CORPORATE AND PROFESSIONAL UPDATES 11TH OCT 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Mumbai held that Income of Indian plastic institute from technical lectures, seminars and workshop is exempt.  M/s. Indian Plastics Institute VsThe Assistant Director of Income Tax Officer (ITAT Mumbai)
  • Calcutta High Court held that payment by tenant for removal of sub-tenants from property is capital expenditure. nited Spirits Limited Vs Commissioner of Income Tax (Calcutta High Court)
  • CBDT further extends due dt for filing of IT Returns & audit reports from 15th Oct,2018 to 31st Oct, 2018 for all assessees liable to file ITRs for AY 2018-19 by 30.09.2018, after considering representations from stakeholders. Liability to pay interest u/s234A of IT Act will remain same.
  • CBDT has set up a committee to draw up the Incentive programme to reward and recognise honest taxpayers to encourage a culture of compliance like A cup of tea with the state governor, priority check-in at the airport, passports on priority, dedicated toll lanes, airport lounge access etc.
  • Every company to which sec 115JB of income tax act, 1961 applies, is required to file Form 29B certifying that book profits have been computed in accordance with the provisions of the Income Tax Act. Further, the Form 29B should be electronically filed along with the return of income before the due date.
  • Undue delay in granting the refund – The petitioner cannot claim any further interest or compensation over and above the statutory interest prescribed u/s 244A – having regard to long delay, the CIT shall pay cost of ₹ 1,00,000/= to the petitioner –NIMA Specific Family Trust Vs ACIT (2018 (10) TMI 441 – Gujarat HC).

INDIRECT TAX

  • AAR stated that No ITC admissible on GST paid on freight for transportation of petro goods to the export warehouse located in another state.
  • GSTN has introduced the new RFD-01A form for Refund by Supplier of deemed export. In these article we will see the detailed analysis related to the Refund form, Rules and how to file the nil and not a nil refund form online.
  • Govt has imposed an anti-dumping duty of up to USD 719 per tonne for five years on import of nylon filament yarn from the European Union (EU) and Vietnam following recommendations by the commerce ministry’s investigation arm DGTR.
  • Jurisdiction of Central and State tax administrations under GST – Both the Central and State tax administrations shall have the power to take intelligence-based enforcement action in respect of the entire value chain – O. F. No. CBEC/20/43/01/2017-GST(PT), dt.05.10.2018.
  • Levy of GST – printing services – The supply of Aadhaar Cards are classifiable under heading 9989 of GST Tariff and attracts GST @ 12% – AAR, Hyd-Tel. in  KL Hi-Tech Secure Print Ltd. (2018 (10) TMI 445).

FAQ on GST Audit:

  • Query:Who is the person responsible to make assessment of taxes payable under the Act?
  • Answer:Every person registered under the Act shall himself assess the tax payable by him for a tax period and after such assessment he shall file the return required under section 39

MCA UPDATES

  • MCA notified Form RC-1 vide Companies (Authorised to Register) Second Amendment Rules, 2018, dated 5th July 2018 would be available for filing purposes w.e.f 9th October 2018. Web-service RUN and SPICe form are also likely to be revised due to the impact of introduction of URC-1 form.
  • MCA notified URC-1 vide Companies (Authorised to Register) Second Amendment Rules, 2018, dated 5th July 2018 would be available for filing purposes w.e.f 9th October 2018.

SEBI UPDATER

  • SEBI has put in place revised norms for recovering of investors’ money, wherein a registered insolvency professional will be appointed as administrator to undertake sale of assets.

RBI UPDATES

  • foreign RBI investors with new relationship terms for a commitment of staying invested a minimum three years in local debt from them. In exchange, it has offered unbridled access to local derivatives market and its own liquidity facilities.
  • RBI is expected to increase policy rates by 25 basis points in the first quarter of the next year, primarily led by inflationary pressures and depreciation of the rupee, says a Goldman Sachs report.
  • The Reserve Bank of India Sovereign Gold Bond Scheme 2018-19, Operational Guidelines. Vide notification no RBI/2018-19/58, dated 8th October 2018.

