CORPORATE AND PROFESSIONAL UPDATES 17TH SEP 2018

Image result for professional updatesDirect Tax:

  • ITAT Hyderabad held that cash discount cannot be disallowed for mere non-mention of same on invoice. M/s. Sai Krishna Agencies Medak Vs Asstt. (ITAT Hyderabad)
  • Madras High Court held that property attachment notice by TRO cannot be changed before HC.Champa Devi Vs The Tax Recovery Officer (Madras High Court)
  • Gujarat High Court held that unsecured loan /Gift to be added to income if creditworthiness of giver not proved. Sitaram Ramchanddas Patel Vs Income-tax Officer (Gujarat High Court)
  • E-commerce platforms such as Amazon, Flipkart, and Myntra will from October 1 have to withhold tax from payments made to suppliers. The tax deducted at source (TDS) and tax collected at source (TCS) provisions under the goods and services tax (GST) have been notified to be effective from October.

Indirect Tax:

  • CBEC has specified that on 1stOctober 2018 the provisions of section 51 of the Central Goods and Services Tax Act, 2017 shall come into force with respect to persons specified under clauses (a), (b) and (c) of sub-section (1) of section 51 of the  Central Goods and Services Tax Act, 2017. Vide notification no 50/2018, dated 13th September 2018.
  • CBEC has issued circular regarding Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular Nos. 41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018. Vide circular no 64/38/2018, dated 14th September 2018.
  • CBEC has made amendment in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Tenth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette. Vide notification no 49/2018.
  • GST Audit and format of reconciliation statement has been notified http://www.cbic. gov.in/resources//htdocs-cbec/gst/notfctn-49-central-tax-english-ew.pdf;jsessionid= 06184B89BBC363EDC3190CD6B0D667 1F
  • AAR cannot decide whether a supply is inter-State or intra-State. In re Fichtner Consulting Engineers (I) Pvt Ltd. (GST AAR Tamilnadu).
  • Punjab Govt has notified that E-Way bill will not be required, Where the movement of Goods  commences and terminates within the State of Punjab without crossing the boundaries of the State of Punjab and consignment value Not exceeds Rs. 1 Lakh.
  • GST issued Circular No 64 Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified.

FAQ on GST Audit:

  • 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.
  • 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 daysof the receipt of the best judgment assessment order.

MCA Updates:

  • MCA has made amendment in the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. These rules may be called the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 20 18, which shall come into force on the date of their publication in the Official Gazette.
  • MCA has made amendment in the Schedule V of the Companies Act, 2013.
  • No govt approval required for public cos for managerial compensation. Now with effect from 12th September, 2018, approval of the Central Government shall no longer be required for increase in the payment of remuneration to the managerial personnel (in excess of 11 per cent of the net profit of a company).

SEBI UPDATES

  • SEBI is likely to consider a proposal to allow trading in this segment by foreign entities with exposure to the Indian physical commodity market. Besides, the regulator may deliberate on the issue of introducing a common application form for foreign portfolio investors (FPIs) to enter into the domestic capital market as part of the exercise to improve ease of doing business.

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 there were Issue in utility of ITR Form No. 5.
  • ICAI releases compilation of FAQ’s and MCQ’s on GST
  • The Companies (Amendment) Act, 2017 (I of 2018); the Central Government hereby appoints the 12th September, 2018 as the date on which the provisions of sections 66 to 70 (both inclusive) of the said Act shall come into force.
  • ICAI invites applications for the following positions on contract basis from competent professionals. Interested candidates may email their application in structured format at recruitmentdirector@icai.in or can send through speed post to the Consultant – HR at the Institute of Chartered Accountants of India, ICAI Bhawan, I.P. Marg, New Delhi.

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-4 (JULY-SEP, 2018)-OCT 18th, 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)

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CORPORATE AND PROFESSIONAL UPDATES 15TH SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Ahmedabad held that addition for interest under Section 244A cannot be made in absence of intimation regarding grant of interest. Denis Chem Lab Ltd. Vs ACIT (ITAT Ahmedabad)
  • ITAT Mumbai held that addition for bogus purchases based merely on statement and not backed by any material evidence is not sustainable. M/s. Aquatic Remedies Pvt. Ltd. Vs The DCIT (ITAT Mumbai)
  • Due Date Sept 15, 2018 for payment ofPF, ESI, Advance Income Tax and KYC of DIN.
  • Finance Ministry extended the last date for filing final sales return GSTR-1 for July 2017 to September 2018 period till October 31 and also waived the late fee for the delayed filing of returns. The numbers of taxpayers who have filed summary sales return GSTR-3B is substantially higher than the number of taxpayers who furnished GSTR-1.
  • National Anti Profiteering Authority (NAA) ruled that suppliers will be liable to pay penalty for not passing the benefits of GST rate reduction on sale of goods in a case against Jaipur-based Sharma Trading Company indulged in profiteering in contravention of Sec 171 of CGST Act.
  • CBDThas amended the meaning of the term ‘Balance Sheet’ as defined under Income Tax Rule 11U(b) and inserts new Income Tax Rule 11UAB on ‘Determination of Fair Market Value (FMV) for Inventory’ and shall apply in relation to AY 2019-20 and subsequent years – N.42, dt.30.08.2019
  • ITAT can direct AO for fresh enquiry into aspects of subject matter of appeal. Case M/s. Fidelity Business Services India Pvt. Ltd. Vs ACIT (Karnataka High Court)

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 (Ninth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette.Vide Notification No. 48 /2018, dated 10th September 2018.
  • CBEC has specified the time period for form GSTR-1 to the persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year. Vide Notification No. 43/2018, dated 10th September 2018.
  • Profiteering Activity – Benefit of reduction in the rate of tax from 28% to 18% not passed – Respondent has deliberately acted in defiance of the above law and hence he is guilty of the conduct which is contumacious and dishonest – Pawan Sharma, DGAPIT&C Vs. Sharma Trading Company (2018 (9) TMI 625 – NAPA).

FAQ on GST Audit:

  • Query:  What is the period within which the audit is to be completed?
  • Anwar: The audit is required to be completed within 3 months from the date of commencement of audit or within a further period of a maximum of 6 months subject to the approval of theCommissioner.

