corporate and professional update 19 sep 2017

CORPORATE AND PROFESSIONAL UPDATE 19 SEP 2017

Direct tax

• Madras HC confirms ITAT order, holds that commission paid by assessee-individual (engaged in garments exports) to an Indian agent on behalf of the foreign entity is taxable in India, confirms Sec. 40(a)(i) disallowance for AY 2002-03. [TS-390-HC-2017(MAD)]
• ITAT Bangalore held that TDS not deductible on loss on subscription to chit. Shri Ashok Kumar Rai Vs. The Joint Commissioner of Income Tax (ITAT Bangalore).
• Gujarat HC upholds the constitutional validity of Sections 245D(2A), 245D(2D) and 245HA (which introduced payment of additional tax with interest at the time of filing of Settlement application itself) inserted by the Finance Act, 2007 w.e.f. June 1, 2007; The amended sections also provided for two months window to pay the taxes due up to July 31in respect of old applications pending as on June 1, 2007, failing which the settlement proceedings would abate. [TS-401-HC-2017(GUJ)]
• Allahabad HC upholds ITAT order for AY 2001-02, denies Sec. 80-IB deduction to assessee-company’s (running a flour mill) on profits of industrial unit formed by takeover of entire business from another entity. [TS-397-HC-2017(ALL)]
• Gujarat HC reverses ITAT order, grants Sec. 11 exemption to assessee (a statutory body engaged in urban area development and township planning) for AY 2009-10, holds assessee’s activity not in the nature of trade, commerce or business  to trigger rigours for Sec. 2(15) proviso. [TS-383-HC-2017(GUJ)]
• Delhi High Court held that Section 115JB will not apply to insurance companies. Oriental Insurance Co. Ltd Vs DCIT (Delhi High Court).
• ITAT Delhi held that expenses on Sponsoring tours of doctors by Pharma company is not allowable. DCIT Vs. M/s. Ochoa Laboratories Ltd. (ITAT Delhi)

Indirect Tax

 

• CBEC extends the time limit for furnishing the return by an Input Service Distributor under sub-section (4) of section 39 of the said Act read with rule 65 of the Central Goods and Services Tax Rules, 2017, for the month of July, 2017 upto the 13th October 2017. Vide notification no 31/2017, dated 11th September 2017.
• CBEC extends the time limit for furnishing the details or return, as the case may be, under sub-section (1) of section 37, sub-section (2) of section 38 and sub-section (1) of section 39 of the said Act, as specified in column (2) of the Table for the month of July, 2017,for such class of taxable persons or registered persons, as the case may be, as specified in the corresponding entry in column (3) of the Table till the time period as specified in the corresponding entry in column (4) of the Table. Vide notification no 30/2017, dated 11th September 2017.
• CBEC specifies that the return for the month as specified in column (2) shall be furnished in FORM GSTR-3B electronically through the common portal on or before the last dates as specified in the corresponding entry in column (3). Vide notification no 35/2017, dated 15th September 2017
• ITAT Deletes AMP-adjustment for manufacturer & marketer of alcoholic brands; Follows earlier-order. [TS-699-ITAT-2017(Mum)-TP.

GST Update

• Supreme Court of India recently ruled that the CBDT has no power to amend the provisions of the law through issuing circulars. In the instant case, the petitioners, S V Gopala Rao, and Sons.
• 20/09/2017 is the due date of filing of GSTR-3B & for Payment of Tax for the month of  AUG 2017.
• New GST Tax Rates on Luxury Cars:
• Small cars (Petrol): 28.00% base + 1.00% cess = 29.00%
• Small cars (Diesel): 28.00% base + 3.00% cess = 31.00%
• Mid-size cars: 28.00% base + 17.00% (+2%) cess = 45.00%
• Luxury cars: 28.00% base + 20.00% (+5%) cess = 48.00%
• SUVs: 28.00% base + 22.00% (+7%) cess = 50.00%
• Hybrids: 28.00% base + 15.00% cess = 43.00%
• Electric: 12%

FAQ on GST

Query:Does cancellation of registration have any effect on the tax liability of the person whose registration has been cancelled?

Answer:No, Cancellation of registration does not affect the tax liability of the person which is incurred prior to the date of cancellation. He shall still be liable to pay the amount of tax and other dues or any other obligation for a period prior to the date of cancellation irrespective of the fact that whether the same is determined before or after the cancellation of registration

MCA Update:

• MCA made obligation to comply with the Indian accounting standards (Ind AS) and rule 4 of companies (Indian accounting standards) Rules,2015-Payment banks, small finance banks which are subsidiaries of corporates. Vide notification no 01/01/2009-CL-V, dated 13^thSeptember 2017

Other Update:

• Global auditing firms may come under greater scrutiny for any wrong doing as regulators mull ways to make them more accountable, with the role of such auditors , especially the Big Four coming under the lens in various corporate misdoings.
• SEBI has issued a press release stating that ascertaining acquisition of ‘control’ under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“Takeover Regulations”) requires consideration of facts and circumstances of each case.

 

Key dates:

• Payment of GST and filing of return for inward & outward supplies for August by regular & casual suppliers: 20/09/2017
• E-Payment of PF for Sep 12.09.2017

Word of Wisdom:

When we develop the ability to listen to negative comments without losing temper or confidence, it means now we are become matured & truly Educated.

“It takes a lot of courage to have an “attitude of gratitude” during the “dark” times. But once you have it, it empowers you.”

“This is the great paradox of living the blessed life: when we give without thought to whether or not we will receive, then we receive.”

W: www.carajput.com    E: singh@carajput.com   T: 9-555-555-480

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