OTHER UPDATES

  • ICAI has released an exposure draft on ICAI Code of Ethics, 2018. The Last date for comments on this Draft is November, 7, 2018.
  • Central government will issue Sovereign Gold Bonds 2018-19 for public subscription from October 15-19 and will be issued every month from October 2018 to February 2019.” bonds would earn an interest of 2.5% per annum, payable every six months on the nominal value.
  • International Monetary Fund (IMF) retained economic growth projection for India at 7.3% for 2018-19.  IMF wants the RBI to tighten monetary conditions. For the next year 2019-20, the IMF lowered India’s growth projections to 7.4%.
  • ICAI releases List of Valid Nominations for election to the 24th Council and 23rd Regional Councils. There are 19 Valid Nominations for CC and 46 Valid Nominations for RC from Northern India.
  • UIDAI has said that the Supreme Court order restricting use of Aadhaar will have no bearing on enrolment and update services being carried out at banks, post offices and government premises. The move comes as service providers may still use offline verification tools that leverage the unique ID without authentication.

KEY DUE DATES

October 2018 Due Dates:

  • 14th October- ADT 1 for Appointment of Auditor
  • 15th October- TCS Return for Jul to Sep 2018
  • - Tax Audit & ITR for FY 2017-18
  • 18th October- GSTR 4 for Composition Dealer for Jul 2017 to Sep 2018
  • 20th October- GSTR 3B – Sep 2018 Month
  • 30th October- AOC 4 for FY 2017-18
  • 31st October- GSTR 1 for July 2017 to Sep 2018
  • 31st Oct- TDS Return for Jul to Sep 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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COMPANIES ACT, 2013

COMPANIES ACT

Untitled37ASECTION 397

OPPRESSION AND MISMANAGEMENT

Where CLB passed status quo order in respect of subject property to restrain creation of third party rights, construction done by respondent tenant to repair that property could not be considered as detriment to interest of anybody and, therefore, contempt application filed to restrain construction by respondent was to be dismissed -[2015] (CLB – New Delhi)

COMPETITION ACT

SECTION 3

PROHIBITION OF AGREEMENTS – ANTI-COMPETITIVE AGREEMENTS

Where real estate developers i.e., Jaiprakash Associates (JAL) and JaypeeInfratech (JIL) did not have ability to influence conditions of competition in relevant market for provision of services for development and sale of residential apartments in Noida and Greater Noida and there were several established real estate players offering world class amenities, JAL/JIL was not in a dominant position in relevant market and, therefore, question of examining alleged abusive conduct did not arise - [2015] (CCI)

Where evidence available on record was insufficient to hold Opposite Parties responsible for having colluded in tenders for supply of AMDBS, a critical safety item required for railway coaches, complaint of alleged unfair business practices made by Informant against Opposite Parties was to be dismissed – [2015] (CCI)

FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992

SECTION 5

EXPORT AND IMPORT POLICY

Notification No. 48/2005 dated February 20, 2006 and Notification No. 8/2006 dated June 12, 2006 amending ‘Target Plus Scheme’ under EXIM Policy/Foreign Trade Policy 2004-2009 to restrict/reduce benefit to exporter retrospectively from 1-4-2005 were ultra vires, as already accrued benefit cannot be taken away by retrospective amendment; therefore, the said notifications were read down to be effective only from dates they are issued -[2015] (SC)

CUSTOMS ACT

SECTION 129A

APPEALS – RESTORATION OF – APPELLATE TRIBUNAL

Issue ‘whether Tribunal can restore appeals even when assessee made pre-deposit only after due date specified by High Court’ was referred to Third Member owing to difference of opinion - [2015] (Mumbai – CESTAT)

