CORPORATE AND PROFESSIONAL UPDATES 27TH SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Ahmedabad held that deduction under section 54 cannot be denied proportionately merely for joint ownership. Shri Chitrang M. Dave Vs the DCIT (ITAT Ahmedabad)
  • ITAT Mumbai held that assets holding period should be computed from the date of allotment letter.Shri Sanjaykumar Footermal Jain Vs ITO (ITAT Mumbai)
  • Registration u/s 12A – Condonation of delay – Ignorance of law is no excuse. The provision of Section 12A, being a beneficial provision to the Assessee, requires strict interpretation. Therefore, the Assessee should have been in a position to explain the delay, which is more than 18 years in the instant case – CIT Vs. Hemla Trust (2018 (9) TMI 1413 – Madras High Court).
  • Share capital cannot regard undisclosed income of the company u/S 68 of the Income Tax Act in V. R. Global Energy Pvt. Ltd Vs ITO (Madras High Court) when there was no cash involved in the transaction of allotment of shares, provisions of Section 68 of the said Act treating it as unexplained cash credit are not attracted.
  • ITR /TAR: Though the CBDT has extended the Due Date for filing of TAR & ITR from 30 SEP 2018 to 15 OCT 2018*, the Liability to pay interest u/s 234A of IT Act will remain applicable. Hence to save a month interest, pay the taxes by 30 SEP 18.

INDIRECT TAX

  • Jurisdiction – Competency to issue SCN – Officers appointed under State GST Act are authorized to be proper officers for the purpose of IGST – Advantage India Logistics Pvt. Ltd. Vs Union Of India & Others (2018 (9) TMI 1417 – Madhya Pradesh High Court).
  • Last date to furnish ITC 04 for compliance of goods sent to *job worker* and received back there after is 30th September 2018* the period covered is 1st of July 2017 till 30th June 2018.
  • The Government has made some new enhancements in the E-Way Bill (EWB) generation form and is being released on 1st of Oct. 2018. Read more at: http://www.taxscan.in/e-way-bill-form-modified-changed-form-rollout-1st-october/28839/

FAQ on GST Audit:

  • Query: Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
  • Answer: The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand  withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the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 Update:

  • MCA has amend the companies (Registered valuers and Valuation) Rules, 2017. These rules may be called the companies (Registered valuers and Valuation) Third Amendment Rules, 2018 which shall come into force on the date of their publication in the official Gazette.
  • DIR-3 KYC: As you are aware the last date for filing form DIR-3 KYC without fee has expired on 15th September 2018. The process of deactivating the non-compliant DINs has since been completed and their status has been updated as ‘Deactivated due to non-filing of DIR-3 KYC’. However, the non-compliant DIN holders may file DIR-3 KYC with a fee of Rs.500 from 21 SEP till 5 OCT 2018 (both days inclusive) to get their DINs reactivated. From 6th OCT 2018 onwards, a fee of Rs.5000 becomes payable for reactivation.
  • MCA is likely to deregister another 50,000 companies this fiscal because These firms have not been carrying out business activities for long.

SEBI UPDATES

  • SEBI has told credit rating agencies some of which were blindsided by the aura and size of IL&FS to review borrowers as soon as their bond prices crash, and even place such securities on ‘rating watch’ if prices continue to languish.

OTHER UPDATES

  • ICAI Membership/COP fees not paid* Please pay your Membership / COP Fees for the year 2018-19 latest by *30th September, 2018. http://memfee.icai.org/memfee.htm

KEY DUE DATES 

  • GSTR-3B (SEP 2018)-OCT 20th, 2018
  • GSTR-5 (SEP 2018)-OCT 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (SEP 2018)-OCT 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)-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 10 aug 2018

Image result for professional updatesDirect Tax :

