corporate and professional updates 29th aug 2018

Image result for corporate and professional updatesDirect Tax :

  • Mumbai ITAT grants vacancy allowance u/s 23(1)(c)  to Saif Ali Khan Pataudi (‘assessee’)  in respect of his Bandra flats that could not be let out during AY 2012-13;  Notes that assessee had offered Rs.11.83 lakh  as taxable rent, however, Revenue had substituted a sum of Rs. 50 lakh as reasonable rent for the property, accepts assessee’splea that due to inherent defects/ construction, the flat could not be let out; [TS-488-ITAT-2018(Mum)]
  • Kolkata ITAT delivers double blow to a Kolkata based Vijay Mallya group entity (‘assessee’), holds that the sale of its pledged shares by Citicorp would result in a capital gain of Rs. 267 cr for MAT purposes, while also disallowing the deduction of write-off of a similar amount in normal computation for failing to meet the “business expediency” test; Mallya group entities United Breweries Holding Ltd. (UBHL) & Bangalore Beverages Ltd. (BBL) availed short term loan of Rs. 200 cr & Rs. 73 cr respectively from Citicorp, for which the assessee stood guarantor by pledging its 6.2 million shares in United Breweries Ltd.; [TS-451-ITAT-2018(Kol)]
  • CBDT has mandated ‘e-proceeding’ for all income-tax scrutiny in 2018-19. It has also specified seven situations where e-proceeding will not be mandatory this year. These include search cases, cases where returns were filed in paper mode and the assessee doesn’t have an e-filing account, and geographical areas with limited bandwith.
  • Government of India has notified the Common Application Form (CAF) for the purpose of registration, opening of bank and dematerialized accounts, as well as for Permanent Account Number (PAN) application by Foreign Portfolio Investors (FPIs).

INDIRECT TAX

  • GST complaints can be filed at Consumer Helpline No. 011-21400643 regarding GST input credit and profiting under National Anti Profiting Authority Act (NAA).

FAQ on GST Audit:

  • Query: Can any conveyance carrying goods without cover of prescribed documents be subject to confiscation?
  • .Answer:  Section 130 provides that any conveyance carrying goods without the cover of any documents or declaration prescribed under the Act shall be liable to confiscation. However, if the owner of the conveyance proves that the goods were being transported without cover of the required documents/declarations without his knowledge or connivance or without the knowledge or connivance of his agent then the conveyance shall not be liable to confiscation as aforesaid.

 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 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: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 eligible for surrender.

SEBI UPDATES

  • SEBI is likely to let cos use stock exchanges to sell bonds directly to investors, including retail investors, any time and as many times during a financial year, after filing a single prospectus Sugata Ghosh & Reena Zachariah ‘Bond tap’, which gives corporates the flexibility to time the market, prune cost, and dramatically cut down on paperwork for raising money, will soon be a reality in India.

OTHER UPDATES

  • ICAI Invites Application for Awards for Excellence in Financial Reporting for the year 2017-18, to all business entities that publish annual reports, to participate in this annual competition of the Institute by 30th Sept 2018

KEY DUE DATES 

  • GSTR-3B (aug 2018)-sep 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-sep 15TH, 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 28th aug 2018

Image result for PROFESSIONAL UPDATESDirect Tax :

  • Kerala HC reverses ITAT order, holds that payment made by assessee (an Indian co.) to a US co. for providing management, financial, legal, public relations, treasury and risk management service, not Fees for Included Services (‘FIS’) under Article 12 of India-USA DTAA, Sec. 195 TDS not applicable; Rejects ITAT view that the US co. facilitated the assessee to take decisions in the managerial, financial and risk management aspects by providing their knowledge, expertise etc. and hence there was a transfer of specific technology for the purpose of decision making;[TS-473-HC-2018(KER)]
  • Kolkata ITAT deletes Sec 68 addition for consideration on sale of shares, allows assessee-individual’s LTCG exemption claim; AO had made addition based on information from Investigation Wing that relevant scrip on which LTCG was earned was involved in bogus LTCG scam and assessee’s PAN was listed in beneficiaries identified by Investigation Wing; [TS-402-ITAT-2018(Kol)]
  • Method for estimating the income in the previous year on the basis of net profit at a particular rate while finalising the assessment u/s144 of the Act cannot be applied for all subsequent years – Order of ITAT set aside – CIT Vs. Raees Alam Siddiqui (2018 (8) TMI 1372 – Allahabad HC).
  • CBDT has released parameters for manual selection of Income Tax Returns for Complete Income Tax Scrutiny during financial year 2018-19 vide Instruction No. 04/2018 Dated: 20th August 2018.