MCA UPDATES

  • MCA: 15 SEP 2018(SATUDAY) is the LAST DATE for filing DIR-3 KYC by Directors having DIN.
  • MCA has invited Comments on the report of the Committee to review offences under the Companies Act, 2013, alongwith justifications.
  • MCA time limit for filing the BEN‐2 form would be 30 days from the date of deployment of BEN‐2e‐form on the MCA‐21 portal without any additional fee.
  • Supreme Court has stayed the Reserve Bank of India’s circular, preventing initiation of Insolvency proceedings against their stressed power assets to private power, textiles companies and shipowners etc.

RBI UPDATES

  • RBI is becoming consistent in adding gold to its foreign currency reserves. In July the central bank added 6.8 tonnes, the highest monthly accretion after 2009. This came at a time when the central bank spent more than $25 billion defending the falling rupee.

SEBI UPDATES

  • SEBI is looking at including NRIs in the foreign portfolio investor’s quota. Sources said the regulator had written to the central government, seeking its opinion on this. The move could open a new source for foreign inflows into the country, as NRIs are currently not big investors because of regulatory curbs.
  • All unlisted public companies have to issue shares in demat form mandatorily with effect from 2nd October 2018. Private limited companies, small companies and opc companises can still issue shares in physical form.
  • SEBI has directed the NSE to keep four senior officials, served show-cause notices (SCN) in the co-location case, out of action. Sources said these four key managerial personnel (KMP) will have to remain out of the bourse’s “sensitive” and “confidential” matters until the probe is complete.

OTHER UPDATES

  • Global private equity (PE) funds are likely to be among those most affected by the beneficial ownership norms notified by MCA u/s 90 of the Companies Act, 2013. According to the new rules, a company can suspend control rights on its shares if the PE fund does not disclose the beneficial owner.
  • UCO Bank invites online applications from practicing firms of CA for empanelment as Concurrent Auditors FOR 01-10-2018 TO 30-09-2019. Last date is 12-09-2018.
  • Special courts under the NCLT are likely to be set up by November to deal with an increasing number insolvency cases. The Ministry of Corporate Affairs is working on this proposal.

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-4 (JULY-SEP, 2018)-OCT 18th, 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)

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HSN & SAC CODES ALONGWITH GST RATE

Image result for hsn code in gstWhat is HSN codes?

HSN stands for harmonized System of nomenclature. This coding system is developed by World Customs Organization (WCO). This is a Global standard of Nomenclature of trading goods in international trade. The HSN is the codification of all tradable commodities into 20 broad sections with each chapter containing commodity of similar nature. Its vision of classifying goods from all over the World in a systematic and logical manner. It is a six-digit uniform code that classifies more than 5,000 products and is accepted worldwide. These set of defined rules is used for taxation purposes in identifying the rate of tax applicable to a product in a country.

HSN codes of goods alongwith rate of IGST, CGST, SGST: -

https://cbec-gst.gov.in/gst-goods-services-rates.html

HSN classification

HSN has 21 sections, 99 chapter, 1,244 headings, and 5,224 subheadings. Sections and chapters are arranged in order of a product’s degree of manufacture or in terms of its technological complexity. Natural products like animals and vegetables appear in the earlier sections; man-made or technologically advanced products like machinery appear later. Chapters have a similar structure. Take cotton, for example –  Chapter 52. Cotton that has not been carded or combed appears earlier in the chapter; cotton as a woven fabric appears later.

  • Each Section is a collection of various chapters. Sections represent a broader class of goods, and chapters represent a particular class of goods.
  • Each chapter is further divided into various headings depending upon different types of goods belonging to the same class.
  • Each heading contains products, which are ultimately assigned an HSN code.
  • For better identification of goods, India and a few other countries use eight-digit codes for deeper classification.
  • Some HSN codes also use dashes. A single dash (-) at the beginning of a description denotes an article that belongs to a group covered under a heading. A double dash (–) indicates that the article is a sub-classification of the preceding article that has a single dash. Similarly, a triple dash (—) or quadruple dash (—-) indicates the article is a sub-classification of the preceding article that has a double dash or triple dash.

Rules for Classifying goods under HSN

In formatting a classification for a particular item, dealers must apply the General Interpretative Rules (GIR) in a sequential manner. Once a classification is complete, there’s no need to continue applying the remainder of the rules. Moving on to the next rule is only necessary if a complete classification does not result from applying the previous rule. Classification is final once there is no ambiguity or confusion.

For classification purposes, a word should be construed in its popular sense and not in the strict or technical sense.

Rule 1

  • Titles of sections, chapters, and sub-chapters are provided for ease of reference only.
  • For legal purposes, refer to headings and sub-headings to drive classification.

Rule 2a

  • If the goods are incomplete/unfinished and have the characteristics of the finished product, classification is the same as that of the finished product.
  • The heading shall also include removed/unassembled or disassembled parts.

Rule 2b

  • Any reference to a material or substance includes a reference to mixtures or combinations of that material or substance with other materials or substances.
  • The classification of goods consisting of more than one material or substance shall take place as per Rule 3.

Rule 3a

  • Choosing a specific heading is preferred over a general heading.

Rule 3b

  • Mixtures/composite goods should be classified per the material or substance that gives them their essential character.

Rule 3c

  • If two headings are equally suited to the item, choose the heading that appears last in numerical order.

Rule 4

  • If goods cannot be classified per the above rules, they are to be classified according to the goods to which they are most akin.

Rule 5

  • Containers specifically designed for the article and suitable for long-term use will be classified along with that article, if such articles are normally sold along with such cases. For example, a camera case would fall under cameras.
  • Packing materials and containers are also to be classified with the related goods except when the packing is for repetitive use.

What is SAC codes?

Services will be classified as per the Services Accounting Code (SAC). In case of services, for each type of service provided is given a unified code for recognition, measurement and taxation. These are known as SAC codes. It is issued by the Central Board of Excise and Customs. These codes are a combination of numbers to identify the service type and the rate at which it is to be taxed. SAC has been in existence to define each type of service and proper levy of service tax.

SAC codes for services alongwith rate of IGST, CGST, SGAT are:

https://cbec-gst.gov.in/gst-goods-services-rates.html

HSN & SAC codes in GST

Under GST, all goods and services supplied in India have been classified – Goods are classified under the HSN Code and Services are classified under the SAC Code. Based on the HSN or SAC code, GST rates have been fixed in five slabs, namely 0%, 5%, 12%, 18% and 28%.

