CORPORATE AND PROFESSIONAL UPDATES 9TH JULY 2018

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  • Delhi ITAT deletes Sec. 40(a)(i) disallowance of Rs. 120 cr. for airfreight payments made by assessee (a logistic and Cargo handling company) without TDS to non-resident parties during AY 2014-15; Observes that assessee did not claim the airfreight as expenses in the P & L account as the payments were made on behalf of its Indian clients/customers (who reimbursed the amount to assessee); [TS-354-ITAT-2018( DEL)]
  • Kolkata ITAT allows the long term capital loss claim on off-market sale of shares by assessee to its group company during AY 2009-10; Rejects Revenue’s stand that the off market transaction with group company was a colourable device only to claim the loss and reduce the tax burden;Observes that in present case, the share-sale transaction was duly supported by the required documentary evidence, delivery instructions were also issued to the depository participant evidencing that there was actual delivery of shares; [TS-349-ITAT-2018(Kol)]
  • CBDThas issued Final Notification (applicable from AY 2017-18) for exception, modification and adaptation in respect of a foreign company said to be resident in India due to its place of effective management (POEM) being in India, u/s 115JH of IT Act.
  • When the revenue has accepted the amount as loan in the hands of other party, it cannot take up a contrary stand and treat the same loan in the hands of the assessee as a gift or a sum received without consideration taxable u/s-56(2)(vii)(a) – ITO Vs. Shri Paramveer Abhay Sancheti (2018 (7) TMI 215 – ITAT Nagpur).

Indirect Tax:

  • CBEC has amended the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Seventh Amendment) Rules, 2018, which shall be deemed to have come into force with effect from the 12th day of June, 2018. Vide notification no 29/2018, dated 6th July 2018.
  • GST: CBIT notifies CGST (Seventh Amendment) Rules, 2018 and amended Rules 125, 129, 130, 131, 132 & 133 effective from 12.06.2018 –N.29/2018-CT, dt.06.07.2018.
  • Alternate accommodation to be paid to the tenant of the old building by the developer / owner – compensation for alternate accommodation / damages for delayed handover of possession of the new premises – Levy of GST confirmed – AAR, in Zaver Shankarlal Bhanushali (2018 (7) TMI 227).
  • CBIC has developed a mobile app ‘GST Verify’ to protect interest of consumers. It is an android app to verify if the person collecting GST from the consumer is eligible to collect it or not. It also provides the details of the person collecting GST.
  • Electricity bills can have GST component at times. Non-tariff charges, which include application fee for releasing connection, rentals charged against metering equipment and labour charges for shifting of meters and service lines, are liable to taxed at 18% under the GST.

FAQ on GST AUDIT:

  • Query: Is a summary assessment order always passed against the taxpayer?
  • Answer:No, the order is not always passed against the taxpayer. If the goods are being transported or stored in a warehouse, the taxpayer cannot be held responsible for them. In such cases, the order is passed against the person in charge of the goods at that point, per Section 64 of the CGST/SGST Act.

RBI UPDATES

  • RBI has decided to put in place a graded enforcement action framework to enable appropriate action in respect of statutory auditors for any lapses observed in conducting a bank’s statutory audit. The framework would cover, instances of divergence identified in asset classification and provisioning during the RBI inspection vis-à-vis the audited financial statements of banks above the threshold specified etc.

SEBI UPDATES

  • SEBI reviewed the mechanism of dividend adjustment for stock options and allowed alteration in strike price. According to the regulator, adjustment in strike price will be carried out in case dividend declared by a company is above 5 per cent of the underlying stocks.

OTHER UPDATES 

  • IBBIhas notified, the IBBI (IRP for Corporate Persons) (Third Amendment) Reg., 2018.
  • DGFThas Notified the office address of DGFT and its Regional Authorities and their Jurisdiction and Private SEZs under the Foreign Trade Policy, 2015-20.

