wrongful utilization of input tax credit is a cognizable and non-bailable offence if the amount involved is over Rs 5 Cr.

FAQ on GST

  • Query:IF EXPORT SALE SHOWN AS DOMESTIC IN GSTR 3B BUT GST 1 FILLED CORRECTLY WHETHER REFUND CAN BE CLAIM .
  • Answer:Refund can be claimed by making necessary adjustments in next month gstr3b As you must be aware, at time of filing the refund , portal is mapping the refund with gstr3b So once you make correction in gstr3b , then you will be able to file form rfd

FAQ on E-WAY BILLS:

  • 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 updates

  • The insolvency ordinance has specified that the Limitation Act 1963 will apply for proceedings before the NCLT and NCLAT.

OTHER updates

  • NSE and MCX entered into merger talks ahead of the implementation of the universal exchange framework in October. The two entities are planning to approach SEBI) as early as this month.
  • Please submit your Self-declaration Form Online to avail 20 Unstructured CPE Hours for Calendar Year 2017 from the link http://cpeapp.icai. org/member/login. Last Date of submission: 31st May, 2018

Key Date:

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

Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 26TH MAY 2018

Direct Tax:

  • Mumbai ITAT rules that assessee (a stock broking company) cannot be held liable to deduct TDS u/s 194A on borrowing fees paid to National Securities Clearing Corporation Ltd. [‘NSCCL’, a SEBI approved intermediary], if it is found that at the time of payment, assessee was unaware of the identity of the lenders (ultimate recipient of income);  [TS-262-ITAT-2018(Mum)]
  • Kolkata ITAT upholds Sec. 263 revision on assessee-company for AY 2008-09, rejects assessee’s stand that CIT could not have revised the re-assessment since the latter one was a non est order by virtue of non-issue of Sec. 143(2) / 142(1) notices;  [TS-259-ITAT-2018(Kol)]
  • India’s net direct tax collection in 2017/18 stood at Rs 10.03 trillion, up 18 percent on year, the finance ministry said.
  • CBDT has directed the I-T Department to form a special team of officers to complete the task of filing these Appeals under Section 252(1) of the Companies Act, 2013 in various NCLT benches across the country by this month-end.

Indirect Tax:

  • CBEC has made amendment by way of notification no 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 785(E), dated the 30th June, 2017. Vide notification no 46 /2018-Customs, dated 23rd May 2018.
  • 31.05.18 is last date to file GSTR-6, Furnish of Return by Input Service Distributor for the months from July 2017 to Apr 2018.
  • DVAT has allowed extension for filing of online return for 4th Quarter of 2017-18. Thereby, the last date of filing of online/hard copy of fourth quarter return for the year 2017-18 in form DVAT-16 has been extended to 28/05/2018.

FAQ on E-WAY BILLS:

  • Query:Why the transporter needs to enroll on the e-way bill system?
  • Answer:There may be some transporters, who are not registered under the Goods and Services Tax Act, but such transporters cause the movement of goods for their clients. They need to enroll on the e-way bill portal to get 15 digit Unique Transporter Id.

Other updates

  • Union Cabinet approved, via an Ordinance, amendments to the Insolvency and Bankruptcy Code (IBC), giving homebuyers the status of creditors in the insolvency process.
  • The government has proposed rates for over 1,350 treatment packages ranging from Rs 1,000 to over Rs 1.50 lakh, for the Pradhan Mantri Rashtriya Swasthya Suraksha Mission.The government issued a 205-page model tender document.

Key Date:

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

Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 25TH MAY 2018

Image result for corporate personalityDirect Tax:

  • Calcutta HC upholds ITAT order for AYs 2008-09 and 2009-10,  rules that provision for bad and doubtful debt deduction u/s 36(1)(viia) incase of assessee-bank (a regional rural bank) ​has to be computed @ 10% of the aggregate monthly average advances by taking ​’cumulative​’​  outstanding advances by rural branch; [TS-261-HC-2018(CAL)]
  • Gujarat HC upholds ITAT order for AY 2009-10, denies capital gains exemption benefit u/s. 54F to assessee-individual as the construction of the flats for personal use was completed before the sale of the capital asset (i.e. land); Assessee owned a land with a bungalow on it, which was demolished to construct 8 flats, 4 of which were sold to buyers and rest were occupied by assessee for her own residence, assessee considered the proportionate land apportioned to 4 flat purchasers as sale of land belonging to her and claimed Sec. 54F benefit; [TS-258-HC-2018(GUJ)]
  • Mumbai ITAT rules that Dominos Pizza International Franchising Inc (a US based company) does not create a PE in India for AY 2012-13 by virtue of the Master Franchises Agreement (MFA) entered with Jubilant Food Works Ltd. (‘Jubilant’) for the franchise of Dominos Pizza Store in India; Rejects Revenue’s stand that Jubilant constitutes assessee’s dependent agent PE in India, referring to various clauses of MFA, ITAT observes that no activities are carried out by Jubilant on behalf of assessee; [TS-260-ITAT-2018( Mum)]
  • Task force rewriting the income-tax laws has been granted three months more till August to submit its report to the government. CBDT set up to draft a law to replace the income Tax Act, which has been in force since 1961, was to submit its report by this month-end.
  • Due Date for Quarterly statement of TDS deposited for the quarter ending March 31, 2018 is May 31, 2018.

INDIRECT TAX

  • E-way bill for moving goods within a state will become mandatory from June 3, with the country-wide roll out of the mechanism. The government had launched the electronic-way or e-way bill system from April 1 for moving goods worth over Rs 50,000 from one state to another.
  • If turnover 1.5 cr or more, Last Day to file GSTR-1 for Apr is 31.5.2018 & for May is 10.6.2018. From May, 10 days to file GSTR-1 i.e. before GSTR3B.

FAQ on E-WAY BILLS:

  • Query: What are the documents that need to be carried along with the goods being transported?
  • Answer:The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, bill of entry as the case may be and a copy of the e-way bill number generated from the common portal. Please refer relevant rules for details.

SEBI UPDATES

  • SEBI is planning to ease the norms for mutual funds (MF) participation in the derivative markets. The regulator is considering measuring such as, allowing domestic funds to ‘write’ options and increasing cap on F&O investments.

OTHER UPDATES

  • Cabinet cleared the IBC Ordinance paving way to a host of changes in the modality of the Insolvency and Bankruptcy Code (IBC).  The Ordinance is based on the changes suggested in a report by a 14-member Insolvency Law Committee.

Key Date:

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

Disclaimer:

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