CORPORATE AND PROFESSIONAL UPDATES 22ND SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Jaipur held that section 50C not applies if assesse invest entire sale consideration in new house property under section 54F.ITO Vs Raj Kumar Parashar (ITAT Jaipur)
  • Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) has held that no penalty can be initiated against the assessee under section 271(1)(c) of the Income Tax Act, 1961 for a bonafide mistake committed on the part of the Chartered Accountant. ALP Overseas Pvt. Ltd Vs DCIT.
  • Amazon, Google, Apple and other foreign companies operating in the ecommerce space will have to register themselves for GST in all the states in the next 10-12 days. The government has said ecommerce companies need to collect tax at source from October 1.

FAQ on GST Audit:

  • Query: Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?
  • Answer:The best judgment order passed by the Proper Officer under section 62 of CGST/SGST Act shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.

MCA Update:

  • As you are aware the last date for filing form DIR-3 KYC without fee has expired on 15th September 2018. The process of deactivating the non-compliant DINs has since been completed and their status has been updated as ‘Deactivated due to non-filing of DIR-3 KYC’. However, the non-compliant DIN holders may file DIR-3 KYC with a fee of Rs.500 (RupeesFive Hundred Only) from 21st September till 5th October 2018(both days inclusive) to get their DINs reactivated. From 6th October 2018 onwards, a fee of Rs.5000 (Rupees Five Thousand Only) becomes payable for reactivation.
  • MCA has amend the Companies (Appointment and Qualification of Directors) Rules, 2014. These rules may be called the Companies (Appointment and Qualification of Directors) Sixth Amendment Rules, 2018 which shall come into force from the date of their publication in the Official Gazette.
  • MCA has amend the Companies (Registration Offices and Fees) Rules, 2014. These rules may be called the companies (Registration 0ffices and Fees) Fifth Amendment Rules, 2018 which shall come into force from the date official publication in the Official Gazette.
  • MCA has amend the Companies (Corporate Social Responsibility Policy) Rules, 2014. These rules may be called the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette.
  • MCA has amend the Limited Liability Partnership Rule, 2009. These rule may be called the Limited Liability Partnership (Second Amendment) Rules, 2018 which shall come into force with effect from the 2ndOctober, 2018.

RBI UPDATES

  • RBI eased norms for companies in the manufacturing sector to raise overseas funds and allowed Indian banks to market Masala Bonds in line with the government’s measures to prop up the rupee.

SEBI UPDATES

  • SEBI announced changes to the composition of rating committees at credit rating agencies (CRAs). Going ahead, if an issuer requests for a review of the ratings provided to their instrument, the majority of the rating committee members will have to be different than those who had assigned the rating earlier. Also, at least a third of the rating committee members will have to be independent.

OTHER UPDATES

  • ICAI Members who have shifted/changed their locations after 1st April, 2018 have an option to make an application to get permission to VOTE BY POST. The LAST DATE for receipt of such application is 5th Oct, 2018. https://resource.cdn. icai.org/51675election2018- 41358.pdf
  • ICAI members Please pay your Membership /COP Fee for the year 2018-19 latest by 30th September, 2018 .

KEY DUE DATES 

  • GSTR-3B (SEP 2018)-OCT 20th, 2018
  • GSTR-5 (SEP 2018)-OCT 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (SEP 2018)-OCT 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
  • Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(SEP 2018)-OCT 31ST 2018

Disclaimer:

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

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CORPORATE AND PROFESSIONAL UPDATES 21ST SEP 2018

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Direct Tax:

  • ITAT Cuttack held that trust cannot be denied exemption for mere receipt of income by way of training and consultancy fee.Xavier Institute of Management Vs ITO (ITAT Cuttack)
  • ITAT Hyderabad held that cash discount cannot be disallowed for mere non-mention of same on invoice. M/s. Sai Krishna Agencies MedakVsAsstt. (ITAT Hyderabad)
  • CBDT has notified the rules relating to the determination of Fair Market Value of inventories converted into capital assets under the Income Tax Act, 2018. The Finance Act, 2018 has inserted clause (via) to Section 28 of the Income Tax Act, 1961.
  • CBDT has notified for the purpose of the clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961)‘Tamil Nadu Water Supply and Drainage Board’, a board constituted under the Tamil Nadu Water Supply and Drainage Board Act, 1970 (Tamil Nadu Act 4 of 1971), in respect of the some specified income arising to that board.

INDIRECT TAX

  • The Authority for Advance Rulings (AAR), Maharashtra ruled that 12 percent GST would be applicable to the services provided by sub-contractors to the main contractors in respect of Works Contract Services pertaining to Railways.

FAQ on GST Audit:

  • Query:Is summary assessment order to be necessarily passed against the taxable person?
  • Answer:  In certain cases, like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax (proviso to Section 64 of CGST/SGST Act).

RBI Update:

  • The Reserve Bank of India has imposed a monetary penalty of Rs. 2, 00,000/- (Rs Two lakh only) on National Urban Co-operative Bank Ltd., Bahraich in exercise of powers vested in it under the provisions of Section 47A (1) (c) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for continuous non-submission of the returns u/s 27 of the Act ibid.vide circular no 2018-2019/646, dated 18thSeptember 2018.

SEBI UPDATES

  • SEBI broadly agrees with easier know-your-customer norms suggested by the committee headed by RBI deputy governor. Moreover, the regulator’s board has mandated that large companies must now access the bond markets for a fourth of their borrowings.
  • SEBI said LIC has not sought any exemption from the open offer requirement to take over the crippled state-run lender IDBI Bank for around Rs 11,000 crore

OTHER UPDATES

  • ICAI has for the third time in less than a month made a request for Extension for time for submission of Tax Audit Reports and related returns from 30th September, 2018 to 31st October, 2018. Earlier ICAI has made representation dated 31st August, 2018and 10th September, 2018.

