corporate and professional updates 6th June 2018

Image result for corporateDirect Tax:

  • AAR rules that the Liaison office (‘LO’) of the Applicant (International Zinc Association, a Belgium based International Non-Profit Association) established in India for conducting programmes / conferences / training on importance of zinc, not liable to tax in India under the Income-tax Act or India-Belgium DTAA, holds membership fee and contribution received from Indian members as non-taxable; [TS-284-AAR-2018]
  • AAR rules that Indian hotel managed and operated by Applicant (a Luxembourg based group engaged in operation and management of the hotels) would constitute its fixed place PE in India and income from the Indian hotel owner for provision of global reservation services (‘GRS’) [arising out of Centralised services agreement (‘CSA’)], would be attributable to its PE in India; Rejects applicant’s stand that since the question raised in application is only whether the income from GRS can be taxed as ‘royalty’ or FTS, AAR cannot adjudicate upon the issue of existence of PE, cites its duty as per Rule 12 of AAR Procedure Rules, 1996 to look at ‘all aspects of the questions set forth’ which would enable it to pronounce a ruling;[TS-283-AAR-2018]
  • Mumbai ITAT deletes over Rs. 3,200 cr. capital gains addition made by AO invoking Explanation 5 to Sec. 9(1) [relating to indirect transfers] in case of resident company (‘assessee’) during AY 2011-12; ITAT notes that during relevant AY, Singaporean parent had infused Rs. 148.52 cr. by way of share capital subscription for funding assessee’s acquisition of two Indian entities, however, AO linked the purchasing of shares of fifth degree holding company located outside India (for Rs. 1002 cr) to arrive at the valuation for shares issued by assessee to the Singapore entity, and made alleged capital gains addition;[TS-285-ITAT-2018(Mum)]
  • CBDT announced Information reward scheme under which a person can get reward up to Rs. 50 lakh for giving information to Investigation Directorates in Income Tax Department about substantial evasion of tax on income or assets in India.

INDIRECT TAX

  • announced Benami Transactions Informants Reward Scheme, 2018; a person can get reward up to Rs. One crore for giving specific information to Income Tax Dept about benami properties as well as proceeds from such properties.
  • GST: For refund in case of export of non-GST & exempted goods without payment of IGST, LUT/bond is not required. Circular 45/19/2018-GST of 30.5.18.
  • International passengers buying goods at airport ‘duty-free’ shops will not be subject to GST and the revenue department will soon clarify on this exemption. They will have to only collect a copy of the passport from the passenger to whom it sells the goods.

FAQ on E-WAY BILLS:

  • Query:How the distance has to be calculated, if the consignments are imported from or exported to other country?
  • Answer:The approximate distance for movement of consignment from the source to destination has to be considered based on the distance within the country. That is, in case of export, the consignor place to the place from where the consignment is leaving the country, after customs clearance and in case of import, the place where the consignment is reached the country to the destination place and cleared by Customs.

IBBI UPDATES

  • Insolvency and Bankruptcy Board of India (IBB) has issued Insolvency Professionals to act as Interim Resolution Professionals or Liquidators (Recommendation) Guidelines, 2018 to streamline the procedure for recommendation and appointment of Interim Resolution Professional (IRP) or liquidator.

OTHER UPDATES

  • govt is considering merging at least four state-run banks, including Bank of Baroda, IDBI Bank Ltd, OBC and Central Bank of India.  If the plan goes through, the merged entity will become the second-largest bank in the country with combined assets of ₹16.58 trillion.
KEY DATE:
  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

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 2nd june 2018

Image result for corporate and professional updatesDirect Tax:

  • Jaipur ITAT deletes disallowance u/s 40A(3) with respect to cash payment made by assessee-firm (engaged in real estate business) against purchases of land during AY 2013-14, observes that the payment was made out of the explained sources, through the registered document and as a disclosed transaction and the identity of the sellers and genuineness of  transaction was established; Notes that only at the insistence of specific sellers, assessee withdrew cash and made payment to them despite having sufficient bank balance, observes that in order to secure the deal, assessee had no other option but to make the payment in cash; [TS-276-ITAT-2018(JPR)]
  • Delhi ITAT refuses to delete Rs. 489 cr capital gains addition, however gives one more chance to assessee (Gagan Infraenergy) to establish the ‘genuineness’ and ‘validity’ of  the  transaction that it claims, is ‘gifting’ of 1.76 cr shares to another co.; Gagan Infra’s counsel argued that the company gifted 1.76 cr shares that it held in Jindal Steel (flagship operating co. of O.P. Jindal group), to another co., pursuant to a “family realignment” of O.P. Jindal Group;[TS-275-ITAT-2018(DEL)]
  • Income Tax Deptt launched and activated all the seven ITR forms for e-filing by taxpayers, after more than a month of them being notified.