CUSTOMS TARIFF ACT

SECTION 3

LEVY OF ADDITIONAL DUTY EQUAL TO EXCISE DUTY

In view of Explanation 1 to Section 3 of Central Excise Act, 1944, in case of DTA clearances by 100% EOUs, CVD portion equal to excise duty is leviable at highest of excise duty rates in India. Thus, in case of goods liable to excise duty at different rates owing to exemptions or otherwise, CVD portion would be computed using highest rate of excise duty. This principle is analogous to principles in Section 3(1) of Customs Tariff Act, 1975 – [2015] (Mumbai – CESTAT)

SECTION 9A

CHARGE/LEVY – ANTI DUMPING DUTY

Where: (a) provisional anti-dumping was levied on 2-5-2002 and same became ineffective on completion of 6 months on 1-11-2002, and (b) final anti-dumping was levied only on 1-5-2003, then, no anti-dumping duty could be levied during gap period, viz., 2-11-2002 to 30-4-2003 – [2015] (SC)

CST & VAT

SECTION 2(xv) OF THE KERALA VALUE ADDED TAX ACT, 2003

DEALER

‘Flipkart’ is merely facilitating sales, purchase and delivery of goods, it can’t be considered as dealer of goods under Kerala VAT Act - [2015] (Kerala)

SECTION 6 OF UTTAR PRADESH VALUE ADDED TAX ACT, 2008

TAX INCIDENCE AND LEVY – COMPOSITION OF TAX LIABILITY

Compounding Scheme dated 9-6-2009 (Int Bhatta Samadhan Yojna) announced under section 6 for seasons 2007-08 (1-1-2008 to 31-9-2008) and 2008-09 (1-10-2008 to 31-9-2009) is not ultra vires to Constitution – [2015] (Allahabad)

CENVAT CREDIT RULES

RULE 2(l)

CENVAT CREDIT – INPUT SERVICE – GENERAL

Dealers of SIM Cards/Recharge vouchers cannot be regarded as ‘recipients of telecom services’ provided by telecom companies; hence, said dealers cannot take input service credit of service tax paid by telecom companies – [2015] (New Delhi – CESTAT)

STATUTES

DIRECT TAX LAWS 

Section 245R of the Income-tax Act, 961 – Procedure on receipt of application – Representation of cases before Authority for Advance Ruling – LETTER F.NO.225/261/2015/ITA.II, DATED 28-10-2015

Section 54EC of the Income-tax Act, 1961 – Capital Gain not to be charged on Investment in certain Bonds – Taxation of income from offshore rupee denominated bonds – PRESS RELEASE, DATED 29-10-2015

Section 92C of the Income-tax Act, 1961 – Transfer Pricing – Computation of Arm’s Length Price – Notified Tolerance Limit – NOTIFICATION NO.86/2015 [F.NO.500/1/2014-APA-II], DATED 29-10-2015

CORPORATE LAWS

IRDAI (Registration and Operation of Branch Offices of Foreign Reinsurers other Than Lloyd’s) Regulations, 2015 – NOTIFICATION F.NO.IRDAI/REG/17/107/2015, DATED 19-10-2015

Clarifications on Applicability of Provisions of section 45 of Insurance Act, 1938 in various scenarios – CIRCULAR NO. IRDA/LIFE/GDL/MISC/186/10/2015, DATED 28-10-2015

SEBI (Issue of Capital and Disclosure Requirements) (Seventh Amendment) Regulations, 2015 – Amendment in Regulation 58 and Schedule VIII – NOTIFICATION NO.SEBI/LAD-NRO/GN/2015-16/025, DATED 27-10-2015

IRDAI (Acquisition of Surrender and Paid Up Values) Regulations, 2015 – NOTIFICATION F.NO.IRDAI/REG/15/105/2015, DATED 16-9-2015

INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT)

Extension of Filing of Online Return for Second Quarter 2015-16 -CIRCULAR NO.27 OF 2015-16 [NO.F.7(420)/VAT/POLICY/2011/PF/955-961], DATED 28-10-2015

Extension of time limit for Filing of Annual Return and Filing of Audit Report by a Dealer – NOTIFICATION NO.FTX.49/2014/88, DATED 12-10-2015

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; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com  or call at 9555555480

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