CORPORATE AND PROFESSIONAL UPDATES 11TH OCT 2018

Image result for corporate and professional updatesDirect Tax:

  • ITAT Mumbai held that Income of Indian plastic institute from technical lectures, seminars and workshop is exempt.  M/s. Indian Plastics Institute VsThe Assistant Director of Income Tax Officer (ITAT Mumbai)
  • Calcutta High Court held that payment by tenant for removal of sub-tenants from property is capital expenditure. nited Spirits Limited Vs Commissioner of Income Tax (Calcutta High Court)
  • CBDT further extends due dt for filing of IT Returns & audit reports from 15th Oct,2018 to 31st Oct, 2018 for all assessees liable to file ITRs for AY 2018-19 by 30.09.2018, after considering representations from stakeholders. Liability to pay interest u/s234A of IT Act will remain same.
  • CBDT has set up a committee to draw up the Incentive programme to reward and recognise honest taxpayers to encourage a culture of compliance like A cup of tea with the state governor, priority check-in at the airport, passports on priority, dedicated toll lanes, airport lounge access etc.
  • Every company to which sec 115JB of income tax act, 1961 applies, is required to file Form 29B certifying that book profits have been computed in accordance with the provisions of the Income Tax Act. Further, the Form 29B should be electronically filed along with the return of income before the due date.
  • Undue delay in granting the refund – The petitioner cannot claim any further interest or compensation over and above the statutory interest prescribed u/s 244A – having regard to long delay, the CIT shall pay cost of ₹ 1,00,000/= to the petitioner –NIMA Specific Family Trust Vs ACIT (2018 (10) TMI 441 – Gujarat HC).

INDIRECT TAX

  • AAR stated that No ITC admissible on GST paid on freight for transportation of petro goods to the export warehouse located in another state.
  • GSTN has introduced the new RFD-01A form for Refund by Supplier of deemed export. In these article we will see the detailed analysis related to the Refund form, Rules and how to file the nil and not a nil refund form online.
  • Govt has imposed an anti-dumping duty of up to USD 719 per tonne for five years on import of nylon filament yarn from the European Union (EU) and Vietnam following recommendations by the commerce ministry’s investigation arm DGTR.
  • Jurisdiction of Central and State tax administrations under GST – Both the Central and State tax administrations shall have the power to take intelligence-based enforcement action in respect of the entire value chain – O. F. No. CBEC/20/43/01/2017-GST(PT), dt.05.10.2018.
  • Levy of GST – printing services – The supply of Aadhaar Cards are classifiable under heading 9989 of GST Tariff and attracts GST @ 12% – AAR, Hyd-Tel. in  KL Hi-Tech Secure Print Ltd. (2018 (10) TMI 445).

FAQ on GST Audit:

  • Query:Who is the person responsible to make assessment of taxes payable under the Act?
  • Answer:Every person registered under the Act shall himself assess the tax payable by him for a tax period and after such assessment he shall file the return required under section 39

MCA UPDATES

  • MCA notified Form RC-1 vide Companies (Authorised to Register) Second Amendment Rules, 2018, dated 5th July 2018 would be available for filing purposes w.e.f 9th October 2018. Web-service RUN and SPICe form are also likely to be revised due to the impact of introduction of URC-1 form.
  • MCA notified URC-1 vide Companies (Authorised to Register) Second Amendment Rules, 2018, dated 5th July 2018 would be available for filing purposes w.e.f 9th October 2018.

SEBI UPDATER

  • SEBI has put in place revised norms for recovering of investors’ money, wherein a registered insolvency professional will be appointed as administrator to undertake sale of assets.

RBI UPDATES

  • foreign RBI investors with new relationship terms for a commitment of staying invested a minimum three years in local debt from them. In exchange, it has offered unbridled access to local derivatives market and its own liquidity facilities.
  • RBI is expected to increase policy rates by 25 basis points in the first quarter of the next year, primarily led by inflationary pressures and depreciation of the rupee, says a Goldman Sachs report.
  • The Reserve Bank of India Sovereign Gold Bond Scheme 2018-19, Operational Guidelines. Vide notification no RBI/2018-19/58, dated 8th October 2018.

OTHER UPDATES

  • ICAI has released an exposure draft on ICAI Code of Ethics, 2018. The Last date for comments on this Draft is November, 7, 2018.
  • Central government will issue Sovereign Gold Bonds 2018-19 for public subscription from October 15-19 and will be issued every month from October 2018 to February 2019.” bonds would earn an interest of 2.5% per annum, payable every six months on the nominal value.
  • International Monetary Fund (IMF) retained economic growth projection for India at 7.3% for 2018-19.  IMF wants the RBI to tighten monetary conditions. For the next year 2019-20, the IMF lowered India’s growth projections to 7.4%.
  • ICAI releases List of Valid Nominations for election to the 24th Council and 23rd Regional Councils. There are 19 Valid Nominations for CC and 46 Valid Nominations for RC from Northern India.
  • UIDAI has said that the Supreme Court order restricting use of Aadhaar will have no bearing on enrolment and update services being carried out at banks, post offices and government premises. The move comes as service providers may still use offline verification tools that leverage the unique ID without authentication.

KEY DUE DATES

October 2018 Due Dates:

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

Disclaimer:

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

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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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