Indirect Tax:

  • CBEC has made amendment by way of notification no 4/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 676 (E), dated the 28th June, 2017.
  • Due date for filing GSTR-6 by ISD for July, 2017-June, 2018 is extended till 31.07.2018. Notification to be issued shortly. Source: twitter- cbic.gov.in
  • Government has refuted exporters’ claim that Rs 20,000 crore of GST refund is pending, and said there has been no dip in refunds as it announced a special refund fortnight beginning May 31.

FAQ on E-WAY BILLS:

  • Query:How does taxpayer enter Part-A details and generate e-way bill, when he is transporting goods himself?
  • Answer:Sometimes, taxpayer wants to move the goods himself. E-way bill Portal expects the user to enter transporter ID or vehicle number. So if he wants to move the goods himself, he can enter his GSTIN in the transporter Id field and generate Part-A Slip. This indicates to the system that he is a transporter and he can enter details in Part-B later when transportation details are available.

RBI Update:

  • RBI has issued notification regarding Withdrawal of Exemptions Granted to Government Owned NBFCs. Vide notification no RBI/2017-18/181, dated 31st May 2018.

SEBI updates

  • SEBI directed rating agencies to set up committees to hear the appeals of issuers aggrieved by the ratings assigned to them. Currently, there is no stipulated mechanism to review such issues.

MCA UPDATES

  • ROC, Delhi & Haryana in its drive to clean the registry has issued notice of striking off of 1171 LLP’s under Section 75 of LLP Act, 2008 read with Rule 37 of LLP Rules, 2009.
KEY DATE:
  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

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 26TH MAY 2018

Direct Tax:

  • Mumbai ITAT rules that assessee (a stock broking company) cannot be held liable to deduct TDS u/s 194A on borrowing fees paid to National Securities Clearing Corporation Ltd. [‘NSCCL’, a SEBI approved intermediary], if it is found that at the time of payment, assessee was unaware of the identity of the lenders (ultimate recipient of income);  [TS-262-ITAT-2018(Mum)]
  • Kolkata ITAT upholds Sec. 263 revision on assessee-company for AY 2008-09, rejects assessee’s stand that CIT could not have revised the re-assessment since the latter one was a non est order by virtue of non-issue of Sec. 143(2) / 142(1) notices;  [TS-259-ITAT-2018(Kol)]
  • India’s net direct tax collection in 2017/18 stood at Rs 10.03 trillion, up 18 percent on year, the finance ministry said.
  • CBDT has directed the I-T Department to form a special team of officers to complete the task of filing these Appeals under Section 252(1) of the Companies Act, 2013 in various NCLT benches across the country by this month-end.

Indirect Tax:

  • CBEC has made amendment by way of notification no 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 785(E), dated the 30th June, 2017. Vide notification no 46 /2018-Customs, dated 23rd May 2018.
  • 31.05.18 is last date to file GSTR-6, Furnish of Return by Input Service Distributor for the months from July 2017 to Apr 2018.
  • DVAT has allowed extension for filing of online return for 4th Quarter of 2017-18. Thereby, the last date of filing of online/hard copy of fourth quarter return for the year 2017-18 in form DVAT-16 has been extended to 28/05/2018.

FAQ on E-WAY BILLS:

  • Query:Why the transporter needs to enroll on the e-way bill system?
  • Answer:There may be some transporters, who are not registered under the Goods and Services Tax Act, but such transporters cause the movement of goods for their clients. They need to enroll on the e-way bill portal to get 15 digit Unique Transporter Id.

Other updates

  • Union Cabinet approved, via an Ordinance, amendments to the Insolvency and Bankruptcy Code (IBC), giving homebuyers the status of creditors in the insolvency process.
  • The government has proposed rates for over 1,350 treatment packages ranging from Rs 1,000 to over Rs 1.50 lakh, for the Pradhan Mantri Rashtriya Swasthya Suraksha Mission.The government issued a 205-page model tender document.

