corporate and professional update september 23rd 2017

CORPORATE AND PROFESSIONAL UPDATE SEPTEMBER 23rd 2017

DIRECT  TAX

• Delhi ITAT allows deduction u/s 10B to assessee [(operating an Export Oriented Unit (EOU)] for AY 2010-11 and AY 2011-12 in respect of duty drawback receipts forming part of EOU’s profits, ITAT holds that manner of computing profits u/s 10B(4) does not require direct nexus with business unlike Sec 80(IB).  TS-408-ITAT-2017(DEL)

• Mumbai ITAT treats interest earned by assessee company on fixed deposit as capital receipt for AY 2012-13, being inextricably linked with setting up of power project, directs set-off against pre-operative expenditure. [TS-409-ITAT-2017(Mum)

INDIRECT TAX:

• CBEC made amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.11/2017- Central Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28thJune, 2017. Vide notification no 24/2017, dated 21th September 2017

• Income Tax Department at the time of login asking for Residential Status, Mobile and Email, Bank details and at last Mobile and E-mail OTP. Otherwise Login is not allowed. Also, one Mobile and E-mail address cannot be used for more than 3 Assessee.

• CBDT via Notification No. 9 dated. 19.09.2017 notifies procedure for filing Statement of Income to avail foreign tax credit as per Rule 128 of Income Tax Rules 2016.

• CBEC exempts intra state supply of heavy water and nuclear fuels falling in Chapter 28 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) by the Department of Atomic Energy to the Nuclear Power Corporation of India Ltd from the whole of the central tax leviable thereon under section 9 of the Central Good and Services Tax Act, 2017. Vide notification no 26/2017, dated 21th September 2017.

GST UPDATE:

• Extension of last date for filing TRAN-1 to 10.2017. Now original TRAN1 can be filed and revised once till 31.10.2017.  [Order 03/2017-GST of 21.9.2017.]

• As many as 2.97 million assessees have filed the summary input-output return under the GST for the month of August (‘GSTR 3B’), much less than the 4.6 million that came for the month of July.

FAQ on GST:

Query: I have a registration as an Input Service Distributor. Am I required to raise invoices even though no taxable supplies are made from this registration number?

Answer: Yes. An Input Service Distributor (ISD) should issue a tax invoice being an ‘ISD invoice’ for distributing credits to the GST registrations that have the same PAN as that of the ISD. Such invoice will be different from invoices reflecting supply of goods or services (refer Invoice Rules). This is a document required under Section 20 of the Act.

MCA UPDATE:

• MCA made amendments in companies Act, 2013. These rules may be called the Companies (Restriction on number of layers) Rules, 2017 which shall come into force on the date of their publication in the official Gazette. Vide notification no 01/1312013 CL-V (Vol.IIl), dated 20.09.2017.

• The last date for submission of research proposal for “Funding of Research Studies and Workshops conference, etc. under the CDM plan Scheme” is now extended up to 29th September, 2017.

OTHER UPADATE:

• SEBI has empowered stock exchanges to conduct forensic audits on listed companies which seem dubious, being suspected of  use as conduits for illicit fund flow.

KEY DATES:

• Return of input service distributer for August: 23/09/2017

WORD OF WISDOM:

• To be successful, you must decide exactly what you want to accomplish, then resolve to pay the price to get it.

• “There is only one corner of the universe you can be certain of improving, and that’s your own self”

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