corporate and professional updates 25th JUNE 2018

Image result for corporateDirect Tax :

  • Kolkata ITAT dismisses Revenue’s appeal for AY 2009-10, deletes long term capital gains (‘LTCG’) addition u/s. 50B, made by the AO on transfer of Trading and Distribution (‘T&D’) division of assessee-company (GE Healthcare OY’s wholly owned subsidiary) to Wipro GE Healthcare vide demerger (approved w.e.f. April 1, 2008); [TS-320-ITAT-2018(Kol)]
  • Calcutta HC sets aside ITAT order for AY 1983-84, allows Brooke Bond India’s investment allowance claim u/s. 32A on weighing machines, electrical equipments, other machineries and computers; Rejects Revenue’s stand that to qualify for allowance,  a plant / machinery has to be directly used in the manufacture of an article or thing;  [TS-318-HC-2018(CAL)]
  • Mumbai ITAT rules that capital gains of Rs. 455.70 Cr. arising to assessee-company (a tax resident of Singapore), pursuant to trading in Indian securities during AY 2011-12, not taxable in India under Article 13(4) of India-Singapore DTAA; [TS-321-ITAT-2018(Mum)]
  • CBDT proposes clear-cut timelines under transfer pricing, through a draft notification, suggested that the amount should be returned within 90 days of signing of APAs and MAPs.
  • Due date for furnishing challan-cum-statement in respect of tax deducted U/s 194-IA & 194-IB for m/o May’18- June30,

INDIRECT TAX

  • CBIC has issued a circular clarifying the procedure for interception of conveyances for inspection of goods in movement,and detention, release, and confiscation of such goods and conveyances.
  • Goods without eway bill, bill etc can be confiscated/detained. Others in same vehicle, with proper papers can’t be held. Circular 49 of 21.6.18.

FAQ on E-WAY BILLS:

  • Query:In case of movement of goods by Railways, is there a requirement for railway to carry e-way bill along with goods?
  • Answer: In case of movement of goods by Railways, there is no requirement to carry e-way bill along with the goods, but railways has to carry invoice or delivery challan or bill of supply as the case may be along with goods.

SEBI UPDATES

  • Sebi is set to revamp IPO norms to make them less onerous for legitimate sellers while clamping down on possible misuse. These include recognizing a wider set of institutional investors such as alternative investment funds (AIFs) as counting toward promoters’ contribution in startups, requiring financial disclosures for three years rather than five and reducing disclosure of the price band to two days before the issue opens from five now.

OTHER UPDATES

  • The Insolvency and Bankruptcy Code, 2016 consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
  • NSE is in the process of introducing a corporate governance code that will be stricter than the existing laws and regulations.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 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 & PROFESSIONAL UPDATES 22ND JUNE

Image result for corporate and professionalDirect Tax :

  • Madras HC dismisses Revenue’s writ appeal against the order of Single Judge for AY 2009-10 holding the final assessment order passed, without issuing draft order, and the subsequent corrigendum treating the earlier assessment order as “draft order” u/s 144C, as invalid;[TS-469-HC-2018(MAD)-TP]
  • Kolkata ITAT upholds CIT(A)’s acceptance of assessee’s TNMM over TPO’s CUP-method for benchmarking assessee’s (manufacturer in FMCG Industry) sale of finished goods transaction for AY 2012-13; Noting that prices at which assessee had sold its products to third party distributors in countries like Kenya, Congo, Sri Lanka etc. were compared by TPO with those sold to assessee’s AEs in Bangladesh, Dubai and UK without any adjustments to difference in economies of these countries;[TS-468-ITAT-2018(Kol)-TP]
  • The central board of indirect taxes and customs has notified the central goods and services tax (sixth amendment) rules, 2018 which shall come into force on the date of their publication in the official gazette.
  • Chennai ITAT confirms CIT(A) order, rejects deemed dividend addition u/s. 2(22)(e) in hands of assessee-individual during AY 2014-15, in respect of outstanding balance payable by assessee’s proprietary concern to a publishing company (in which assessee is a substantial shareholder); [TS-316-ITAT-2018(CHNY)]
  • Madras HC allows petitioner’s (deceased assessee’s spouse) writ, quashes re-assessment notice issued u/s 148 in the name of deceased-assessee, holds that petitioner cannot be compelled to participate in the proceedings and respond to Sec. 148 notice; In response to Sec. 148 notice issued in the name of assessee (within prescribed time-limit), petitioner intimated about assessee’s death and the subsequent notice was issued by Revenue beyond the limitation period.[TS-315-HC-2018(MAD)]