KEY DUE DATES 

  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (SEP 2018)-OCT 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
  • Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(SEP 2018)-OCT 11th 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)

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CORPORATE AND PROFESSIONAL UPDATES 20TH SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • Bombay High Court held that deduction under section 80IA can be claimed without excluding deduction under section 80HHC.  M/s. Indian Gum Industries Ltd. Vs  JCIT (Bombay High Court)
  • ITAT Delhi held that depreciation on IPR cannot be disallowed merely for non use in Manufacturing. Commissioner of income tax Vs Sinochem india co. Pvt. Ltd. (ITAT Delhi)
  • The six-member task force appointed by the government to simplify India’s income tax laws is likely to submit its report by end of this month. Earlier this year, the government had formed a task force to draft a new direct tax law to replace the existing Income Tax Act, which has been in force since 1961.
  • CBDT Chairman expressed confidence in exceeding Rs 11.5 lakh crore direct tax collection target in current fiscal. In 2018-19 budget, the government had projected a 14.3 per cent rise in direct tax collections to Rs 11.5 lakh crore.
  • CBDT said no withholding tax will apply on interest payments made by an Indian company or a business trust to a non-resident in respect of offshore rupee denominated bonds issued between September 17, 2018 and March 31, 2019

Indirect Tax:

  • CBEC has extended the period for submitting the declaration in FORM GST TRAN-1 till 31st January, 2019, for the class of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council. Vide order no 4/2018, dated 17th September 2018.
  • Thursday (20 SEP 18)is the last date for filing GSTR-3B, GSTR-5 & GSTR-5A for Aug, 2018.
  • CBIT&C notifies section 51 of the CGST Act to bring provisions related to TDS into force w.e.f 01.10.2018-N.N.50/2018-CT, dt.13.09.18.
  • CBIT&C section 52 of the CGST Act to bring provisions related to TCS into force w.e.f 01.10.2018-N.N.51/2018-CT, dt.13.09.18.
  • GST: Restaurant services – The Applicant is not entitled to pay the GST @ 18% with input tax credit – Liable for GST @ 5%, without ITC – AAR, Karnataka in Coffee Day Global Ltd. (2018 (9) TMI 1042).
  • Form TRAN-1 reopened for the registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council.
  • The GSTPs enrolled on the GST Network under sub-rule (2) of Rule 83 and covered by clause (b) of sub-rule (1) of Rule 83, are required to pass the said examination before 31.12.2018. The examination for such GSTPs shall be conducted on 31.10.2018.It will be a Computer Based Exam. registration portal, link (https://nacin.onlineregistrationform.org/)

FAQ on GST Audit:

  • Query:  If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
  • Answer: The proper officer has to first issue a notice to the defaulting taxable person under section 32 of MGL requiring him to furnish the return within a specified period of time, which has to be a minimum of fifteen days as per section 46 of MGL. If the taxable person fails to file return within the given time, the proper officer shall proceed to assess the tax liability of the return defaulter to the best of his judgment taking into account all the relevant material available with him. This power is given under section 46 of MGL.

SEBI UPDATES 

  • Sebi has revised the regulations for share buyback to provide more clarity on the requirement to make public announcements. Separately, the market regulator said credit rating agencies will not carry out any activity other than the rating of securities offered through public or rights issue.

MCA UPDATES

  • MCA is considering giving another opportunity to 2.1 million company directors who have failed to comply with the ‘know your customer’ (KYC) norms, according to a senior official. The government could give another 15 days for meeting the compliance norms or reduce the penalty for late filing.

RBIUPDATES

  • RBI conceded before the Madras High Court that debt resolution and recovery mechanisms, such as Corporate Debt Restructuring Scheme, Strategic Debt Restructuring Scheme, Scheme for Sustainable Structuring of Stressed Assets, Joint Lenders Forum and 5/25 scheme had proved to be ineffective in resolution of stressed assets.

OTHER UPDATES

  • 30 SEP 2018is the last date for the payment of Annual Membership and Certificate of Practice fee for the year 2018-19.
  • ICAI has further represented to CBDT to extend time for submission of Tax Audit Reports (TAR) and related returns from 30 SEP 2018 to 31 OCT 2018.
  • ICAI RVO: announces Next Batch of Educational Course at Hotel Fortune Select Excalibur, Main Sohna road, Sector-49, Gurgaon from 6 Oct to 28th Oct. 2018

KEY DUE DATES 

  • GSTR-3B (AUG 2018)-SEP 20th, 2018
  • GSTR-5 (AUG 2018)-SEP 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-5A (AUG 2018)-SEP 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
  • Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(SEP 2018)-OCT 31ST 2018

Disclaimer:

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

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CORPORATE AND PROFESSIONAL UPDATES 19TH SEP 2018

Image result for corporate and professionalDIRECT TAX

  • ITAT Mumbai held that deemed dividend provision not applicable if assesse is neither registered nor beneficial shareholder of payer company. DCIT Vs M/s. Gilbarco Veeder Root India Pvt. Ltd. (ITAT Mumbai)
  • ITAT Delhi held that TDS under section 194H applicable on discount on repaid product offered to distributors by telecom service provider. Tata Teleservices Ltd. Vs ITO (ITAT Delhi)
  • Pune ITAT rules on selection of MAM and use of internal comparables for benchmarking export and import transactions of assessee (manufacture of heavy commercial vehicles) for AY 2009-10; In respect of assessee’s export of trucks to developing countries (like South Africa, Ethiopia and Indonesia) through its German AE, notes that though assessee was raising bills on German AE for export of trucks the goods were not sent to Germany but to the developing countries directly because Germany had stricter emission norms; [TS-228-ITAT-2018(PUN)-TP]
  • Chandigarh ITAT grants partial stay to GlaxoSmithKline Consumer Healthcare Limited for AYs 2008-09 to 2010-11 in respect of demand raised on account of advertisement, marketing and promotion (AMP) expenses; Noting that 10% of the substantive demand raised for AY 2008-09 was already paid and, also the assessee’s contention that demand would not have survived if directions in ITAT Special Bench ruling in LG Electronics case were followed, ITAT opines that “assessee has made a prima facie case ..[TS-235-ITAT-2018(CHANDI)-TP]

Indirect Tax:

  • CBEC has issued Guidelines for Deductions and Deposits of TDS by the DDO under Vide circular no 65/39/2018.
  • Government has notified the GSTR-9C form for annual GST audit under which every taxpayer above Rs 2 crore turnover in a financial year would need to fill up a reconciliation statement and also obtain a certification of audit.
  • Gujarat High Court struck down provisions of the GST law that forbid transition of excise duty credits on purchases prior to June 30, 2016. The GST law did not allow credit of invoices that were more than one year old i.e., invoices which were dated prior to June 30, 2016. 
  • Now search by PAN will fetch all the GSTINs registered against the entered PAN in different States/ UT’s, along with status of registration in a tabular format. On clicking of GSTIN hyperlink, taxpayer details will be displayed.
  • Around 22.5 crore e-way bills have been generated across India till September 13 since the new electronic billing system was introduced on April 1. The e-way bill system kicked off as part of the new GST regime for transporting goods worth >Rs 50,000.
  • CBEC has issued Clarification regarding processing of refund claims filed by UIN Vide circular no 63/37/2018.