Indirect Tax:

  • CBEC has pricribed the due date for quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of upto Rs.1.5 crores for the quarter July, 2018 to September, 2018 is 15thNovember 2018.
  • CBIT&Cextends the due dates for filing Form GSTR-3B for the m/o JUL’18 & AUG’ 18 for the registered persons in the flood affected Kerala, Kodagu district in Karnataka and Mahe in the UT of Puducherry to 05.10.18 & 10.10.18 respectively– Notification No.36/2018 – CT, dt.24.08.18.
  • The modus operandi adopted by the petitioner is to transport the goods without e-way bill and as and when he is caught and the Truck is detained, he will make payment of tax and get the Truck released – HC refuses to grant any relief – Vanrajbhai Hasmukhbhai Chauhan Vs. State of Gujarat (2018 (8) TMI 1376 – Gujarat HC).
  • The office of the state GST (erstwhile commercial tax department) has issued a notification offering existing taxpayers a window till August 31 to complete their migration to GST.

FAQ on GST Audit:

  • Query: If you are always trying to be normal, you will never know how amazing you can be.
  • Answer:   Upon confiscation, the title in the confiscated goods shall vest in the Government and every Police officer to whom the proper officer makes a request in this behalf, shall assist in taking possession of the goods.

SEBI UPDATES

  •  by over two hours till 5 pm. “It has been decided to permit stock exchanges to set their trading hours in the SLB Segment… between 9 AM and 5 PM,” the Securities and Exchange Board of India (Sebi) said in a circular.

OTHER UPDATES

  • ICAI clarifies that the Tax Audit done U/s 44AD, 44ADA and 44AE shall not be taken into account for Counting the Number of Tax Audit limit of 60 per member in practice.
  • ICAI releases ICAI Valuation Standard effective for the valuation reports issued on or after 1st July, 2018. Link athttps://resource.cdn.icai.org/51432vsb41162.pdf.
  • ICAI:CCBMP publishes an E-Book on“Ready Reckoner on Regulatory Aspects of Articled / Audit Assistants: Capacity Building for CA Firms & Practitioners”.
  • Niti Aayog has suggested the government to bring down import duty on gold from the existing level of 10 per cent and also slash the GST rate on the precious metal from the current 3 per cent. It has also recommended the govt to review and revamp the gold monetisation scheme and the sovereign gold bond scheme and introduce new gold savings account in banks.

KEY DUE DATES 

  • GSTR-3B (aug 2018)-sep 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-nov 15 , 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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DON`T LOSE YOUR DIRECTORSHIP -ENSURE YOUR KYC COMPLETED

Image result for kyc dir for foreign directorsLAST DATE OF DIN KYC UPDATE HAS BEEN EXTENDED

For the purpose of KYC on ROC -Directors database on ROC, ROC has entered for updated all person holding DIN to complete DIN KYC on or before 15/09/2018,. For close DIN KYC, the Director  will required to complete form file known as DIR 3 for DIR  EKYC , The blog Will update about the  ROC notification on DIN KYC due date extension.

DIR -3 Form required to be update Extended due date Notification

The ROC has issued  direction through the notification that the due date has been extended from 31/08/2018 to 15t/09/2018. The said notification issued by MCA has been mention below:

Government of India 
MINISTRY OF CORPORATE AFFAIRS

Notification

New Delhi, dated 21st August 2018

G.S.R. …… (E).-In exercise of the powers conferred by sections 396,398,399, 403 and 404 read with sub-sections (1) and (2) of section ‘1-69 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Registration Offices and Fees) Rules, 2014, namely:-

  1. (1) These rules may be called the Companies (Registration Offices and Fees) Fourth Amendment Rules, 2018.
    (2) They shall come into force from the date of their publication in the Official Gazette.
  2. In the Companies (Registration Offices and Fees) Rules, 2014, in the Annexure, under the head VII, for note below Fee for filing e-form DIR-3 KYC, the following note shall be substituted, namely:-

“for the current financial (2018-2019), no fee shall be chargeable till
the 15th September 2018 and fee of Rs.5000 shall be payable on or after the 16th September 2018”.