INDIRECT TAX

  • Goods can’t be Seized for Non-Filling of Part B of E-Way Bill transported within a distance of 50 Kms, rules Allahabad High Court.
  • CBEC has made in Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Sixth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette. Vide notification no 28/2018, dated 19th June 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.
  • 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.

 MCA Update:

  • MCA has made amendment in the Companies (Accounting Standard) Rules, 2006. These rules may be called Companies (Accounting Standard) Amendments Rules 2018, which shall come into force on the 1st Day of April 2018.
  • Form DIR-3 is likely to be revised on MCA21 Company Forms Download page w.e.f 21st JUNE 2018. Stakeholders are advised to check the latest version before filing.

RBI UPDATES

  • RBI has tweaked priority sector eligibility and classification norms following an announcement in the second bi-monthly policy statement on June 6 for Priority Sector Lending guidelines for housing loans with the Affordable Housing Scheme to low-cost housing for the Economically Weaker Sections.

SEBI UPDATES

  • Sebi is set to revamp IPO norms to make them less onerous for legitimate sellers while clamping down on possible misuse. These include recognizing a wider set of institutional investors such as alternative investment funds (AIFs) as counting toward promoters’ contribution in startups, requiring financial disclosures for three years rather than five and reducing disclosure of the price band to two days before the issue opens from five now.

OTHER UPDATES

  • The Employees’ Provident Fund Organisation (EPFO), a $165-billion behemoth that is also India’s biggest bond buyer, could raise borrowing costs for local companies if its participation is limited by restrictive rules on transaction settlement.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 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 12TH JUNE 2018

Image result for corporateDirect Tax:

  • Delhi HC upholds ITAT order, denies deduction u/s 37 to assessee-individual (a lawyer) for litigation/settlement expenses incurred in respect of settlement of dues of the company for which he stood personal guarantor in his capacity as MD of the company; Notes that on company’s inability to repay substantial advances to financial institutions / banks, assessee switched gear and became a lawyer to settle the dues of the company and entered into one time settlement and incurred the alleged expenses; [TS-295-HC-2018(Del)]
  • Mumbai ITAT allows assessee (a salaried employee) to change property declared as Self Occupied Property (‘SOP’) for the purpose of computing Income from House Property for AY 2011-12; ITAT notes that in the return of income, assessee declared Vasai property (from Mumbai) as SOP, however at a later stage of assessment, assessee sought to substitute Juhu Property (from a more developed locality in Mumbai) as SOP, which was rejected by AO; [TS-293-ITAT-2018(Mum)]
  • Mumbai ITAT allows assessee-company’s claim of long term capital loss (LTCL) arising on sale of shares of group companies during AY 2005-06, allows set-off against long term capital gains arising on surrender of tenancy rights; Rejects Revenue’s stand that transfer of shares of some group companies (loss making companies) to another group company was a sham transaction and a tax planning to generate LTCL which could be set off against LTCG; [TS-298-ITAT-2018(Mum)]
  • CBDT has dedicated a fortnight beginning June 1, 2018 for expeditious disposal of pending appeals and rectification matters. The direct tax body in a statement said the assessing officers have been directed to accord top priority to such matters and to give special attention to this area of work.
  • CIT vs. Sunita Dhadda (Supreme Court)  143(3)/ 292C: If the AO wants to rely upon documents found with third parties, the presumption u/s 292C against the assessee is not available. As per the principles of natural justice, the AO has to provide the evidence to the assessee & grant opportunity of cross-examination.
  • Mumbai bench of ITAT upheld the right of a taxpayer to change the selection of a house property that would be treated as self-occupied and having a ‘nil’ annual value. Consequently, the notional rent from such a house will not be taxable.

