corporate and professional updates 18th july 2018

Image result for corporate and professionalDirect Tax :

  • Delhi ITAT remits issue of ALP-determination in respect of assessee’s provision of business support services to AE considering that entire TP analysis was made by the TPO on the basis of wrong FAR of the assesse as well as comparables for AY 2010-11; Opines that “when the entire TP analysis is based upon the wrong FAR of the comparables and the TPO has assumed wrong functions being performed by the taxpayer, the entire subsequent exercise as to selecting the comparables has become erroneous and is of no use to determine the arm’s length price of international transaction for determining ALP of international transaction rather entire exercise needs to be carried out afresh”; [TS-521-ITAT-2018( DEL)-TP]
  • ITAT remits ALP determination of royalty payment to AE for AY 2010-11; Relies upon ITAT order in assessee’s own case for AY 2007-08 and 2008-09; TPO had restricted the ALP for royalty at 1% of net sales under CUP while assessee had used TNMM for determining ALP of royalty payment; Separately, ITAT rejects assessee’s ground to set aside DRP’s order alleging judicial bias, observes that no instance of bias was brought to its notice; [TS-524-ITAT-2018(Bang)-TP]
  • TDS not deductible on Advance Received towards Professional Fee which is returned back. Shri A. Naga Srinivas Vs DCIT ( ITAT Hyderabad)

INDIRECT TAX

  • The govt is likely to retrospectively amend laws governing the GST to deny transitional credit to taxpayers against cesses levied in the earlier indirect tax regime.
  • The govt has issued guidelines for IGST refunds for goods and services supplied to units in SEZ. The detailed guideline are based on notification/circulars issued by the Finance and Commerce Ministries.

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).

MCA UPDATES

  • MCA has set up a 10-member committee to review the penal provisions in the Act. The committee, may propose decriminalisation and suggest ways in which to replace the provisions with an in-house mechanism, where a penalty could be levied in instances of default.

RBI UPDATES

  • RBI has directed to the Banks that effective from September-15-2018, the Banks shall also mention the name of Purchaser of the Demand Draft/Pay Order/ Banker’ Cheques etc. on the Face of such Instruments.

OTHER UPDATES

  • The results of ICAI Final Exam, Foundation Exam and CPT held in May/June 2018 will be declared on Friday, the 20th July 2018 around 6.00 P.M and that the same can be accessed at icai.orgicaiexam.icai. org caresults.icai.org icai. nic.in

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.
Disclaimer:

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

corporate and professional updates 17th july 2018

Image result for corporate and professionalDirect Tax :

  • Delhi ITAT deletes penalty u/s 271(1)(c) on TP-adjustment in case of assessee providing IT/software development services to its AE for AY 2002-03; Notes that TP-adjustment was made on the ground that under-utilization of capacity for assessee (a captive service provider) was due to insufficient orders given by AE and therefore, AE should have compensated assessee for such under-utilization; [TS-607- ITAT-2018(DEL)-TP]
  • Kerala HC upholds ITAT order for AY 2008-09, denies deduction to assessee-employer for belated payment of employees’ contribution to PF/ESI beyond the PF Act due-date, follows co-ordinate bench ruling in Merchem Ltd.; Rejects assessee’s stand that co-ordinate bench ruling requires reconsideration since it misread SC ruling in Alom Extrusions Ltd, holds that the two rulings – Alom Extrusions Ltd. and Merchem Ltd.  apply in two different fields, ”the former with reference to Section 43B(b), being employer’s contribution and the latter dealing with employee’s contribution as covered by Section 36(1)(va)”; [TS-378-HC-2018(KER)]

FAQ on GST Audit:

  • Query:   When can a taxpayer pay tax on a provisional basis?
  • Answer: Under the GST regime, the taxpayer normally pays tax on a self-assessment basis. If a taxpayer is unable to determine the value and tax rate applicable to the goods/services they supplied, they should raise a request for provisional assessment, citing the reasons why they need to pay tax on a provisional basis. This request will be processed by a tax officer.

RBI Update:

  • The Reserve Bank releases monthly data on India’s international trade in services with a lag of around 45 days.