FAQ on GST Audit:

  • Query: Under what circumstances can a best judgment assessment order issued under section 46 are withdrawn?
  • Answer: The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand  withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.
  • Query:What would be the action by the proper officer upon conclusion of the audit?
  • Answer:The proper officer shall, on conclusion of audit, within 30 days inform the taxable person about his findings, reasons for findings and the taxable person’s rights and obligations in respect of such findings.

RBI UPDATES

  • RBI may conduct OMO purchases worth Rs 1 lakh crore this fiscal .Market players expect more open market operations (OMOs) via bond purchase programmes would help offset the fallout of the 30-40 basis points spike in short-term rates at a time when liquidity in the banking system is drying up amid increased outflows.
  • Government announces merger of Bank of Baroda, Dena Bank and Vijaya Bank.  https://www.wbca.st/T73xgvw
  • RBI stepped up its intervention this week Foreign exchange reserves fell below $400 billion, for the first time since November 11, 2017, in the first week of September. As on September 7, foreign exchange reserves stood at $399.28 billion.

MCA UPDATES

  • MCA: last date for filing form DIR-3 KYC without fee has expired on 15th Sep 2018. The process of deactivating the non-compliant DINs is in progress and is likely to be completed by 17th September 2018. 21 lakhs Directors failed to file KYC for DIR3.

OTHER UPDATES

  • ICAI has further requested CBDT to extend time for submission of Tax Audit Reports and related returns from 30th September, 2018 to 31st October, 2018 as CBDT has not followed Norms of Earlier Years of discussing Important Changes in Tax Audit Report with ICAI, there was Constant changes in Utilities relating to Tax Audit Forms,  Delay in release of utilities and Issue in utility of ITR Form No. 5.
  • ICSI Representation to MCA for Extension of DIR 3 KYC filing due dateon September 14, 2018, but it seems MCA is not in mood to extend the Due date Further.
  • ICAI invites Suggestions on evaluation of examination answer books system. The Group formed to review the evaluation of examination answer book system invites Suggestion/ Feedback of the CA students on the evaluation of examination answer books system.
  • IBBI clarified that a person, who is not a member of the CoC, does not have voting right in the CoC. A person, who is not a member of the CoC, cannot be regarded as one who has voted against a resolution plan or abstained from voting.

KEY DUE DATES 

  • GSTR-3B (AUG 2018)-SEP 20th, 2018
  • GSTR-5 (AUG 2018)-SEP 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-5A (AUG 2018)-SEP 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.

Disclaimer:

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

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CORPORATE AND PROFESSIONAL UPDATES 17TH SEP 2018

Image result for professional updatesDirect Tax:

  • ITAT Hyderabad held that cash discount cannot be disallowed for mere non-mention of same on invoice. M/s. Sai Krishna Agencies Medak Vs Asstt. (ITAT Hyderabad)
  • Madras High Court held that property attachment notice by TRO cannot be changed before HC.Champa Devi Vs The Tax Recovery Officer (Madras High Court)
  • Gujarat High Court held that unsecured loan /Gift to be added to income if creditworthiness of giver not proved. Sitaram Ramchanddas Patel Vs Income-tax Officer (Gujarat High Court)
  • E-commerce platforms such as Amazon, Flipkart, and Myntra will from October 1 have to withhold tax from payments made to suppliers. The tax deducted at source (TDS) and tax collected at source (TCS) provisions under the goods and services tax (GST) have been notified to be effective from October.

Indirect Tax:

  • CBEC has specified that on 1stOctober 2018 the provisions of section 51 of the Central Goods and Services Tax Act, 2017 shall come into force with respect to persons specified under clauses (a), (b) and (c) of sub-section (1) of section 51 of the  Central Goods and Services Tax Act, 2017. Vide notification no 50/2018, dated 13th September 2018.
  • CBEC has issued circular regarding Modification of 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 Nos. 41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018. Vide circular no 64/38/2018, dated 14th September 2018.
  • CBEC has made amendment in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Tenth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette. Vide notification no 49/2018.
  • GST Audit and format of reconciliation statement has been notified http://www.cbic. gov.in/resources//htdocs-cbec/gst/notfctn-49-central-tax-english-ew.pdf;jsessionid= 06184B89BBC363EDC3190CD6B0D667 1F
  • AAR cannot decide whether a supply is inter-State or intra-State. In re Fichtner Consulting Engineers (I) Pvt Ltd. (GST AAR Tamilnadu).
  • Punjab Govt has notified that E-Way bill will not be required, Where the movement of Goods  commences and terminates within the State of Punjab without crossing the boundaries of the State of Punjab and consignment value Not exceeds Rs. 1 Lakh.
  • GST issued Circular No 64 Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified.

FAQ on GST Audit:

  • Query:Under what circumstances can a best judgment assessment order issued under section 60 are withdrawn?
  • Answer:The best judgment order passed by the Proper Officer under section 62 of CGST/SGST Act shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.
  • Query:Under what circumstances can a best judgment assessment order issued under section 46 are withdrawn?
  • Answer:The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand  withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty daysof the receipt of the best judgment assessment order.

