corporate and professional updates 6th JULY 2018

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  • Kerala HC reverses ITAT order and upholds re-assessment for AY 1999-2000, rejects assessee-company’s stand that no other issues can be dealt in re-opening other than what were recorded as reasons u/s. 148(2); Notes that reassessment was concluded on 4 issues, out of which 2 were part of the reasons recorded and the remaining 2 were detected in the course of re-assessment proceedings; [TS-351-HC-2018(KER)]
  • Madras HC allows assessee’s (Dr. Prathap Reddy, Chairman of Apollo Hospitals) writ, directs Income-tax Settlement Commission (‘ITSC’) to permit assessee to make good the short fall in payment of additional tax and interest and then proceed with the adjudication of the settlement application on merits; ITSC had treated assessee’s settlement application as ‘invalid’ u/s. 245D(2C) on the ground that the primary condition of payment of tax on the additional income was not satisfied to the extent of adjustment sought against refund due for AY 2016-17 (which was subsequently received by assessee and was not available for adjustment); [TS-350-HC-2018( MAD)]
  • Income Tax returns filing due date for non-auditable assesses is 30th July 2018. Kindly file it on or before otherwise a penalty will be livable on late filing.
  • The CBDT has extended the deadline for the PAN-Aadhaar linking to March 31 next year. This is the fifth time the government has extended the deadline for individuals to link their Permanent Account Number (PAN) to their biometric ID (Aadhaar).
  • Hyderabad ITAT holds that one-time payment by assessee-company under the trademark and license agreement entered with GMR Holdings Pvt. Ltd., is in the nature of ‘intangible asset’, allows depreciation u/s. 32(1)(iii) for AY 2010-11; Rejects assessee’s stand that since it was given only a license to use the trademark as part of its corporate name and no ownership rights were given, the amount was revenue in nature; ITAT remarks that “without acquiring the aforementioned trademark and license, assessee would have had to commence business from scratch and through the gestation period and by acquiring aforesaid business rights/ license, assessee could incidentally boost its revenues; [TS-347-ITAT-2018(HYD)]
  • ITAT adjudicates on comparable selection for Indian branch office of a foreign company (assessee) engaged in providing software development services for AY 2009-10; Rejects Cat Technologies due to diverse activities and lack of segmental information and Thirdware Solutions as it is engaged in sale of license and subscription; [TS-482-ITAT-2018(DEL)-TP]

INDIRECT TAX

  • Government has extended the exemption on intrastate and interstate supplies of goods and services or both received by a registered person from any supplier, who is not registered, from whole of the central tax livable under section 9(4) of the CGST Act, 2017 or integrated tax leviable under section 5(4) of IGST Act, 2017 till 30th September 2018.
  • No e-way bill in respect of movement of goods originating and terminating in the state of Delhi (i.e. intra state movement but without passing through any other state) shall be required where consignment value does not exceed Rs. 1,00,000.
  • Govt is looking at creating a centralized Authority for Advance Rulings (AAR) for GST after divergent rulings on identical issues fuelled confusion over applicability and the rate of tax.
  • CBIC notifies tariff concession on specified goods on Import from specified countries vide Notification No. 50/2018–Customs- seeks to provide the tariff concession to the goods of the description specified in column (3) of the Table hereto annexed and falling under the Chapter.
  • Govt is unlikely to insist on implementing the reverse charge mechanism, a key anti-evasion measure proposed under GST, on concerns that the rule will adversely impact small businesses while not yielding revenue gains.
  • Due date for filing GSTR -1 for m/o June 2018 – Applicable for taxpayers with turnover more than 1.50 crore- July 10, 2018.

FAQ on GST AUDIT:

  • Query: What happens at the end of an auditing session?
  • Answer: At the end of an auditing session, the findings will be declared and the audit report will be submitted to the Assistant Commissioner. These findings include discrepancies in tax refunds, tax payments, or input tax credit between the audited financial statement and the information furnished by the taxpayer. After the findings are declared, the taxpayer will be given a chance to be heard by the tax officials.
  • Query: What is a detention report under grievance menu?
  • Answer: If the goods or the vehicle of the taxpayer or transporter has been detained by the tax officers for more than 30 minutes, then the transporter can enter the detention report on EWB Portal, which will reach the designated officer immediately, so that he can take an appropriate action accordingly.