[F. No. 01/16/2013 CL-V (Pt-I)]

K.V.R MURTY, JOINT SECRETARY

Main Requirement of E-form DIR-3 KYC

The  main purpose of eform DIR-3 KYC is to collect the latest update about the directors of all companies. The  Documents to be provided while completing eKYC procedures include  address, phone, email, Aadhar, PAN, Passport number,. The Document submitted must be authenticated by completing a OTP verification and by signing with DSC of Director and a practicing

Applicability of DIN

All the directors having a DIN as on 31/03/2018 must file e-form DIR-3 KYC before 15th September of 2018. For all Directors who obtained DIN after 31st March, 2018, DIR eKYC must be filed on upcoming year.

Documents Required For KYC Update

Below mention documents required to file E-form DIR-3 KYC:

  • Personal Mobile Number and E-mail ID of director for OTP Verification
  • Digital Signature Certificate of the director (DSC) that must be registered on MCA Portal
  • PAN Card for identity proof
  • Aadhar Card for address proof
  • Passport (if the person holds a foreign citizenship)
  • Recent passport size photographs

Certified by Certifying Authority

The e-form DIR-3 KYC must be duly certified by the CA, Practicing CS or Practicing CMA.

Penalties on NON filling DIR-3

In case Director hold the DIN has not file DIR-3, the ROC will take action and it will deactivated. If the Director hold the DIN file e-form DIR-3 KYC after 31/08/201, a fee of Rs. 5,000 will be charged.

Filling Time Limit for DIR-3

Directors Hold the Din has been allocated before 31/032018, than e-form DIR-3 KYC required to be filed by 15/09/2018. Originally, the ROC had given the due date of 31/08/2018 which was latterly changed to 15/09/2018.

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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Consequences of not deducting TDS and Nonpayment or Late payment

Image result for tds income tax

Penalty and Interest can be imposed if a person who need to reduce TDS. In the article, we cover the applicable interest and penalty for TDS default.

Interest for Nonpayment or Late Payment under TDS

Here is the TDS default for that the interest is payable.

  1. A person is subject to reduce TDS does not reduce TDS at all.
  2. Person after reducing TDS fails to pay the main or part of the tax to the credit of deducting TDS fails to pay whole or part of the tax to the credit of the administration.

In the above cases of failures, the provisions of section 201 of the Income Tax ACT supplicate and interest is payable as under of

  1. Interest in case of non-reduction of TDS- Interest will be imposed at 1% for every month or part of the month from the date the TDS was reducible till the date on which TDS actually reduced.
  2. Interest in the case of no payment of TDS – interest will be imposed at 1.5% for each month or part of the month from the date on which TDS was reduced till the date on which TDS was actually credited to the administration.

Other provisions –

The provisions in the case of the TDS not reduced in the respect of payments completed to the resident.

As per proviso to section 201 of the Income Tax Act, if the person is responsible by law to reduce TDS fails to reduce the whole or part of the TDS on payment being completed to a resident and then in such case person is liable to reduce TDS can simply not be considered as assesses-in-default for non education, if all the below conditions are satisfied.

  • The recipient in local in India;
  • The recipient has provided his income tax return under section 139;
  • The recipient has paid relevant taxes due on the income revealed in income tax return filed by him;
  • The resident payee furnishes a certificate from an accountant in form No. 26A to this effect.

If all the above conditioned are completed, the person If all the above conditions are satisfied, the person responsible to reduce TDS would not be treated as assessee in default for the non deduction or less deduction of TDS and would respond to pay interest at 1% from the date on which TDS was reduced till the date the resident recipient has furnished his income tax return.

As per provisions of section 201(1A), it is compulsory to pay interest for delay in payment of TDS or for non-payment / non-deduction of TDS before filing TDS return.

TDS Penalty

The penalty provisions under TDS are as follows:

Penalty for Non-deduction / Non-payment of TDS

As per provisions of section 271C penalty for non-deduction/non-payment of TDS would be an amount equal to tax not so deducted/paid.