MCA Updates:

  • MCA has made amendment in the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. These rules may be called the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 20 18, which shall come into force on the date of their publication in the Official Gazette.
  • MCA has made amendment in the Schedule V of the Companies Act, 2013.
  • No govt approval required for public cos for managerial compensation. Now with effect from 12th September, 2018, approval of the Central Government shall no longer be required for increase in the payment of remuneration to the managerial personnel (in excess of 11 per cent of the net profit of a company).

SEBI UPDATES

  • SEBI is likely to consider a proposal to allow trading in this segment by foreign entities with exposure to the Indian physical commodity market. Besides, the regulator may deliberate on the issue of introducing a common application form for foreign portfolio investors (FPIs) to enter into the domestic capital market as part of the exercise to improve ease of doing business.

OTHER UPDATES

  • ICAI has further requested CBDT to extend time for submission of Tax Audit Reports and related returns from 30th September, 2018 to 31st October, 2018 as CBDT has not followed Norms of Earlier Years of discussing Important Changes in Tax Audit Report with ICAI, there was Constant changes in Utilities relating to Tax Audit Forms, Delay in release of utilities and there were Issue in utility of ITR Form No. 5.
  • ICAI releases compilation of FAQ’s and MCQ’s on GST
  • The Companies (Amendment) Act, 2017 (I of 2018); the Central Government hereby appoints the 12th September, 2018 as the date on which the provisions of sections 66 to 70 (both inclusive) of the said Act shall come into force.
  • ICAI invites applications for the following positions on contract basis from competent professionals. Interested candidates may email their application in structured format at recruitmentdirector@icai.in or can send through speed post to the Consultant – HR at the Institute of Chartered Accountants of India, ICAI Bhawan, I.P. Marg, New Delhi.

KEY DUE DATES 

  • GSTR-3B (AUG 2018)-SEP 20th, 2018
  • GSTR-5 (AUG 2018)-SEP 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (AUG 2018)-SEP 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.

Disclaimer:

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

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CORPORATE AND PROFESSIONAL UPDATES 15TH SEP 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Ahmedabad held that addition for interest under Section 244A cannot be made in absence of intimation regarding grant of interest. Denis Chem Lab Ltd. Vs ACIT (ITAT Ahmedabad)
  • ITAT Mumbai held that addition for bogus purchases based merely on statement and not backed by any material evidence is not sustainable. M/s. Aquatic Remedies Pvt. Ltd. Vs The DCIT (ITAT Mumbai)
  • Due Date Sept 15, 2018 for payment ofPF, ESI, Advance Income Tax and KYC of DIN.
  • Finance Ministry extended the last date for filing final sales return GSTR-1 for July 2017 to September 2018 period till October 31 and also waived the late fee for the delayed filing of returns. The numbers of taxpayers who have filed summary sales return GSTR-3B is substantially higher than the number of taxpayers who furnished GSTR-1.
  • National Anti Profiteering Authority (NAA) ruled that suppliers will be liable to pay penalty for not passing the benefits of GST rate reduction on sale of goods in a case against Jaipur-based Sharma Trading Company indulged in profiteering in contravention of Sec 171 of CGST Act.
  • CBDThas amended the meaning of the term ‘Balance Sheet’ as defined under Income Tax Rule 11U(b) and inserts new Income Tax Rule 11UAB on ‘Determination of Fair Market Value (FMV) for Inventory’ and shall apply in relation to AY 2019-20 and subsequent years – N.42, dt.30.08.2019
  • ITAT can direct AO for fresh enquiry into aspects of subject matter of appeal. Case M/s. Fidelity Business Services India Pvt. Ltd. Vs ACIT (Karnataka High Court)

INDIRECT TAX

  • CBEC has made amendment in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Ninth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette.Vide Notification No. 48 /2018, dated 10th September 2018.
  • CBEC has specified the time period for form GSTR-1 to the persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year. Vide Notification No. 43/2018, dated 10th September 2018.
  • Profiteering Activity – Benefit of reduction in the rate of tax from 28% to 18% not passed – Respondent has deliberately acted in defiance of the above law and hence he is guilty of the conduct which is contumacious and dishonest – Pawan Sharma, DGAPIT&C Vs. Sharma Trading Company (2018 (9) TMI 625 – NAPA).

FAQ on GST Audit:

  • Query:  What is the period within which the audit is to be completed?
  • Anwar: The audit is required to be completed within 3 months from the date of commencement of audit or within a further period of a maximum of 6 months subject to the approval of theCommissioner.

MCA UPDATES

  • MCA: 15 SEP 2018(SATUDAY) is the LAST DATE for filing DIR-3 KYC by Directors having DIN.
  • MCA has invited Comments on the report of the Committee to review offences under the Companies Act, 2013, alongwith justifications.
  • MCA time limit for filing the BEN‐2 form would be 30 days from the date of deployment of BEN‐2e‐form on the MCA‐21 portal without any additional fee.
  • Supreme Court has stayed the Reserve Bank of India’s circular, preventing initiation of Insolvency proceedings against their stressed power assets to private power, textiles companies and shipowners etc.

RBI UPDATES

  • RBI is becoming consistent in adding gold to its foreign currency reserves. In July the central bank added 6.8 tonnes, the highest monthly accretion after 2009. This came at a time when the central bank spent more than $25 billion defending the falling rupee.

SEBI UPDATES

  • SEBI is looking at including NRIs in the foreign portfolio investor’s quota. Sources said the regulator had written to the central government, seeking its opinion on this. The move could open a new source for foreign inflows into the country, as NRIs are currently not big investors because of regulatory curbs.
  • All unlisted public companies have to issue shares in demat form mandatorily with effect from 2nd October 2018. Private limited companies, small companies and opc companises can still issue shares in physical form.
  • SEBI has directed the NSE to keep four senior officials, served show-cause notices (SCN) in the co-location case, out of action. Sources said these four key managerial personnel (KMP) will have to remain out of the bourse’s “sensitive” and “confidential” matters until the probe is complete.

OTHER UPDATES

  • Global private equity (PE) funds are likely to be among those most affected by the beneficial ownership norms notified by MCA u/s 90 of the Companies Act, 2013. According to the new rules, a company can suspend control rights on its shares if the PE fund does not disclose the beneficial owner.
  • UCO Bank invites online applications from practicing firms of CA for empanelment as Concurrent Auditors FOR 01-10-2018 TO 30-09-2019. Last date is 12-09-2018.
  • Special courts under the NCLT are likely to be set up by November to deal with an increasing number insolvency cases. The Ministry of Corporate Affairs is working on this proposal.