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

corporate and professional updates 6th JULY 2018

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  • Kerala HC reverses ITAT order and upholds re-assessment for AY 1999-2000, rejects assessee-company’s stand that no other issues can be dealt in re-opening other than what were recorded as reasons u/s. 148(2); Notes that reassessment was concluded on 4 issues, out of which 2 were part of the reasons recorded and the remaining 2 were detected in the course of re-assessment proceedings; [TS-351-HC-2018(KER)]
  • Madras HC allows assessee’s (Dr. Prathap Reddy, Chairman of Apollo Hospitals) writ, directs Income-tax Settlement Commission (‘ITSC’) to permit assessee to make good the short fall in payment of additional tax and interest and then proceed with the adjudication of the settlement application on merits; ITSC had treated assessee’s settlement application as ‘invalid’ u/s. 245D(2C) on the ground that the primary condition of payment of tax on the additional income was not satisfied to the extent of adjustment sought against refund due for AY 2016-17 (which was subsequently received by assessee and was not available for adjustment); [TS-350-HC-2018( MAD)]
  • Income Tax returns filing due date for non-auditable assesses is 30th July 2018. Kindly file it on or before otherwise a penalty will be livable on late filing.
  • The CBDT has extended the deadline for the PAN-Aadhaar linking to March 31 next year. This is the fifth time the government has extended the deadline for individuals to link their Permanent Account Number (PAN) to their biometric ID (Aadhaar).
  • Hyderabad ITAT holds that one-time payment by assessee-company under the trademark and license agreement entered with GMR Holdings Pvt. Ltd., is in the nature of ‘intangible asset’, allows depreciation u/s. 32(1)(iii) for AY 2010-11; Rejects assessee’s stand that since it was given only a license to use the trademark as part of its corporate name and no ownership rights were given, the amount was revenue in nature; ITAT remarks that “without acquiring the aforementioned trademark and license, assessee would have had to commence business from scratch and through the gestation period and by acquiring aforesaid business rights/ license, assessee could incidentally boost its revenues; [TS-347-ITAT-2018(HYD)]
  • ITAT adjudicates on comparable selection for Indian branch office of a foreign company (assessee) engaged in providing software development services for AY 2009-10; Rejects Cat Technologies due to diverse activities and lack of segmental information and Thirdware Solutions as it is engaged in sale of license and subscription; [TS-482-ITAT-2018(DEL)-TP]

INDIRECT TAX

  • Government has extended the exemption on intrastate and interstate supplies of goods and services or both received by a registered person from any supplier, who is not registered, from whole of the central tax livable under section 9(4) of the CGST Act, 2017 or integrated tax leviable under section 5(4) of IGST Act, 2017 till 30th September 2018.
  • No e-way bill in respect of movement of goods originating and terminating in the state of Delhi (i.e. intra state movement but without passing through any other state) shall be required where consignment value does not exceed Rs. 1,00,000.
  • Govt is looking at creating a centralized Authority for Advance Rulings (AAR) for GST after divergent rulings on identical issues fuelled confusion over applicability and the rate of tax.
  • CBIC notifies tariff concession on specified goods on Import from specified countries vide Notification No. 50/2018–Customs- seeks to provide the tariff concession to the goods of the description specified in column (3) of the Table hereto annexed and falling under the Chapter.
  • Govt is unlikely to insist on implementing the reverse charge mechanism, a key anti-evasion measure proposed under GST, on concerns that the rule will adversely impact small businesses while not yielding revenue gains.
  • Due date for filing GSTR -1 for m/o June 2018 – Applicable for taxpayers with turnover more than 1.50 crore- July 10, 2018.

FAQ on GST AUDIT:

  • Query: What happens at the end of an auditing session?
  • Answer: At the end of an auditing session, the findings will be declared and the audit report will be submitted to the Assistant Commissioner. These findings include discrepancies in tax refunds, tax payments, or input tax credit between the audited financial statement and the information furnished by the taxpayer. After the findings are declared, the taxpayer will be given a chance to be heard by the tax officials.
  • 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.

RBI Update :

  • It is hereby notified for information of public that the Reserve Bank of India is satisfied that in the public interest, it is necessary to extend the period of operation of the directive dated April 01, 2013 read with subsequent directives, last being dated December 21, 2017 issued to the Amanath Cooperative Bank Ltd, Bengaluru for a further period of six months.
  • The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets on or before 15 TH JULY, 2018

SEBI UPDATES

  • Sebi enhanced the overseas investment limit of alternative investment funds and venture capital funds to USD 750 million from the current USD 500 million. The decision has been taken in consultation with the Reserve Bank of India, the Securities and Exchange Board of India (Sebi) said in a circular.