The penalty for Delay in TDS Return Filing

A person is liable to pay INR 200 per day as a penalty until the failure accurse. However, the highest penalty payable would be subjected to TDS amount.

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)A

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corporate and professional updates 23th aug 2018

Image result for professional updatesDirect Tax :

  • Chandigarh ITAT upholds interest liability u/s 201(1A) on assessee (property purchaser) for AY 2010-11 for failure to deduct TDS on consideration paid to resident power of attorney (‘POA’) holder on behalf of NRI-sellers; Rejects assessee’s stand that since he dealt with resident, no TDS was required to be deducted and since the seller had already paid the taxes, the interest cannot be charged in the hands of the assessee; ITAT acknowledges that keeping in view that tax liability was discharged “leverage was given by the authorities not to burden the assessee with the strict liability of the TDS deduction when the recipient pays the due taxes vide Circular No. 275/201/95-IT dt.29/01/1997”; [TS-472-ITAT-2018(CHANDI)]
  • Bangalore ITAT upholds penalty levy u/s 272A(2)(e) on assessee-Trust for AY 2009-10, for filing of return of income u/s 139(4A) with the delay of 541 days; Rejects assessee’s stand that penalty should be deleted as the failure to file return was under the bonafide belief and advice received from former deceased Accounts-in-charge Manager of assessee Trust; [TS-470-ITAT-2018(Bang)]
  • Income Tax dept issued 19.6 million new PAN cards during the quarter ending March 2018, taking the total number to over 379 million, as per the official data released.
  • Finance ministry has proposed amendments in the Income Tax rules for obtaining ‘no deduction of tax’ certificate electronically, a move aimed at minimizing human interface and reducing compliance burden. The tax department proposes to make changes in Form No 13 and related rules under the Income Tax Act.

INDIRECT TAX

  • The government has extended the last date for filing of GST summary sales returns in Form GSTR -3B for the month of July to August 24 from the original date of August 20, for all class of taxpayers by the competent authority.
  • Central Government hereby exempts all goods, from whole of the Customs Duty & Integrated Tax, which are falling under the First Schedule to the Customs Tariff Act, 1975, when imported into India, and intended for donation for the relief and rehabilitation of the people affected by the recent floods in the State of Kerala.
  • Sales tax department, Haryana has issued a notification dated 06/08/2018 in order to afford an opportunity to the dealers to migrate to GST portal, who failed to complete their migration to GST portal till date by 25th August 2018.

FAQ on GST Audit:

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

RBI UPDATES

  • RBI has directed rating firms to scan bank account details — capturing the flow of fund in and out of a company — in assessing its ability to repay loans. Many companies, it is widely believed, would be reluctant to part with such information which are shared with an external agency only when banks or regulators order a forensic audit of a borrower’s books.

MCA UPDATES

  • MCA has extended the last date of filing DIR -3 KYC to 15.09.2018 from 31.08.2018. Fees of Rs. 5000 shall be payable on or after 16th Sep, 2018.

SEBI UPDATES

  • SEBI extended the deadline by two months till December for providing a list of beneficial owners, and assured them that issues raised will be looked into by an expert panel. The regulator, in April, had asked Category II and III foreign portfolio investors (FPIs) to provide list of their beneficial owner (BO) in a prescribed format within six months.
  • SEBI vide its circular has clarified Electronic book mechanism for issuance of securities on private placement basis. With a view to further rationalize and ease the process of issuance of securities on EBP platform and in consultation with the market participants.

OTHER UPDATES

  • Indian Accounting Standards (Ind AS) have become mandatory for certain non-banking finance companies (NBFCs) effective April 1, 2018, with the first quarter reporting out for some. This puts to rest the speculation that the transition to Ind AS for NBFCs may get postponed.
  • Supreme Court has ruled that the Insolvency and Bankruptcy Code (IBC) will override Income-Tax rules on claims. “Given Section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income-Tax Act.

