corporate and professional updates 12th oct 2018

Image result for corporate and professional updatesDIRECT TAX

  • CBDT lays down the functionality for processing of Returns having Refund Claims which were not processed within the time allowed u/s 143(1) due to some technical or other reasons.
  • Bombay High court held that reassessment for non-disclosure of bank A/C which was disclosed during original assessment is invalid. Akshar Developers Vs Assistant Commissioner of Income-tax (Bombay High Court)

Indirect Tax:

  • CBEC has amend the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Eleventh Amendment) Rules, 2018 which shall be deemed to have come into force with effect from the 23rd October, 2017. Vide notification no 53/2018, dated 9th October 2018.
  • CBIC amends Rule 96, refund of integrated tax paid on goods or services exported out of India: Notification No. 53/2018 – Central Tax dated 9th October 2018.
  • CBEC has clarified that both the state and central authorities handling the goods and services tax have enforcement powers over all assessees in a state, triggering fears that the industry may get caught in a crossfire between the two.
  • National anti-profiteering authority (NAA) orders to Companies or dealers may have to cut prices of each stock keeping unit (SKU) of their products to pass on the benefits of any lower GST rate. in a case related to a Maggi noodles (Nestle’s) dealer.
  • CBIC clarifies that both the State and Central Authorities handling the GST have Enforcement Powers over All Assessee in a State. Both the Central Tax and State Tax Authorities are allowed to Initiate Intelligence-Based Enforcement Action on the entire taxpayer base, irrespective of the administrative assignment of the taxpayers to any authority.
  • The National Academy of Customs, Indirect Taxes and Narcotics (NACIN) is conducting an examination for confirmation of enrollment of Goods and Services Tax Practitioners (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 of Central Goods and Service Tax Rules, 2017. Such GSTPs are required to pass the examination before 31 December, 2018. The examination will be held on 31.10.2018 from 1100 hrs to 1330 hrs at designated examination centers across India. In this matter kindly refer Press Release dated 17 September 2018.The registration for this exam by the eligible GSTPs has already started on 25 September, 2018.

FAQ on GST Audit:

  • 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.

SEBI UPDATES

  • SEBI has allowed eligible foreign entities including stock exchanges to hold 15 per cent stake in depository participants in India. Earlier, foreign players were allowed to hold 15 per cent in domestic stock exchanges but none of them have scaled up their holdings to that mark so far as India’s exchange space is considered heavily regulated

OTHER UPDATES

  • CCI amends its regulations to make it easier for corporations to Secure Approvals for Mergers and Acquisitions (M&A). It allows companies to Voluntarily Divest Assets for M&A Approvals.
  • ICAI releases Exposure Draft on Accounting Standard (AS) 40:  Investment Property, which is slightly different from the Indian Accounting Standards (Ind-AS) of the Ministry of Corporate Affairs (MCA).The stakeholders can submit their comments on or before 10th November 2018
  • ICAI has made it mandatory for its members to get a unique document identification number, or UDIN, a move to identify and weed out fake chartered accountants. From January 1, 2019, all paperwork for clients will need to show UDIN of the CA.
  • As per Govt. Sources, IL&FS will be New Audit Watchdog NFRA’s First Test Case. Set up recently, NFRA has the powers to launch a Sue Moto Investigation on Suspected Accounting Irregularities. It is also empowered to penalize Chartered Accountants and Audit Firms
  • With an aim to deepen the Commodity Derivatives Market, SEBI allows trading in this segment by Foreign Entities with exposure to the Indian Physical Commodity Market.

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 16th May 2018

Image result for corporate and professionalDIRECT TAX

  • Google India made payments to Google Ireland in relation to purchase of advertisement space for resale to the advertisers in India is certainly in the nature of payment of royalty and is chargeable to tax . Since Google India has not deducted the tax at source as per provisions of section 195, Google India was rightly held to be in default under section 201(1). Google India(P) Ltd. v. Joint Director of Income tax.
  • Where closing balance of cash in hand for preceding year was sufficient to explain cash deposited in bank in subsequent year, no addition could be made as unexplained money-HC. ITAT remits TP-issues for Aptean India for fresh decision for AY 2011-12; Notes that some additional grounds were raised by assessee before DRP but the same were not decided by DRP; Thus, opines that “we feel it proper to restore the entire matter back to the file of DRP for fresh decision with the direction that the DRP should decide the additional grounds also along with main grounds raised by the assessee”; Directs assessee to decide all grounds by way of a speaking and reasoned order after providing hearing opportunity  [TS-214-ITAT-2018(Bang)-TP]
  • Sec-194-H/201 TDS Liability: Law on whether relationship is that of “principal and agent” and whether payment is of the nature of “commission” explained. Non-compliance of s. 194H attracts the rigor of s. 201 which provides for consequences of failure to deduct or pay the tax. Jagran Prakashan vs. DCIT 345 ITR 288 (All) distinguished on factsThe Director, Prasar Bharati vs. CIT (Supreme Court)
  • Sec- 148: The AO is not entitled to issue a reopening notice only on the basis that the foreign company has a permanent establishment (PE) in India if the transactions in respect of which it is alleged that there has been an escapement of income had already been disclosed by the Indian subsidiary and found by the Transfer Pricing Officer (TPO) to be at arm’s length Honda Motor Co. Ltd vs. ADIT (Supreme Court

INDIRECT TAX

  • GST Rates Finder’ mobile app, which allows people to under the goods and services tax regime, will now be available on iOS. To install GST Rate Finder first open Google Play Store and search GST Rate Finder.
  • Delhi Govt has notified the first appellate authority under Delhi Goods and Services Tax Act wherein the Commissioner (State Tax) authorized all the Add Commissioners to perform the functions of Appellate Authority to hear appeals under section 107 of the Delhi GST.
  • GST applicable on motor car used in business sold as scrap. Ruling of Authority for Advance Ruling, Maharashtra for CMS Info Systems Ltd.
  • Goods processed and packed in house by applicant, mentioning name and registered address of applicant as manufacturer, cannot be considered as not bearing a brand name and accordingly it will not be eligible for exemption from GST-AAR
  • The state commercial tax department (Indore) has initiated the process of refund to the dealers. The department has so far refunded Rs 20 crore to eligible dealers under Goods and Services Tax (GST).
  • National Anti-profiteering Authority finds no violation of Section 171 of CGST Act by producer-exporter of “India Gate Basmati Rice”; Dismisses application which alleged that the producer had indulged in profiteering by not passing on the benefit of reduction in tax rateon“IndiaGateBasmatiRice” to consumers.

FAQ on E-WAY BILLS:

  • Query: How can the taxpayer use the SMS facility to generate the e-way bill?
  • Answer: The taxpayer has to register the mobile numbers through which he wants to generate the e-way bill on the e-way bill system. Please see the user manual for SMS based e-way bill generation, on the portal

RBI UPDATES

  • RBI came up with the latest changes on ECB on the 27th of April 2018, which has been incorporated in the Master Directions. In light of the requests received from corporates for further relaxation of norms in the ECB regulations.

Key dates:

  • Return of TDS/TCS collected in March: 31.05.2018
  • Due date for filling of GSTR-6- 31 . may . 2018
  • Due date for filling GST TRAN-2- 30.06.2018

Disclaimer:

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

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