Corporate and Professional Updates on 26th December 2018

INCOME Tax Updates:

Image result for carajput blog updates

  • The Assessment is reopened simply on the basis unclear information received from the Director of Income Tax by the Assessing without independently applying his own mind to form any belief, it is not justify by the reason for reopening of the assessment.
  • CBDT has ordered a fresh cadre review and restructuring of the income tax department with an aim to create a “caring but strict” direct taxes regime in the country. CBDT ordered the creation of a 12-member committee of senior officials to accomplish the task within the next three months.
  • To Avoid higher Late fee of upto Rs 10,000 file your Income Tax Return before 31st December 2018 if not filed yet.
  • Direct Taxes Code task force is likely to submit its report by February 28, 2019 and some of its recommendations of the panel is expected to be included in the final Budget for 2019-20 which will be presented after the general elections due in May next year.
  • CBDT has asked field officials to desist from taking any coercive action against angel tax notices being slapped on start-u or recovery of demands of completed assessments from these firms till a policy decision is taken.

GST Updates:

Related image

  • It is said by the finance ministry that the Council had been looking at the 28% tax slab and constantly rationalising items in it in lesser tax slabs. The GST council had been looking at the 28% tax slab and constantly rationalising items in it in lesser tax slabs. Council has decided to reduce tax slabs for 178 items from 28 per cent to 18 per cent. It will be applicable from 15th of this month.
  • When you claim ITC through RFD 01 Credit on Capital goods not allowed.
  • It is said by the , NITI Aayog Vice-Chairman Rajiv Kumar that the Average rate of GST will soon be around 15%, after a day after Prime Minister Narendra Modi expressed his Govt commitment to reduce GST on many more items.

MCA Updates:

  • MCA vide its notifications dated 13 December, 2018 has Extended the last date of filing of Form NFRA-1 to 30 days from the date of deployment of this form on the website of Ministry/ NFRA.
  • Minimum Additional Fee payable to MCA after 31.12.2018 for Annual filing of Financial statements for y.e.31.3.2018 will be filing fee plus Rs 6,100/- for Financial Statements (Form AOC-4) and Rs. 3,100/- for Annual Returns (Form MGT-7)* plus Rs. 100/- per day per document thereafter.

SEBI Updates:

  • The Clubbing of investment limit norm of SEBI by well regulated foreign investors, the foreign portfolio investors (FPIs) are treated as part of the same investor group and the investment limits of all such entities.
  • The guidelines pertaining to setting up cyber security operations centre for small market intermediaries as they lack knowledge in cyber security is relaxed by SEBI.
  • A more robust risk management framework with regard to margin system for the equity derivatives segment is put in place by SEBI. Now, the payment of mark to market margin (MTM) would mandatorily be made by all the members on T+0 basis — before start of trading on the next day, as per a circular.
  • SEBI said it was planning a sandbox policy to support technology developments in financial markets. The Sandbox policy will allow companies to test products in a closed environment, a particular geography or among a set of users, before they are allowed roll out commercially meeting all regulations.

RBI Updates:

  • It is announced by the RBI on the outstanding stock of ECB at 6.5 percent of GDP at current market prices. On the basis of GDP Figures on March end 2018, the soft limit works out to $160 billion for the current financial year.

FAQ’S on Financial Sector:

Ques.  Is the condition to make payment for the value of supply plus the GST thereon required to be complied with by the recipient to claim the input tax credit where supplies for services are made between distinct persons?

Ans. No, this condition is not required to be complied with by the recipient. As per the proviso to sub rule (1) of Rule 37 of the CGST Rules, 2017 the value of supplies made without consideration as specified in paragraph 2 of Schedule I of the CGST Act, 2017 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of Section 16 of the CGST Act, 2017.

Ques. A customer may avail numerous services from the Bank / insurer in a given taxable period. Is it mandatory for Banks to issue a tax invoice for each transaction or can the Bank issue a consolidated invoice for the service rendered during the tax period?

Ans. As per the provisions contained in the first proviso to Rule 47 of the CGST Rules, 2017 an insurer, a banking company or a financial institution, including a NBFC may issue invoices within 45 days from the date of supply of service. Further, sub-rule (2) of rule 54 of CGST Rules, 2017 provides that such entities may issue any other document in lieu of the tax invoice. Accordingly, such entities may issue a consolidated statement/ invoice/ advice to the customer at the end of the month, with the details of all the charges levied during such month and GST payable thereon.

