corporate and professional updates 11th APRIL 2018

Direct tax

• ITAT directs application of TNMM over TPO/DRP’s CUP-method for benchmarking assessee’s payment of technical know-how fee to AE for AYs 2012-13 & 2013-14; Follows co-ordinate bench ruling in assessee’s own case in the preceding year wherein TNMM was accepted as MAM; Thus, ITAT opines that “we restore the issue to the file of the Assessing Officer/TPO for applying the TNMM in respect of technical fee payment for determination the arm’s length price”[TS-213-ITAT-2018(DEL)-TP]

• ITAT remits TP-issues for Aptean India for fresh decision for AY 2011-12; Notes that some additional grounds were raised by assessee before DRP but the same were not decided by DRP; Thus, opines that “we feel it proper to restore the entire matter back to the file of DRP for fresh decision with the direction that the DRP should decide the additional grounds also along with main grounds raised by the assessee”; Directs assessee to decide all grounds by way of a speaking and reasoned order after providing hearing opportunity  [TS-214-ITAT-2018(Bang)-TP]

• Sec-194-H/201 TDS Liability: Law on whether relationship is that of “principal and agent” and whether payment is of the nature of “commission” explained. Non-compliance of s. 194H attracts the rigor of s. 201 which provides for consequences of failure to deduct or pay the tax. Jagran Prakashan vs. DCIT 345 ITR 288 (All) distinguished on factsThe Director, Prasar Bharati vs. CIT (Supreme Court)

• Sec- 148: The AO is not entitled to issue a reopening notice only on the basis that the foreign company has a permanent establishment (PE) in India if the transactions in respect of which it is alleged that there has been an escapement of income had already been disclosed by the Indian subsidiary and found by the Transfer Pricing Officer (TPO) to be at arm’s length Honda Motor Co. Ltd vs. ADIT (Supreme Court
• CBDT sets June 30th deadline for collection of 100% demand as on April 1, 2018 in cases where TDS has been made but not deposited in the Govt. account.
• CBDT further instructs processing of TDS/TCS defaults for prosecution in atleast 10 cases already identified in earlier two financial years and updating their status by June 30.
• CBDT TPOs & each DRP to pass a minimum number of orders through the Income tax Business Application Module (ITBA)
• CBDT notifies Income Tax Return Forms for Assessment Year 2018-19

Indirect Tax Update:

• CBEC seeks to impose definitive anti-dumping duty on the imports of “Phosphorus Pentoxide” originating in or exported from China PRVide Notification No. 19/2018-Customs (ADD) dated 06.04.2018.
• CBIC introduces IT Grievance Redressal Mechanism for grievances of taxpayers due to technical glitches on GST Portal-reg. – Circular No. 39/13/2018-GST.

FAQ on E-WAY BILLS:

• Query:Is there any validity period for e-way bill?

• Answer:The validity period of e-way bill or consolidated e-way bill depends upon the distance of the goods have to be transported. The validity is one day upto 100km and for every 100 km or part thereafter it is one additional day.

More more :Reasons for the Movement of Goods under the GST

More more:Refund mechanisum under GST service export

RBI Updates

• RBI has decided to defer implementation of Indian Accounting Standard (Ind AS) by one year for the banks.Scheduled commercial banks (SCBs), excluding regional rural banks (RRBs), were required to implement Ind AS from April 1, 2018.

Key Dates:

• Due date for payment of PF for the month of March: 15.04.2018
• Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at https://carajput.com/blog/For any query you can write to singh@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   singh@carajput.com or call at 09811322785/4 9555 5555 480)