Corporate and professional updates 15th sep 2018

Corporate and professional updates 15th Sep 2018

Direct Tax:

• ITAT Ahmedabad held that addition for interest under Section 244A cannot be made in absence of intimation regarding grant of interest. Denis Chem Lab Ltd. Vs ACIT (ITAT Ahmedabad)
• ITAT Mumbai held that addition for bogus purchases based merely on statements and not backed by any material evidence is not sustainable. M/s. Aquatic Remedies Pvt. Ltd. Vs The DCIT (ITAT Mumbai)
• Due Date Sept 15, 2018, for payment of, ESI, Advance Income Tax, and KYC of DIN.
• Finance Ministry extended the last date for filing final sales return GSTR-1 for July 2017 to September 2018 period till October 31 and also waived the late fee for the delayed filing of returns.
• The numbers of taxpayers who have filed summary sales return GSTR-3B is substantially higher than the number of taxpayers who furnished GSTR-1.
• National Anti Profiteering Authority (NAA) ruled that suppliers will be liable to pay a penalty for not passing the benefits of GST rate reduction on sale of goods in a case against Jaipur-based Sharma Trading Company indulged in profiteering in contravention of Sec 171 of CGST Act.
• CBDT has amended the meaning of the term ‘Balance Sheet’ as defined under Income Tax Rule 11U(b) and inserts new Income Tax Rule 11UAB on ‘Determination of Fair Market Value (FMV) for Inventory’ and shall apply in relation to AY 2019-20 and subsequent years – N.42, dt.30.08.2019
• ITAT can direct AO for a fresh inquiry into aspects of the subject matter of the appeal. Case M/s. Fidelity Business Services India Pvt. Ltd. Vs ACIT (Karnataka High Court)

INDIRECT TAX

• CBEC has made amendments to the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Ninth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette. Vide Notification No. 48 /2018, dated 10th September 2018.
• CBEC has specified the time period for form GSTR-1 to the persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year. Vide Notification No. 43/2018, dated 10th September 2018.
• Profiteering Activity – Benefit of reduction in the rate of tax from 28% to 18% not passed – Respondent has deliberately acted in defiance of the above law and hence he is guilty of the conduct which is contumacious and dishonest – Pawan Sharma, DGAPIT&C Vs. Sharma Trading Company (2018 (9) TMI 625 – NAPA).

FAQ on GST Audit:

• Query: What is the period within which the audit is to be completed?
• Anwar: The audit is required to be completed within 3 months from the date of commencement of audit or within a further period of a maximum of 6 months subject to the approval of the commissioner.

MCA UPDATES

• MCA: 15 SEP 2018(SATURDAY) is the LAST DATE for filing DIR-3 KYC by Directors having DIN.
• MCA has invited Comments on the report of the Committee to review offenses under the Companies Act, 2013, along with justifications.
• An MCA time limit for filing the BEN‐2 form would be 30 days from the date of deployment of BEN‐2e‐form on the MCA‐21 portal without any additional fee.
• Supreme Court has stayed the Reserve Bank of India’s circular, preventing initiation of Insolvency proceedings against their stressed power assets to private power, textiles companies, and shipowners, etc.

RBI UPDATES

• RBI is becoming consistent in adding gold to its foreign currency reserves. In July the central bank added 6.8 tonnes, the highest monthly accretion after 2009.
• This came at a time when the central bank spent more than $25 billion defending the falling rupee.

 

SEBI UPDATES

• SEBI is looking at including NRIs in the foreign portfolio investor’s quota. Sources said the regulator had written to the central government, seeking its opinion on this.
• The move could open a new source for foreign inflows into the country, as NRIs are currently not big investors because of regulatory curbs.
• All unlisted public companies have to issue shares in Demat form mandatorily with effect from 2nd October 2018.
• Private limited companies, small companies, and OPC companies can still issue shares in physical form.
• SEBI has directed the NSE to keep four senior officials, served show-cause notices (SCN) in the co-location case, out of action.
• Sources said these four key managerial personnel (KMP) will have to remain out of the bourse’s “sensitive” and “confidential” matters until the probe is complete.

OTHER UPDATES

• Global private equity (PE) funds are likely to be among those most affected by the beneficial ownership norms notified by MCA u/s 90 of the Companies Act, 2013.
• According to the new rules, a company can suspend control rights on its shares if the PE fund does not disclose the beneficial owner.
• UCO Bank invites online applications from practicing firms of CA for empanelment as Concurrent Auditors from 01-10-2018 TO 30-09-2019. The last date is 12-09-2018.
• Special courts under the NCLT are likely to be set up by November to deal with an increasing number of insolvency cases. The Ministry of Corporate Affairs is working on this proposal.

KEY DUE DATES

• GSTR-3B (AUG 2018)-SEP 20th, 2018
• GSTR-5 (AUG 2018)-SEP 20th, 2018
• A GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
• GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
• GSTR-5A (AUG 2018)-SEP 20th, 2018

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