CORPORATE AND PROFESSIONAL UPDATES 9TH JUNE 2018

Image result for corporate and professionalDirect Tax:

  • Mumbai ITAT holds that Executive Search Services fees (‘ESF’) received by assessee (a Dutch company) not taxable as FTS under Article 12 of India-Netherlands DTAA for AY 2011-12; Rejects Revenue’s stand that ESF, which was received pursuant to Service Agreement (SA) with Indian group entity (SSIPL), was to be treated as ancillary and subsidiary to license fee (taxed as royalty) received from SSIPL under another agreement viz. License Agreement (LA) which was towards use of trade name, trademark, logo and the rights to use software;[TS-288-ITAT-2018(Mum)]
  • Delhi ITAT Special Bench (majority view) rules in favour of Nokia Networks OY (assessee, a Finnish company), holds Nokia India Pvt. Ltd. (NIPL, Indian subsidiary) does not constitute assessee’s PE in India for AYs 1997-98 and 1998-99; [TS-289-ITAT-2018(DEL)]
  • Penalty paid to Stock Exchange is a regular Business Expenditure: ITAT allows Deduction
  • CBDT dedicates Fortnight for Disposal of Pending Appeals.
  • Central Govt has decided to make PAN mandatory for remitting money abroad as the RBI has decided to stringent norms for Liberalized Remittance Scheme (LRS) as per which, anyone who is utilizing the scheme will now have to share PAN details – something that was not applicable earlier with regards to CA transactions up to $25,000.
  • Kolkata ITAT allows Sec. 10AA benefit to assessee in respect of international trading, warehousing and consultancy income for AY 2009-10; ITAT acknowledges that trading activity is not expressly covered u/s 10AA, but observes that as per the Special Economic Zone Act, 2005 (SEZ Act) and its Rules, 2006, definition of ‘service’ included trading activity; [TS-292-ITAT-2018(Kol)]
  • Mumbai ITAT confirms CIT(A)’s Rs. 50cr relief to industrialist Anil Ambani, allows Sec. 37(1) deduction for ‘consent’ fees /”settlement charges” paid by Mr. Ambani w.r.t charges of alleged violation of SEBI Act/Regulations; AO disallowed the said amount, reasoning that the payment was for ‘violation’ of provisions of SEBI Act and hence made for an ‘offence’ and therefore liable to be disallowed by invoking Explanation to Sec. 37(1); [TS-291-ITAT-2018(Mum)]

INDIRECT TAX

  • LAST DATE FOR SUBMITTING GSTR 1 FOR registered persons filing monthly returns for the month of May 2018 is 10th June 2018.

FAQ on E-WAY BILLS:

  • Query:If the vehicle, in which goods are being transported, having e-way bill is changed, then what is required to be done?
  • Answer:The e-way bill for transportation of goods should always have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods, due to trans-shipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the new vehicle number in Part B of the EWB.
  • Query: How the transporter is identified or assigned the e-way bill by the taxpayer for transportation?
  • Answer:While generating e-way bill the taxpayer has a provision to enter the transporter id in the transportation details section. If he enters 15 digits transporter id provided by his transporter, the e-way bill will be assigned to that transporter. Subsequently, the transporter can log in and update further transportation details in Part B of eway bill.

MCA UPDATES     

  • MCA has sought details from some auditor companies, which resigned their assignment after the companies concerned had reportedly refused to give them adequate information. Officials said explanations had been sought from auditors in 15-odd cases.
  • The President of India gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 which will give relief to Home Buyers and SMSE.

RBI UPDATES

  • RBI extended loan repayments deadline to 180 days from the due date without being classified as a non-performing asset. This latest announcement comes after the regulator’s April diktat which had allowed GST registered MSME borrowers with a turnover of up to Rs. 25 crore to delay loan repayments by 180 days.
  • RBI voted unanimously to hike repo rate by 25 basis points, in a first interest rate hike in a four-and-a-half year, citing a major upside risk to the baseline inflation on the back of high crude oil price. The central bank said that there was a 12% increase in the price of Indian crude basket, which was “sharper, earlier than expected and seems to be durable”

SEBI UPDATES

  • Sebi extended the date for submission of Aadhaar details by those investing in capital markets till a final judgment by the Supreme Court on proposed mandatory linking of 12-digit unique ID for all financial dealings.

OTHER UPDATES

  • last date for online claim of Unstructured CPE hours extended to 30th June – ICAI(Last date for submitting Self Declaration form for claiming CPE Hours under Unstructured Learning Activities for the Calendar Year 2017 – has been extended from 31st May, 2018 to 30th June, 2018)
  • Online Facility for members to update Email ID, Mobile & Address – ICAI has launched an Online Form for Members by which they can update their Mobile number and e-mail ids which are currently available in ICAI records.
KEY DATE:
  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 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)