KEY DUE DATES 

  • GSTR-3B (AUG 2018)-SEP 20th, 2018
  • GSTR-5 (AUG 2018)-SEP 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (AUG 2018)-SEP 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.

Disclaimer:

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

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CORPORATE AND PROFESSIONAL UPDATES 10TH SEP 2018

Image result for corporate and professional updatesDirect Tax :

  • ITAT Delhiheld that tax exemption cannot be denied to IOA merely for receiving sponsorship.  The D.C.I.T. Vs India Olympic Association (ITAT Delhi)
  • Kerala HC expresses disagreement with Cochin ITAT ruling in The Kadakkarappally Service Co-op Bank and Nagpur ITAT ruling in Buldana Urban Cooperative Credit Society Limited allowing Sec. 80P benefit on unexplained cash credits addition made u/s. 68; Assessee (a credit cooperative society) had filed a writ challenging the appellate authority order granting stay subject to payment of 50% demand and had relied on the aforesaid ITAT rulings with respect to unexplained cash credits addition made u/s. 68 for deposits received in cash during AY 2011-12; [TS-494-HC-2018(KER)]
  • Jaipur ITAT upholds AO’s stand of recognizing revenues in respect of advance received by assessee (engaged in residential township development) from the customers during AY 2012-13 applying percentage completion method (PCM’) [Category 1], but rejects AO’s action of recognizing entire sale consideration in case of sale deeds executed [Category 2];[TS-617-ITAT-2017(JPR)]
  • Delhi ITAT upholds revision u/s 263 in order to tax gift received by assessee-HUF from mother of Karta (not member of HUF) u/s 56(2)(vii) for AY 2013-14; During relevant AY, assessee received 75000 equity shares from mother of the Karta of assessee-HUF, rejects assessee’s stand that the said gift was not covered by 56(2)(vii) taxability as it would qualify as gift from ‘relative’; [TS-10-ITAT-2018(DEL)]
  • Attention Taxpayers! 15.09.2018 is last date for payment of your second instalment of Advance Tax. Non/short payment will attract levy of interest.

Indirect Tax:

  • CBEC has waived the late fee paid under section 47 of Central Goods and Service Tax act, 2017. Vide notification no 41/2018, dated 4th September 2018.
  • CBEC has extended the time limit for making the declaration in FORM GST ITC-01 of the CGST Rules, 2017 by registered persons who have filed the application in FORM GST-CMP-04 of the CGST Rules, 2017 between the 2nd day of March, 2018 and the 31st day of March, 2018, for a period of thirty days from the date of publication of this notification in the Official Gazette.Vide notification no 42/2018, dated 4th September 2018.
  • CBEC has extended the time limit for making the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another, during the period from July, 2017 to June, 2018 till the 30th day of September, 2018.Vide notification no 40/2018, dated 4th September 2018.
  • CBEC has issued circular regarding E-way bill in case of storing of goods in godown of transporter.Vide Circular No. 61/35/2018-GST.

FAQ on GST Audit:

  • Query: Who can conduct audit of taxpayers?
  • Answer:As per section 49 of MGL, any officer of CGST or SGST authorized by his Commissioner by a general or specific order may conduct audit of a taxpayer. The frequency and manner of audit will be prescribed in due course.
  • Query:  Under what circumstances can a special audit be instituted?
  • Answer:A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 50 of MGL.

MCA Update:

  • As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN. DINs obtained letter have to be surrendered. Please note that on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically
  • mapped to the retained DIN.In respect of an individual with a single DIN, if it is/was once associated with any LLP or Company, it is NOT eligible for surrender. Stakeholders may kindly take note and plane accordingly.
  • MCA21 system will be intermittently unavailable from Saturday, 8th September 2018 10.00 pm to Sunday, 9th September 2018 02.00 pm IST due to maintenance activity. Stakeholders are requested to plan accordingly.
  • MCA has issued the much awaited circular w.r.t Relaxation of additional fees and extension of last date of filing of Form BEN-2 under the provisions of the Section 90 of the Companies Act, 2013.

SEBI UPDATES

  • SEBI may soon dilute some of the controversial provisions notified in its April 10 circular on foreign portfolio investors (FPIs). Sources say the regulator is mulling exempting people of Indian origin (PIOs) from the ambit of the new KYC norms.

RBI UPDATES

  • RBI has notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2018 which shall come into force with effect from the 1st day of September, 2018.
  • Reserve Bank of India has made amendments to the Reserve Bank of India (Note Refund) Rules, 2009 to enable the public to exchange mutilated notes in Mahatma Gandhi (New) series at bank branches and RBI offices, which are smaller in size compared to the earlier series. Vide notification no RBI/2018-19/46, dated 7th September 2018.

OTHER UPDATES

  • Union government doubled the pecuniary limit to Rs. 20 lakh for filing loan recovery application in the Debt Recovery Tribunals (DRTs) by banks and financial institutions, to help reduce pendency of such cases.
  • The rupee crossed the 72-a-dollar mark on Thursday, but retreated on intervention by the Reserve Bank of India (RBI). The currency fell to 72.07 a dollar in intra-day trade, but closed just below the 72-mark.

