corporate and professional updates 10 aug 2018

corporate and professional updates 10 aug 2018

Direct Tax :

• Kerala HC reverses ITAT order, upholds CIT’s cancellation of registration in case of assessee-Trust (having objects of establishing a fund for carrying out public charity); HC notes that assessee implements social welfare schemes of various State Governments and carries on work of distribution of food in various schools through entrustment made by other charitable institutions; Firstly, HC clarifies that “The mere assertion that there is no profit motive will not suffice especially when for implementing the schemes the assessee takes money from the State Government or the intermediary.”;[TS-438-HC- 2018(KER)]
• Bangalore ITAT rules in favour of Revenue, disallows Apple India’s claim for warranty expenses provision to the extent of Rs. 82.5 cr.
• for AY 2013-14, upholds AO’s order restricting warranty provision @ 2.14% of sales; Referring to the provision for preceding as well as succeeding AYs, ITAT observes that year-end provision was getting accumulated disproportionate to the increase in turnover, further takes note of huge difference in the amount of provision made and actual utilization;[TS-432-ITAT-2018( Bang)]
• Income Tax Returns filed by As many as 209,000 ‘non-filers’ filed in last fiscal and paid taxes worth Rs 64.16 billion, Minister of State for Finance Shiv Pratap Shukla said.

More read :income tax rebate u s 87a

INDIRECT TAX

• Govt introduced four bills to amend the Goods and Services Tax (GST) laws which among other things seek to simplify the return forms and raise the turnover threshold for availing composition scheme to Rs 1.5 crore.
• 10.08.2018 (Friday) is Last Day to file GSTR-1 for monthly return outward suppliers for July, 2018.
• Migration cases where Provisional ID received can follow specified process till 31.8.18 to complete registration. Notification 31/2018 of 6-8-18.

 

FAQ on GST Audit:

• Query What is the penalty prescribed for a person who opts for composition scheme despite being ineligible for the said scheme?
• Answer: Section 10(5) provides that if a person who has paid under composition levy is found as not being eligible for compounding then such person shall be liable to penalty to an amount equivalent to the tax payable by him under the provisions of the Act i.e. as a normal taxable person and that this penalty shall be in addition to the tax payable by him..

MCA UPDATES

• MCA Form DIR-3 KYC is likely to be revised on MCA21 portal w.e.f. 9th AUG 2018. As per the revised form, stakeholders may kindly note that ‘Aadhaar’ shall now be mandatory only for applicants who are ‘Residents of India’.
• MCA has made amendment in the Companies (Prospectus and Allotment of Securities) Rules, 2014,These rules may be called the companies (prospectus and Allotment of Securities) Second Amendment Rules, 2018.
• Which shall come into force from the date of their publication in the Official Gazette.
• MCA has made amendment in the  section 1 of the Companies (Amendment Act,2017 (1 of 2018), the Central Government hereby appoints the7th Day of August ,2018as the date on which the provisions of section 10 of the said Act shall come into force.

OTHER UPDATES

• The Negotiable Instruments(Amendment) Act, 2018 has been notified to primarily address issues of dishonour of cheques and to deal with unnecessary delay in disposal of such cases.

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