MCA UPDATES

MCA is conducting KYC of all Directors of all companies annually through a new form viz. DIR-3 KYC

  • Every Director who has been allotted DIN on or before 31st march, 2018 and whose DIN status is ‘Approved’.
  • Due date of filing of DIR-3KYC is on or before 31st August, 2018.
  • Mandatory Information DIR-3 – Unique Personal Mobile Number, Personal Email ID, OTP on Email ID and Mobile No.
  • Certification of DIR-3 KYC –  DSC of Director & DSC of practicing professional (CA/CS/CMA)
  • Filing of DIR-3 KYC would be mandatory for Disqualified Directors
  • If director fails to file DIR-3 KYC the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’
  • There will be following Consequences of filing of DIR-3 KYC after due date, After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.
  • MCA notifies ‘Nil Fee’ and ‘Delayed Fee of Rs. 5,000′ for Filing e-Form DIR-3 KYC under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, applicable w.e.f. 10 July 2018
  • MCA notifies format of e-form DIR-3 KYC under new Rule 12A (Directors KYC) along with procedure for restoration of deactivated DINs of Directors, applicable w.e.f. 14 July, 2018

ICAI Election 2018 ICON created on www.icai.org. And first notification to opt for polling booth change in the same city for the Members of  Delhi, Bengaluru, Chennai, Kolkatta and Mumbai posted. 8th August, 2018 is last date to exercise the option.

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.
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 16TH JULY 2018

Image result for corporateDirect Tax :

  • Mumbai ITAT rules that Sec. 79 restriction on loss set-off and carry forward would apply to assessee-company, whose entire stake was acquired by a widely held company during subject AY 2011-12; Holds that Sec. 79 was applicable as assessee was a closely held company at the time when change in shareholding took place; Rejects assessee’s stand that since it became a widely held company post stake sale, i.e., a company in which public are substantially interested, Sec. 79 restriction cannot apply, ITAT clarifies that the status of the company after the change in shareholding pattern is not relevant for invoking Sec 79 ;[TS-377-ITAT-2018(Mum)]
  • Delhi HC stays operation of the order of ITAT President consolidating various cases, calls it as ‘utterly unreasoned’; HC notes that ITAT had consolidated several appeals which apparently did not involve the same question of law or facts, further observes that they arose out of different assessment proceedings and appeals which had no connection with each other;[TS-374-HC-2018(DEL)]
  • CBDT & CBIC has increased the monetary threshold limits for departmental appeals at various levels — appellate tribunals, high courts, and  the Supreme Court. This is the second time in two years that the threshold has been hiked for the (CBDT) and (CBIC).
Appeals in Income Tax matters Monetary Limits (in Rs.)
1 Before Appellate Tribunal 20,00,000/-
2 Before High Court 50,00,000/-
3 Before Supreme Court 1,00,00,000/-

  • ITAT Mumbai has sought further investigation into cases linked to HSBC’s Geneva branch involving A US-based NRI. A list of people of  Indian origin having bank accounts in Geneva was handed to India by France in 2011.
  • Delhi ITAT remits issue of ALP-determination in respect of assessee’s provision of business support services to AE considering that entire TP analysis was made by the TPO on the basis of wrong FAR of the assesse as well as comparables for AY 2010-11; Opines that “when the entire TP analysis is based upon the wrong FAR of the comparables and the TPO has assumed wrong functions being performed by the taxpayer, the entire subsequent exercise as to selecting the comparables has become erroneous and is of no use to determine the arm’s length price of international transaction for determining ALP of international transaction rather entire exercise needs to be carried out afresh”; [TS-521-ITAT-2018( DEL)-TP]
  • ITAT remits ALP determination of royalty payment to AE for AY 2010-11; Relies upon ITAT order in assessee’s own case for AY 2007-08 and 2008-09; TPO had restricted the ALP for royalty at 1% of net sales under CUP while assessee had used TNMM for determining ALP of royalty payment; Separately, ITAT rejects assessee’s ground to set aside DRP’s order alleging judicial bias, observes that no instance of bias was brought to its notice; [TS-524-ITAT-2018(Bang)-TP]

INDIRECT TAX

  • Multi Vehicle Option for e-Way bill: The new option has been introduced wherein the consignment of one e-way bill has to be moved in multiple vehicles, after moving to transshipment place.
  • GST Practitioners Required To Pass Enrollment Of GST Practitioners Examination Before 31st December, 2018. To make compliance easy for businesses the Government has introduced various initiatives like GST Practitioners and GST Facilitation Centres. Section 48 of the CGST Act provides for the authorisation of an eligible person to act as approved GST practitioner.