In the GST regime each invoice will have to mention HSN code for all goods which are sold and SAC code for all services which are provided. Businesses will thus, need to be aware of the HSN code list and SAC code list for all GST applicable supplies they are dealing in. Under GST, majority of the dealers will need to adopt two, four, or eight digit HSN codes for their commodities, depending on their turn-over the previous year. The following are the detailed requirements:

  • Businesses with turnover of less than INR 1.5 crores – will not be required to use HSN codes
  • Businesses with turnover between INR 1.5 crores and INR 5 crores – will be required to use 2-digit HSN codes
  • Businesses with turnover equal to INR 5 crores and above – will be required to use 4-digit HSN codes
  • Imports / Exports -8-digit HSN codes
  • Services -5-digit SAC codes

Points to Note

  • Small dealers under composition scheme will not be required to mention HSN / SAC codes in their invoices.
  • HSN / SAC codes will need to be mentioned in invoice and mentioned in the GST tax return details, which will be uploaded on the GSTN portal.
  • At the time of GST registration, the HSN / SAC codes of the supplies a business deals in, will need to be mentioned.

Conclusion

Along with India’s move to GST come moves to an online taxation system and to HSN codes for classifying goods for taxation. It’s all designed to bring about more uniform taxation as well as more ease of doing business. HSN codes will now be used in filing returns, on invoices, etc., rather than written descriptions. It will all require some prep work from professionals and taxpayers, but automated GST compliance solutions are available to help ease the transition.

(Disclaimer:  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  or call on 9555555480 Before making any decisions do consult your Professional / tax advisor. it hereby disclaims any and all liability to any person for any loss or damage that may be caused by any errors or omissions, whether such errors or omissions result from negligence, accident or any other cause. This blogs is not a source or a form of advertising or solicitation nor is it intended to be so. The contents of this website should not be construed as legal advice. 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)

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CORPORATE AND PROFESSIONAL UPDATES 10TH SEP 2018

Image result for corporate and professional updatesDirect Tax :

  • ITAT Delhiheld that tax exemption cannot be denied to IOA merely for receiving sponsorship.  The D.C.I.T. Vs India Olympic Association (ITAT Delhi)
  • Kerala HC expresses disagreement with Cochin ITAT ruling in The Kadakkarappally Service Co-op Bank and Nagpur ITAT ruling in Buldana Urban Cooperative Credit Society Limited allowing Sec. 80P benefit on unexplained cash credits addition made u/s. 68; Assessee (a credit cooperative society) had filed a writ challenging the appellate authority order granting stay subject to payment of 50% demand and had relied on the aforesaid ITAT rulings with respect to unexplained cash credits addition made u/s. 68 for deposits received in cash during AY 2011-12; [TS-494-HC-2018(KER)]
  • Jaipur ITAT upholds AO’s stand of recognizing revenues in respect of advance received by assessee (engaged in residential township development) from the customers during AY 2012-13 applying percentage completion method (PCM’) [Category 1], but rejects AO’s action of recognizing entire sale consideration in case of sale deeds executed [Category 2];[TS-617-ITAT-2017(JPR)]
  • Delhi ITAT upholds revision u/s 263 in order to tax gift received by assessee-HUF from mother of Karta (not member of HUF) u/s 56(2)(vii) for AY 2013-14; During relevant AY, assessee received 75000 equity shares from mother of the Karta of assessee-HUF, rejects assessee’s stand that the said gift was not covered by 56(2)(vii) taxability as it would qualify as gift from ‘relative’; [TS-10-ITAT-2018(DEL)]
  • Attention Taxpayers! 15.09.2018 is last date for payment of your second instalment of Advance Tax. Non/short payment will attract levy of interest.

Indirect Tax:

  • CBEC has waived the late fee paid under section 47 of Central Goods and Service Tax act, 2017. Vide notification no 41/2018, dated 4th September 2018.
  • CBEC has extended the time limit for making the declaration in FORM GST ITC-01 of the CGST Rules, 2017 by registered persons who have filed the application in FORM GST-CMP-04 of the CGST Rules, 2017 between the 2nd day of March, 2018 and the 31st day of March, 2018, for a period of thirty days from the date of publication of this notification in the Official Gazette.Vide notification no 42/2018, dated 4th September 2018.
  • CBEC has extended the time limit for making the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another, during the period from July, 2017 to June, 2018 till the 30th day of September, 2018.Vide notification no 40/2018, dated 4th September 2018.
  • CBEC has issued circular regarding E-way bill in case of storing of goods in godown of transporter.Vide Circular No. 61/35/2018-GST.

FAQ on GST Audit:

  • Query: Who can conduct audit of taxpayers?
  • Answer:As per section 49 of MGL, any officer of CGST or SGST authorized by his Commissioner by a general or specific order may conduct audit of a taxpayer. The frequency and manner of audit will be prescribed in due course.
  • Query:  Under what circumstances can a special audit be instituted?
  • Answer:A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 50 of MGL.

MCA Update:

  • As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN. DINs obtained letter have to be surrendered. Please note that on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically
  • mapped to the retained DIN.In respect of an individual with a single DIN, if it is/was once associated with any LLP or Company, it is NOT eligible for surrender. Stakeholders may kindly take note and plane accordingly.
  • MCA21 system will be intermittently unavailable from Saturday, 8th September 2018 10.00 pm to Sunday, 9th September 2018 02.00 pm IST due to maintenance activity. Stakeholders are requested to plan accordingly.
  • MCA has issued the much awaited circular w.r.t Relaxation of additional fees and extension of last date of filing of Form BEN-2 under the provisions of the Section 90 of the Companies Act, 2013.

SEBI UPDATES

  • SEBI may soon dilute some of the controversial provisions notified in its April 10 circular on foreign portfolio investors (FPIs). Sources say the regulator is mulling exempting people of Indian origin (PIOs) from the ambit of the new KYC norms.

RBI UPDATES

  • RBI has notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2018 which shall come into force with effect from the 1st day of September, 2018.
  • Reserve Bank of India has made amendments to the Reserve Bank of India (Note Refund) Rules, 2009 to enable the public to exchange mutilated notes in Mahatma Gandhi (New) series at bank branches and RBI offices, which are smaller in size compared to the earlier series. Vide notification no RBI/2018-19/46, dated 7th September 2018.

