corporate and professional updates 16th aug 2018

corporate and professional updates 16th aug 2018

Direct Tax :

• Delhi HC dismisses Revenue’s appeal, allows depreciation on the intellectual property rights (IPR) acquired and purchased by assessee co. from Monsanto India Limited during AY 2010-11; HC notes that the IPRs purchased by assessee included trademarks, which were used for the purpose of its trading business, in advertising/sales promotion/marketing; Rejects Revenue’s stand that depreciation was not allowable as the capital asset in form of intellectual property rights was not put to use for manufacturing activities; [TS-440-HC-2018( DEL)]
• Delhi ITAT deletes disallowance for donations made by assessee-trust in kind and in cheques, to schools, colleges and other charitable institutions during AY 2013-14, holds that there is no embargo in law that a trust has to incur expenditure on its own and it cannot give donation in kind to institutions; During relevant AY, assessee donated school bus, laptops, etc (in kind) and made donations to schools/colleges for scholarship of students, tree plantation, marathon etc., rejects Revenue’s stand that giving such donations cannot be held as charitable activities;[TS-449-ITAT-2018(DEL)]
• ITAT remits ALP determination of assessee’s international transaction relating to provision of software design and development services for AYs 2012-13 & 2013-14; Relies on co-ordinate bench ruling in assessee’s own case in AY 2009-10 (subsequently affirmed by HC) wherein assessee’s internal benchmarking analysis under TNMM on the basis of segmental profitability was upheld;[TS-811-ITAT-2018(2018(DEL)- TP]

INDIRECT TAX

• Govt introduced four bills to amend the Goods and Services Tax (GST) laws which among other things seek to simplify the return forms and raise the turnover threshold for availing composition scheme to Rs 1.5 crore.
• Migration cases where Provisional ID received can follow specified process till 31.8.18 to complete registration. Notification 31/2018 of 6-8-18.

FAQ on GST Audit:

• Query:What is meant by confiscation?
• Answer:The word ‘confiscation’ has not been defined in the Act. The concept is derived from Roman Law wherein it meant seizing or taking into the hands of emperor, and transferring to Imperial “fiscus” or Treasury.
• The word “confiscate” has been defined in Aiyar’s Law Lexicon as to “appropriate (private property) to the public treasury by way of penalty; to deprive of property as forfeited to the State.

Read more about: What is core Business Activity GST

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

SEBI UPDATES

• SEBI is planning to limit investors’ exposure to shares and equity derivatives in line with their net worth, said three people with knowledge of the development.
• The move is aimed at preventing individuals from going overboard on equity investments, considered riskier than bonds.
• SEBI through its circular has asked Registrars and Share Transfer Agents to comply with enhanced monitoring requirements, through implementation of internal policy framework and periodic reporting on key risk areas, data security measures and governance structures

MCA UPDATES

• The Registrar of Companies have issued Public Notice under the provisions of the Section 248(5)of the Companies Act, 2013 and applicable Rule 9 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 for for Striking of Name of 24280 Companies.
• Delhi High Court pronounced That a company secretary of a private firm is not mandated to disclose non-filing of balance sheet, profit and loss account and annual return for the previous financial year in his compliance certificate.

OTHER UPDATES

• CIRC of ICAI is organising Regional Conference 2018 .Hosted by Ghaziabad Branch of CIRC of ICAI ,On 18^th& 19^th August 2018 (Saturday & Sunday), At Hotel Radisson Blu, Kaushambi, Ghaziabad, Online Payment Link: https://icaigzb.org/icainew/pay

KEY DUE DATES

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