corporate and professional update June 9, 2017

 

CORPORATE AND PROFESSIONAL UPDATE June 9, 2017

Direct Tax:

• CBDT notified the Income-tax (12th Amendment) Rules, 2017 which shall come into force and shall be deemed to have come into force from 1st day of April, 2017 Vide Notification No.  46/2017/ F. No. 370142/6/2017-TPL dated 07/06/017.
• CBDT notified the new Safe Harbour Regime to reduce the transfer pricing disputes & to provide certainty to taxpayers Vide Press Release dated 08.06.2017.
• ITAT Hyderabad held that No Penalty can be levied for mere Non enclosure of audit report to return of income M/s. Sri Sai Prasanthi Realtors Vs Deputy Commissioner of Income Tax (ITAT Hyderabad)

Indirect Tax:

• CESTAT Ahemdabad held that the recovery could be effected for three years from the date of issue of show cause notice. Consequently, the matter is remanded to the adjudicating authority for calculation of the demand afresh in the light of the above observation. Sagar Drugs and Pharmaceuticals P. Ltd. Vs C.C.E. (CESTAT Ahemdabad)

GST Update

• The finance ministry said it has gradually abolished various cesses on goods and services in the last three Budgets, and 13 more through the Taxation Laws Amendment Act, 2017, in the run up to the July 1rollout of goods and services tax (GST).
• Under GST for Exports, provide details of shipping bill in GSTR 1 (6 digits for port code & Shipping Bill no). Leave blank if NA.  Amend in later return.
• Limit of Aggregate Turnover during FY for Audit by Chartered/Cost Accountant raised from Rs 1 cr to Rs 2 cr. Rule 21(3) of GST Return Rules 2017.
• VAT Return/Tax Defaulters for 6 months prior to GST implementation will be ineligible for ITC in GST. Kindly update your Returns/Tax Liability.

FAQ on GST

Question: How to distinguish whether a particular supply involves supply of goods or services or both?

Answer: The Schedule II appended to CGST Act, 2017 enlists the activities which are to be treated as supply of goods or supply of services. One may refer Schedule II with reference to Section 7 to classify whether the transaction involves supply of goods or supply of services.

Corporate Law:

• RBI said its foreign exchange dept will henceforth examine proposal of companies before they can issue masala bonds to raise funds from overseas markets. Like ECBs, trade credit, borrowing and lending in foreign currency.
• RBI issued master Directions on Information Technology Framework for the NBFC Sector, 2017 Vide Master Direction DNBS.PPD.No.04/66.15.001/2016- 17 dated 08/06/2017. (Click here to view)

Other Updates:

• ICAI is permitting members to act as Insolvency Professional under the Insolvency and Bankruptcy Code, 2016 and related matters such members may also become a full time director of a lines for Management Consultancy Services.

Key Dates:

• Excise return for Non-SSI assesses for May: 06.2017
• Excise Return for EOUs for May: 06.2017
• Payment of DVAT TDS for may:06.2017

Quotes of the day

“Plant your garden and decorate your own soul, instead of waiting for someone to bring you flowers.”

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