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).
  • Query: What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
  • Answer: Section 63 of CGST/SGST Act provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgment for the relevant tax periods. However, such an order must be passed within a period of five years from the due date for furnishing the annual return for the financial year to which non-payment of tax relates.

MCA UPDATES

  • MCA has notified the constitution of the Jaipur Bench of National Company Law Tribunal w.e.f. 01-07-2018. It is now further informed to all  the Stakeholders and companies that all matters having territorial jurisdiction at NCLT, Jaipur Bench, as filed under the different provisions of  the Companies Act, 2013 and / or Insolvency & Bankruptcy Code, 2016 have been transferred from NCLT, New Delhi Bench to NCLT, Jaipur  Bench.
  • DIR-3 KYC will be available on MCA21 Company Forms Download page w.e.f 14th July 2018 for filing purposes. Stakeholders are advised to plan accordingly.
  • Forms MGT-7, AOC-4 and Additional Attachment are likely to be revised on MCA21 Company Forms Download page w.e.f 14th JULY 2018. Stakeholders are advised to check the latest version before filing.

OTHER UPDATES

  • India is now the world’s sixth-biggest economy, having muscled past France. India is expected to grow at 7.4 per cent in 2018 and 7.8 per cent  in 2019, leaving its nearest rival China behind.
  • Ministry of Law & Justice, vide Circular No F.No: A-12023(1)/2/2018-Admn.III(LA) dated 06.07.2018, has invited applications for appointment to the posts of Judicial & Accountant Members of the Income Tax Appellate Tribunal.
  • Membership Open For Ccatax (Tax Bar)  Chd Ca Taxation Association  Apply Online At WWW.CCA.Tax  No Membership Fees , Only Tax Practitioner May Apply. Membership Only For Chandigarh Region.
  • Amounts paid as part of the lease premium or biannual or annual payments for a limited/specific period towards acquisition of lease hold rights are not subject to TDS, being capital payments. New Okhla Industrial Development Authority (NOIDA) vs. ACIT (Supreme Court) (S. 194-I).

RBI UPDATES

  • RBI has mandated for Incorporation of Name of the Purchaser on the Face of the Demand Draftand its possible misuse for money laundering.

SEBI UPDATES

  • SEBI has issued circular w.r.t. Discontinuation of acceptance of cash by Stock Brokers from their clients either directly or by way of cash deposit to the bank account of stock broker.

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.
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 13th july 2018

Image result for corporate and professionalDirect Tax :

  • Andhra Pradesh and Telangana HC rejects assessee-petitioner’s plea that reduced compounding fee @ 3% ​is applicable in view of the revised CBDT guidelines of December 2014, ​holds that guidelines that were in existence at the time of filing​ of​ the compounding application in August, 2014 (which prescribed for higher compounding fees @ 5%) were applicable; Observes that assessee had filed compounding application u/s. 279(2) with respect to prosecution proceedings initiated against it for failure to remit TDS, however, the same was rejected for non-payment of compounding fees as assessee disputed its quantum; [TS-372-HC-2018(AP)]
  • Bangalore ITAT confirms interest levy u/s. 201(1A) for TDS default by assessee-payer during AYs 2011-12 to 2015-16, despite ​non-applicability of primary TDS liability due to losses reported by non-resident ​​payee’s Indian PE; Rejects assessee’s stand that when no tax is payable there cannot be any loss to the exchequer and, therefore, levy of interest which is compensatory in nature cannot be sustained; [TS-371-ITAT-2018( Bang)]
  • TDS: TDS u/s 194A – NOIDA – composition of the Authority is statutorily provided by Section 3 of 1976 Act itself, hence, there is no denying that Authority has been constituted by Act itself – NOIDA is a Corporation – No TDS liability on interest paid to NOIDA – CIT (TDS) & Anr Vs. Canara Bank (2018 (7) TMI 664 – Supreme Court).
  • IT: Penalty u/s 271(l)(c) – The legislature does not intend to penalize every person whose claim is disallowed. This is not the aim of the legislature –CIT  Vs. Samtel India Ltd. (2018 (7) TMI 660 – Delhi High Court).