INDIRECT TAX

  • Authority for Advance Ruling (AAR) in Andhra Pradesh has ruled that warehoused duty-free ship stores, which stock goods imported without payment of duty and sell to outbound ships, will be liable to pay GST on supplies made to Indian naval ships, coast guard ships and ocean-going ships.
  • Union Minister Dharmendra Pradhan said that Petrol, diesel to be under GST soon, says Dharmendra PradhanAs the state owned oil industry is losing Rs 200 billion annually in terms of input credit

FAQ on E-WAY BILLS:

  • Query: Whether the e-way bill is required for movement of consignment for weighment to the weighbridge?
  • Answer:No e-Way bill is required for movement of goods up to a distance of 20 Km from the place of business of consignor to a weighbridge for weighment or from the weighbridge back to the place of business of consignor, within the same State, subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with Rule 55.
  • Query:Whether e-way bill is required for all the goods that are being transported?
  • Answer:The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees. Kindly refer to the e-way bill rules for other exemptions.

MCA Update:

  • Forms SPICe MoA and SPICe AoA are likely to be revised on MCA21 Company Forms Download page w.e.f 14th JUNE 2018. Stakeholders are advised to check the latest version before filing.
  • Payment through Union bank Internet Banking has been temporarily disabled. Stakeholders are advised not to choose UBI Internet Banking for making the payment. Stakeholders can still choose any other payment option available.

 KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 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 11TH JUNE 2018

Direct Tax:

  • Delhi ITAT allows carry forward of business loss claimed by assessee-company in the return of income filed u/s 153A (relating to assessment in search cases), although the same was denied in assessment u/s. 143 on account of belated filing of return u/s. 139 for AY 2010-11; Observes that Sec. 153A starts with non-obstante clause which inter alia overrides Sec. 139, holds that return filed u/s 153A is a separate return and once accepted and assessed, it replaces the original return u/s. 139(1); [TS-299-ITAT-2018(DEL)]
  • Mumbai ITAT rejects long term capital gains (LTCG) treatment to gains arising on sale of industrial unit (‘asset’) during AY 2005-06 which was acquired by assessee-individual on dissolution of partnership firm; Refuses to reckon firm’s holding period (which had purchased asset in 1984) for determining holding period in assessee’s hands, notes that Explanation 1 to Sec. 2(42A) r.w.s 49(1) which provides for inclusion of holding period of previous owner, does not cover situation under consideration; [TS-294-ITAT-2018(Mum)]
  • 15.06.2018 is last date for paying first installment of Advance Tax for FY 2018-19. Non/short payment is liable to penal interest.
  • No bar in Income Tax Act for owner of multiple residential properties to change self occupied property at time of assessment. Case of Venkatavarthan N Iyengar, ITAT.

INDIRECT TAX

  • Central Government vide Circular no. 44/18/2018 dated 2ndMay, 2018 has provided that merely because a transaction or a supply of tenancy rights involves execution of documents which may require registration and payment of registration fee and stamp duty, would not preclude them from the scope of supply of goods and services and from the payment of GST on tenancy premium.Further, it has been clarified that transfer of tenancy rights to a new tenant against consideration in the form of tenancy premium is taxable. However, grant of tenancy rights in a residential dwelling for use as residence dwelling against tenancy premium or periodic rent or both is exempt  [Sl. No.12 of notification no. 12/2017-Central tax (rate)].
  • As per the decision of the GST Council, e-way Bill system for inter-State movement of goods has been rolled out from 01st April, 2018. As on 13thMay, 2018, e-Way Bill system for intra-State movement of goods has been rolled out in the States/ Union Territory of Andhra Pradesh, Arunachal Pradesh, Bihar, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Nagaland, Sikkim, Telangana, Tripura, Uttarakhand, Uttar Pradesh and Pondicherry. E-Way Bills are getting generated successfully and till 13thMay, 2018 more than four crore and fifteen lakh e-Way Bills have been successfully generated which includes more than one crore e-Way Bills for intra-State movement of goods.It is hereby informed that e-Way Bill system for intra-State movement of goods would be implemented in Assam from 16th May, 2018 & Rajasthan from 20th May, 2018.With the roll-out of e-Way Bill system in these States/ Union Territory, it is expected that trade and industry will be further facilitated insofar as the transport of goods is concerned, thereby eventually paving the way for a nation-wide single e-Way Bill system. Trade and industry and transporters located in these States/ Union Territory may obtain registration/ enrolment on e-Way Bill portal namely https://www.gov.in at the earliest without waiting for the last date.