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

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 25TH MAY 2018

Image result for corporate personalityDirect Tax:

  • Calcutta HC upholds ITAT order for AYs 2008-09 and 2009-10,  rules that provision for bad and doubtful debt deduction u/s 36(1)(viia) incase of assessee-bank (a regional rural bank) ​has to be computed @ 10% of the aggregate monthly average advances by taking ​’cumulative​’​  outstanding advances by rural branch; [TS-261-HC-2018(CAL)]
  • Gujarat HC upholds ITAT order for AY 2009-10, denies capital gains exemption benefit u/s. 54F to assessee-individual as the construction of the flats for personal use was completed before the sale of the capital asset (i.e. land); Assessee owned a land with a bungalow on it, which was demolished to construct 8 flats, 4 of which were sold to buyers and rest were occupied by assessee for her own residence, assessee considered the proportionate land apportioned to 4 flat purchasers as sale of land belonging to her and claimed Sec. 54F benefit; [TS-258-HC-2018(GUJ)]
  • Mumbai ITAT rules that Dominos Pizza International Franchising Inc (a US based company) does not create a PE in India for AY 2012-13 by virtue of the Master Franchises Agreement (MFA) entered with Jubilant Food Works Ltd. (‘Jubilant’) for the franchise of Dominos Pizza Store in India; Rejects Revenue’s stand that Jubilant constitutes assessee’s dependent agent PE in India, referring to various clauses of MFA, ITAT observes that no activities are carried out by Jubilant on behalf of assessee; [TS-260-ITAT-2018( Mum)]
  • Task force rewriting the income-tax laws has been granted three months more till August to submit its report to the government. CBDT set up to draft a law to replace the income Tax Act, which has been in force since 1961, was to submit its report by this month-end.
  • Due Date for Quarterly statement of TDS deposited for the quarter ending March 31, 2018 is May 31, 2018.

INDIRECT TAX

  • E-way bill for moving goods within a state will become mandatory from June 3, with the country-wide roll out of the mechanism. The government had launched the electronic-way or e-way bill system from April 1 for moving goods worth over Rs 50,000 from one state to another.
  • If turnover 1.5 cr or more, Last Day to file GSTR-1 for Apr is 31.5.2018 & for May is 10.6.2018. From May, 10 days to file GSTR-1 i.e. before GSTR3B.

FAQ on E-WAY BILLS:

  • Query: What are the documents that need to be carried along with the goods being transported?
  • Answer:The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, bill of entry as the case may be and a copy of the e-way bill number generated from the common portal. Please refer relevant rules for details.

SEBI UPDATES

  • SEBI is planning to ease the norms for mutual funds (MF) participation in the derivative markets. The regulator is considering measuring such as, allowing domestic funds to ‘write’ options and increasing cap on F&O investments.

OTHER UPDATES

  • Cabinet cleared the IBC Ordinance paving way to a host of changes in the modality of the Insolvency and Bankruptcy Code (IBC).  The Ordinance is based on the changes suggested in a report by a 14-member Insolvency Law Committee.

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

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 24 TH MAY 2018

 Image result for CORPORATEDirect Tax:

  • Pune ITAT rejects Revenue’s plea for AY 2009-10 that deduction with respect to Research & Development (R&D) expenditure u/s 35(2AB) is restricted only to the extent of approval granted by Department of Industrial and Scientific Research (DSIR) in form No.3CL;[TS-251-ITAT-2018(PUN)]
  • SC admits assesses SLP against Delhi HC judgment directing attachment of assesses bank accounts pursuant to search carried on in respect of the ‘third person’;Based on the facts,HC had observed that prima facie there is a strong case made by the Department that the money in assesses bank accounts is an undisclosed income of the ‘third person’ in respect of whom ‘search’ was carried out;
  • Share certificate of permanent establishment (PE) in case when as agent/representative file return on behalf of foreign Co. and if no PE -Format for non PE certificate and to whom it will mark and by whom it is get signed for income tax purpose
  • Share draft letter for declaration from foreign Co-as no other income than mentioned/filed in Indian IT return for sending attachment in relation to defective return.