  • Kerala HC reverses ITAT order, upholds CIT’s cancellation of registration in case of assessee-Trust (having objects of establishing a fund for carrying out public charity); HC notes that assessee implements social welfare schemes of various State Governments and carries on work of distribution of food in various schools through entrustment made by other charitable institutions; Firstly, HC clarifies that “The mere assertion that there is no profit motive will not suffice especially when for implementing the schemes the assessee takes money from the State Government or the intermediary.”;[TS-438-HC- 2018(KER)]
  • Bangalore ITAT rules in favour of Revenue, disallows Apple India’s claim for warranty expenses provision to the extent of Rs. 82.5 cr. for AY 2013-14, upholds AO’s order restricting warranty provision @ 2.14% of sales; Referring to the provision for preceding as well as succeeding AYs, ITAT observes that year-end provision was getting accumulated disproportionate to the increase in turnover, further takes note of huge difference in the amount of provision made and actual utilization;[TS-432-ITAT-2018( Bang)]
  • Income Tax Returns filed by As many as 209,000 ‘non-filers’ filed in last fiscal and paid taxes worth Rs 64.16 billion, Minister of State for Finance Shiv Pratap Shukla said.

INDIRECT TAX

  • Govt introduced four bills to amend the Goods and Services Tax (GST) laws which among other things seek to simplify the return forms and raise the turnover threshold for availing composition scheme to Rs 1.5 crore.
  • 10.08.2018 (Friday) is Last Day to file GSTR-1 for monthly return outward suppliers for July, 2018.
  • Migration cases where Provisional ID received can follow specified process till 31.8.18 to complete registration. Notification 31/2018 of 6-8-18.

FAQ on GST Audit:

  • Query What is the penalty prescribed for a person who opts for composition scheme despite being ineligible for the said scheme?
  • Answer: Section 10(5) provides that if a person who has paid under composition levy is found as not being eligible for compounding then such person shall be liable to penalty to an amount equivalent to the tax payable by him under the provisions of the Act i.e. as a normal taxable person and that this penalty shall be in addition to the tax payable by him..

MCA UPDATES

  • MCA Form DIR-3 KYC is likely to be revised on MCA21 portal w.e.f. 9th AUG 2018. As per the revised form, stakeholders may kindly note that ‘Aadhaar’ shall now be mandatory only for applicants who are ‘Residents of India’.
  • MCA has made amendment in the Companies (Prospectus and Allotment of Securities) Rules, 2014,These rules may be called the companies (prospectus and Allotment of Securities) Second Amendment Rules, 2018. Which shall come into force from the date of their publication in the Official Gazette.
  • MCA has made amendment in the  section 1 of the Companies (Amendment Act,2017 (1 of 2018), the Central Government hereby appoints the7th Day of August ,2018as the date on which the provisions of section 10 of the said Act shall come into force.

OTHER UPDATES

  • The Negotiable Instruments(Amendment) Act, 2018 has been notified to primarily address issues of dishonour of cheques and to deal with unnecessary delay in disposal of such cases.

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 10TH, 2018.
  • Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(july 2018)-Aug 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)

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corporate and professional updates 17th july 2018

Image result for corporate and professionalDirect Tax :

  • Delhi ITAT deletes penalty u/s 271(1)(c) on TP-adjustment in case of assessee providing IT/software development services to its AE for AY 2002-03; Notes that TP-adjustment was made on the ground that under-utilization of capacity for assessee (a captive service provider) was due to insufficient orders given by AE and therefore, AE should have compensated assessee for such under-utilization; [TS-607- ITAT-2018(DEL)-TP]
  • Kerala HC upholds ITAT order for AY 2008-09, denies deduction to assessee-employer for belated payment of employees’ contribution to PF/ESI beyond the PF Act due-date, follows co-ordinate bench ruling in Merchem Ltd.; Rejects assessee’s stand that co-ordinate bench ruling requires reconsideration since it misread SC ruling in Alom Extrusions Ltd, holds that the two rulings – Alom Extrusions Ltd. and Merchem Ltd.  apply in two different fields, ”the former with reference to Section 43B(b), being employer’s contribution and the latter dealing with employee’s contribution as covered by Section 36(1)(va)”; [TS-378-HC-2018(KER)]

FAQ on GST Audit:

  • Query:   When can a taxpayer pay tax on a provisional basis?
  • Answer: Under the GST regime, the taxpayer normally pays tax on a self-assessment basis. If a taxpayer is unable to determine the value and tax rate applicable to the goods/services they supplied, they should raise a request for provisional assessment, citing the reasons why they need to pay tax on a provisional basis. This request will be processed by a tax officer.

RBI Update:

  • The Reserve Bank releases monthly data on India’s international trade in services with a lag of around 45 days.