OTHER UPDATES

  • IBBI amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 by a press release dated 4th July, 2018 . Supreme Court of India refused to overturn a RBI ban on lenders from dealing in crypto currencies, a move that effectively outlaws the nascent industry in Asia’s third-largest economy

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

corporate and professional updates 7th july 2018

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  • Karnataka HC upholds ITAT order, allows Sec. 10B deduction to assessee-company (100% EOU) in respect of the ‘Deemed Export’ of goods made by it through a third party during AYs 2009-10 & 2010-11, follows co-ordinate Bench order in Tata Elxsi Ltd. rendered in context of Sec. 10A; Rejects Revenue’s stand that Tata Elxsi case was distinguishable as both the units therein were located in STP, however, in present case, the entity through whom the export was made by assessee was not a 100% EOU; [TS-345-HC-2018(KAR)]
  • Karnataka HC dismisses Revenue’s appeal challenging ITAT’s comparables selection for software developer assessee for AY 2006-07, lays down law on interpretation of ‘substantial question of law’ in respect of appeals against comparables selection in TP cases; Highlighting that the existence of a substantial question of law is sine qua non for maintaining an appeal before HC u/s 260A (pari materia with Sec 100 r.w.s. 103 of Civil Procedure Code), reiterates that findings of fact cannot be disturbed while dealing with appeals u/s 260A unless such findings are ex-facie perverse, unsustainable and exhibit a total non-application of mind by the Tribunal to the relevant facts and evidence, relies on various precedents;  [TS-475-HC-2018(KAR)-TP]
  • CBDT extended the deadline for the PAN-Aadhaar linking to March 31-2019. The policy-making body of the tax department issued an order, under Section 119 of the Income Tax Act, extending the deadline.
  • CBDT was not justified in rejecting application  for  condonation  of  delay  in  filling   return  where assessee  had  uploaded return sometime  past  00:00  hours   of  the last  date  as  extended  as   the   assessee  has  encountered   certain hardship in  uploading  his return. CBDT & Ors.  vs.  Regen Infrastructure & Services (P) Ltd. ( High Court – Madras)

INDIRECT TAX

  • AAR rules on taxability of high seas supplies, holds that goods which are sold on high seas sale basis are ‘non-taxable supply’ as no tax is leviable on them till the time of Customs clearance in accordance with Section 12 of Customs Act r/w Section 3 of Customs Tariff Act; Notes that as per the arrangement, applicant would be buying products from overseas related party at arm’s length pricing against purchase orders received from customers in India and before goods cross the Customs frontier, would be sold by applicant to such customers; [TS-275-AAR-2018- NT]
  • GST implementation has resulted in an increase in direct tax collections with 44 per cent rise in advance tax collections in April-June quarter, despite challenges to the global economy, demonetization and anti-black money measures, direct tax collection has gone up 18 per cent and the impact of GST was not fully visible last year.

FAQ on E-WAY BILLS:

  • Query: What is bulk generation facility and who can use it?
  • Answer:Through this facility, user can upload multiple invoices and generate multiple e-way bill at one go .This facility can be used by the taxpayers or transporters who have automated their invoice generation system. In one go, they can prepare bulk requests for e-way bills in a file from their automated system, and upload it on the common portal and generate e-way bill in one go.

MCA UPDATES

  • MCA crackdown on shell companies:As many as 1,313 “listed” entities that have failed to file their annual reports for two years face the prospect of being struck off the registrar of companies’ (RoC) database. The move is a continuation of the MCA efforts to weed out shell companies.
  • The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets on or before 15 TH JULY, 2018.

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 03TH JULY 2018

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Direct Tax :