Indirect Tax:

  • CBEC has rescinded  the notification number G.S.R. 319(E) dated the 31st March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 31st March, 2018, with effect from the 25th day of May, 2018. Vide notification no 11/2018 – Union Territory Tax, dated 21st May 2018
  • DVAT has allowed extension for filing of online return for 4th Quarter of 2017-18. Thereby, the last date of filing of online/hard copy of fourth quarter return for the year 2017-18 in form DVAT-16 has been extended to 28/05/2018.

FAQ on E-WAY BILLS:

  • Query:Which types of transactions that need the e-way bill?
  • Answer:For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including an unregistered person or for reasons other than supply also, e-way bill is mandatory.

MCA UPDATES

  • CBDT has directed the I-T department to form a special team of officers to complete the task of filing petitions against Shell Companies to recover Dues in various NCLT benches across the country by this month-end, and has written to MCA also.

SEBI UPDATES

  • SEBI has issued circular w.r.t Investment of own funds (excluding funds lying in Core Settlement Guarantee Fund) by Clearing Corporations in International Financial Services Centre (IFSC).

RBI UPDATES

  • The RBI has increased the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under the automatic route from 4:1 to 7:1. However, this ratio will not be applicable if total of all ECBs raised by an entity is up to USD 5 million or equivalent.

OTHER UPDATES

  • Finance ministry has tied up with 40 entities, including Flipkart, Swiggy, Patanjali and Amul, which are big job creators, for extending loans to small entrepreneurs under the Mudra scheme.

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

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 23rd may 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Delhi held that addition cannot be made for mere non- production of Directors and non- furnishing of their residential address. M/s Om Shubham Investment & Finance Pvt. Ltd. Vs. ITO (ITAT Delhi)
  • ITAT Delhi held that Depreciation on brand value allowed taking it as intangible assets. DCIT Vs. Kuantum Papers Ltd. (ITAT Delhi)
  • Pune ITAT rejects Revenue’s plea for AY 2009-10 that deduction with respect to Research & Development (R&D) expenditure u/s 35(2AB) is restricted only to the extent of approval granted by Department of Industrial and Scientific Research (DSIR) in form No.3CL;
  • Due date for Quarterly statement of TDS deposited for the quarter ending March 31, 2018 is May 31, 2018
  • ITAT Kolkata decided that Section 269SS Restricting Cash Transaction not applicable to Capital contributed by Partner in Partnership Firm- In ITO vs. M/s. Dayamayee Marble & Granite.
  • The Income Tax Department has enabled ITR-3 which is applicable for individual and HUF who have income from profits and gains from business or profession. A total of four ITR Forms including ITR-1, 2, 3 and 4 has been launched by the department so far
  • Income Tax Department Cautions TDS Deductors against Quarterly Filing Default failing which, would invite a penalty of Rs 200 for each day of default

Indirect tax

  • Official portal of GST Dept, GSTN has added Two New Features including Additional details are now available in Form GSTR-2A and Auto drafted Form GSTR-4A
  • The Maharashtra Authority for Advance Ruling (AAR) held that Liquidated Damages are Classifiable as ‘Other Services’ and is taxable at the rate of 18% GST

FAQ on E-WAY BILLS:

  • Query:How can the taxpayer use the Android App to generate the e-way bill?
  • Answer:The taxpayer has to register the EMEI numbers of the mobiles through which he wants to generate the e-way bill on the e-way bill system. Please see the user manual for Mobile App based e-way bill generation, on the portal.

 Other updates

  • DGFT has extended the last date for mandatory digital payment through e-MPS.A facility for digital payment for miscellaneous applications (e-MPS) was launched recently and was made mandatory w.e.f 01-05-2018.
  • PNB scam: ED issues summons to Nirav Modi’s father Deepak Modi, Sister Purvi Mehta and her husband Mayank Mehta
  • PNB case: Enforcement Directorate seizes Rs 85-Crore Worth Jewellery of Choksi’s firm brought from Dubai
  • Supreme Court of India has decided to Hear All Matters Relating to the RBI Directive Stopping Banks from Dealing with Virtual Currencies
  • Bank fraud: ED attaches Rs 184.68-cr worth assets of Rajasthan -based Chartered Accountant (CA) Bharat Bomb and others in connection with its probe into an alleged Bank Fraud worth over Rs 1,000 Crore
  • Barely two months after it registered a case against Hyderabad-based Totem Infrastructure Limited for allegedly duping Union Bank of India of Rs 313.84 Crores, CBI filed a charge sheet against three accused., M/s Totem Infrastructure Limited, Hyderabad, its Promoter and Director