MCA UPDATES

MCA is conducting KYC of all Directors of all companies annually through a new form viz. DIR-3 KYC

  • Every Director who has been allotted DIN on or before 31st march, 2018 and whose DIN status is ‘Approved’.
  • Due date of filing of DIR-3KYC is on or before 31st August, 2018.
  • Mandatory Information DIR-3 – Unique Personal Mobile Number, Personal Email ID, OTP on Email ID and Mobile No.
  • Certification of DIR-3 KYC –  DSC of Director & DSC of practicing professional (CA/CS/CMA)
  • Filing of DIR-3 KYC would be mandatory for Disqualified Directors
  • If director fails to file DIR-3 KYC the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’
  • There will be following Consequences of filing of DIR-3 KYC after due date, After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.
  • MCA notifies ‘Nil Fee’ and ‘Delayed Fee of Rs. 5,000′ for Filing e-Form DIR-3 KYC under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, applicable w.e.f. 10 July 2018
  • MCA notifies format of e-form DIR-3 KYC under new Rule 12A (Directors KYC) along with procedure for restoration of deactivated DINs of Directors, applicable w.e.f. 14 July, 2018

ICAI Election 2018 ICON created on www.icai.org. And first notification to opt for polling booth change in the same city for the Members of  Delhi, Bengaluru, Chennai, Kolkatta and Mumbai posted. 8th August, 2018 is last date to exercise the option.

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.
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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MCA new update -Know your clients (KYC) OF DIRECTOR

Image result for kyc directors

Know your customer (alternatively, know your client or ‘KYC’) is the process of a business identifying and verifying the identity of its clients.

Central Government has extended the KYC for Directors as well. Just like Bank KYC, where governments want to know the Director and expect them to submit a yearly intimation about KYC and any changes, if any, in the details. It’s a form first time introduced by the Ministry of Corporate Affairs (MCA) wide its notification dated July 5, 2018, by issuing an amendment to Companies (Appointment and Qualification of Directors) Rules.

This form should be duly certified by a practicing professional (CA/CS/CMA). Filing of DIR-3 KYC would be mandatory for disqualified directors also.

There is no filing fees for DIR-3 KYC, however, if the form is filed after the due date,there is a penalty fee of Rs. 5,000 per form.

Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatory required to file form DIR-3 KYC on or before 31st August, 2018. Otherwise LATE FEES PENALTY 5000 FROM 1 SEPTEMBER 2018 AND DIN WILL BE DEACTIVATED.

Important points to be noticed:-

  • Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.
  • e-Form DIR – 3 KYC, need to file based on DIRECTOR IDENTIFICATION NUMBER (DIN), so even though, if any Director holding multiple Directorship in Company, then also they need to File e-Form DIR – 3 KYC, only once according to their DIN.

Check Points while Filling Form DIR-3-KYC:-

  • Unique Personal Mobile Number
  • Personal Email ID.
  • Duly Verified by OTP on Email ID and Mobile No.
  • The e-Form should be required to be certified by: Practicing Company Secretary, Practicing Chartered Accountant ,Practicing Cost Accountant

Documents Required:

  • DSC of Director duly Registered;
  • Self attested PAN card;
  • Self attested Aadhar card with updated Mobile number with UIDAI;
  • Self attested Electricity Bill, Mobile Bill, Bank statement of Director (latest 2 Months) of his/her present address;
  • Latest Passport size photo;
  • DIN declaration cum KYC.
  • Passport (mandatory for foreign national holding DIN.

Information required for filing DIR-3 KYC FORM:-

i) DIN

ii) Nationality

iii) Personal Mobile No.

iv) Personal Email ID

v) having a Valid Passport

vi) Residential status

DIR-3 KYC Will be deploy from 10.07.2018. it is applicable to all the Individuals holding DIN. First DIR3 KYC is needed to be filed by all Individuals who have been allotted DIN on or before March 31, 2018, need to file DIR-3 KYC on or before August 31, 2018. Thereafter, DIR-3 KYC needs to be filed every year by all Individuals on or before April 30th every year

After expiry of the due date by which the e-KYC form is to be filed, the MCA-21 system will mark all approved DINs (allotted on or before March 31, 2018) against which DIR-3 KYC forms have not been filed as ‘deactivated’ with reason as ‘non-filing of DIR-3 KYC’.

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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