OTHER UPDATES

  • Union government doubled the pecuniary limit to Rs. 20 lakh for filing loan recovery application in the Debt Recovery Tribunals (DRTs) by banks and financial institutions, to help reduce pendency of such cases.
  • The rupee crossed the 72-a-dollar mark on Thursday, but retreated on intervention by the Reserve Bank of India (RBI). The currency fell to 72.07 a dollar in intra-day trade, but closed just below the 72-mark.

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-4 (JULY-SEP, 2018)-OCT 18th, 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-(AUG 2018)-SEP 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)

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corporate and professional updates 8th sep 2018

Image result for corporate and professionalDirect Tax :

  • ITAT Delhi held that penalty will not be imposed U/S 271AAA if assesse substantiated the manner in which undisclosed income was derived.Mahavir Prasad JaipuriaVs Assist. CIT (ITAT Delhi)
  • Gujarat High Court held that AO cannot ignore reply submitted by assesse related to cash deposited for reassessment.  HemantManaharla l Shah (HUF) Vs ITO (Gujarat High Court)
  • CBEC has made amendment in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Eighth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette.
  • CBDT vide Instruction No.03/2018  (F.NO.225/249/9/2018-ITA.II),dated August 20,2018 has modified the earlier Instruction dated February 12,2018 and elaborated on the conduct of the mandatory E-Assessment.
  • Jaipur ITAT upholds AO’s stand of recognizing revenues in respect of advance received by assessee (engaged in residential township development) from the customers during AY 2012-13 applying percentage completion method (PCM’) [Category 1], but rejects AO’s action of recognizing entire sale consideration in case of sale deeds executed [Category 2];[TS-617-ITAT-2017(JPR)]
  • Delhi ITAT upholds revision u/s 263 in order to tax gift received by assessee-HUF from mother of Karta (not member of HUF) u/s 56(2)(vii) for AY 2013-14; During relevant AY, assessee received 75000 equity shares from mother of the Karta of assessee-HUF, rejects assessee’s stand that the said gift was not covered by 56(2)(vii) taxability as it would qualify as gift from ‘relative’; [TS-10-ITAT-2018(DEL)]
  • Draft notification proposing amendments in rule 114 of the Income-tax Rules, 1962 and permanent account number application Forms (Form 49A and Form 49AA) has been released. Source

INDIRECT TAX

  • Finance ministry has notified annual tax return forms for businesses registered under the GST, in which details of sales, purchases and input tax credit (ITC) benefits accrued to them during 2017-18 fiscal have to be provided in a consolidated manner.
  • Under GST In case of transport of goods in lots or batches, separate delivery challan & invoice copy for each despatch. Original invoice with last lot.
  • Goods and services provided by charitable trusts for a consideration would classify as supply, making it liable for GST, the authority of advanced ruling (AAR) for GST in Maharashtra has ruled.
  • CBEC has waived the late fee paid under section 47 of Central Goods and Service Tax act, 2017. Vide notification no 41/2018, dated 4th September 2018.
  • CBEC has extended the time limit for making the declaration in FORM GST ITC-01 of the CGST Rules, 2017 by registered persons who have filed the application in FORM GST-CMP-04 of the CGST Rules, 2017 between the 2nd day of March, 2018 and the 31st day of March, 2018, for a period of thirty days from the date of publication of this notification in the Official Gazette.Vide notification no 42/2018, dated 4th September 2018.
  • Entities not registered under GST are liable to pay tax on Import of services: Clause 30 of the CGST Amendment Act, 2018. Effective Date to be notified by the government. Affected Provision is Schedule I of the CGST Act, 2017
  • Effect of the Amendment:The provision has been amended so as to bring any unregistered person involved in import of services under the purview of GST if carried out in the course or furtherance of business from a related person or an or any of their other establishments outside India. Such person is now liable to register and pay taxes on such import of services.
  • Finance Ministry has said GST refunds can be claimed by simply submitting a printout of ‘GSTR-2A’ form to tax authorities instead of giving all purchase invoices of a month. The proper officer shall rely upon form GSTR-2A as an evidence of the account of the supply by the corresponding supplier in relation to which the input tax credit has been availed by the claimant.
  • CBIC has notified the CGST (8th Amendment) Rules,2018, mainly to amend CGST Rules 22, 36, 55, 89, 96 and 138A along with Forms GST REG-20, ITC-04 & EWB-01 and to introduces Form GSTR-9 (Annual Return).

FAQ on GST Audit:

  • Query: Who can conduct audit of taxpayers?
  • Answer:As per section 49 of MGL, any officer of CGST or SGST authorized by his Commissioner by a general or specific order may conduct audit of a taxpayer. The frequency and manner of audit will be prescribed in due course.
  • 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 judgement taking into account all the relevant material available with him. This power is given under section 46 of MGL.

MCA Update:

  • As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN. DINs obtained letter have to be surrendered. Please note that on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically
    mapped to the retained DIN.In respect of an individual with a single DIN, if it is/was once associated with any LLP or Company, it is NOT eligible for surrender. Stakeholders may kindly take note and plane accordingly.
  • As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered.
  • Please note that on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically mapped to the retained DIN.
  • MCA: in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered. on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically mapped to the retained DIN
  • MCA has issued circular regarding Relaxation of additional fees and extension of last date of filings of Form BEN-2 under the Companies Act. 20I3. Vide circular no 07/2018, dated 6th September

RBI UPDATES

  • RBI has notified that all new filings for FC-GPR, FC-TRS , LLP-I, LLP-II & CN will be in SMF only w.e.f September 01, 2018 (Copy Attached). FC-GPR & FC-TRS shall not be filed on ebiz.

SEBI UPDATES

  • SEBI may soon dilute some of the controversial provisions notified in its April 10 circular on foreign portfolio investors (FPIs). Sources say the regulator is mulling exempting people of Indian origin (PIOs) from the ambit of the new KYC norms.