  • Delhi ITAT allows deduction u/s. 37 for foreign exchange fluctuation losses arising to PE  (project office – PO)of assesses (a Spanish company) during AY 2014-15 on account of advance/loan received from the Head Office (‘HO’) in foreign currency towards meeting the working-capital requirement for project execution; Observes that the utilization of the amounts received from HO did not bring any capital asset into existence for the PO; Rejects AO’s contention that since PE is never assessed as an independent entity, investment/remittance by HO cannot be considered as loan, but should be treated as a capital contribution by someone in its own business; [TS-339-ITAT-2018(DEL)]
  • Delhi ITAT confirms CIT(A)’s findings upholding FTS taxability on gross basis for professional fees received by assessee-individual (an NRI residing in UK) from Indian companies during AYs 2006-07 to 2009-10; Notes that assessee had returned these income on net basis in his returns of income and had also filed the TDS certificates issued by companies alongwith, rejects assessee’s stand that he mistakenly offered the receipts to tax and that these were commercial receipts for services rendered outside India, not taxable in India absent PE;  [TS-338-ITAT-2018(DEL)]
  • CBDT launched the allotment of e-PAN. The facility will be available free of cost. This facility, open for a limited period of time, is available only for resident individuals holding a valid Aadhar. No physical document is required to be submitted and you simply need to fill your Aadhar and upload the signature.
  • Due date to link Aadhaar with PAN extended till 31.03.2019.
  • CBDT clarified that foreign companies that have their place of effective management (POEM) in India will be taxed at 40%, plus applicable surcharge and cess.
  • Income Tax Due Date for Payment of TDS for the month of June, 2018 is 7th July, 2018.
  • Furnishing of PAN by the transporters (GTA) – S.194C(6) and 194C(7) are independent of each other and cannot be read together to attract disallowance u/s.40(a)(ia) r.w.s.194C of the Act – ACIT Vs. Eagle Steel Industries Pvt. Ltd. (2018 (6) TMI 1509 – ITAT Ahd.)

INDIRECT TAX

  • FM Jaitley hints at rationalizing GST Rates as Revenue Surge to almost 1 Lac a month as India celebrates the 1stAnniversary of GST launch, on 1st July, 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 from an unregistered persons or for reasons other than supply also e-way bill is mandatory.

RBI Update:

  • The Reserve Bank has launched the 2017-18 round of the annual survey of ‘Foreign Liabilities and Assets of Mutual Funds and Asset Management Companies.
  • The Reserve Bank of India has released the data on External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB) and Rupee Denominated Bonds (RDB)both, through Automatic Route and Approval Route, for the month of May 2018.
  • RBI Enforcement action framework in respect of statutory auditors for the lapses in the statutory audit of commercial banks. – vide Press Release: 2017-2018/3425 – (29/06/2018)
  • RBI Due Date of filing of Return on Foreign Liabilities and Assets (FLA) is 15th July, 2018.

MCA UPDATES

  • MCA notified that Every Director (including Disqualified Director) who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August, 2018.
  • With an intent to update the registry, MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYCto be notified and deployed shortly on the MCA portal.

OTHER UPDATES

  • North Delhi Municipal Corporation has extended the last date for payment of property tax and availing the rebate of 15% from June 30 to July 15.

KEY DUE DATES

  • GSTR-3B (Jun 2018)-Jul 20th, 2018
  • GSTR-5 (Jun 2018)-Jul 20th, 2018
  • GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018
  • GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018
  • GSTR-5A (Jun 2018)-Jul 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
  • Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

corporate and professional updates 2nd july 2018

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  • Calcutta HC rules that in search cases, the due date for filing return, in order to avail carry forward of loss [as required u/s 139(3)], stands extended till the date specified in notice u/s. 153A(1)(a); HC holds that since the search operations in case of assessee-individual were initiated on September 2, 2004, it was no longer necessary for assessee to file his regular return for subject AY 2004-05  by October 31, 2004 [i.e due-date u/s. 139(1)]; [TS-337-HC-2018(CAL)]
  • ITAT Kolkata held that assessee is having only one portfolio that is of investment and is consistently following to declare capital gain or loss on sale on investment, dividend is earned on investment and there is not stock in trade portfolio. Besides, the assessee is consistently valuing investment at cost and does not claim the diminution in valuing of investment. We have noted the intention of the assessee that the Board of Directors of the assessee company has passed the resolution stating that the motive of the company is to deal in investment and not to trade in shares, therefore, we are of the view that assessee’s income i.e Short term Capital Gain by way of sale of investment should be assessed under the head ‘capital gain’ instead of ‘business income’. Therefore, we direct the Assessing Officer to treat the assessee as an investor and assess the income under the head ‘Short term Capital Gain’.[DPJ Viniyog Pvt. Ltd. Vs DCIT (ITAT Kolkata)]

INDIRECT TAX 

  • New GST return forms would be introduced from January 1 after successful beta-testing of the software, Finance Secretary Hasmukh Adhia said. He said wrong input tax credit claims are a potential area of evasion in the GST regime and one-to-one invoice matching is the key to checking evasion.
  • CBIC extends RCM relaxation by 3 months upto 30th September 2018, Notification issued.

FAQ on E-WAY BILLS:

  • Query:  How many times can Part-B or Vehicle number be updated for an e-way bill?
  • Answer:The user can update Part-B (Vehicle details) as many times as he wants formovement of goods to the destination. However, the updating should be donewithin the validity period.