Key Date:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

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 19th may 2018

Related image

Direct Tax:

  • Madras HC directs the order u/s 201(1)/(1A) ​(for TDS default on payments to non-resident) ​be treated as ​’show-​cause​’​  notice to the assessee instead of remitting back the matter for a fresh consideration; HC observes that ‘principles of natural justice’ have not been followed by the Revenue while passing the order, notes that materials  which  have  been referred to in the order ​passed by AO ​were never disclosed to the assessee​; HC also notes that AO’s order does not deal with all the factual objections raised by the assessee​ and HC concludes that “The respondent having referred  to several  materials and information not pertaining to the petitioner/assessee in the impugned order and arriving at a conclusion against the petitioner largely based on such information, the impunged proceedings can be directed to be treated as a show cause notice​”​; Directs the assessee to submit preliminary objections wherein it can also raise plea of limitation ​(initiation of TDS default proceedings beyond 6 years) ; HC rejects taxpayer’s request that “it should be furnished with all information that the respondent has referred to and relied on or might have collected behind the back of the petitioner​”, HC instead directs taxpayer to request specific documents and ​​explain its relevancy ​to the tax authorities :HC [TS-248-HC-2018(MAD)]
  • Delhi ITAT holds that any claim to treat expenditure as extra-ordinary and not arising in normal course of business “needs to be demonstrated with strict evidence”; [TS-345-ITAT-2018(DEL)-TP]
  • Where asssessee had charged depreciation for wind mills at a higher rate than what is mentioned in Schedule XIV of Companies Act, 1956,as windmill had not performed at expected level and nothing was brought on record to show how and on what basis, higher rate of depreciation was arrived,while computing book profit AO had restricted the depreciation as per Schedule XIV of Companies Act, 1956 and holding that assessee had no reason to provide depreciation at a higher rate.-Indus Finance Corporation Ltd. v. Deputy Commissioner of Income Tax.
  • HUF does not come under specified category of relative under section 56(2) (vii), Explanation (e); therefore, money received by an individual from HUF as gift would not considered as valid gift.-Gyanchand M. Bardia v. Income Tax Officer.
  • Incurred in connection with issue of shares was to be held as capital in nature: Madras- HC Sterling Holiday Financial Services Ltd. v. Assistant Commissioner of Income Tax.
  • Income Tax could be levied only when real income would accrue to assesse. Where a dispute was pending between assessee-contractor and builders, only income that had come to assessee in relevant assessment year would be taxable and not income that would have come to it if claims against builders were allowed.-HC ofKerala- Commissioner of Income Tax v. Sushil Thomas Abrahum.
  • CBDT has directed the Income Tax department to hold a special ‘grievance redressal fortnight’ next month to address taxpayers’ disputes regarding rectification and adjustments made in tax demands. between June 1-15.
  • Gujarat High Court in the case of M/s. Remark Flour Mills Pvt. Ltd. Vs State of Gujarat Directed that Collecting post-dated cheques under coercion during raid is not permissible, when no tax demand has been confirmed or crystallized.

INDIRECT TAX

  • The Central Board of Indirect Taxes & Customs has notified the Customs Brokers Licensing Regulations, 2018 in supersession of the Customs Brokers Licensing Regulations, 2013.
  • Constructing residential accomodation for police couldn’t be classified as construction of complex services.-CESTAT New Delhi BENCH, Gupta Construction Company v. Commissioner of Central Excise.
  • Replacing old damaged water lines of villages was classifiable as commercial construction services.-CESTAT New Delhi- Vijay Kumar Kataria v. Commissioner of Central Excise, Delhi.
  • Where applicant is a supplier of materials for erection of towers, testing etc. called Tower Package and supply of allied services like survey and erection of towers etc. and wants a ruling on whether he is liable to pay tax on freight bills, it is held that applicant supplies works contract service and GST is to be paid at 18 per cent on entire value of composite supply, including supply of materials, freight and transportation, erection, commissioning etc.and it is merely a composite supplies.-AAR West Bengal-EMC Ltd.,In re.
    GST waives off late fees from October for taxpayers who were unable to file GSTR-3B due to technical issues of Trans-1 filing, failed to file TRANS-1 before December 27, 2017.
  • Accommodation and restaurant services provided by applicant engaged in hotel business within premises of Hotel, to employees and guests of SEZ units cannot be treated as supply of goods and / or services to SEZ units in State; said services constitute ‘intra-State’ supplies and are taxable accordingly-AAR Karnataka.