FAQ on E-WAY BILLS:

  • Query: If the goods having e-way bill has to pass through trans-shipment and through different vehicles, how it has to be handled?
  • Answer:Some of the consignments are transported by the transporter through transshipment using different vehicles before it is delivered to the recipient at the place of needs to update the vehicle number in which he is transporting that consignment in part B of the E Way Bill.destination. Hence for each movement from one place to another, the transporter
  • 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.

MCA UPDATES

  • Shell Companies: Around 2, 25,910 Companies identified for being Struck-off this Year, Says Finance Ministry.

RBI UPDATES

  • RBI has made changes in the Gold Monetization Scheme (GMS) to make it more attractive. The revamping of the scheme is aimed at enabling people to open a hassle-free gold deposit account. The short-term deposits should be treated as bank’s on-balance sheet liability.

 KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 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 9TH JUNE 2018

Image result for corporate and professionalDirect Tax:

  • Mumbai ITAT holds that Executive Search Services fees (‘ESF’) received by assessee (a Dutch company) not taxable as FTS under Article 12 of India-Netherlands DTAA for AY 2011-12; Rejects Revenue’s stand that ESF, which was received pursuant to Service Agreement (SA) with Indian group entity (SSIPL), was to be treated as ancillary and subsidiary to license fee (taxed as royalty) received from SSIPL under another agreement viz. License Agreement (LA) which was towards use of trade name, trademark, logo and the rights to use software;[TS-288-ITAT-2018(Mum)]
  • Delhi ITAT Special Bench (majority view) rules in favour of Nokia Networks OY (assessee, a Finnish company), holds Nokia India Pvt. Ltd. (NIPL, Indian subsidiary) does not constitute assessee’s PE in India for AYs 1997-98 and 1998-99; [TS-289-ITAT-2018(DEL)]
  • Penalty paid to Stock Exchange is a regular Business Expenditure: ITAT allows Deduction
  • CBDT dedicates Fortnight for Disposal of Pending Appeals.
  • Central Govt has decided to make PAN mandatory for remitting money abroad as the RBI has decided to stringent norms for Liberalized Remittance Scheme (LRS) as per which, anyone who is utilizing the scheme will now have to share PAN details – something that was not applicable earlier with regards to CA transactions up to $25,000.
  • Kolkata ITAT allows Sec. 10AA benefit to assessee in respect of international trading, warehousing and consultancy income for AY 2009-10; ITAT acknowledges that trading activity is not expressly covered u/s 10AA, but observes that as per the Special Economic Zone Act, 2005 (SEZ Act) and its Rules, 2006, definition of ‘service’ included trading activity; [TS-292-ITAT-2018(Kol)]
  • Mumbai ITAT confirms CIT(A)’s Rs. 50cr relief to industrialist Anil Ambani, allows Sec. 37(1) deduction for ‘consent’ fees /”settlement charges” paid by Mr. Ambani w.r.t charges of alleged violation of SEBI Act/Regulations; AO disallowed the said amount, reasoning that the payment was for ‘violation’ of provisions of SEBI Act and hence made for an ‘offence’ and therefore liable to be disallowed by invoking Explanation to Sec. 37(1); [TS-291-ITAT-2018(Mum)]

INDIRECT TAX

  • LAST DATE FOR SUBMITTING GSTR 1 FOR registered persons filing monthly returns for the month of May 2018 is 10th June 2018.

FAQ on E-WAY BILLS:

  • Query:If the vehicle, in which goods are being transported, having e-way bill is changed, then what is required to be done?
  • Answer:The e-way bill for transportation of goods should always have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods, due to trans-shipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the new vehicle number in Part B of the EWB.
  • Query: How the transporter is identified or assigned the e-way bill by the taxpayer for transportation?
  • Answer:While generating e-way bill the taxpayer has a provision to enter the transporter id in the transportation details section. If he enters 15 digits transporter id provided by his transporter, the e-way bill will be assigned to that transporter. Subsequently, the transporter can log in and update further transportation details in Part B of eway bill.