RBI Update:

  • The Reserve Bank of India has released the data on External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB) and Rupee Denominated Bonds (RDB) both, through Automatic Route and Approval Route, for the month of May 2018.

MCA UPDATES

  • MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC.  Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC  on or before 31 Aug,2018.

OTHER UPDATES

  • Public sector lender Indian Bank has decided to withdraw a resolution related to dividend payment after the RBI said, the bank can declare dividend after fully providing for mark-to-market (MTM) loss, gratuity and any other provisions.
  • The Central Board of Trustees, EPF in their meeting have approved the proposal for insertion of Paragraph 68HH in EPF Scheme, 1952 provisioning Advance from the fund to a member who ceases to be in employment for a continuous period not less than one month.
  • Indian Overseas Bank invite applications from CA Firms for assignment of Concurrent Audit in the Prescribed Format. The Application downloaded from the website should be filed in and duly signed by authorised signatory and should be emailed to conauditapp@iob.inin pdf format on or before 06-07-2018.
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 (JUNE 2018):-10 JULY  2018
  • DUE DATE FOR FILLING GST 3B- 20.07.2018

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 30TH JUNE 2018

Image result for corporateDirect Tax :

  • Panaji ITAT deletes addition towards undisclosed income relating to alleged deposits of Rs. 8.85 cr made by Karnataka MLA (assessee) in a co-operative bank during AYs 2009-10 to 2011- 12; AO had made additions on the basis of statements given by Bank’s Asst. General Manager (‘GM’) with regard to the entries recorded in the diary found during the course of survey operations u/s. 133A; [TS-336-ITAT-2018(PAN)]
  • Gujarat HC rejects capital gains addition on goodwill for AY 1994-95, rejects AO’s stand that assessee (Bisleri International P Ltd) undervalued goodwill (at Rs. 15.67 lakhs) by allocating higher valuation to trademark (Rs.313.50 lakhs) for transfer of trademark, goodwill, technical know-how, etc. to Coca Cola Company; [TS-335-HC-2018(GUJ)]
  • CBDT clarified that foreign companies that have their place of effective management (POEM) in India will be taxed at 40%, plus applicable surcharge and cess. Provisions relating to POEM were applicable from the financial year 2016-17. Prior to this, a foreign company was considered as a tax resident of India, only if the control and management of its affairs were wholly in India during that financial year.

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 asoutward supply whether within the State or interstate, inward supply whether from within the State or from interstate including from an unregistered persons orfor reasons other than supply also e-way bill is mandatory.

MCA UPDATES

  • MCA will ask the CS and CA of the companies concerned to update the information related to their directors at the time of filing of annual results. The information will include details such as passport, PAN number and contact details along with the physical address of directors.
  • With the intent to update the registry, MCA would be conducting KYC of all Directors of all companies annually through a new e-form viz. DIR-3 KYC to be notified and deployed shortly.

SEBI UPDATES

  • SEBI has issued List of 1690 Defaulters as on May 31, 2018 for Non-Payment of penalty imposed by SEBI through Orders passed upto December 31, 2017.

RBI UPDATES

  • RBI has introduced Single Master Form for reporting of FDI in India. Visit the link for more details-https://calalitgoel. com/rbi-new-circular-fdi/.

OTHER UPDATES

  • DGFT has allowed submission of application seeking authorization for import / export of restricted items, after making online application, through e-mail instead of physical papers after payment of applicable fees.

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 29th JUNE 2018

Image result for corporate and professional

Direct Tax : 

  • ITAT notes the assessee-company’s conclusion of the MAP with USA in respect of ‘management charges’ payment and allows withdrawal of the ground of appeal against TPO’s determination of ALP at NIL; On the dispute of Revenue characterizing assessee company’s ‘engineering and design’ services as ITeS, ITAT rejects ITeS classification and remands the matter to the file of the TPO for fresh adjudication; ITAT notes TPO’s inconsistent position over the years and that the TPO’s characterisation was not in tune with the functional analysis and further that TPO had not brought any evidence to support ITeS classification; On the comparability analysis, ITAT allows additional ground raised by assessee for excluding certain comparables  by applying ‘employee-cost’ filter : Bangalore ITAT [TS-476-ITAT-2018(BANG)-TP]
  • ITAT Delhi held that  Hostel, mess and transport facility surplus cannot be considered as business income if these are incidental to the main object of the Society.  [Society for Educational Excellence Vs. DCIT (ITAT Delhi)]