KEY DUE DATES 

  • GSTR-3B (AUG 2018)-SEP 20th, 2018
  • GSTR-5 (AUG 2018)-SEP 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
  • GSTR-5A (AUG 2018)-SEP 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
  • Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(AUG 2018)-SEP 11th 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)

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corporate and professional updates 8th sep 2018

Image result for corporate and professionalDirect Tax :

  • ITAT Delhi held that penalty will not be imposed U/S 271AAA if assesse substantiated the manner in which undisclosed income was derived.Mahavir Prasad JaipuriaVs Assist. CIT (ITAT Delhi)
  • Gujarat High Court held that AO cannot ignore reply submitted by assesse related to cash deposited for reassessment.  HemantManaharla l Shah (HUF) Vs ITO (Gujarat High Court)
  • CBEC has made amendment in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Eighth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette.
  • CBDT vide Instruction No.03/2018  (F.NO.225/249/9/2018-ITA.II),dated August 20,2018 has modified the earlier Instruction dated February 12,2018 and elaborated on the conduct of the mandatory E-Assessment.
  • Jaipur ITAT upholds AO’s stand of recognizing revenues in respect of advance received by assessee (engaged in residential township development) from the customers during AY 2012-13 applying percentage completion method (PCM’) [Category 1], but rejects AO’s action of recognizing entire sale consideration in case of sale deeds executed [Category 2];[TS-617-ITAT-2017(JPR)]
  • Delhi ITAT upholds revision u/s 263 in order to tax gift received by assessee-HUF from mother of Karta (not member of HUF) u/s 56(2)(vii) for AY 2013-14; During relevant AY, assessee received 75000 equity shares from mother of the Karta of assessee-HUF, rejects assessee’s stand that the said gift was not covered by 56(2)(vii) taxability as it would qualify as gift from ‘relative’; [TS-10-ITAT-2018(DEL)]
  • Draft notification proposing amendments in rule 114 of the Income-tax Rules, 1962 and permanent account number application Forms (Form 49A and Form 49AA) has been released. Source

INDIRECT TAX

  • Finance ministry has notified annual tax return forms for businesses registered under the GST, in which details of sales, purchases and input tax credit (ITC) benefits accrued to them during 2017-18 fiscal have to be provided in a consolidated manner.
  • Under GST In case of transport of goods in lots or batches, separate delivery challan & invoice copy for each despatch. Original invoice with last lot.
  • Goods and services provided by charitable trusts for a consideration would classify as supply, making it liable for GST, the authority of advanced ruling (AAR) for GST in Maharashtra has ruled.
  • CBEC has waived the late fee paid under section 47 of Central Goods and Service Tax act, 2017. Vide notification no 41/2018, dated 4th September 2018.
  • CBEC has extended the time limit for making the declaration in FORM GST ITC-01 of the CGST Rules, 2017 by registered persons who have filed the application in FORM GST-CMP-04 of the CGST Rules, 2017 between the 2nd day of March, 2018 and the 31st day of March, 2018, for a period of thirty days from the date of publication of this notification in the Official Gazette.Vide notification no 42/2018, dated 4th September 2018.
  • Entities not registered under GST are liable to pay tax on Import of services: Clause 30 of the CGST Amendment Act, 2018. Effective Date to be notified by the government. Affected Provision is Schedule I of the CGST Act, 2017
  • Effect of the Amendment:The provision has been amended so as to bring any unregistered person involved in import of services under the purview of GST if carried out in the course or furtherance of business from a related person or an or any of their other establishments outside India. Such person is now liable to register and pay taxes on such import of services.
  • Finance Ministry has said GST refunds can be claimed by simply submitting a printout of ‘GSTR-2A’ form to tax authorities instead of giving all purchase invoices of a month. The proper officer shall rely upon form GSTR-2A as an evidence of the account of the supply by the corresponding supplier in relation to which the input tax credit has been availed by the claimant.
  • CBIC has notified the CGST (8th Amendment) Rules,2018, mainly to amend CGST Rules 22, 36, 55, 89, 96 and 138A along with Forms GST REG-20, ITC-04 & EWB-01 and to introduces Form GSTR-9 (Annual Return).

FAQ on GST Audit:

  • Query: Who can conduct audit of taxpayers?
  • Answer:As per section 49 of MGL, any officer of CGST or SGST authorized by his Commissioner by a general or specific order may conduct audit of a taxpayer. The frequency and manner of audit will be prescribed in due course.
  • Query:If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
  • Answer:The proper officer has to first issue a notice to the defaulting taxable person under section 32 of MGL requiring him to furnish the return within a specified period of time, which has to be a minimum of fifteen days as per section 46 of MGL. If the taxable person fails to file return within the given time, the proper officer shall proceed to assess the tax liability of the return defaulter to the best of his judgement taking into account all the relevant material available with him. This power is given under section 46 of MGL.

MCA Update:

  • As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN. DINs obtained letter have to be surrendered. Please note that on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically
    mapped to the retained DIN.In respect of an individual with a single DIN, if it is/was once associated with any LLP or Company, it is NOT eligible for surrender. Stakeholders may kindly take note and plane accordingly.
  • As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered.
  • Please note that on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically mapped to the retained DIN.
  • MCA: in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered. on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically mapped to the retained DIN
  • MCA has issued circular regarding Relaxation of additional fees and extension of last date of filings of Form BEN-2 under the Companies Act. 20I3. Vide circular no 07/2018, dated 6th September

RBI UPDATES

  • RBI has notified that all new filings for FC-GPR, FC-TRS , LLP-I, LLP-II & CN will be in SMF only w.e.f September 01, 2018 (Copy Attached). FC-GPR & FC-TRS shall not be filed on ebiz.

SEBI UPDATES

  • SEBI may soon dilute some of the controversial provisions notified in its April 10 circular on foreign portfolio investors (FPIs). Sources say the regulator is mulling exempting people of Indian origin (PIOs) from the ambit of the new KYC norms.

OTHER UPDATES

  • Overseas investors of Indian origin are allowed to buy up to 5 percent in any security under current regulation, India’s economic affairs secretary Subhash Chandra Garg said in a bid to calm markets after recent regulatory changes.
  • IBBI has issued circular to all Insolvency Professional Entities w.r.t Compliance of regulation 13 (2) that All IPE are directed to inform the Board within seven days from the date when an IP ceases to be its director or partner or joins as its partner or director and forthwith and for all pending cases, not later than 7th Sep 2018
  • DGFT authorities have made amendments in Aayat Niryat Form (ANF) pertaining to Chapter 6 & 7 of the Handbook of procedures 2015-2020. in the light of implementation of GST and updation of FTP / HBP wef 05-12-2017.
  • PDC of ICAI extended the last date for submission of online Multipurpose Empanelment Form for the year 2018-19 including Declaration and Financial Documents till 12.00 am of 10th September, 2018.