RBI Update :

  • It is hereby notified for information of public that the Reserve Bank of India is satisfied that in the public interest, it is necessary to extend the period of operation of the directive dated April 01, 2013 read with subsequent directives, last being dated December 21, 2017 issued to the Amanath Cooperative Bank Ltd, Bengaluru for a further period of six months.
  • The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets on or before 15 TH JULY, 2018

SEBI UPDATES

  • Sebi enhanced the overseas investment limit of alternative investment funds and venture capital funds to USD 750 million from the current USD 500 million. The decision has been taken in consultation with the Reserve Bank of India, the Securities and Exchange Board of India (Sebi) said in a circular.

OTHER UPDATES

  • IBBI amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 by a press release dated 4th July, 2018 . Supreme Court of India refused to overturn a RBI ban on lenders from dealing in crypto currencies, a move that effectively outlaws the nascent industry in Asia’s third-largest economy

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018
Disclaimer:

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

corporate and professional updates 7th july 2018

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  • Karnataka HC upholds ITAT order, allows Sec. 10B deduction to assessee-company (100% EOU) in respect of the ‘Deemed Export’ of goods made by it through a third party during AYs 2009-10 & 2010-11, follows co-ordinate Bench order in Tata Elxsi Ltd. rendered in context of Sec. 10A; Rejects Revenue’s stand that Tata Elxsi case was distinguishable as both the units therein were located in STP, however, in present case, the entity through whom the export was made by assessee was not a 100% EOU; [TS-345-HC-2018(KAR)]
  • Karnataka HC dismisses Revenue’s appeal challenging ITAT’s comparables selection for software developer assessee for AY 2006-07, lays down law on interpretation of ‘substantial question of law’ in respect of appeals against comparables selection in TP cases; Highlighting that the existence of a substantial question of law is sine qua non for maintaining an appeal before HC u/s 260A (pari materia with Sec 100 r.w.s. 103 of Civil Procedure Code), reiterates that findings of fact cannot be disturbed while dealing with appeals u/s 260A unless such findings are ex-facie perverse, unsustainable and exhibit a total non-application of mind by the Tribunal to the relevant facts and evidence, relies on various precedents;  [TS-475-HC-2018(KAR)-TP]
  • CBDT extended the deadline for the PAN-Aadhaar linking to March 31-2019. The policy-making body of the tax department issued an order, under Section 119 of the Income Tax Act, extending the deadline.
  • CBDT was not justified in rejecting application  for  condonation  of  delay  in  filling   return  where assessee  had  uploaded return sometime  past  00:00  hours   of  the last  date  as  extended  as   the   assessee  has  encountered   certain hardship in  uploading  his return. CBDT & Ors.  vs.  Regen Infrastructure & Services (P) Ltd. ( High Court – Madras)

INDIRECT TAX

  • AAR rules on taxability of high seas supplies, holds that goods which are sold on high seas sale basis are ‘non-taxable supply’ as no tax is leviable on them till the time of Customs clearance in accordance with Section 12 of Customs Act r/w Section 3 of Customs Tariff Act; Notes that as per the arrangement, applicant would be buying products from overseas related party at arm’s length pricing against purchase orders received from customers in India and before goods cross the Customs frontier, would be sold by applicant to such customers; [TS-275-AAR-2018- NT]
  • GST implementation has resulted in an increase in direct tax collections with 44 per cent rise in advance tax collections in April-June quarter, despite challenges to the global economy, demonetization and anti-black money measures, direct tax collection has gone up 18 per cent and the impact of GST was not fully visible last year.

FAQ on E-WAY BILLS:

  • Query: What is bulk generation facility and who can use it?
  • Answer:Through this facility, user can upload multiple invoices and generate multiple e-way bill at one go .This facility can be used by the taxpayers or transporters who have automated their invoice generation system. In one go, they can prepare bulk requests for e-way bills in a file from their automated system, and upload it on the common portal and generate e-way bill in one go.

MCA UPDATES

  • MCA crackdown on shell companies:As many as 1,313 “listed” entities that have failed to file their annual reports for two years face the prospect of being struck off the registrar of companies’ (RoC) database. The move is a continuation of the MCA efforts to weed out shell companies.
  • The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets on or before 15 TH JULY, 2018.

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 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)