corporate and professional updates 04th aug 2018

Direct Tax :

• Indore ITAT rules that CIT is not empowered to direct AO to issue notice u/s 143(2) after expiry of normal limitation period, quashes time-barred assessment for AY 2000-01 on assessee-firm.
• Notes that assessee had filed revised return in April, 2001 (original return was filed within Sec 139 time-limit) to claim refund of TDS and made an application u/s. 119 to regularize the revised return which was allowed by CIT (vide CIT’s order of January, 2008) who directed AO to determine refund after scrutinizing the case by issue of notice u/s 143;[TS-424-ITAT-2018(Ind)]
• Bombay HC upholds ITAT order in case of Mr. Fardeen Khan (assessee), rules that there was no transfer u/s 2(47)(v) upon entering into Development Agreement during subject AY 2008-09, since it was not registered; Assessee had entered into a Development Agreement (‘DA’) in April, 2007  whereby 13 acres of land owned by assessee was given for development to M/s. Godrej Properties (‘developer’) and assessee received Rs.13.75 cr. as deposit;[TS-425-HC-2018(BOM)]
• Delhi ITAT accepts assessee’s (company incorporated in Cyprus) contention of non-constitution of ‘installation PE’ under clause 5(2)(g) of India Cyprus treaty pursuant to award of contract  by another foreign entity (AMC) for placement of rock in seabed for laying of gas pipelines and other work.
• Rejects Revenue’s contention that assessee’s activity went beyond 12 months threshold period prescribed for installation PE, observes that AO and DRP wrongly concluded that assessee was involved in multifarious functions by considering the scope of work to be carried by AMC as scope of work for assessee; [TS-426-ITAT-2018( DEL)]

INDIRECT TAX

• Applicability of GST on ambulance services provided to Government by private service providers under the National Health Mission (NHM).
• Withdrawal of Circular No. 28/02/2018-GST dated 08.01.2018 as amended vide Corrigendum dated 18.01.2018 and Order No 02/2018–Central Tax dated 31.03.2018.

FAQ on GST Audit:

• Query: What is the time limit to submit the audit report?
• Answer:The auditor will have to submit the report within 90 days or within the further extended period of 90 days.
• Query: Who can serve the notice of communication for special audit?
• Answer:The Assistant / Deputy Commissioner is to serve the communication for special audit only after prior approval of the Commissioner.

Read more about: What is core Business Activity GST

Read more about: All about GST Offenses, Penalties, and Appeals

MCA Update:

• MCA has made amendment in Companies (Accounts) Rules , 2014.These rules may be called the Companies (Accounts ) Amendments Rules,2018 which shall come into force on the date  of their publication in the official Gazetee.
• Form ADT-1 is likely to be revised on MCA21 Company Forms Download page w.e.f 3rd AUG, 2018. Stakeholders are advised to check the latest version before filing.
• To make the Swachh Bharat Mission truly universal and inclusive, all Union Ministers and Departments of Government of India observe SwatchhtaPakhwada and lead the Process in turns.

RBI Update:

• In the Third Bi-monthly Monetary Policy Statement 2018-19 of the Monetary Policy Committee (MPC), the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points to 6.50 per cent from 6.25 per cent with immediate effect.

OTHER UPDATES

• Multipurpose Empanelment Form for the year 2018-19: Practicing Chartered Accountants are invited to fill the Multipurpose Empanelment Form (MEF) https://www.meficai.org/ or www.pdicai.org/
• For any other query/clarification, please lodge your complaint online on MEF Application itself. If the same is not resolved within 3 working days,
• please contact PDC Secretariat at mefpdc@icai.in or 011-30110444 /440 between 3.00 pm to 5.00 pm.
• The last date for submission of online MEF Form for the year 2018-19 is 21st August, 2018 and online Declaration is to be submitted within 10 days of the filling of MEF but not later than 30th August, 2018.

KEY DUE DATES

• GSTR-3B (JULY 2018)-AUG 20th, 2018
• GSTR-5 (JULY 2018)-AUG 20th, 2018
• GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
• GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
• GSTR-5A (JULY 2018)-AUG 20th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 10TH, 2018.
• Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(july 2018)-Aug 10^th 2018