KEY DUE DATES 

  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 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)A

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CORPORATE AND PROFESSIONAL UPDATES 18 TH AUG 2018

Image result for professional updatesDirect Tax :

  • Bombay HC upholds ITAT order and rules in favour of Revenue, denies Sec. 80-IB deduction to assessee-company outsourcing manufacturing activity to contract manufacturer; Observes that the assessee did not retain control over the manufacturing of computers carried out at the factory premises of contract manufacturer; Observes that there was no evidence on record to show that director or any of the assessee’s employees were regularly visiting contractor’s premises for supervision of manufacturing process, further assessee could not produce attendance register, qualification of employees despite being asked for by the AO;[TS-457-HC-2018(BOM)]
  • Bangalore ITAT denies assessee-trust’s claim for AY 2009-10 to include unspent accumulated income of earlier AY while computing 15% accumulation; Notes that during relevant AY, AO had taxed the accumulated amount of Rs. 3.71 cr. of AY 2003-04 as the assessee had failed to utilize it for charitable purposes till AY 2008 – 09; Rejects assessee’s action of adding the unspent amount of accumulation, while computing 15% deduction for present AY; Referring to the provisions contained in Sec. 11, ITAT opines that the benefit of accumulation is allowable only to the incomes covered u/s 11(1) and not to deemed income u/s 11 (3); ITAT distinguishes assessee’s reliance on Calcutta HC ruling for Natwarlal Chowdhury Charity Trust on facts:[TS-454-ITAT-2018(Bang)]
  • Supreme Court in the case of CIT v. Jalan Hard Coke Ltd. in SLP Civil Diary No. 16078 of 2018:Assessee filed details of share capital money before AO showing that there are number of share applicants who applied for allotment of shares and most of them were residing in Delhi and each application was for Rs.2 lakhs each and payment was made by DDs.Assessee also filed photocopies of share applications.AO required assessee to produce all persons/share applicants for examination.Assessee expressed its inability to produce share applicants, however, submitted that since share application had been received from identifiable persons having capacity and creditworthiness of making share application, no addition u/s 68 should be made.High Court by impugned order held that view taken by Tribunal in deleting the addition was just and proper as assessee could not have been assessed to tax to find out person who had applied as shareholder.SLP filed before the SC against the order of HC has been dismissed
  • Scope of the person u/s 2(31) – Collection of Tax (TCS) on Tahbazari u/s 206C(1C) – Whether the term “Parking Lot”, “Toll Plaza”, “Mining and quarrying” include “Tahbazari” – Held No – No TCS liability – Apar Mukhya Adhikari Vs. ITO (2018 (8) TMI 728 – Allahabad High Court).
  • Bombay High Court ordered the CBDT to provide clarity on the issue of STT levy on physically-settled derivatives. The court on heard an appeal filed by Anmi against the NSE after the bourse decided to levy the STT at 0.1% on derivative contracts of stocks that are physically settled.

INDIRECT TAX  

  • Salary for services provided by the head office of a company to its branch offices in other states will attract 18% GST. According to an order passed by the Karnataka bench of the Authority for Advance Ruling (AAR), the activities between two offices is treated as supplies under the GST law.

FAQ on GST Audit:

  • Query : Can any conveyance carrying goods without cover of prescribed documents be subject to confiscation?
  • Answer:  Section 130 provides that any conveyance carrying goods without the cover of any documentsor declaration prescribed under the Act shall be liable to confiscation. However, if the owner of the conveyance proves that the goods were being transported without cover of the required documents/declarations without his knowledge or connivance or without the knowledge or connivance of his agent then the conveyance shall not be liable to confiscation as aforesaid.

SEBI UPDATES

  • SEBI may soon ask retail investors in the stock and commodity markets to submit a net worth certificate to their brokers. The aim is to keep a check on retail investors’ trading limits, which cannot exceed their level of income.

RBI UPDATES

  • RBI may not do much to stabilise the rupee as a fall in the currency is due to global factors. The rupee was still performing better than some other currencies, and that the country had sufficient foreign exchange reserves.

MCA UPDATES

  • From now on, it has been made mandatory for private companies to disclose in their annual report if they have complied with all the provisions of the Sexual Harassment of Women at Workplace Act such as setting up internal complaints committee (ICC).

