corporate and professional updates 16-jan-2018

CORPORATE AND PROFESSIONAL UPDATES 16-JAN-2018

RBI Update:

The Reserve Bank of India has today notified that the Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in M/S Granules India Ltd. has increased from 24% to 49% of its paid up capital. Vide press release 2017-2018/1918, dated 12th January 2018.

Direct Tax:

Ahmedabad ITAT holds that payment for  information technology (IT) related services rendered to assessee-company (manufacturer of rail coaches) by vendor company (CSCIPL)  during AYs 2008-09 to 2014-15 should be treated as fees for  technical services (‘FTS’) attracting TDS u/s 194J & not annual maintenance contract simplicitor attracting TDS u/s 194C, rules that it is not the medium of contract or payment but the nature of services rendered by the payee which is the crucial factor to determine whether or not they amount to technical or professional services;

[TC-622-ITAT-2017(Ahd)]

SC dismisses Revenue’s SLP against Bombay HC quashing block assessment for the block period 1989-90 to 1999-2000; Bombay HC had accepted assessee’s stand that issuance of Sec. 158BC notice by AO, Nagpur was without jurisdiction; [TC-11-SC-2018]

Cash transaction between close family members for giving a support and help not amount to ‘Loan’ u/s 269SS of the Income Tax Act: Kolkata ITAT.

Indirect Tax:

CBEC made amendment in Custom Act, 1962 by way of notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table, which shall be further amended in the manner specified in the corresponding entry in column (3) of the Table. Vide notification no 3/2018, dated 12th January 2018.

FAQ on GST:

Query:  Is there any special document required to be carried during transportation of taxable goods?

Answer: Yes. The person in charge of a conveyance carrying any consignment of goods of value exceeding a specified amount to carry with him such documents and devices as may be prescribed by the Government. On interception of the conveyance, the person in charge shall produce the prescribed documents and devices for verification and allow inspection of goods by the proper officer.

Key Dates

GST Returns Summary for December: 20/01/2018

GST UPDATES

GSTN has provided an Off Line Tool for preparing GSTR-11. Taxpayers having Unique Identification Number (UIN) can now file details of inward supply of goods & services, refund amount claimed etc.

GSTN has enabled the functionality to save, submit, and file GSTR-4 for Oct-Dec 2017 quarter at GST portal.

GSTN has provided an online facility at GST portal to lodge complaints / grievances related to processes (application), ledger etc.

Persons registered under the composition scheme must mention the words “GST Composition Taxable Person” on every notice or sign board displayed at a prominent place at both the principal and the additional place of business.

Delay in producing E-Way Bill is a Mere Technical Breach: Allahabad High Court Deletes Penalty against M/S Raj Iron & Building Materials, a division bench of the Allahabad High Court under GST law.

Other updates

The Delhi High Court has upheld the constitutional validity of the second proviso to Section 5(1) of the Prevention of Money-laundering Act, 2002 (PMLA).

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