Corporate and professional update september 27 2017

CORPORATE AND PROFESSIONAL UPDATE SEPTEMBER 27 2017

DIRECT TAX:

• Delhi HC quashes assessment order passed pursuant to ITAT’s remand in case of Nokia India (‘assessee’) for AY 2007-08, holds that the order was barred by limitation u/s. 153(2A) [which prescribes time-limit for framing assessment pursuant to ITAT order setting aside or cancelling assessment]. [TS-425-HC-2017(DEL)]
• SC allows Revenue’s appeal and sets-aside Punjab & Haryana HC ruling. Rules that enhanced compensation along with interest thereon received by assessee-HUF pursuant to HC’s interim order in pending appeals relating to land acquisition matter, taxable in the year of receipt
  • Mumbai ITAT allows assessee-company’s claim of exemption u/s 54G  for AY 2004-05 with respect to capital gains arising on sale of land, rejects Revenue’s denial on the ground that investment was made in plant and machinery after 9 years of shifting of the industrial undertaking. Hence, the assessee can purchase machinery even after shifting and commissioning of business from the new premises, however, opines that the most important and decisive factor for claiming the deduction is the ‘transfer’ of a capital asset. [TS-410-ITAT-2017(Mum)].
  • Rajasthan high court held that deemed registration of an application under section 12AA of the Income Tax Act if not responded to within six months, it would be taken that the application is registered under the provision. CIT Vs Sahitya Sadawart Samiti (Rajasthan High Court)

INDIRECT TAX:

• CBEC notifies changes in GST rates and exemptions in respect of various commodities, including 5% on cereals, pulses and flours put up in unit container and bearing registered brand name or bearing brand name on which actionable claim or enforceable right in court of law is available.
  • High Court Allows Clean Energy Cess credit utilization until CBEC evolves appropriate process therefor.
  • CBEC made amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.5/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 677(E), dated the 28th June, 2017. Vide notification no 29/2017, dated 22^th September 2017
  • CBEC made in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.2/2017- Central Tax (Rate), dated the 28th June 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28th June, 2017. Vide notification no 28/2017, dated 22th September 2017

GST UPDATE:

• Anthologiesunder the GST dropped marginally to Rs 90,669 crore for August from therevised figure of Rs 94,063 crore for July.

• GST Network (GSTN) has tweaked some of the features on its portal over the past month to make the system more robust and allow glitch-free tax payment facility to almost 35 lakh assessees, CEO Prakash Kumar said on Sunday. Of the total 87.33 lakh registered businesses on the GSTN, which manages the IT infrastructure of the new tax regime, 68 lakh.

• GST e-way Bill and Returns & Burden of Proof & Evidentiary Law with Discussion on recent Update under Income Tax (OTHERS) Date: From: 04-10-2017 – To: 04-10-2017 POU Name: North Campus Study Circle of NIRC Event Venue: ART OF CURRY, OPP-FUN CINEMA, NETAJI SUBHASH PLACE,DELHI-34. City: DELHI …

• The Goods and Services Tax (GST) Council has put in place an elaborate framework for division of taxpayers between the state and central tax authorities, in a move aimed at bringing clarity and effectiveness in the administration of the new indirect tax regime. The guidelines for the division of the taxpayer base between the Centre and states will…

• In view of difficulties of online filing, the industry body suggested that “the due dates for filing GSTR-1, GSTR-2 and GSTR-3 should be deferred for another month or two” Industry chamber CII today sought extension of time by two months for filing of GST returns in view of difficulties being faced by businesses. The GST Council has already exten.

• This article discusses in detail  “whether -GSTR3B is to be filed mandatorily or not when it entails huge tax liability due to submission of some wrong information & non revision of the same or filing of the same can be avoided filing of GSTR-1, 2 & 3?” Query : Sir, i have done mistake..