MCA UPDATES     

  • MCA has sought details from some auditor companies, which resigned their assignment after the companies concerned had reportedly refused to give them adequate information. Officials said explanations had been sought from auditors in 15-odd cases.
  • The President of India gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 which will give relief to Home Buyers and SMSE.

RBI UPDATES

  • RBI extended loan repayments deadline to 180 days from the due date without being classified as a non-performing asset. This latest announcement comes after the regulator’s April diktat which had allowed GST registered MSME borrowers with a turnover of up to Rs. 25 crore to delay loan repayments by 180 days.
  • RBI voted unanimously to hike repo rate by 25 basis points, in a first interest rate hike in a four-and-a-half year, citing a major upside risk to the baseline inflation on the back of high crude oil price. The central bank said that there was a 12% increase in the price of Indian crude basket, which was “sharper, earlier than expected and seems to be durable”

SEBI UPDATES

  • Sebi extended the date for submission of Aadhaar details by those investing in capital markets till a final judgment by the Supreme Court on proposed mandatory linking of 12-digit unique ID for all financial dealings.

OTHER UPDATES

  • last date for online claim of Unstructured CPE hours extended to 30th June – ICAI(Last date for submitting Self Declaration form for claiming CPE Hours under Unstructured Learning Activities for the Calendar Year 2017 – has been extended from 31st May, 2018 to 30th June, 2018)
  • Online Facility for members to update Email ID, Mobile & Address – ICAI has launched an Online Form for Members by which they can update their Mobile number and e-mail ids which are currently available in ICAI records.
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 7th June 2018

Image result for corporateDirect Tax:

  • Mumbai ITAT rejects applicability of TDS u/s 195 on payment of advertisement expenses and professional and consultancy fees paid to foreign nationals by the UK branch of assessee (a domestic company) during AY 2008-09, deletes Sec. 40(a)(i) disallowance; Observes that UK branch had incurred expenditure in connection with the advertisements in foreign magazines and websites, likewise, consultancy fee was paid in connection with registration of trade mark in UK;[TS-287-ITAT-2018(Mum)]
  • 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; [TS-276-ITAT- 2018(JPR)]

INDIRECT TAX

  • GST: A transaction once reported as B2C cannot be amended later to add GSTIN & convert transaction as B2B. CBIC FAQ 7 (Jun 2018) on Financial Services.
  • GST: The location of a supplier will be the state in which the person holds a bank account even if bank branches of other locations are used for rendering services to customers under the GST the government clarified.
  • CBIC has launched a tax refund drive in the first fortnight of June and issued instructions to swiftly settle refund claims of exporters that are held up because of mismatches in the returns filed by them.

FAQ on E-WAY BILLS:

  • Query: What has to be done by the transporter if consignee refuses to take goods or rejects the goods for any reason?
  • Answer:There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons. Under such circumstances, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ with relevant documents, return the goods to the supplier as per his agreement with him.

RBI Update:

  • The Reserve Bank of India has imposed a monetary penalty of Rs. 1.00 lakh (Rupees one lakh only) on Abhyudaya Mahila Urban Co-operative Bank Ltd., Channapatna, in exercise of the powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) for violating directives contained in para 3 of Reserve Bank of India.
  • NBFC Companies are planning to meet the RBI on the issue of implementation of Ind AS. RBI has deferred the implementation of Ind AS for banks by a year, while it is applicable for NBFCs from April 1, 2018.

MCA Update:

  • MCA gives extension for a period of one month for the steering committee on CSR with effect from 3rd June 2018.

SEBI UPDATES

  • SEBI has issued Master Circular for Stock Brokers which is a compilation of relevant circulars issued by SEBI which are operational as on date of this circular.

