corporate and professional updates 11th july 2018

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  • Karnataka HC dismisses Revenue’s appeal against Tribunal’s allowance of assessee’s [Kirloskar Toyota Textile Machinery Private Ltd] claim that gross profit over sales (PLI) can eliminate difference in depreciation claim due to machinery age, rate / method difference; ITAT had directed AO/TPO to adopt comparison of profitability ratios using gross profit over sales to benchmark international transaction of purchase of auto-components from AE for AY 2010-11; [TS-502-HC-2018(KAR)-TP]
  • Hyderabad ITAT denies Sec. 36(1)(iii) deduction for finance cost of Rs. 164 cr. incurred by assessee-company (a promoter company for the GVK group of companies) for advancing interest-free loan to sister concerns out of interest-bearing borrowings from banks / financial institutions during AY 2012-13; Notes that assessee made interest-free advance to the two sister concerns i.e., level-2 companies, which in turn respectively made investment in the equity capital of level-3 companies i.e. two SPVs which are ultimately involved in construction and maintenance of Mumbai and Bangalore airports; [TS-363-ITAT-2018(HYD)]
  • Reopening of assessment – validity of reasons to believe – Just by stating absence of information’, the Respondent revenue cannot get over the jurisdiction bar. – Notice u/s 148 is without jurisdiction – Goa State Co-Op. Bank Ltd. Vs ACIT (2018 (7) TMI 464 – Bombay HC).


  • GST Councilunveiled the draft of 46 changes proposed to the GST law before they are introduced in the upcoming monsoon session of parliament.
  • Mere inclusion of Rakhi in a Puja Thali does not make it an integral and essential part of Puja Samagri – Rakhi is not exempt from GST – AAR, West Bengal inM D Mohta (2018 (7) TMI 390).
  • Levy of GST – job-work – Whether the processing of goods belonging to another person qualifies as job work even if it amounts to manufacture? -Held Yes– AAR, Maharashtra in JSW Energy Ltd. (2018 (7) TMI 511).
  • The next meeting of Goods and Services Tax (GST) Council scheduled on July 21 is likely to endorse 3 per cent cess on sugar.


  • 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.


  • The e-form DIR-3-KYC (Directors KYC) to be filed by 30th April every year. For the individual who has DIN as on 31.03.2018, the due date is 31 AUG 2018.


  • ICAI introduces Unique Document Identification Number (UDIN) to be generated for documents / certificates issued by CA’s. UDIN is a unique number, which will be generated by the system for every document certified / attested by a Chartered Accountant and registered with the UDIN portal available at
  • Cost accountants’ apex body ICAI has suggested constituting a central agency, with cost accountants and experts from other fields, to evaluate applications for large loans before banks give their approval.
  • To ensure transparency in the allotment of chartered accountants (CAs) for bank audits, the Institute of CharteredAccountants of India (ICAI) has developed a software that randomly selects the auditors and allots them to banks.


  • 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

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