OTHER UPDATES

  • Overseas investors of Indian origin are allowed to buy up to 5 percent in any security under current regulation, India’s economic affairs secretary Subhash Chandra Garg said in a bid to calm markets after recent regulatory changes.
  • IBBI has issued circular to all Insolvency Professional Entities w.r.t Compliance of regulation 13 (2) that All IPE are directed to inform the Board within seven days from the date when an IP ceases to be its director or partner or joins as its partner or director and forthwith and for all pending cases, not later than 7th Sep 2018
  • DGFT authorities have made amendments in Aayat Niryat Form (ANF) pertaining to Chapter 6 & 7 of the Handbook of procedures 2015-2020. in the light of implementation of GST and updation of FTP / HBP wef 05-12-2017.
  • PDC of ICAI extended the last date for submission of online Multipurpose Empanelment Form for the year 2018-19 including Declaration and Financial Documents till 12.00 am of 10th September, 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-4 (JULY-SEP, 2018)-OCT 20TH, 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-(AUG 2018)-SEP11th 2018

Disclaimer:

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

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corporate nd professional updates 6th sep 2018

Image result for professional updatesDirect Tax :

  • Madras HC holds that assessee (TVS Motor Co Ltd) is required to gross-up the amount of fees for technical services (FTS) paid to University of Warwick, for the purpose of deducting TDS under India-UK DTAA during AYs 2002-03 and 2003-04; Assessee had entered into agreement with
  • UK based university for providing certain technical services for which it had agreed to bear Indian taxes, however, assessee deducted TDS at 15% on actual payment made to NR without grossing up;[TS-497-HC-2018(MAD)]
  • ITAT Delhi held that registration U/S. 12AA cannot be denied for mere failure to produce original copy of MOA.The Managing Committee Aminia Muslim Girls School Vs Principal CIT (Exemption), (ITAT Delhi)
  • Delhi ITAT confirms Rs. 80 lakh bogus share capital subscription addition u/s 68 in case of assessee (a private limited company) for AY 2005-06, also confirms unaccounted expenditure addition in respect of commission @ 2.5% for arranging the accommodation entries, upholds re-assessment; Based on information from the Investigation wing that certain companies (floated by one Mr. Tarun Goyal) subscribing to assessee’s share capital were involved in providing accommodation entries, AO had initiated reassessment proceedings;  [TS-496-ITAT-2018(DEL)]
  • Delhi ITAT denies assessee company’s claim for set-off of long term capital loss (LTCL) arising on sale of shares against long term capital gains (LTCG) arising on sale of property for AY 2012-13, rules that the share transaction was a sham transaction, a colourable device to generate loss to avoid capital gains tax on property sale;  [TS-491-ITAT-2018(DEL)]
  • 07 SEP 2018 (FRIDAY) is the Due date for deposit of tax deducted /collected at source for the m/o AUG 2018.
  • CBDT has released parameters for manual selection of Income Tax Returns for Complete Income Tax Scrutiny during FY 2018-19. Through Computer Aided Scrutiny Selection (CASS), cases are being selected in two categories viz. Limited Scrutiny & Complete Scrutiny in a centralized manner under CASS-2018.
  • If AO is allowed to reopen assessment after the order of CIT(A), then tax payers may loose confidence on the judicial system of this country – Rapid Care Transcription Pvt. Ltd. Vs. ITO (2018 (9) TMI 65 – ITAT Chennai)

INDIRECT TAX

  • CBIT notifiesGST Annul Return in Form-9 (Rule-80) for the period from 01 JUL 2017 to 31 MAR 2018, required to be filed along with statutory GST Audit Report till 31 DEC 2018 – Notification No.39/2018, dt.04.09.2018.

 FAQ on GST Audit:

  • Query: What is the period within which the audit is to be completed?
  • Answer: The audit is required to be completed within 3 months from the date of commencement of audit or within a further period of a maximum of 6 months subject to the approval of the Commissioner.
  • 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 UPDATSE

  • MCA estimates out of 3.3 million directors (expected to carry out know your customer or KYC process) only 1.5 million or 40-50 percent could be genuine, rest could be dummy directors.
  • The government plans to have examinations for individuals who want to become independent directors as part of bolstering the corporate governance framework, according to Union Minister P P Chaudhary.
  • The central government is considering a review of auditing standards to plug loopholes in the wake of the recent spate of resignation by auditors, many of them exiting listed firms abruptly or ahead of quarterly results.Auditors in as many as 204 listed companies have resigned between January 1 and July 17 this year, as per the filings on MCA-21 software, sparking fears among investors.The shares of many of these companies have taken a huge beating, some falling 20-60%, over the abrupt exits by auditors.

RBI Update;

  • The Reserve Bank of India has clarified that All Scheduled Commercial Banks in India having more than ten banking outlets (excluding Regional Rural Banks), are required to appoint IO in their banks. The IO shall, inter alia, examine customer complaints which are in the nature of deficiency in service on the part of the bank, (including those on the grounds of complaints listed in Clause 8 of the Banking Ombudsman Scheme, 2006) that are partly or wholly rejected by the bank.Vide press release 2018-2019/542, dated 3rd September 2018.

SEBI UPDATES

  • For the first time, SEBI approached ICAI asking for a panel of Chartered Accountant firms/ LLPs for Inspection of Mutual Fund. Accordingly, a panel has been submitted to the SEBI.

KEY DUE DATES.

Due dates for Compliances under GST:

  • 20-09-2018- GSTR-3B for the m/o August 2018
  • 10-09-2018- Due date for filing GSTR -1 for the month of August 2018. Applicable for taxpayers with Annual Aggregate turnover More than 1.50 Crore

Due dates for Comp under Income tax:

  • 07-09-2018- Due date for deposit of tax deducted/collected at source for the month of August 2018
  • 14-09-2018- Due date for issue of TDS Certificate for tax deducted under section 194-IA, 194-IB in the month of July 2018
  • 15-09-2018- Due date of deposit of second installment of advance tax for the assessment year 2019-20
  • 30-09-2018 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA, 194-IB in m/o August 2018
  • 30-09-2018 – Audit report under section 44AB for the assessment year 2018-19 in the case of a corporate/non-corporate assessee (who is required to submit return of income on September 30, 2018)

Due dates for under Companies Act;

  • 15-09-2018- Application for KYC of all Directors for the year ending 31.03.2018 via form DIR-3 KYC
  1. Due dates for Compliance under ESI, PF Acts:
  • 15-09-2018- PF Payment for m/o August 2018
  • 15-09-2018- ESIC Payment for m/o August 2018

Disclaimer:  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 athttp://carajput.com/blog/ For any query you can write to info@carajput.com  or call on 9555555480 Before making any decisions do consult your Professional / tax advisor. it hereby disclaims any and all liability to any person for any loss or damage that may be caused by any errors or omissions, whether such errors or omissions result from negligence, accident or any other cause. This blogs is not a source or a form of advertising or solicitation nor is it intended to be so. The contents of this website should not be construed as legal advice. 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)

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do you want to become an independent director

Image result for independent directorsThe Indian Government has planning to implement the system of examinations for individuals who willing to become independent directors of corporate, this will going to stringent the system of corporate governess under the Company act 2013, which ensure implementation of good governance standards in the corporate, and the independent directors Role will come under the scanner   instances of corporate misdoings. The Govt of India is making appropriate efforts in minimal in the affairs of corporate by more transparent in appointment of independent directors of corporate.