Indirect Tax

  • CESTAT Delhi held that Custom Broker Licence cannot be refused merely for penalization U/s. 114 of Customs Act, 1962.  [M/s Global Marine Agencies Vs CC (Prev.) (CESTAT Delhi)]
  • The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected at source (TCS) for another three months till September-end.
  • CBEC has issued a circular to all its officers and Commissionerate for Non Initiation / Delay in recovery Proceedings as per the Audit Reports of CAG of India.
  • SBI has filed an appeal in the GST tribunal against a tax demand of Rs. 210 crore for providing various services in the 2013-16 period. The case pertains to tax liability on services provided by Sebi to entities such as stock exchanges, their members, brokers.

FAQ on E-WAY BILLS:

  • Query:Can the ‘consolidated e-way bill’ (CEWB) have the goods / e-way bills which are going to be delivered before reaching the destination defined for CEWB?
  • Answer: Yes, the consolidated e-way bill can have the goods or e-way bills which will be delivered to multiple locations as per the individual EWB included in the CEWB. That is, if the CEWB is generated with 10 EWBs to move 3 consignments to destination Y and 7 consignments to destination X, then on the way the transporter can deliver 3 consignments to destination Y out of 10 and move with remaining 7 consignments to the destination X with the same CEWB. Alternatively, two CEWB can be generated one for 3 consignments for destination Y and another CEWB for 7 consignments for destination

MCA UPDATES

  • MCA has issued notification that additional fee @ Rs.100/- per day, after30th June 2018 shall become payable in respect of the annual filing forms (MGT-7 (form for annual return), AoC-4 (Form for balance sheet and profit and loss account), in addition to the existing if filed after due date.

RBI UPDATES

  • RBI financial stability report released that Gross NPA ratio of banks to rise to 12.2% by March 2019 if economic conditions stay the same. Bad loans at Indian banks, especially those controlled by the government, will increase further in the year to March 31.

OTHER UPDATES

  • DGFT has notified the office address of DGFT and its Regional Authorities and their Jurisdiction and Private SEZs under the Foreign Trade Policy, 2015-20
  • Holders of shares in listed companies now face a December deadline to convert them into dematerialized form if they have to transfer or sell them. About 2.3 per cent of India’s $2-trillionplus market capitalization is still held in the form of physical stock.

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 27th june 2018

Image result for corporate and professionalDirect Tax :

  • Ahmedabad ITAT rules that mere non-furnishing of Tax Residency Certificate (‘TRC’) cannot per se be treated as a trigger to disentitle the treaty benefits; During relevant AYs 2013-14 and 2014-15, assessee-company paid  installation / commissioning charges to a US entity without deducting TDS on the ground that absent ‘make available, payment doesn’t constitute Fees for Included Services under Article 12 of India-US DTAA; [TS-330-ITAT-2018(Ahd)]
  • 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; Rejects Revenue’s stand that in view of Article 24 (Limitation of Benefit clause), capital gains exemption under Article 13(4) cannot be allowed since income was not repatriated to Singapore, ITAT clarifies that Article 24 does not have much relevance insofar as it relates to applicability of Article 13(4); [TS-321-ITAT-2018(Mum)]
  • CBDT has issued an advisory on its official website regarding cash transactions over and above the prescribed limits specified under the law. The advisory issued by the Board remind the taxpayers to not accept cash of Rs. 2,00,000/- or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion.
  • Delhi ITAT in the case of Ravina Khurana hearing 15 joint appeals held that there is no justificationimposing the penalty without mentioning the grounds specified in the notice issued under section 274 of the Income Tax Act.
  • Rollout of tax collection at source was deferred to July 1; implementation after systems fully ready that will give a breather to Amazon, Flipkart and other e-commerce service providers.