OTHER UPDATES

  • ICAI has signed the Mutual Recognition Agreement (MRA) with the South African Institute of Chartered Accountants (SAICA) on June 4, 2018, at SAICA HO, Johannesburg, South Africa. Read more at: http://www.icai.org
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 4th June 2018

Direct Tax:

  • Cochin ITAT rejects assessee’s (a software company) stand that payment to its sister concern (‘USTIPL’) under the sub-contracting agreement amounts to reimbursement of expenses, upholds applicability of TDS u/s 194J; Perusing agreement between assessee and USTIPL, ITAT notes that assessee had engaged USTIPL to depute resources and provide other administrative support to manage its project requirements with clients and in consideration, assessee had to reimburse all expenses incurred by USTIPL on the resources deputed to assessee and the apportioned cost of specific support services; [TS-278-ITAT-2018(COCH)]
  • ITAT upholds TNMM as most appropriate method (MAM) rejecting assessee’s CUP/CPM for AY 2011-12, follows Tribunal ruling in assessee own case stating that comparability under CUP method was not only faulty but devoid of proper analysis due to various assumptions and in absence of reliable data; Admits additional grounds in relation to inclusion / exclusion of comparables being fundamental and necessary for adjudication; Rejects assessee’s contention to exclude E-Zest solution as it was engaged in end-to-end development and software project development services; Remits comparability of 15 companies on various grounds such as contradicting observations of DRP and assessee, non-adjudication by lower authorities etc.; [TS-208-ITAT-2018(Bang)]
  • CBDT issued official notification for reward schemes for Income Tax Informants https://studycafe.in/2018/05/cbdt-issues-reward-schemes-for-income-tax-informants.html

Indirect Tax

  • CBEC has extended the time the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 under sub-section (4) of section 39 of the said Act read with rule 65 of the Central Goods and Services Tax Rules, 2017, for the months of July, 2017 to June, 2018, till the 31st day of July, 2018. Vide notification no 25/2018
  • For GST Refund GSTR-1 & 3B not must for all. Composition taxpayer to file GSTR-4, ISD-GSTR-6 & non-resident-GSTR-5. Circular 45/19/2018-GST of 30.5.18.
  • The Central Board of Indirect Taxes and Customs (CBIC) have asked its field offices to levy GST on goods in customs warehouse only at the time of final clearance.
  • CBEC issued procedure for sanction of pending IGST refund claims where records have not been transmitted from GSTN to DG systems.CIRCULAR NO.12/2018-CUSTOMS [F.NO.450/119/2017-CUSIV], DATED 29-5-2018
  • Eight state governments on Thursday announced their plans to roll out the electronic way bill (e-way bill) mechanism for transport of goods within their territories by June 3, a move that would lead to pan-India implementation of the crucial ant-evasion system under the goods and services tax (GST)

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.

MCA UPDATES 

  • Delhi High Court has sought a formal explanation from the MCA for its twin circulars of September 2017 that deregistered over 1 lakh companies for failure to file annual returns for three years and disqualified their directors.

RBI updates

  • RBI has ended the special dispensations granted earlier for NBFCs owned by the government. Instead, it has specified a roadmap, stretching till 2021-22, for these lenders to meet the norms on capital adequacy, provisioning and corporate governance.
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 & PROFESSIONAL UPDATES 28TH MAY 2018

Direct Tax:

  • kolkata ITAT rules that assessee (an Indian BPO company) not liable to deduct TDS u/s. 195 on payment of market support fees to US entities​ (including  assessee’s US based wholly owned subsidiary)​ for securing orders and solicit business from foreign customers during AY 2012-13; [TS-265-ITAT-2018(Kol)]
  • SC admits Revenue’s SLP challenging Gujarat HC judgment granting Article 8 relief under India-Singapore DTAA to assessee (a Singapore based shipping company);
  • Delhi HC admits cross appeals filed by NDTV & Income tax Department, frames substantial questions of law & lists the matter for hearing in September; HC to decide whether the Tribunal ‘erred’ in upholding the Rs. 642 cr addition made on NDTV u/s 69A of Income tax Act, with regards to the $150 mn overseas funding raised by the company
  • CBDT has constituted a Task Force vide Office Order with a mandate of drafting an appropriate direct tax legislation keeping in view the direct tax system prevalent in various countries, the international best practices, the economic needs of the country.

Indirect Tax:

  • CBEC has amend the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Vide notification no 45 /2018 – Customs, dated 23rd May 2018.
  • introduced intra-state e-way bill for two states and five Union Territories (UTs) from 25.5.2018. The remaining states — Chhattisgarh, Goa, J&K, Mizoram, Odisha, Punjab, Tamil Nadu and Delhi — would be brought in the system from June 3 to cover the entire country.
  • Government is exploring the possibility of creating new categories in its tariff structure that will allow it to impose import duties on hi-tech products without violating a global agreement that mandates nil duties.
  • 132 of the CGST Act, issuance of an invoice without supply of goods and wrongful utilization of input tax credit is a cognizable and non-bailable offence if the amount involved is over Rs 5 Cr.