The MCA explain that a person must have certain qualifications & experiences to become an independent director on the boards of corporate to ascertain qualified & committed person for implement corporate governance in the in India,

 “The requirement with respect to independent directors to have minimum reasonable qualifications and a certification course/ exam are also being considered,” Chaudhary told in an interview.

PART OF THE INDEPENDENT DIRECTORS IS MORE  ESSENSIAL

While there are strong provisions under the companies’ act, 2013 to make sure that standard of the good governance, the part of the single directors comes under the scanner in the definite instances of the corporate immovability. When the government is putting efforts to create its part minimal in the incident of corporate, the part of the individualistic directors plays an important role.

STRONGER THE ROLE OF INDEPENDENT DIRECTORS

Propound that the government is the performing to increase the material of the corporate governance in the country, according to the Chaudhary the building the part of the individual directors in the incident of firms is one of the important steps in the direction.

HERE THE QUALIFICATION REQUIRED TO BECOME AN INDIVIDUAL DIRECTOR

According to the state for the corporate affairs, an individual must have a definite modification to get the role of the individual director on the panel of the firms.

In the PTI interview, Chaudhry said the need regarding an individual director to have the base of the qualification and must have certification course or completed an exam.

TO BECOME AN INDIPENDENT DIRECTOR EXAMINATION A PERSON MUST COMPLETE AN ENTRANCE EXAM

According to him,  the ministry is seriously taking into account the proposal and stakeholder must seek before the end result is finalized and the proposal is must have to check for an independent who wants to get the role of the individual directors and not only for the people who finished the independent directorship.

DIRECTION FOR THE PRESENT INDIVIDUAL DIRECTORS

It could be the direction or orientation program for the present individual director and have both creating and advisory part in the practice of the governance at the organization.

IICA TO MAINTAIN DATA BANK OF IDs

They are also strategizing to give the IICA to build and organize a data bank of individual directors.

Under Section 150 of the Companies Act, 2013, the ministry can notify an institution or an agency to maintain an independent directors’ data bank.

The ministry can inform an agency or several institutions to organize individual directors.

Proposed Amendment in the Companies (Appointment and Qualification of Directors) Rules, 2014

The qualification and the appointment of the Directors (proposed amendment in the organization’s rules, 2014)

The government sought to alter the organization rules, 2014 to provide the IICA as an agency to build and keep a data bank of the single directors.

PLAN TO CAP THE REMUNERATION OF INDEPENDENT DIRECTORS

The proposal is expected to be executed soon. The government appointed the team to check the offenses under the act which submit the capping of the pay of the single directors, along with the other measures.

WHO IS AN INDEPENDENT DIRECTOR?

An individual director is a direction which is not an executive of the company but supports the organization in increasing the capacity and the standard of the governance. He/ she is not connected to the firm which may individual of her judgment.

DEFINITION OF INDEPENDENT DIRECTOR

According to Section 2(47), “independent director”  an independent director referred to in sub-section (5) of section 149;

Section 149 (6) consists that –

An independent director regarding a company means a director other than a managing director or a whole-time director or a nominee director,—

(a) who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience;

APPOINTMENT OF INDEPENDENT DIRECTOR MANDATORY FOR-

Listed public company

Each listed public company shall have at least one-third of a total number of directors as independent directors.Any fraction consists of that one-third shall be rounded off as one.

The least number of ID in the case of the public company advice by the central government

As per Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014, the following classes of companies shall have at least 2 directors as independent directors.

Paid up capital must be more than 10 crores or more for the public company

The turnover must have more than 100 crores for the public company.

Disclaimer:  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 athttp://carajput.com/blog/ For any query you can write to info@carajput.com  or call on 9555555480 Before making any decisions do consult your Professional / tax advisor. it hereby disclaims any and all liability to any person for any loss or damage that may be caused by any errors or omissions, whether such errors or omissions result from negligence, accident or any other cause. This blogs is not a source or a form of advertising or solicitation nor is it intended to be so. The contents of this website should not be construed as legal advice. 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)

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corporate and professional updates 4th sep 2018

Image result for professional updatesDirect Tax :

  • Kerala HC reverses ITAT’s order, allows deduction u/s 36(1)(v) for LIC premium paid in order to indemnify the liability towards gratuity of employees taken over from another company pursuant to business take-over; At the time of take-over of business, assessee also took over employees with specific agreement as to continuation of service without break as also statutory benefits including gratuity for past years; [TS-495-HC-2018(KER)]
  • Mumbai ITAT denies deduction for expenses incurred by assessee (a JV co. formed by Tata Advances System Ltd. and Lockheed Martin Aerostructure Corporation, USA [‘LMAC’]) as pre-operative expenses, noting that assessee’s facility for assembling, manufacturing and supplying of aircraft structural articles to LMAC, US was not set up till the end of relevant AY;[TS-450-ITAT-2018(Mum)]
  • Calcutta HC upholds ITAT order deleting Sec. 40(a)(ia) disallowance, rules that payment of interest by assessee (a State owned housing development co.) for delayed delivery of plot during AY 2005-06, was not in the nature of interest as defined in Sec. 2(28A), TDS u/s. 194A not applicable; Notes that as per the terms of the contract, assessee was under an obligation to hand over physical possession of the plot to the allottees on payment of land price, upholds ITAT view that the payment of interest to allottees was in the nature of compensation owing to assessee’s failure to make the plots available within the stipulated time;[TS-471-HC-2018(CAL)]
  • Bombay HC dismisses Revenue’s appeal, confirms ITAT order holding assessment order in remand proceedings, which was passed without issuing a draft order u/s 144, as invalid; Observes that once ITAT, in the first round of proceedings, set aside assessment and remanded it back to TPO to give hearing opportunity to assessee, “the matter was relegated to the stage of Section 144C(1)”;[TS-773-HC-2018(BOM)- TP]
  • CBDT has amend the Income-tax Rules, 1962.These rules may be called the Income-tax (9th Amendment), Rules, 2018, which shall come into force from the 1st day of April, 2019 and shall apply in relation to assessment year 2019-20 and subsequent years

INDIRECT TAX

  • Finance Ministry is considering an amendment in the law to raise penalties against companies that fail to pass on GST rate cuts to consumers. At present, the penalty for such an act is 10,000 or the amount of tax evaded, whichever is higher
  • CBIC has issued a circular to clarify that the forwarding of samples for testing to the Outside Laboratories till the upgradation of the Revenue Laboratories.
  • GST: TUESDAY (11 SEP 2018) is the last date for filing of GSTR-1for the m/o August, 2018 for the taxpayers with Turnover exceeding Rs.1.50 Crores or opted to file monthly Return.

