CORPORATE AND PROFESSIONAL UPDATES 13TH JUNE 2018

Direct Tax:

• Mumbai ITAT grants Sec. 10B benefit to assessee (a pharma company) on export profits earned by its contract manufacturing and research division (STAR unit, an approved EOU) during AY 2007-08 with respect to creation of  ‘dossier’; Rejects revenue’s stand that the activity of preparation of dossier cannot be treated as ‘manufacture or production of an article or thing’ as contemplated in Sec. 10B; ITAT holds that dossier has all the attributes of product being an article or thing, remarks that “creation of dossier entails the actual production of the formulation initially in the laboratory and therefore upto a batch size”;  [TS-300-ITAT-2018(Mum)]
• Chandigarh ITAT raises an alarm over illegal coercive recoveries by Departmental officials in order to achieve their targets at the close of the financial year i.e. by 31st March of the year, in complete violation of the directions / orders issued by their higher judicial authority,  remarks that, “This type of practice…..in our view, may lead to severe consequences affecting the administration of justice.”,  directs the Department / CBDT to take necessary steps in this respect;[TS-296-ITAT-2018(CHANDI)]
• 15-06-18 (Friday) is LAST DAY for Payment of Advance Income Tax: All Assessees (15%) except 44AD cases. Challan No.ITNS-280.
• LATE FEE ON DELAY IN FILING INCOME TAX RETURN FOR THE YEAR ENDED 31ST MARCH, 2018 (Asst.Yr: 2018-19) under sec. 234F:  If ITR filed during 01/08/2018 – 31/12/2018 : Rs. 5000 and If total income does not exceed Rs.5 Lakhs then Rs. 1000.
• Late fee for Return filed during 01/01/2019 – 31/03/2019 : Late Fee Rs. 10000. If total income does not exceed Rs. 5 Lakhs then this Late Fee will be restricted to Rs. 1000.

Indirect Tax:

• GST on applicable rates to be charged on labour & spares in case of car service where same shown separately. Circular 47/21/2018-GST of 8.6.18.
• GST applicable on additional interest in case of default in installment payment & late payment charges on credit card dues. CBIC FAQs (Jun 2018).

FAQ on E-WAY BILLS:

• Query: What has to be done, if the vehicle number has to be changed for the consolidated e-way bill?
• Answer:There is an option available under the ‘Consolidated EWB’ menu as ‘regenerate CEWB’. This option allows you to change the vehicle number to existing Consolidated EWB, without changing the individual EWBs. This generates a new CEWB, which has to be carried with new vehicle. Old CEWB will become invalid for use.

Read more about: What is core Business Activity GST

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

RBI Update:

• RBI has issued notification regarding External Commercial Borrowings (ECBs) Monthly reporting through ECB 2 Return.

OTHER UPDATES

• The recent amendment to the bankruptcy law — that requires shareholder approval before a company files for insolvency and also mandates that the administrator convince the tribunal that the resolution plan is effectively implementable — will benefit small stakeholders but delay resolution.
• Indian Valuation Standards as issued by the Institute of Chartered Accountants of India effective for the valuation reports issued on or after 1st July, 2018.

KEY DATE:

• QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
• DUE DATE FOR FILLING GST TRAN-2- 30.06.2018