OTHER UPDATES

  • Protecting the interests of home buyers in projects floated by Jaypee Infratech Ltd. – SC in exercise of powers under Article 142, applied the provisions of amendments in the IBC by the Ordinance with retrospective effect – Chitra Sharma & Ors Vs. Union of India & Ors (2018 (8) TMI 661 – Supreme Court).
  • ICAI sets upa Group to consider voting in any pooling booth in cities having multiple pooling booths in the forthcoming ICAI Election in December 2018.
  • ICAI invites Practicing Chartered Accountants to fill the Multipurpose Empanelment Form (MEF) for the year 2018-19 at www.meficai.org by registering themselves in MEF 2018-19, even if registered in MEF in earlier year (s).

KEY DUE DATES 

  • GSTR-3B (JULY 2018)-AUG 20th, 2018
  • GSTR-5 (JULY 2018)-AUG 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (JULY 2018)-AUG 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)A

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CORPORATE AND PROFESSIONAL UPDATES 14TH AUG 2018

Image result for professional updatesDirect Tax :

  • Delhi ITAT held that the AO proceeded to initiate reassessment proceedings u/s. 147 of the Act and to issue notice u/s. 148 of the Act on the basis of borrowed satisfaction and without any application of mind and examination of the so called material and information received from the investigation wing to establish any nexus, even prima facie, with the such information.Pioneer Town Planners Pvt. Ltd vs. DCIT (ITAT Delhi)
  • Delhi HC upholds ITAT’s characterization of research and information services rendered by McKinsey India to its AE as high-end knowledge-based research services (KPO) for AYs 2011-12 & 2012-13; Noting that the services rendered by assessee were “specialized and require specific skill based analysis and research that is beyond the more rudimentary nature of services rendered by a BPO”, HC concludes that “it would be incorrect to slot the services provided by the Assessee into that of a BPO, when it is more akin to a KPO”; [TS-812-HC-2018(DEL)-TP]
  • Ahmedabad ITAT quashes Pr. CIT’s revisionary order u/s. 263 in case of a Pharma co. (assessee) for AY 2014-15, holds that “the foundation for exercise of revisional jurisdiction is sorely missing” as all the issues raised by Pr.CIT have been duly touched by  AO  in his detailed order (running into over 100 pages and resulting in additions/disallowances of whopping Rs.131 Cr.); Considering that assessee is a very big player in the pharma sector, ITAT remarks that “having regard to the staggering turnover and scale of operation, it is virtually impossible for any adjudicating authority to examine and reexamine all the points in a given assessment year to the hilt as perceived by thePr.CIT”;[TS-443-ITAT-2018( Ahd)]

INDIRECT TAX

  • GST Audit: As per section 16(4) of the GST Act a registered person shall not be eligible to take adjustment of any input tax credit in respect of any invoice pertaining to FY 2017-18 after the due date of filing GSTR3B for the month of Sept 2018 i.e. 20.10.2018.
  • Reverse Charge Mechanism on purchases from unregistered persons u/s 9(4) deferred till 30.09.19. Notification 22/2018-CT (Rate) of 6.8.18.
  • CBIC has modified the due date for filing of final GST sales returns by businesses with turnover exceeding Rs 1.5 crore to the 11th day of the succeeding month. Currently, such businesses are required to file GSTR-1 or final sales return of a particular month by the 10th day of the succeeding month.
  • Lok Sabha approved GST Cess surplus: changes to the relevant law to allow both to dip into the surplus in the GST Compensation Fund at any time during a financial year. The law has hitherto allowed division of the surplus only after a five-year “transition period” (till June 2022), during which states are constitutionally guaranteed a GST revenue growth (over the base year, 2015-16) of 14% per year.

FAQ on GST Audit:

  • Query: What is the consequence of compounding of an offence under CGST/SGST Act?
  • Answer:Sub-section (3) of section 138 provides that on payment of compounding amount no further proceeding to be initiated under this Act and criminal proceeding already initiated shall stand abated

MCA UPDATES

  • Form DIR3-KYC is likely to be revised on MCA21 Company Forms Download page w.e.f. 13th AUG 2018. Stakeholders are advised to check the latest version before filing.

KEY DUE DATES 

  • GSTR-3B (JULY 2018)-AUG 20th, 2018
  • GSTR-5 (JULY 2018)-AUG 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (JULY 2018)-AUG 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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