CORPORATE AND PROFESSIONAL UPDATES 15TH JUNE 2018

Direct Tax:

• AAR holds that the non-compete fee received by Applicant [Holding company of Mcmillan Group (a leading publisher) and resident of UK] constitutes business income u/s 28(va), however it is not taxable in India in absence of Applicant having PE under India-UK DTAA; Applicant received non-compete fee pursuant to Share Purchase Agreement (SPA) entered with Indian Company (ADI) for transfer of shares of another Indian company, MPS Limited in which Applicant held 61.46% shares; [TS-305-AAR-2018]
• AAR rules that the Applicant (a Singaporean based MasterCard group company, which carries out group’s principal business of transaction processing and payment related services) has a fixed place PE, service PE and dependent agent PE in India under Article 5 of the India Singapore DTAA in respect of the services with regard to use of a global network and infrastructure to process card payment transactions for Customers in India; [TS-304-AAR-2018]

• CIT vs. L&T Finance Ltd (Bombay High Court) S. 271(1) (c) Penalty: Merely using the words that there is concealment of income and / or furnishing inaccurate particulars of income is not sufficient. The same should be particularized by the AO with a finding.

Indirect Tax:

• CBEC has made amendment in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Fifth Amendment) Rules, 2018 which shall come into force on the date of their publication in the Official Gazette. Vide notification no 26/2018, dated 13th June 2018.
• The Central Board of Indirect Taxes and Customs (CBIC) has extended the refund fortnight for fast track clearance of pending dues to exporters by two days till June 16.
• Last date to file GSTR-3B for the month of May 2018 is June 20,2018.
• CBIC- The Circular clarified that integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption.Circular No. 3/1/2018-IGST

FAQ on E-WAY BILLS:

• Query: If the vehicle, in which goods are being transported, having e-way bill is changed, then what is required to be done?
• Answer:. The e-way bill for transportation of goods should always have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods, due to trans-shipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the new vehicle number in Part B of the EWB.
• Query:  Which types of transactions that need the e-way bill
• Answer: For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including an unregistered person or for reasons other than supply also, e-way bill is mandatory.

More read:

• Key characteristics for Auto-population of e-invoice
• Overview of Invoice Furnishing Facility (IFF) Under QRMP Scheme

RBI UPDATES

• RBI has mooted a proposal that at least 40 per cent of the sanctioned limit should be a term loan component. For borrowers with an aggregate fund-based working capital limit of Rs 1.5 billion and above from the banking system wef October 1, 2018.

OTHER UPDATES

• Government has notified the Officer’s, who may, before institution of any prosecution under FCRA compound the offences, on payment of the amount specified in the notification. In case more than one offence has been committed by a person, the total amount of compounding for such offences shall not be more than the value of the foreign contribution involved.

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