FAQ on GST

  • Query:IF EXPORT SALE SHOWN AS DOMESTIC IN GSTR 3B BUT GST 1 FILLED CORRECTLY WHETHER REFUND CAN BE CLAIM .
  • Answer:Refund can be claimed by making necessary adjustments in next month gstr3b As you must be aware, at time of filing the refund , portal is mapping the refund with gstr3b So once you make correction in gstr3b , then you will be able to file form rfd

FAQ on E-WAY BILLS:

  • Query:Whether e-way bill is required for all the goods that are being transported?
  • Answer:The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees. Kindly refer to the e-way bill rules for other exemptions.

MCA updates

  • The insolvency ordinance has specified that the Limitation Act 1963 will apply for proceedings before the NCLT and NCLAT.

OTHER updates

  • NSE and MCX entered into merger talks ahead of the implementation of the universal exchange framework in October. The two entities are planning to approach SEBI) as early as this month.
  • Please submit your Self-declaration Form Online to avail 20 Unstructured CPE Hours for Calendar Year 2017 from the link http://cpeapp.icai. org/member/login. Last Date of submission: 31st May, 2018

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 22nd may 2018

Image result for corporate and professional updatesDirect Tax:

  • SC reverses HC’s conclusion, allows assessee’s claim for area-specific deduction u/s 80-IC in respect of its industrial undertaking located at Himachal Pradesh, rejects Revenue’s claim that tax-holiday eligibility period of 10 years had expired in assessee’s case;[TS-256-SC-2018]
  • SC dismisses assessee’s SLP against Uttarakhand HC decison denying Sec.80-IC deduction on interest earned on fixed deposit with bank for AY 2009-10 as it is not ‘dervied from’ eligible business; HC had observed that the Legislature has chosen to employ the word ‘derived’ in sec.80-IC as distinguished from ‘attributable to’; [TS-250-SC-2018]
  • CBDT has notified the Revised Procedure for Registration and online Submission of ‘Statement of Financial Transactions (SFT)’ in Form 61A under IT section 285BA read with IT Rule 114E. For procedure/ (https://report.insight.gov.in).Due date for submission: On or before 31st May 2018
  • Income Tax department cautioned tax deducted at source (TDS) deductors to adhere to the stipulated deadline of 31 May for filing their statements failing which they would invite a penalty of Rs 200 for each day of default.

Indirect Tax:

  • CBEC has made amendment by way of notification no16/2018- Central Tax, dated the 23rd March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 268(E), dated the 23rd March, 2018
  • GST Dept. arrests two persons Amit Upadhyay & Asad Anwar Sayed for allegedly Duping the Exchequer of Rs 127 Crore by Issuing Fake GST Invoices and Not Paying the Service Tax.
  • TODAY is last date to pay GST and file GSTR-3B of April 2018. Notifications 23/2018. Central Tax of 18.5.2018 & 16/2018 of 23.3.2018.
  • Union territories E way bill mandatory wef 25-05-2018

FAQ on E-WAY BILLS:

  • Query:Whether e-way bill is required for all the goods that are being transported?
  • Answer:The e-way bill is required to transport all the goods with the value exceeding fifty thousand rupees except the goods specified in Annexure to the notification.

MCA UPDATES

  • Jaiprakash Associates to Appeal Against NCLT Order, that directed the company to return nearly 760 acre land to its subsidiary Jaypee Infratech, while declaring the transfer of the land as “Fraudulent” and “Undervalued”
  • Bank of India (BoI) to realise Rs 1993 Crore from the First Successful NCLT Resolution concerning Tata Steel and Bhushan Steel
  • NCLT appoints 3 separate Interim Resolution Professionals (IRPs) to run Reliance Communications (RCom) and its two units, Reliance Telecom Ltd (RTL) and Reliance Infratel
  • LLP has to file form 11 (Annual Return) for the FY 2017-18 on or before 30th may, 2018.Otherwise Additional fees of Rs. 100/- per day in case of delay in filing of Form 11.
  • Banned Shell Companies come under Tax Scanner; CBDT asks MCA and RoCs to give details

SEBI UPDATES

  • Amendment to SEBI Circular No. IMD/FPIC/CIR/P/2018/61 dated April 5, 2018 and Circular No. IMD/FPIC/CIR/P/2018/74 dated April 27, 2018 on Monitoring of Foreign Investment limits in listed Indian companies.