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 decision do consult your professional /tax advisor for their 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 & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com 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- 9555555480.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

corporate and professional updates 9th oct 2018

Image result for corporate and professional updates

Direct tax

  • 244: The Dept should bring some order and discipline to the aspect of granting refunds. All pending refund applications should be processed in the order in which they are received. It is the bounden duty of the Revenue to grant refunds generated on account of orders of higher forums and disburse the amount expeditiously. In the absence of a clear policy, the Courts may impose interest on the quantum of refund at such rates determined by the Court. SICOM Ltd vs. DCIT (Bombay High Court)
  • 80-IC: An assessee who avails of deduction for a period of 5 years @ 100% of profits and gains is entitled to deduction on ‘substantial expansion’ for remaining 5 Assessment Years @ 25% (or 30% where the assessee is a company) and not @ 100% (Mahabir Industries v. PCIT 256 TM 201 (SC) distinguished) CIT vs. Classic Binding Industries (Supreme Court)

INDIRECT TAX

  • Foreign embassies to comply CGST notifications to claim compensation cess refund.Representations have been received by the Board regarding the entitlement of UN and specified international organizations, foreign diplomatic mission or consular posts, diplomatic agents and consular offices post therein to refund of Compensation Cess.
  • CBDT has extended the due date for filling of return of income and reports of audit pertaining to assessment year 2018-19 from 15thOctober 2018 to 31st October 2018. Vide notification no 225/358/2018/ITAT.II, dated 8th October 2018

FAQ on GST Audit:

  • Query:Can a consolidated ‘revised invoice’ be issued to every recipient for supplies made during the period before registration is granted?
  • Answer:As Per Proviso to Rule 6 (2) of Tax Invoice, Credit and Debit note Rules, it is mandatory to issue separate tax invoices in the following cases:
    • Supplies to registered persons;
    • Inter-state supplies to unregistered persons where the taxable value of the supplyexceeds Rs. 250,000.

A consolidated invoice can be issued to an unregistered recipient (State- wiseconsolidation) not covered above.

MCA UPDATES

  • MCA has decided to relax the additional fees payable to companies having registered office in the State of Kerala on e-forms AOC-4, AOC (CFS) AOC-4 XBRL and e- Form MGT-7 upto 31.12.2019, wherever additional fee is applicable.
  • URC-1 notified vide Companies (Authorised to Register) Second Amendment Rules, 2018, dated 5th July 2018 would be available for filing purposes w.e.f 9th October 2018. Web-service RUNand SPICe form are also likely to be revised due to the impact of introduction of URC-1 form. Stakeholders are advised to check the latest version before filing.

RBI UPDATES

  • RBI lowered its retail inflation projection for the second half of the current fiscal to 3.9-4.5 per cent mainly because of an unusually benign trend in food prices. Food inflation has remained unusually benign, which imparts a downward bias to its trajectory.
  • RBI proposed new norms for foreign portfolio investors (FPIs) to attract long-term and stable FPI investments into debt markets while allowing them operational flexibility. RBI, in consultation with the government and Sebi, has proposed the voluntary retention route to encourage FPIs willing to make long-term investments in debt.

OTHER UPDATES

  • ICAI submitted representation suggesting non-deduction of TDS under MVAT Act after implementation of GST:Certain Govt Departments  like PWD & other Municipal Corporations and Local Self Govt bodies continue to deduct TDS as per the provisions of Section 31 of MVAT Act.

KEY DUE DATES

October 2018 Due Dates:

  • 14th October- ADT 1 for Appointment of Auditor
  • 15th October- TCS Return for Jul to Sep 2018
  • - Tax Audit & ITR for FY 2017-18
  • 18th October- GSTR 4 for Composition Dealer for Jul 2017 to Sep 2018
  • 20th October- GSTR 3B – Sep 2018 Month
  • 30th October- AOC 4 for FY 2017-18
  • 31st October- GSTR 1 for July 2017 to Sep 2018
  • 31st Oct- TDS Return for Jul to Sep 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)

Facebooktwittergoogle_plusredditpinterestlinkedinmail