FAQ on E-WAY BILLS:

  • QueryWhether the e-way bill can be cancelled? If yes, under what circumstances?
  • Answer:Yes, e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill. The e-way bill can be cancelledwithin 24 hours from the time of generation

MCA Update:

  • MCA release a corrigendum related to Companies (Audit & Auditors) Second Amendment Rules, 2018 .
  • MCA Clarification on Condonation of Delay Scheme, 2018 on 17.05.2018 (General Circular) Click on the link for more information http://ccurl.in/ NWe0rf


ICAI updates

  • ICAI has released aFAQ on accounting treatment of increase in liability on account of enhancement of the gratuity ceiling from Rs. 10 lakhs to Rs. 20 Lakhs due to Payment of Gratuity (Amendment) Act 2018.

Key Date:

  • GSTR Return summary for April: 20.05.2018
  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

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 18TH MAY 2018

Image result for corporate and professional updatesDirect Tax:

  • Gujarat HC reverses ITAT order, holds that payment to education society for recouping deficit in payment of tuition fees of employees’ children does not amount to perquisite for AY 2000-01 and 2001-02; Notes that the children of the employees were studying in that Education Society and were paying fees at a subsidized rate and burden borne by assessee per child per month never exceeded Rs. 1000; [TS-246-HC-2018(GUJ)]
  • Ahmedabad ITAT opines that location of AO, at the point of time when Tribunal hears and determines the case, is relevant for determining jurisdiction of bench to hear stay/appeals, however,  directs registry to place matter before the President for final decision on transfer of assessee’s case to Delhi benches ; [TS-240-ITAT-2018(Ahd)]
  • Where asssessee had charged depreciation for wind mills at a higher rate than what is mentioned in Schedule XIV of Companies Act, 1956,as windmill had not performed at expected level and nothing was brought on record to show how and on what basis, higher rate of depreciation was arrived,while computing book profit AO had restricted the depreciation as per Schedule XIV of Companies Act, 1956 and holding that assessee had no reason to provide depreciation at a higher rate.-Indus Finance Corporation Ltd. v. Deputy Commissioner of Income Tax.
  • HUF does not come under specified category of relative under section 56(2) (vii), Explanation (e); therefore, money received by an individual from HUF as gift would not considered as valid gift.-Gyanchand M. Bardia v. Income Tax Officer.
  • Incurred in connection with issue of shares was to be held as capital in nature: Madras- HC Sterling Holiday Financial Services Ltd. v. Assistant Commissioner of Income Tax.
  • Income Tax could be levied only when real income would accrue to assesse. Where a dispute was pending between assessee-contractor and builders, only income that had come to assessee in relevant assessment year would be taxable and not income that would have come to it if claims against builders were allowed.-HC of Kerala- Commissioner of Income Tax v. Sushil Thomas Abrahum.
  •  for individuals and HUF having income from any sources except profits and gains of business and profession, including NRIs.
  • ITR-1 Sahaj was activated earlier by the department for resident Indians having income from salaries, house property and bank interest with total income of up to Rs 50 lakh.

