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)

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

Image result for kyc directorsKnow 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.

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

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)