Key Features – Return Preparation Utility (RPU) version 2.3:

  • A new column for “Deduction under Section 16 (ia)” is added under Annexure II (i.e. Salary details) for Form 24Q-Q4
  • The above referred deduction is applicable for regular and Correction statements for Form 24Q-Q4.
  • Deduction under Section 16 (ia) will be applicable for statements pertaining to F.Y. 2018-19 onwards. Introduction of new remark code for Form 26Q
  • A new remark code “R” is introduced under field “Remarks” in Annexure I (i.e. deducted details) for deduction on interest income for Senior Citizens.
  • This will be applicable only for section code 194A (i.e. interest other than interest on securities). Same will be applicable for Regular and Correction statements pertaining to Form 26Q from F.Y. 2018-19 onwards.
  • Incorporation of latest  (FVU) version 5.8 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.3 (applicable for TDS/TCS statements from FY 2007-08 up to FY 2009-10).
  • This version of FVU is applicable with effect from June 29, 2018.
  • The Date for updation Of Entity Master Form on RBI website has been extended to 20th July 2018.

INDIRECT TAX

  • CBDT has revised the Threshold Limits for Filing of Appeals/SLP by the Income Tax Department Vide Circular No. 3/218 dated July 11,2018.
  • Service Tax Audit – Vires of sub-rule (2) of Rule 5A of the Service Tax Rules, 1994 as substituted by notification no. 23/24/ST – HC quashed the notice following the Delhi HC judgment – Infinity Infotech Parks Ltd. & Anr Vs. Union of India & Ors (2018 (7) TMI 667 – Calcutta HC).
  • Threshold Monetary Limits for filing Departmental Appeals has been increased in case of (i) ITAT / CESTAT from Rs.10 Lac to Rs.20 Lac; (ii) High Courts from Rs.20 Lac to Rs.50 Lac; and in case of (iii) Supreme Courtfrom Rs.25 Lac to Rs.1 Crore.

FAQ on GST Audit:

  • Query: What is the time limit to pass assessment orders under Section 62 and 63 (Best Judgement and Non-filers)?
  • Answer:Assessment orders under these sections must be passed within 5 years from the due date of the annual return (GSTR-9).

RBI Update :

  • The Reserve Bank of India (RBI) has extended the Directions issued to the Gomti Nagariya Sahakari Bank Ltd., Jaunpur (Uttar Pradesh) for a further period of four months from July 11, 2018 toNovember 10, 2018, subject to review.

MCA UPDATES

  • MCA has issued an advance alert on its website w.r.t the DSC of directors to be used on Form DIR-3KYC. The PAN based DSC in case of Indian Nationals and in case of foreign nationals, applicant’s name in DSC would be matched with his / her name entered while filing the form (DIR-3 KYC).

OTHER UPDATES

  • ICAI invites comments by 10.08.2018 on Exposure Draft of Accounting Standard (AS) 19, Employee Benefits.

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.
  • Due date for furnishing of Form 24G by an office of the Government where TDS for the month of June, 2018 has been paid without the production of a challan-15th july
  • Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of May, 2018-15th july
  • Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of May, 2017-15th july
  • Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending June, 2018-15th july
Disclaimer:

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

CORPORATE AND PROFESSIONAL UPDATES 12TH JULY 2018

Image result for corporateDirect Tax :

  • Gujarat HC sets-aside order of Settlement Commission (‘ITSC’) treating assessee’s settlement application as abated, relies on SC ruling in Star Television News Ltd. to hold that Settlement Application would not abate if there is no delay attributable to the applicant; Notes that though in earlier round of proceedings, assessee had agreed to abide by outcome of decision of SC in Prabhu Dayal case, SC in that case had allowed withdrawal of petition without ruling on merits, however, the Settlement Commission treated the assessee’s Settlement applications as abated relying on SC ruling in Prabhu Dayal case; [TS-368-HC-2018(GUJ)]
  • Delhi ITAT rules that consideration received by assessee (Investment management company) during AY 2005-06 for retiring as Principal Asset Management Company (‘AMC’) of Sun F&C Mutual Fund,is taxable as capital gains; Notes that total 14 schemes were transferred by assessee pursuant to its retirement, out of which 12 schemes were floated by assessee-company and remaining 2 were acquired (on which assessee claimed depreciation @ 25% treating it as intangible asset); [TS-370-ITAT-2018(DEL) ]
  • CBDT Chairperson expressed disappointment that a special drive launched in this regard in 2015 had failed to achieve its mandate of resolving taxpayers’ grievances and was under-utilised. Now he has issued a stern directive to IT offices asking them to curb “high-pitched” assessments against taxpayers and ensure that AO who issue such irrational orders are transferred and face disciplinary action.

