corporate and professional update july 24, 2017

 

CORPORATE AND PROFESSIONAL UPDATE July 24, 2017

Direct Tax:

• CBDT has clarified that, where the recipient of service is required to deduct TDS when making a payment to the supplier, the amount of TDS shall be computed without grossing up for the GST component, which is also part of the bill.
• ITAT Bangalore held that the service provided by the seconded employee in the case of the assessee is purely technical in nature and therefore exclusion of managerial from the definition of Fees for Included Services under Article 12(4) of Indo-US DTAA will not make any difference and thus taxable as fees for included service (FIS) ( [TS-294-ITAT-2017(Bang)]

Indirect Tax:

• CBEC specified extension of time limit for filing intimation for composition levy under sub rule (1) of rule 3 of the CGST Rules, 2017. Vide notification no 345/114/2017, dated 21th July 2017.

 

Key Dates:

• E-return of DVAT for quarter ended June: 25.07.2017

GST Update:

• Extension to 16.08.17 of last date to file Form GST CMP-01 (Intimation of Composition Levy Scheme).Order no. 01/2017-GST
• GST Taxpayers who were provisionally migrated by virtue of being registered under the existing laws, but who are no longer required to be registered under GST, the period of applying for Cancellation of Registration is up to 30th September, 2017.

FAQ on GST:

Query: In case the amount is paid partly to the supplier of service, whether full taxes can be adjusted first? If No then whether it has to be calculated proportionately?

Answer: No. there is no provision under the GST law to allocate part payment of the invoice towards the taxes first so that the input tax credit can be allowed. Second proviso to Section 16(2) of the CGST Act clearly provides that the entire value of supply (with tax) is to be paid within 180 days from the date of issue of invoice. Therefore, as long as the entire payment is made within 180 days, the recipient would be entitled to claim the credit in full. Assuming that only part payment is made within 180 days, availing of proportionate credit based on such part payment is not provided for under the CGST law and thus, would be subject to litigation.

Corporate Law:

• Finance Minister Arun Jaitley today introduced a bill to repeal SBI (Subsidiary Banks) Act and State Bank of Hyderabad Act following the merger of five associates with the parent SBI.
• More than 160,000 companies been deregistered and a series of actions are being taken against shell firms. Out of the 162,618 companies that have been struck-off the register, the registration of 33,000 were cancelled by RoC (Mumbai).
• Form AOC-4, CRA-2 and 21A were recently revised on MCA21 Company Forms Download page. Stakeholders are advised to check the latest version before filing.
• The Reserve Bank has issued a license to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India. Vide press release 217, dated 21 July 2017

Quotes of the day:

“Put your heart, mind, and soul into even your smallest acts”.

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