KEY DUE DATES 

  • GSTR-3B (AUG 2018)-SEP 20th, 2018
  • GSTR-5 (AUG 2018)-SEP 20th, 2018
  • GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
  • GSTR-4 (JULY-SEP, 2018)-OCT 20TH, 2018
  • GSTR-5A (AUG 2018)-SEP 20th, 2018
  • Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
  • Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(AUG 2018)-SEP11th 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)

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corporate nd professional updates 6th sep 2018

Image result for professional updatesDirect Tax :

  • Madras HC holds that assessee (TVS Motor Co Ltd) is required to gross-up the amount of fees for technical services (FTS) paid to University of Warwick, for the purpose of deducting TDS under India-UK DTAA during AYs 2002-03 and 2003-04; Assessee had entered into agreement with
  • UK based university for providing certain technical services for which it had agreed to bear Indian taxes, however, assessee deducted TDS at 15% on actual payment made to NR without grossing up;[TS-497-HC-2018(MAD)]
  • ITAT Delhi held that registration U/S. 12AA cannot be denied for mere failure to produce original copy of MOA.The Managing Committee Aminia Muslim Girls School Vs Principal CIT (Exemption), (ITAT Delhi)
  • Delhi ITAT confirms Rs. 80 lakh bogus share capital subscription addition u/s 68 in case of assessee (a private limited company) for AY 2005-06, also confirms unaccounted expenditure addition in respect of commission @ 2.5% for arranging the accommodation entries, upholds re-assessment; Based on information from the Investigation wing that certain companies (floated by one Mr. Tarun Goyal) subscribing to assessee’s share capital were involved in providing accommodation entries, AO had initiated reassessment proceedings;  [TS-496-ITAT-2018(DEL)]
  • Delhi ITAT denies assessee company’s claim for set-off of long term capital loss (LTCL) arising on sale of shares against long term capital gains (LTCG) arising on sale of property for AY 2012-13, rules that the share transaction was a sham transaction, a colourable device to generate loss to avoid capital gains tax on property sale;  [TS-491-ITAT-2018(DEL)]
  • 07 SEP 2018 (FRIDAY) is the Due date for deposit of tax deducted /collected at source for the m/o AUG 2018.
  • CBDT has released parameters for manual selection of Income Tax Returns for Complete Income Tax Scrutiny during FY 2018-19. Through Computer Aided Scrutiny Selection (CASS), cases are being selected in two categories viz. Limited Scrutiny & Complete Scrutiny in a centralized manner under CASS-2018.
  • If AO is allowed to reopen assessment after the order of CIT(A), then tax payers may loose confidence on the judicial system of this country – Rapid Care Transcription Pvt. Ltd. Vs. ITO (2018 (9) TMI 65 – ITAT Chennai)

INDIRECT TAX

  • CBIT notifiesGST Annul Return in Form-9 (Rule-80) for the period from 01 JUL 2017 to 31 MAR 2018, required to be filed along with statutory GST Audit Report till 31 DEC 2018 – Notification No.39/2018, dt.04.09.2018.

 FAQ on GST Audit:

  • Query: What is the period within which the audit is to be completed?
  • Answer: The audit is required to be completed within 3 months from the date of commencement of audit or within a further period of a maximum of 6 months subject to the approval of the Commissioner.
  • Query:Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
  • Answer:The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand  withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.

MCA UPDATSE

  • MCA estimates out of 3.3 million directors (expected to carry out know your customer or KYC process) only 1.5 million or 40-50 percent could be genuine, rest could be dummy directors.
  • The government plans to have examinations for individuals who want to become independent directors as part of bolstering the corporate governance framework, according to Union Minister P P Chaudhary.
  • The central government is considering a review of auditing standards to plug loopholes in the wake of the recent spate of resignation by auditors, many of them exiting listed firms abruptly or ahead of quarterly results.Auditors in as many as 204 listed companies have resigned between January 1 and July 17 this year, as per the filings on MCA-21 software, sparking fears among investors.The shares of many of these companies have taken a huge beating, some falling 20-60%, over the abrupt exits by auditors.

RBI Update;

  • The Reserve Bank of India has clarified that All Scheduled Commercial Banks in India having more than ten banking outlets (excluding Regional Rural Banks), are required to appoint IO in their banks. The IO shall, inter alia, examine customer complaints which are in the nature of deficiency in service on the part of the bank, (including those on the grounds of complaints listed in Clause 8 of the Banking Ombudsman Scheme, 2006) that are partly or wholly rejected by the bank.Vide press release 2018-2019/542, dated 3rd September 2018.

SEBI UPDATES

  • For the first time, SEBI approached ICAI asking for a panel of Chartered Accountant firms/ LLPs for Inspection of Mutual Fund. Accordingly, a panel has been submitted to the SEBI.

KEY DUE DATES.

Due dates for Compliances under GST:

  • 20-09-2018- GSTR-3B for the m/o August 2018
  • 10-09-2018- Due date for filing GSTR -1 for the month of August 2018. Applicable for taxpayers with Annual Aggregate turnover More than 1.50 Crore

Due dates for Comp under Income tax:

  • 07-09-2018- Due date for deposit of tax deducted/collected at source for the month of August 2018
  • 14-09-2018- Due date for issue of TDS Certificate for tax deducted under section 194-IA, 194-IB in the month of July 2018
  • 15-09-2018- Due date of deposit of second installment of advance tax for the assessment year 2019-20
  • 30-09-2018 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA, 194-IB in m/o August 2018
  • 30-09-2018 – Audit report under section 44AB for the assessment year 2018-19 in the case of a corporate/non-corporate assessee (who is required to submit return of income on September 30, 2018)

Due dates for under Companies Act;

  • 15-09-2018- Application for KYC of all Directors for the year ending 31.03.2018 via form DIR-3 KYC
  1. Due dates for Compliance under ESI, PF Acts:
  • 15-09-2018- PF Payment for m/o August 2018
  • 15-09-2018- ESIC Payment for m/o August 2018