INDIRECT TAXES

  • Constructing residential accomodation for police couldn’t be classified as construction of complex services.-CESTAT New Delhi BENCH, Gupta Construction Company v. Commissioner of Central Excise.
  • Replacing old damaged water lines of villages was classifiable as commercial construction services.-CESTAT New Delhi- Vijay Kumar Kataria v. Commissioner of Central Excise, Delhi.
  • Where applicant is a supplier of materials for erection of towers, testing etc. called Tower Package and supply of allied services like survey and erection of towers etc. and wants a ruling on whether he is liable to pay tax on freight bills, it is held that applicant supplies works contract service and GST is to be paid at 18 per cent on entire value of composite supply, including supply of materials, freight and transportation, erection, commissioning etc.and it is merely a composite supplies.-AAR West Bengal-EMC Ltd.,In re.
  • GST waives off late fees from October for taxpayers who were unable to file GSTR-3B due to technical issues of Trans-1 filing, failed to file TRANS-1 before December 27, 2017.
  • Accommodation and restaurant services provided by applicant engaged in hotel business within premises of Hotel, to employees and guests of SEZ units cannot be treated as supply of goods and / or services to SEZ units in State; said services constitute ‘intra-State’ supplies and are taxable accordingly-AAR Karnataka.
  • 31 May is last day to file GSTR-1 for April if turnover 1.5 cr or more. For May file by 10 June & for June by 10 July i.e before GSTR-3B. Notification No. 18/28 March.
  • No late Filing fee if GSTR-3B from October 17 – April 18 filed by 31 May, where TRAN-1 submitted by 27 December but filed by 10 May due to technical issues.

FAQ on E-WAY BILLS:

  • Query: How is the validity of the e-way bill calculated?
  • Answer:The validity period of the EWB is calculated based on the ‘approx. distance’ entered while generating the EWB. For every 100kms one day is a validity period for EWB as per rule and for part of 100 KM one more day is added. For ex. If approx. distance is 310KMs then validity period is 3+1 days.

OTHER UPDATES

  • Aadhaar not mandatory for central govt. employees for getting pension: Minister of State for Personnel. Press Trust of India.
  • DGFT has issued trade notice w.r.t Non-submission of complete Appendix 4E, containing technical details, chemical reactions and data sheet for advance authorisation applications on self declaration basis under Para 4.04 and 4.07 of HBP for cases relating to NC-4.

Key Date:

  • GSTR Return summary for April: 20.05.2018
  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

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 17TH MAY 2018

Image result for corporate and professional updatesDirect Tax:

  • Delhi HC sets aside ITAT order holding payment by airline company (assessee) for services under crew lease agreement with Lufthansa, Germany as non-taxable ‘business profit’ absent PE in India, directs ITAT to examine taxability as FTS u/s. 9(1)(vii) and Article VIIIA of India-Germany DTAA; [TS-245-HC-2018(DEL)]
  • Delhi HC sets aside ITAT order passed u/s. 254(2) [pursuant to rectification application moved by Prannoy Roy (‘assessee’)], rejects ITAT’s view that an order directing early hearing to Department is merely an administrative order; [TS-229-HC-2018(DEL)]
  • CBDT releases java utility of ITR- 2 for ay 2018 -19. Income Tax Return Forms AY 2018-19 (FY 2017-18).
  • Launch of new SINGLE PAGE ITR Form-1(Sahaj). This initiative will benefit more than three crore tax-payers who will be eligible to file their return of income in this simplified Form.
  • The number of Income Tax Return Forms AY 2018-19 (FY 2017-18) has been reduced from the existing nine to seven forms.
  • The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalized and a single ITR-2.
  • ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam) respectively.
  • There is no change in the manner of filing of ITR Forms.
  • Return is furnished in ITR- 1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form: (i) an individual of the age of 80 years or more at any time during the previous year; or (ii) an individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the return of income.

INDIRECT TAX

  • The annual return forms for GST may ask taxpayers to explain any discrepancies between their income tax and GST returns as the government seeks to tighten rules to deter companies from evading taxes.
  • The Maharashtra Government has notified that the provisions of the E-Way Bill will be applicable for intra-State movement of goods from 25th May 2018.

FAQ on E-WAY BILLS:

  • Query:Which types of transactions that need the e-way bill?
  • Answer:For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including an unregistered person or for reasons other than supply also, e-way bill is mandatory.

RBI Update:

  • The Reserve Bank of India has imposed a monetary penalty of Rs. 2.00 lakh (Rupees two lakh) on The Vriddhachalam Co-operative Urban Bank Ltd. (No.E 81), 64 South Fort Street, Vriddhachalam, 606001, in exercise of the powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies), for violation of the directive of the Reserve Bank prohibiting extension of loans and advances to Directors/their relatives as provided in Para 5 of Master circular UBD.CO.BPD.MC.No.8/12.05.001/ 2013-14 dated July 1st 2013.

Key Date:

  • GSTR Return summary for April: 20.05.2018
  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

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)