Corporate and Professional Updates 16th May 2018

DIRECT TAX

• Google India made payments to Google Ireland in relation to purchase of advertisement space for resale to the advertisers in India is certainly in the nature of payment of royalty and is chargeable to tax . Since Google India has not deducted the tax at source as per provisions of section 195, Google India was rightly held to be in default under section 201(1). Google India(P) Ltd. v. Joint Director of Income tax.

• Where closing balance of cash in hand for preceding year was sufficient to explain cash deposited in bank in subsequent year, no addition could be made as unexplained money-HC. ITAT remits TP-issues for Aptean India for fresh decision for AY 2011-12; Notes that some additional grounds were raised by assessee before DRP but the same were not decided by DRP; Thus, opines that “we feel it proper to restore the entire matter back to the file of DRP for fresh decision with the direction that the DRP should decide the additional grounds also along with main grounds raised by the assessee”; Directs assessee to decide all grounds by way of a speaking and reasoned order after providing hearing opportunity  [TS-214-ITAT-2018(Bang)-TP]

• Sec-194-H/201 TDS Liability: Law on whether relationship is that of “principal and agent” and whether payment is of the nature of “commission” explained. Non-compliance of s. 194H attracts the rigor of s. 201 which provides for consequences of failure to deduct or pay the tax. Jagran Prakashan vs. DCIT 345 ITR 288 (All) distinguished on factsThe Director, Prasar Bharati vs. CIT (Supreme Court)

• Sec- 148: The AO is not entitled to issue a reopening notice only on the basis that the foreign company has a permanent establishment (PE) in India if the transactions in respect of which it is alleged that there has been an escapement of income had already been disclosed by the Indian subsidiary and found by the Transfer Pricing Officer (TPO) to be at arm’s length Honda Motor Co. Ltd vs. ADIT (Supreme Court

INDIRECT TAX

• GST Rates Finder’ mobile app, which allows people to under the goods and services tax regime, will now be available on iOS. To install GST Rate Finder first open Google Play Store and search GST Rate Finder.
• Delhi Govt has notified the first appellate authority under Delhi Goods and Services Tax Act wherein the Commissioner (State Tax) authorized all the Add Commissioners to perform the functions of Appellate Authority to hear appeals under section 107 of the Delhi GST.
• GST applicable on motor car used in business sold as scrap. Ruling of Authority for Advance Ruling, Maharashtra for CMS Info Systems Ltd.
• Goods processed and packed in house by applicant, mentioning name and registered address of applicant as manufacturer, cannot be considered as not bearing a brand name and accordingly it will not be eligible for exemption from GST-AAR
• The state commercial tax department (Indore) has initiated the process of refund to the dealers. The department has so far refunded Rs 20 crore to eligible dealers under Goods and Services Tax (GST).
• National Anti-profiteering Authority finds no violation of Section 171 of CGST Act by producer-exporter of “India Gate Basmati Rice”; Dismisses application which alleged that the producer had indulged in profiteering by not passing on the benefit of reduction in tax rateon“IndiaGateBasmatiRice” to consumers.

Read our articles:

• E-Invoice Mechanism under the GST
• Blocking/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN
• Reasons for the Movement of Goods under the GST

FAQ on E-WAY BILLS:

• Query: How can the taxpayer use the SMS facility to generate the e-way bill?
• Answer: The taxpayer has to register the mobile numbers through which he wants to generate the e-way bill on the e-way bill system. Please see the user manual for SMS based e-way bill generation, on the portal

RBI UPDATES

• RBI came up with the latest changes on ECB on the 27th of April 2018, which has been incorporated in the Master Directions. In light of the requests received from corporates for further relaxation of norms in the ECB regulations.

Key dates:

• Return of TDS/TCS collected in March: 31.05.2018
• Due date for filling of GSTR-6- 31 . may . 2018
• Due date for filling GST TRAN-2- 30.06.2018