corporate and professional update 9-jan-2018

CORPORATE AND PROFESSIONAL UPDATE 9-JAN-2018

Direct Tax:

Mumbai ITAT rejects AO’s invocation of deeming fiction u/s. 50C in computing capital gains on land introduced into an LLP as a capital contribution during AY 2012-13; [TS-612-ITAT-2017( Mum)]

Kerala HC reverses ITAT order for AY 2009-10, rules that interest income from bank deposits accrued but not due and hence not credited to assessee’s (a Public sector undertaking) account is taxable; [TS-611-HC-2017(KER)]

Indirect Tax:

CBEC made amendment in Customs Act, 1962 and Customs Tariff Act, 1975 by way of notification no 50/2017- Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 785(E), dated the 30th June, 2017. Vide notification no 02/2018, dated 5th January 2018.

FAQ on GST:

 Query: What happens in cases where the tax demand confirmed is reduced in appeal / revision proceedings?

Answer: The fresh notice of demand is not required to be served in respect of the reduced dues. The Commissioner shall give an intimation of such reduction to the taxable person and the appropriate authority with whom the recovery proceeding is pending.

The recovery proceedings already initiated prior to the disposal of such appeal/revision may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal.

Taxpayers with annual aggregate turnover less than Rs. 1.5 Cr. Need to file Quarterly GSTR 1 from July to September: 10/01/2018

Taxpayers with annual aggregate turnover more than Rs. 1.5 Cr. Need to file monthly GSTR 1 from July to November: 10/01/2018

Press Release

On notification of Companies (Amendment) Act 2017 and applicability of sections 53, 197 & 247 related to Insolvency Process –
https://lunawat.com/Uploaded_Files/Attachments/F_3934.pdf

New on CODS 2018

The process for ‘reactivating’ the DINs in system in respect of disqualified Directors is in progress and they may check the status of the relevant DINs by 12th January 2018. However, they are requested to be ready with necessary ‘overdue documents’ for filing purposes.

The scheme is not applicable for those Directors who may have been associated with a company which was struck off under Section 248(1) of the Companies Act-2013 and such DINs shall be activated only upon receipt of orders for revival of the said company as per due process laid down under Section 252 of the Companies Act-2013

News on Incorporation of Companies

It is proposed to mandate SPICe (with necessary provision for incorporating Producer Companies) as the only form for incorporation of companies w.e.f. 26th January, 2018. Accordingly, INC-7 would be deprecated for incorporation of companies. A detailed notification and FAQs relating thereto would be made available as and when the same is notified.

MCA is proactively designing a Front Office service (replacing INC-1 e-form with Web-Form) for Name Reservation and Change of Name for companies capturing only absolutely essential information from the applicants. The said service is likely to be rolled out on 26th January 2018.

A new name reservation service is being developed and is likely to be deployed on 26th January, 2018. Therefore w.e.f.00:00 hours of 06-01-2018, INC-1 will not be available on the MCA Portal. Stakeholders are advised to submit INC-1 application till 23:59hours of 05-01-2018.

Stakeholders who reserved names using INC-1 are requested to use SPICe for incorporation immediately. However, resubmission of INC-1 is allowed till 23:59 hours of 11-01-2018.

INC-7 form is likely to be discontinued w.e.f 10.01.2018. In case the name reserved using INC-1 is to be used for incorporation through SPICe form, users should file the form latest by 17.01.2018. It is requested that SPICe should be filed with due care as it will be allowed only one resubmission which has to be completed latest by 25.01.2018. Stakeholders may plan accordingly.

News on DIN and related DIR

It is proposed to reengineer the process of allotment of DIN by allotting DIN to individuals only at the time of their appointment as Directors (If they do NOT possess a DIN) in companies. DIR-3 (Application for Director Identification Number) would be applicable for the allotment of DIN to individuals in respect of existing companies only and shall be filed by the existing company in which the proposed Director is to be appointed.

Further, DINs to the proposed first Directors in respect of new companies would be mandatorily required to be applied for in SPICe forms (subject to a ceiling of 3 new DINs) only.

It is also proposed to modify DIR-3 to permit allotment of upto 2 new DINs (since SPICe provides for upto 3 new DINs) only in respect of ‘Producer Companies’. A separate notification would be issued for the same and stakeholders may plan accordingly.

To facilitate corresponding changes in LLP eforms due to deprecation of DIR-3, it is proposed to temporarily suspend issuance of allotment of new DINs for Designated Partners/Partners of LLPs w.e.f 26th January 2018 till 31st March 2018

News on Aadhar integration

MCA is actively considering Aadhaar Integration for availing various MCA21 related services. As a preparatory step, all individual stakeholders viz. DIN holders/Directors/Key Managerial Personnel/Professionals of the ICSI-ICAI-ICMA (whether in employment or in practice) are requested to obtain Aadhaar as early as possible for integrating their details with MCA21 and also ensure that the information in Aadhaar is in harmony with PAN.

When implemented, all MCA21 services shall be available based on Aadhaar based authentication ONLY. The date of Aadhaar integration with MCA21 would be announced shortly. Stakeholders are requested to plan accordingly on PRIORITY so as to avoid future inconvenience.