INDIRECT TAX

  • Due date of – Tran – 2. Registered persons under GST but unregistered under old regime- June 30, 2018.
  • Bombay High Court has held that GST shall be payable on ” one time payment” upon creation of lease for a period more than 60 years even if the Lessor is a body set  up by the State Government and there shall not be any exemption. Builder Association of Navi Mumbai vs. UOI 2018.
  • Bombay High Court has held that Cenvat ( now ITC) is mere concession and not as a matter of right and conditions and restrictions imposed for availing the benefits shall have to be complied with. JCB India Ltd Vs.UOI.2018 (3) ZSTPT 140 Bom.
  • The Central Government is all set to bring  35 amendments in the current GST laws including clarification for refunds, changes in the enabling provisions for reverse charge mechanism (RCM) and composition scheme and returns filing etc.
  • e-way bill – Where goods moved from a DTA unit to a SEZ unit or vice versa located in the same State, there is no requirement to generate an e-way bill, if the same has been exempted under rule 138(14)(d) of the CGST Rules

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.

RBI UPDATES

  • The Reserve Bank of India (RBI) relaxed its April notification, which forbade FPIs from investing more than 20 per cent of their portfolios in bonds issued by a single corporate group.

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 26th june 2018

Image result for corporate and professionalDirect Tax :

  • 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; Rejects Revenue’s stand that in view of Article 24 (Limitation of Benefit clause), capital gains exemption under Article 13(4) cannot be allowed since income was not repatriated to Singapore, ITAT clarifies that Article 24 does not have much relevance insofar as it relates to applicability of Article 13(4); [TS-321-ITAT-2018(Mum)]
  • 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)]
  • Validity of reopening of assessment beyond 4 years – there is no mention that income amounting to ₹ 1 lac or more is believed to have escaped assessment – reassessment proceedings held to be null & void ab-initio –Usha Agarwal Vs. ITO (2018 (6) TMI 1175 – ITAT Agra).
  • Assessment u/s 153A – Addition u/s 68 – the burden had shifted to revenue to show the basis of some reliable and tangible material which could indicate undisclosed receipts out of books of accounts in the hands of assesse – we cannot improve upon what AO could have done himself – addition made by AO on account of alleged receipts of cash deleted – Godwin Construction Pvt. Ltd. Vs. ACIT, CC & Vice Versa (2018 (6) TMI 1172 – ITAT Delhi).
  • CBDT has proposed clear-cut timelines by which excess amount assessed by transfer pricing officials (TPOs) over what was declared by associated enterprises of multinational corporations (MNCs) has to be brought in India. These timelines relate to advance pricing agreements (APAs) and mutual agreement procedures (MAPs).

INDIRECT TAX

  • Services provided by TPADL with respect to the non-tariff charges recovered from their customers are not eligible for exemption and TPADL is liable to pay tax on the aforesaid recovery made from their customers – AAR, Rajasthan in TP Ajmer Distribution Ltd. (2018 (6) TMI 1196).
  • The service provided by M/s. Rishi Shipping is classifiable as ‘Rental or leasing services involving own or leased non-residential property’ (Service Accounting Code – 9972) leviable to GST @ 18% AAR, Gujaratin Rishi Shipping (2018 (6) TMI 1195).
  • CBEC has issued modifications to the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular No. 41/15/2018-GST dated 13.04.2018
  • E-Way bill generation touches 10-crore mark over 80 days after its launch on April 1, e-way bill generation hit the 10-crore mark. “Ten crore E-Way bills in two months and 21 days and still it is showing an upward trend.
  • Short term accommodation, conferencing, banqueting etc provided to SEZ developer/ unit to be treated as Inter-State supply. Circular 48 of 14.6.18.

FAQ on E-WAY BILLS:

  • Query:How does the unregistered transporter get his unique id or transporter id?
  • Answer:The transporter is required to provide the essential information for enrolment on the EWB portal. The transporter id is created by the EWB system after furnishing the requisite information. The details of information to be furnished are available in the user manual. 

OTHER UPDATES

  • Overriding IBC, 2016 – Since NCLT is not a forum superior to the High Court, it’s orders cannot be construed as injuncting this Court from proceeding with a winding up proceeding in which it has clear jurisdiction to hear and decide Vinod Jain Vs. Jaipur Metals & Electricals (2018 (6) TMI 1167 – Rajasthan HC).
  • ICICI Bank NSE 0.91 % has disclosed that it has received a whistleblower complaint, alleging irregularities in respect of 31 loan accounts worth Rs 6,082 Crore. The allegations pertain to incorrect accounting of interest income on non-performing assets (NPAs) as fees and overvaluation of security provided for corporate loans.
  • Prime Minister Narendra Modi called for targeting double-digit GDP growth for breaking into the USD 5 trillion economy club and said India’s share in world trade has to more than double to 3.4 per cent.

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)