corporate and professional updates 16th APRIL 2018

 

Direct Tax:

• Delhi HC holds that appropriateness of the ‘most appropriate method’ per se does not raise a question of law since it involves analysis of facts done first by the Revenue authorities and settled by the ITAT; HC holds that “Unless the facts show glaring distortion in the adoption of one or the other method, a question of law cannot be said to arise”; Accordingly, HC rejects admission of question of law raised by assessee involving rejection of CUP method by Revenue as the most appropriate method for the transaction of dealings in railway wagons based on the sale price made to the ultimate third-party buyer; HC notes that Revenue rejected CUP method having regard to the fact that it unduly restricted the choices of the Revenue and TNMM was considered to be a more appropriate method where greater choice was available; HC thereafter admits 3 legal questions raised by the assessee in respect of Tribunal’s order on the issues of cherry-picking of comparables, deletion of comparables selected by the assessee, and intra-group services related to management support . [TS-244-HC-2018(DEL)-TP]
• Delhi ITAT disallows assessee’s (an individual) claim of loss on shares purchased from her husband, applies provisions of Sec. 60; Notes that assessee had purchased shares from her husband and sold them, but there was no delivery either physically or through demat account, not any consideration was exchanged at the time of purchase or sale of share,  holds transaction as non-genuine. [TS-174-ITAT-2018(DEL)]
• Permanent Account Number (PAN) application amended to include the third gender option. CBDT Notification dated 09.04.2018.

Indirect Tax:

• CESTAT Mumbai held that No service tax leviable on security services provided by police to Banks or for Cricket Matches. [Mumbai Police Vs. Commissioner of Service Tax (CESTAT Mumbai)]
• In Evergreen Seamless Pipes and Tubes Pvt. Ltd.& Ors vs. Union of India & Ors., the Bombay High Court upheld the Constitutional validity of One Year Limitation for GST Transitional Credit under Section 140(3)(iv) of the CGST Act, 2017.

FAQ on E-WAY BILLS:

• Query:Whether e-way bill is required, if the goods are being purchased and moved by the consumer to his destination himself.
• Answer: As per the rules, e-way bill is required to be carried along with the goods at the time of transportation, if the value is more than Rs. 50,000.00. Under this circumstance, the consumer can get the e-way bill generated from the taxpayer or supplier, based on the bill or invoice issued by him. Or the consumer can enrol and log in as the citizen and generate the e-way bill.

Read more about: What is core Business Activity GST

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

MCA Updates:

• MCA issues The Companies (Share Capital and Debentures) Amendment Rules, 2018. MCA Notification dated 10.04.2018.
• MCA vide its office order reshuffles its top level officers from one office under the MCA to another.All the transfers and posting are ordered on the administrative grounds and with immediate effect.

RBI updates

• The Reserve Bank tightened reporting norms for the Liberalised Remittance Scheme (LRS) under which an individual can transfer up to USD 2,50,000 abroad in a year

Key Dates:

• Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018