RBI UPDATES

  • The Reserve Bank of India (RBI) has imposed, by an order dated May 14, 2018, a monetary penalty of Rs. 50 million on South Indian Bank Limited (the bank) for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms, Know Your Customer (KYC) norms and treasury function and for deficiencies in its compliance function and compliance culture. Vide press release 2017-2018/3038, dated 18th May 2018.

OTHER UPDATES

  • Asia’s Oldest Stock Exchange BSE Ltd. has been Recognised as a Designated Offshore Securities Market by the U.S. Securities and Exchange Commission(SEC) for Sale of Securities to American Investors
  • National Stock Exchange (NSE) received nod from US Derivatives Regulator, Commodity Futures Trading Commission (CFTC), to sell its product to US investors. Hence, US investors will now be able to trade in Indian Derivatives Market Directly
  • CBI likely to Approach INTERPOL for Red Corner Notice Against Nirav Modi and Mehul Choksi
  • Walmart approaches CCI for approval of Flipkart Acquisition
  • UltraTech to acquire Century Textiles’s Cement Business. Shareholders of Century Textiles will receive one share of UltraTech for every eight shares held in the Cement Unit according to the acquisition plan

Key Date:

  • GSTR Return summary for April: 22.05.2018
  • 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 20th MAY 2018

Image result for corporate and professional updatesDirect 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; ITAT​ clarifies that prior to amendment of IT (Tenth Amendment) Rules, 2016, DSIR had no power to quantify expenditure and highlights that issue under consideration relates to pre-amended provisions; [TS-251-ITAT-2018(PUN)
  • Mumbai ITAT holds that assessee was entitled to raise additional ground in reassessment proceedings at appellate stage claiming its transaction of transfer of packing division not in the nature of ‘slump sale’ u/s 50B, deletes long-term capital gains addition of Rs. 24.4 Cr for AY 2007-08; [TS-249-ITAT-2018(Mum)]
  • Chhatisgarh High Court held that the service of notice to the CA of the assessee cannot be treated as ‘service’, the entire re-assessment proceedings initiated and the objections rejected for reopening the assessment proceeding deserves to be quashed
  • 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:

  • Extension of due date for filing GSTR-3B of April 2018 to 22.5.18(Tuesday). Pay GST by 20.5.18(Sunday) only. Source Press Release of 18.5.18.
  • CBIC wrote to officials to expedite the process of approval of GST practitioners. A proactive approach in facilitating the enrolment and helping the applicants in case they have committed any bona fide mistakes while making the application will only further our cause of achieving a trade-friendly image for the department.
  • 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.

RBI Update:

  • The Reserve Bank of India has notified that the Non Resident Indians (NRIs) investment limit under Portfolio Investment Scheme in M/s Parag Milk Foods Ltd. has increased from 10% to 24% of its paid up capital.

MCA updates

  • MCA has issued a General Circular to clarify Condonation of Delay Scheme, 2018 w.r.t Pending Revival applications at NCLT. Ministry has received representations from stakeholders raising doubts regarding filing requirements of e-CODS, 2018,

SEBI updates

  • SEBI has issued further amendment to SEBI Circular on Monitoring of Foreign Investment limits in listed Indian companies.the deadline for the companies to provide the necessary data to the depositories has been extended to May 25, 2018.

Other  updates

  • ICAI issued Exposure Draft of Accounting Standard (AS) 109, Financial Instruments. Comments to be received by June 30, 2018.
  • Canara Bank invites Applications from CA Firms for Concurrent Audit of CanaraBank branches. Refer canarabank.com. Apply between 18.05.2018 & 01.06.2018
  • 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:

  • GSTR Return summary for April: 22.05.2018
  • 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)