FAQ on GST Audit:

  • What would be the action by the proper officer upon conclusion of the audit?
  • Answer: The proper officer must without delay inform the taxable person about his findings, reasons for findings and the taxable person’s rights and obligations in respectof such findings.
  • Query:Under what circumstances can a special audit be instituted?
  • Answer:A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 50 of MGL.

SEBI UPDATES

  • SEBI  is working on facilitating participation of mutual funds and commencement of portfolio management services in the commodity derivatives market. MCX and custodian banks have submitted a report to SEBI on how issues pertaining to MF participation can be facilitated.

MCA Update ;

  • MCA21 system will be intermittently unavailable from Saturday,1stSeptember 2018 10.00 pm toSunday,2nd September 2018 02.00 pm IST due to maintenance activity. Stakeholders are requested to plan accordingly.
  • As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered. Further DIN once associated is NOT eligiblefor surrender. Stakeholders may kindly take note and plan accordingly.
  • MCA clarifies that N.N:G.S.R. 307(E) & G.S.R. 308(E), dt.30.03.2017 for disclosure on Specified Banking Notes (SBN) was event specific and hence NOT APPLICABLE for FY 2017-18 or thereafter.

OTHER UPDATES

  • Supreme Court reserved its verdict on the SFIO’s plea to stay a Delhi High Court order in a case concerning Bhushan Steel’s erstwhile promoter Neeraj Singal. It said it will pass orders on the plea of the SFIO, while agreeing to hear the probe agency’s appeal against the release order.
  • DGFT has eased down the process of making intimation to Regional Authorities about Block-wise fulfillment of EO under the EPCG Scheme by facilitating intimations without using the digital signatures.
  • ICAI: 30 SEP 2018is the last date for the payment of Annual Membership and Certificate of Practice fee for the year 2018-19.
  • ICAI has issued a Technical Guide on Audit of Urban Improvement Trusts and Development Authorities issued by the Auditing and Assurance Standards Board.

KEY DUE DATES

Due dates for Compliances under GST:

  • 10-09-2018- Due date for filing GSTR -1 for the month of August 2018. Applicable for taxpayers with Annual Aggregate turnover More than 1.50 Crore
  • 20-09-2018- GSTR-3B for the m/o August 2018

Due dates for Comp under Income tax:

  • 07-09-2018- Due date for deposit of tax deducted/collected at source for the month of August 2018
  • 14-09-2018- Due date for issue of TDS Certificate for tax deducted under section 194-IA, 194-IB in the month of July 2018
  • 15-09-2018- Due date of deposit of second installment of advance tax for the assessment year 2019-20
  • 30-09-2018 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA, 194-IB in m/o August 2018
  • 30-09-2018 – Audit report under section 44AB for the assessment year 2018-19 in the case of a corporate/non-corporate assessee (who is required to submit return of income on September 30, 2018)

Due dates for under Companies Act;

  • 15-09-2018- Application for KYC of all Directors for the year ending 31.03.2018 via form DIR-3 KYC
  1. Due dates for Compliance under ESI, PF Acts:
  • 15-09-2018- PF Payment for m/o August 2018
  • 15-09-2018- ESIC Payment for m/o August 2018

Disclaimer:

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

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INPUT TAX CREDIT UNDER GOODS & SERVICES TAX

Image result for itc in gstGST is the indirect tax that imposed on the services and goods on the base of the primary of the value addition. Hence, the imposing of the tax is totally based on the value addition at the single stage of the chain of supply until the finished product reached the final consumer. In this kind of the system of tax, to invalidate the cascading effect on the tax, it exists a way to set of taxes paid acquisition of the basic material, parts, services, plant and machinery, consumables and so on. It used for the manufacturing the goods and services. The part used to of set to the tax liability is known as the input tax credit. We cover the concept of the Input under the GST in details.

What is the Input Tax Credit?

In the GST, each person that comes under the supply chain that comes in the process of the controlling, getting the GST tax and remitting the amount of collected have to complete the GST registration. Input tax credits help to avoid the double taxing and the cascading effect of the and Input tax credit is given to adjust the tax paid on the acquisition of the basic materials, consumables and the services and goods that helped in the producing and supply and the sales of the goods and services.  After using the ITCM, organizations are able to net neutrality in the prevalence of the tax and makes sure that input tax part doesn’t invade into the cost of the supply of services and goods or cost of the creating.

Eligibility for Claiming Input Tax Credit

A person who has the GST registration can claim the ITC on the base of the right documents and filling the form of the GST- returns.  If you want to claim the ITC then you must have the following documents ready.

  • A bill which issued by the supplier as peer the GST rules for the invoice; or’
  • A debit note which expressed by the suppliers;
  • An entry of the bills and any similar documents;
  • An ISD credit note or ISD invoice or any other document which expressed by the Input Service Distributor.

Further, the below conditions are also important to fulfill for claiming the ITC.

  • A person is in authority of a tax bill or the debt which expressed by the registered suppliers and the other tax-related documents.
  • A person or taxpayer has collected registered suppliers and the other taxpaying documents.
  • The tax which imposed regarding the supply has been actually paid to the account of the suitable government, in the case or through the utilization of the obtainable ITC.
  • A person or a taxpayer must have to fill the important GST filings.

