Corporate and professional updates 13th july 2018

CORPORATE AND PROFESSIONAL UPDATES 13th july 2018

Direct Tax :

• Andhra Pradesh and Telangana HC rejects assessee-petitioner’s plea that reduced compounding fee @ 3% ​is applicable in view of the revised CBDT guidelines of December 2014, ​holds that guidelines that were in existence at the time of filing​ of​ the compounding application in August, 2014 (which prescribed for higher compounding fees @ 5%) were applicable; Observes that assessee had filed compounding application u/s. 279(2) with respect to prosecution proceedings initiated against it for failure to remit TDS, however, the same was rejected for non-payment of compounding fees as assessee disputed its quantum; [TS-372-HC-2018(AP)]
• Bangalore ITAT confirms interest levy u/s. 201(1A) for TDS default by assessee-payer during AYs 2011-12 to 2015-16, despite ​non-applicability of primary TDS liability due to losses reported by non-resident ​​payee’s Indian PE; Rejects assessee’s stand that when no tax is payable there cannot be any loss to the exchequer and, therefore, levy of interest which is compensatory in nature cannot be sustained; [TS-371-ITAT-2018( Bang)]
• TDS: TDS u/s 194A – NOIDA – composition of the Authority is statutorily provided by Section 3 of 1976 Act itself, hence, there is no denying that Authority has been constituted by Act itself – NOIDA is a Corporation – No TDS liability on interest paid to NOIDA – CIT (TDS) & Anr Vs. Canara Bank (2018 (7) TMI 664 – Supreme Court).
• IT: Penalty u/s 271(l)(c) – The legislature does not intend to penalize every person whose claim is disallowed. This is not the aim of the legislature –CIT  Vs. Samtel India Ltd. (2018 (7) TMI 660 – Delhi High Court).

Read more about: What is core Business Activity GST

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

Key Features – Return Preparation Utility (RPU) version 2.3:

• A new column for “Deduction under Section 16 (ia)” is added under Annexure II (i.e. Salary details) for Form 24Q-Q4
• The above referred deduction is applicable for regular and Correction statements for Form 24Q-Q4.
• Deduction under Section 16 (ia) will be applicable for statements pertaining to F.Y. 2018-19 onwards. Introduction of new remark code for Form 26Q
• A new remark code “R” is introduced under field “Remarks” in Annexure I (i.e. deducted details) for deduction on interest income for Senior Citizens.
• This will be applicable only for section code 194A (i.e. interest other than interest on securities). Same will be applicable for Regular and Correction statements pertaining to Form 26Q from F.Y. 2018-19 onwards.
• Incorporation of latest  (FVU) version 5.8 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.3 (applicable for TDS/TCS statements from FY 2007-08 up to FY 2009-10).
• This version of FVU is applicable with effect from June 29, 2018.
• The Date for updation Of Entity Master Form on RBI website has been extended to 20th July 2018.

INDIRECT TAX

• CBDT has revised the Threshold Limits for Filing of Appeals/SLP by the Income Tax Department Vide Circular No. 3/218 dated July 11,2018.
• Service Tax Audit – Vires of sub-rule (2) of Rule 5A of the Service Tax Rules, 1994 as substituted by notification no. 23/24/ST – HC quashed the notice following the Delhi HC judgment – Infinity Infotech Parks Ltd. & Anr Vs. Union of India & Ors (2018 (7) TMI 667 – Calcutta HC).
• Threshold Monetary Limits for filing Departmental Appeals has been increased in case of (i) ITAT / CESTAT from Rs.10 Lac to Rs.20 Lac; (ii) High Courts from Rs.20 Lac to Rs.50 Lac; and in case of (iii) Supreme Courtfrom Rs.25 Lac to Rs.1 Crore.

FAQ on GST Audit:

• Query: What is the time limit to pass assessment orders under Section 62 and 63 (Best Judgement and Non-filers)?
• Answer:Assessment orders under these sections must be passed within 5 years from the due date of the annual return (GSTR-9).

RBI Update :

• The Reserve Bank of India (RBI) has extended the Directions issued to the Gomti Nagariya Sahakari Bank Ltd., Jaunpur (Uttar Pradesh) for a further period of four months from July 11, 2018 toNovember 10, 2018, subject to review.

MCA UPDATES

• MCA has issued an advance alert on its website w.r.t the DSC of directors to be used on Form DIR-3KYC. The PAN based DSC in case of Indian Nationals and in case of foreign nationals, applicant’s name in DSC would be matched with his / her name entered while filing the form (DIR-3 KYC).

OTHER UPDATES

• ICAI invites comments by 10.08.2018 on Exposure Draft of Accounting Standard (AS) 19, Employee Benefits.

KEY DUE DATES

• GSTR-3B (Jun 2018)-Jul 20th, 2018

• GSTR-5 (Jun 2018)-Jul 20th, 2018

• GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018

• GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018

• GSTR-5A (Jun 2018)-Jul 20th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018.
• Due date for furnishing of Form 24G by an office of the Government where TDS for the month of June, 2018 has been paid without the production of a challan-15th july
• A Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of May, 2018-15th july
• Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of May, 2017-15th july
• Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending June, 2018-15th july