• GST network has tweaked some of the features on its portal over the past month to make the system more robust and allow glitch-free tax payment facility to nearly 35 lakh assessees, its CEO Prakash Kumar Said.

FAQ on GST:

Query: How should the assessee disclose the details of inward supplies on which he wishes to avail input tax credit?

Answer: In Form GSTR-2, against each inward supply at invoice level, the assessee has to state whether he is fully eligible, partially eligible or not eligible for availing credit on such inward supply.

Further, in case invoice level details cannot be mentioned, the assessee can specify the quantum of the ineligible input tax credit on inward supplies, which are relatable to non-taxable supplies or for purpose other than business

Query: Where a supplier transfers a running business as a whole either due to sale,     merger, an amalgamation of such business, whether the portion of the un-utilized input tax credit by the supplier can be claimed immediately by the recipient?

Answer: There is no specific provision under the Act prohibiting transfer of such unutilized credit. Rather, Section 18(3) specifically provides that when there is a change in the constitution of a registered person on account of sale, merger, or amalgamation of business with a specific provision of transfer of liabilities, the registered taxable person shall be allowed to transfer the input tax credit which remains unutilized. Therefore, if the recipient is registered under the Act, he should be eligible to claim such unutilized credits. In a situation, where the recipient is not registered under the Act, he may have to make a fresh application for registration and claim such unutilized credits after making an intimation to the department.

MCA UPDATE:

• Banks have started the process of scanning account details of directors disqualified by the MCA to analyze their links with shell companies and check whether they diverted funds.
• MCA has notified the Companies (Restriction on Number of Layers) Rules, 2017 which shall come into force from 20-09-2017. Now no company, other than a company belonging to a class specified, shall have more than two layers of subsidiaries.
• MCA has notified the amendments to the Companies (Acceptance of Deposits) Rules, 2014 applicable from   19-09-2017.

RBI UPDATE:

• RBI has notified the amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 as per the existing norms.

• RBI/2017-18/66DBR.No.FSD.BC.89/24.01.040/2017-18 September 25, 2017 All Scheduled Commercial Banks(excluding RRBs) Dear Sir/ Madam, Amendments to Master Direction- Reserve Bank of India (Financial Services provided by Banks) Directions, 2016 Considering the suggestions and queries received from SEBI, banks and other stakeholders, Reserve Bank

• Ahead of the monetary policy review by the Reserve Bank of India early next month, the Finance Ministry is hoping for a further cut in key rates to boost domestic demand. “Inflation has picked up in the last one month but all the analyses we had done was based factoring in a rise in inflation. The medium-term inflation target is kept at 4 pe…

OTHER UPDATE:

• The Central Government has notified the Customs and Central Excise Duties Drawback Rules, 2017 to replace the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 which shall be effective from 1.10.2017.
• SEBI allowed Stock brokers to submit monthly data on their clients’ funds to the exchanges within three trading days after the month-end. Currently, brokers need to submit this data by the next trading day.
• Prime Minister constituted a five member Economic Advisory Council (EAC) headed by Niti Aayog member Bibek Debroy, at a time when concerns are being raised over the declining growth in India.
• CBDT asks I-T department to take urgent steps for collection from the TDS category witnessing a sluggish pace, It asked the I-T dept to pull up its socks and take “urgent” steps and also conduct survey operations to shore up the funds.

• • The Department of Industrial Policy and Promotion (DIPP) will facilitate the process of ranking and it would be done by a third party. The Centre has initiated an exercise to rank states and Union territories on the basis of measures being taken by them to promote buddi entrepreneurs.

KEY DATES:

• Return of input service distributer for August: 27.09.2017

WORD OF WISDOM:

• “Clear, written goals have a wonderful effect on your thinking. They motivate you and galvanize you into action. They stimulate your creativity, release your energy, and help you to overcome procrastination as much as any other factor.”
• The most common way people give up their power is by thinking they don’t have any

• “Great minds discuss ideas; average minds discuss events; small minds discuss people.”

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