Goods & Services Not Eligible for Input Tax Credit

In the GST, the ITP is not accessible regarding the below services or goods:

  • Motor vehicles, excluding when they are giving in the respect of the business or used for the imposing taxable services such as:
    • transit of traveler
    • transit of virtue
    • Giving training on fling, driving, navigating such as the vehicles.
    • An additional supply of kind of vehicles or conveyance
  • Supply of the services and/or goods respecting to outdoor catering, food and beverages, health services, cosmetic, beauty treatment and plastic surgery without were inward supply of services or good or a category is used by the several registered  taxable person for creating an outward taxable inventory of the same division of the services
  • Association of the health, fitness center and club.
  • Lease a club, health insurance, excluding where it is carving obligatory for an executive to give kind of services.
  • The advantages of the traveler are continued to executives on holidays such as home travel events and leave
  • Services and/or goods got by the primary in the building of the immovable property, excluding machinery and plant excluding in which it is an input service for the supply of the work contract services.
  • Services and goods got by the taxable in which the tax has been paid beneath composition scheme.
  • Services and goods which are used for the personal utilization
  • The goods that stolen, lost, written off or disposed of by the way of gift or free scheme.
  • Tax paid after finding of fraud, persistent inaccuracy or suppression
  • Tax paid for the discharge of delay or seized goods
  • Tax paid for the discharge of impound goods

The utilisation of CGST and SGST Input Tax Credit

GST Input Tax Credit Preference

The SGST and CGST ITC will be attention to the electronic credit books of the person or taxpayer which is organized by the GST Network.  The price of the ITC in the electronic credit books which can be used for the payment of the CGST and the remaining price, if any, can be used for the payment of the IGST. The price of the ITC on the account of the CGST on the EC book can’t be used for the payment of the SGST.

In addition, it’s required to note that amount of the output tax that can be created by using the ITC. Any amount on the account of interest and penalty is important to be created out of the price available in the computerized cash books of the person or taxpayer.

A simple guide to CGST, SGST, and IGST, if you need to understand the difference.

A simple guide to electronic cash ledger and procedure for making GST payment.

The utilization of IGST Input Tax Credit

It is also credited to the computerized cash books of the person or taxpayer, under the head of IGST, organized by the GST Network. The price of the ITC applicable on the account of the IGST must first be used on the way of payment of the IGST and the pausing amount, if any, in the case in which taxpayer has any CGST ITC applicable on the account, it must be the 1st used for the amount of the CGST and the remaining price, if any, can be used for the price of IGST

Disclaimer:

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

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CORPORATE AND PROFESSIONAL UPDATES 31ST AUG 2018

Image result for corporate and professional updatesDirect Tax :

  • Delhi ITAT rejects TPO/DRP’s Net Asset Value (NAV) based ALP for benchmarking consideration for sale of shares in an Indian company by assessee (Singapore company) to another non-resident entity (AE) for AY 2012-13 [TS-897-ITAT-2018(DEL)-TP]
  • Delhi ITAT confirms Rs. 80 lakh bogus share capital subscription addition u/s 68 in case of assessee (a private limited company) for AY 2005-06, also confirms unaccounted expenditure addition in respect of commission @ 2.5% for arranging the accommodation entries, upholds re-assessment[TS-496-ITAT-2018(DEL)]
  • ITAT: Grants stay considering earlier-year refunds due; Comparables selection for software-developer in dispute [TS-891-ITAT-2018(DEL)-TP]
  • CBDT has extended the due date for filing income tax returns (ITR) for all income tax assessees in Kerala to September 15, 2018, as per an official release.
  • CBDT has decided, in super-session of Circulars issued, that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified.
  • CBDT told the Bombay High Court that 0.10% STT would be levied on physical delivery of shares in the equity derivatives segment. A division bench of justices B R Gavai and M S Karnik had last week sought clarity from the CBDT on the STT rate after the ANMI filed a petition.
  • Penalty u/s. 271D r.w.s. 269SS – No penalty u/s. 271D can be levied on an assessee where the loans have been accepted in an assessment u/s. 143(3) of the Act made by the AO as genuine – DCIT Vs. Akash InfraCom Project Pvt. Ltd. (2018 (8) TMI 1489 – ITAT Cuttack).
  • Bad debts – CIT (A) and Tribunal concurrently held that the respondent bank would also be a scheduled bank and consequently allowed the bad debts u/s 36(1)(viia)(a) of the Act. Such being the position, we find no error in the view –  CIT Vs. Saurashtra Gramin Bank (2018 (8) TMI 1558 – Gujarat High Court).

INDIRECT TAX

  • Govt is planning to compare data filed by companies with different departments to detect discrepancies and check whether there’s been any leakage in tax collected, raising the prospect of even greater scrutiny, said people with knowledge of the matter.
  • GSTIN has addeda New facility for filing of refund application for multiple tax period, which is available for supplies made without payment of Tax for i). Export of Goods & Services; and ii). Supplies made to SEZ Unit / SEZ Developer.
  • Tax officials are working on a proposal to link electricity connection of some manufacturers with GSTIN to keep a tab on power consumption. This will act as an anti-evasion measure to dissuade taxpayers from underreporting sales.

FAQ on GST Audit:

  • Query:What is Prosecution?
  • Answer:Prosecution is the institution or commencement of legal proceeding; the process of exhibiting formal charges against the offender. Section 198 of the Criminal Procedure Code defines “prosecution” as the institution and carrying on of the legal proceedings against a person.

RBI UPDATES

  • RBI tightened norms for bad loan resolution by setting timelines for resolving large NPAs, failing which banks will have to mandatory refer them for insolvency proceedings. It also withdrew existing debt restructuring schemes such as SDR and S4A.
  • RBI has issued definitions of different resolution plans and an indicative list of financial difficultly, and directed lenders to share data on certain defaulted borrowers with the central bank’s database on large exposures on every Friday.

MCA UPDATES

  • The 10-member committee, which submitted its report, has made various recommendations as part of larger efforts to promote ease of doing business and better compliance levels.

OTHER UPDATES

  • The presence of an arbitration clause in the share purchase agreement would not cause any impediment with regard to initiation of CIRP because u/s 7 of the Code the mentioning of an arbitration clause in the disputed agreement is no bar to the admission of the petition and initiation of CIRP unlike Section 8 & 9 of the Code – Dinesh Chand Jain & Ors. Vs. Fantastic Buildcon Pvt. Ltd. & Ors (2018 (8) TMI 1541 – NCLT, New Delhi).

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-4 (JULY-SEP, 2018)-OCT 18th, 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-(AUG 2018)-SEP 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)

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