INDIRECT TAX

  • 46 GST law amendments likely; employers may get to claim input tax crediton food, transport, and insurance provided to employees under any law, once the proposed amendments to the GST Act are approved by Parliament and the state legislatures.

FAQ on GST Audit:

  • Query: Whether any prior intimation is required before conducting the audit?
  • Answer:Yes, prior intimation is required and the taxable person should be informed at least 15 working days prior to conduct of audit.

MCA UPDATES

  • MCA notified DIR-3 KYC vide Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 While filing DIR-3 KYC form use PAN based DSC in case of Indian Nationals i.e., DSC should contain PAN as specified in the form.
  • MCA has notified the Companies (Acceptance of Deposits) Amendment Rules, 2018 which shall come into force from 15-08-2018. Now Certificate of statutory auditor of the company is required to be attached in form DPT-1.
  • DIR-3 KYC notified vide Companies(Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 dated 5th July 2018 would be made available shortly for filing purposes.

RBI UPDATES

  • RBI introduced online application namely “Foreign Investment Reporting and Management System” (‘FIRMS’), for implementation of the Single Master Form (‘SMF’), containing 9 reports would be made available w.e.f. August 1, 2018;
  • The National Centre for Financial Education (NCFE) was set up with support from all financial sector regulators i.e. RBI, SEBI, IRDAI and PFRDA for implementation of the National Strategy for Financial Education (NSFE).

OTHER UPDATES

  • IBBI has notified revised norms for IRP paving the way for home buyers to seek relief as financial creditors, putting in place clear timelines to be followed by RP and permitting withdrawal of insolvency applications subject to certain conditions.

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.
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 10TH JULY 2018

Image result for PROFESSIONAL UPDATESDirect Tax :

  • Madras HC reverses ITAT order for AYs 1998-99 and 1999-2000, allows deduction to assessee-company for expenses incurred on abandoned project, holds the same as revenue in nature as the venture did not fructify; Assessee was invited to take over the Chemical Beneficiation Project by the Government of Tamil Nadu, however, due to several reasons, Government decided to abandon the project and consequently, assessee claimed revenue deduction for major portion of intangibles which was disallowed by AO; [TS-332-HC-2018(MAD)]
  • Karnataka HC allows assessee’s (distributor of diabetic care and other products) writ, quashes reassessment notice for AY 2006-07; Notes that during assessment proceedings u/s 143(3), TPO had accepted assessee’s transactions to be ALP, however, assessment was reopened on March 28, 2013 alleging that assessee’s transaction would qualify as ‘deemed international transaction’ and assessee failed to report the same in Form 3CEB; [TS-501-HC-2018(KAR)-TP]

Indirect Tax:

  • Punjab & Haryana High Court held that GST appeal should not be dismissed for delay if No Appellate Authority constituted. [R.S. Steel Traders Vs State of Haryana (Punjab & Haryana High Court)]

FAQ on GST AUDIT:

  • Query: When will a best judgement assessment order be withdrawn?
  • Answer:After a taxpayer receives a best judgement assessment order issued by a tax official, they have 30 days to file their returns for the tax period and pay the tax shown on the assessment. As soon as they have done so, the best judgement assessment order will be withdrawn. 

MCA UPDATES

Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatory required to file form DIR-3 KYC on or before 31st August, 2018. Otherwise LATE FEES PENALTY 5000 FROM 1 SEPTEMBER 2018 AND DIN WILL BE DEACTIVATED.

  1. Documents Required:
  • 1. DSC of Director duly Registered;
  • 2. Self attested PAN card;
  • 3. Self attested Aadhar card with updated Mobile number with UIDAI;
  • 4. Self attested Electricity Bill, Mobile Bill, Bank statement of Director (latest 2 Months) of his/her present address;
  • 5. Latest Passport size photo;
  • 6. DIN declaration cum KYC.
  • DIR-3 KYC Will be deploy from 10.07.2018.

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 9TH JULY 2018

Image result for corporateDirect Tax :

  • 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)