Disclaimer:  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 athttp://carajput.com/blog/ For any query you can write to info@carajput.com  or call on 9555555480 Before making any decisions do consult your Professional / tax advisor. it hereby disclaims any and all liability to any person for any loss or damage that may be caused by any errors or omissions, whether such errors or omissions result from negligence, accident or any other cause. This blogs is not a source or a form of advertising or solicitation nor is it intended to be so. The contents of this website should not be construed as legal advice. 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)

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corporate and professional updates 4th sep 2018

Image result for professional updatesDirect Tax :

  • Kerala HC reverses ITAT’s order, allows deduction u/s 36(1)(v) for LIC premium paid in order to indemnify the liability towards gratuity of employees taken over from another company pursuant to business take-over; At the time of take-over of business, assessee also took over employees with specific agreement as to continuation of service without break as also statutory benefits including gratuity for past years; [TS-495-HC-2018(KER)]
  • Mumbai ITAT denies deduction for expenses incurred by assessee (a JV co. formed by Tata Advances System Ltd. and Lockheed Martin Aerostructure Corporation, USA [‘LMAC’]) as pre-operative expenses, noting that assessee’s facility for assembling, manufacturing and supplying of aircraft structural articles to LMAC, US was not set up till the end of relevant AY;[TS-450-ITAT-2018(Mum)]
  • Calcutta HC upholds ITAT order deleting Sec. 40(a)(ia) disallowance, rules that payment of interest by assessee (a State owned housing development co.) for delayed delivery of plot during AY 2005-06, was not in the nature of interest as defined in Sec. 2(28A), TDS u/s. 194A not applicable; Notes that as per the terms of the contract, assessee was under an obligation to hand over physical possession of the plot to the allottees on payment of land price, upholds ITAT view that the payment of interest to allottees was in the nature of compensation owing to assessee’s failure to make the plots available within the stipulated time;[TS-471-HC-2018(CAL)]
  • Bombay HC dismisses Revenue’s appeal, confirms ITAT order holding assessment order in remand proceedings, which was passed without issuing a draft order u/s 144, as invalid; Observes that once ITAT, in the first round of proceedings, set aside assessment and remanded it back to TPO to give hearing opportunity to assessee, “the matter was relegated to the stage of Section 144C(1)”;[TS-773-HC-2018(BOM)- TP]
  • CBDT has amend the Income-tax Rules, 1962.These rules may be called the Income-tax (9th Amendment), Rules, 2018, which shall come into force from the 1st day of April, 2019 and shall apply in relation to assessment year 2019-20 and subsequent years

INDIRECT TAX

  • Finance Ministry is considering an amendment in the law to raise penalties against companies that fail to pass on GST rate cuts to consumers. At present, the penalty for such an act is 10,000 or the amount of tax evaded, whichever is higher
  • CBIC has issued a circular to clarify that the forwarding of samples for testing to the Outside Laboratories till the upgradation of the Revenue Laboratories.
  • GST: TUESDAY (11 SEP 2018) is the last date for filing of GSTR-1for the m/o August, 2018 for the taxpayers with Turnover exceeding Rs.1.50 Crores or opted to file monthly Return.

FAQ on GST Audit:

  • What would be the action by the proper officer upon conclusion of the audit?
  • Answer: The proper officer must without delay inform the taxable person about his findings, reasons for findings and the taxable person’s rights and obligations in respectof such findings.
  • Query:Under what circumstances can a special audit be instituted?
  • Answer:A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 50 of MGL.

SEBI UPDATES

  • SEBI  is working on facilitating participation of mutual funds and commencement of portfolio management services in the commodity derivatives market. MCX and custodian banks have submitted a report to SEBI on how issues pertaining to MF participation can be facilitated.

MCA Update ;

  • MCA21 system will be intermittently unavailable from Saturday,1stSeptember 2018 10.00 pm toSunday,2nd September 2018 02.00 pm IST due to maintenance activity. Stakeholders are requested to plan accordingly.
  • As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered. Further DIN once associated is NOT eligiblefor surrender. Stakeholders may kindly take note and plan accordingly.
  • MCA clarifies that N.N:G.S.R. 307(E) & G.S.R. 308(E), dt.30.03.2017 for disclosure on Specified Banking Notes (SBN) was event specific and hence NOT APPLICABLE for FY 2017-18 or thereafter.

OTHER UPDATES

  • Supreme Court reserved its verdict on the SFIO’s plea to stay a Delhi High Court order in a case concerning Bhushan Steel’s erstwhile promoter Neeraj Singal. It said it will pass orders on the plea of the SFIO, while agreeing to hear the probe agency’s appeal against the release order.
  • DGFT has eased down the process of making intimation to Regional Authorities about Block-wise fulfillment of EO under the EPCG Scheme by facilitating intimations without using the digital signatures.
  • ICAI: 30 SEP 2018is the last date for the payment of Annual Membership and Certificate of Practice fee for the year 2018-19.
  • ICAI has issued a Technical Guide on Audit of Urban Improvement Trusts and Development Authorities issued by the Auditing and Assurance Standards Board.

KEY DUE DATES

Due dates for Compliances under GST:

  • 10-09-2018- Due date for filing GSTR -1 for the month of August 2018. Applicable for taxpayers with Annual Aggregate turnover More than 1.50 Crore
  • 20-09-2018- GSTR-3B for the m/o August 2018

Due dates for Comp under Income tax:

  • 07-09-2018- Due date for deposit of tax deducted/collected at source for the month of August 2018
  • 14-09-2018- Due date for issue of TDS Certificate for tax deducted under section 194-IA, 194-IB in the month of July 2018
  • 15-09-2018- Due date of deposit of second installment of advance tax for the assessment year 2019-20
  • 30-09-2018 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA, 194-IB in m/o August 2018
  • 30-09-2018 – Audit report under section 44AB for the assessment year 2018-19 in the case of a corporate/non-corporate assessee (who is required to submit return of income on September 30, 2018)

Due dates for under Companies Act;

  • 15-09-2018- Application for KYC of all Directors for the year ending 31.03.2018 via form DIR-3 KYC
  1. Due dates for Compliance under ESI, PF Acts:
  • 15-09-2018- PF Payment for m/o August 2018
  • 15-09-2018- ESIC Payment for m/o August 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)

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