Corporate and professional updates 17th sep 2018

Corporate and professional updates 17th Sep 2018

Direct Tax:

• ITAT Hyderabad held that cash discount cannot be disallowed for mere non-mention of same on the invoice. M/s. Sai Krishna Agencies Medak Vs Asstt. (ITAT Hyderabad)
• Madras High Court held that property attachment notice by TRO cannot be changed before HC.Champa Devi Vs The Tax Recovery Officer (Madras High Court)
• Gujarat High Court held that unsecured loan /Gift to be added to income if the creditworthiness of giver not proved. Sitaram Ramchanddas Patel Vs Income-tax Officer (Gujarat High Court)
• E-commerce platforms such as Amazon, Flipkart, and Myntra will from October 1 have to withhold tax from payments made to suppliers.
• The tax deducted at source (TDS) and tax collected at source (TCS) provisions under the goods and services tax (GST) have been notified to be effective from October.

Indirect Tax:

• CBEC has specified that on 1st October 2018 the provisions of section 51 of the Central Goods and Services Tax Act, 2017 shall come into force with respect to persons specified under clauses (a), (b) and (c) of sub-section (1) of section 51 of the  Central Goods and Services Tax Act, 2017. Vide notification no 50/2018, dated 13th September 2018.

• CBEC has issued a circular regarding Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular Nos. 41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018. Vide circular no 64/38/2018, dated 14th September 2018.

• CBEC has made amendments in the Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Tenth Amendment) Rules, 2018, which shall come into force on the date of their publication in the Official Gazette. Vide notification no 49/2018.

• GST Audit and format of reconciliation statement has been notified https://www.cbic. gov.in/resources//htdocs-cbec/gst/notfctn-49-central-tax-english-ew.pdf;jsessionid= 06184B89BBC363EDC3190CD6B0D667 1F
• AAR cannot decide whether a supply is inter-State or intra-State. In re Fichtner Consulting Engineers (I) Pvt Ltd. (GST AAR Tamilnadu).
• Punjab Govt has notified that E-Way bill will not be required, Where the movement of goods commences and terminates within the State of Punjab without crossing the boundaries of the State of Punjab and consignment value Not exceeds Rs. 1 Lakh.
• GST issued Circular No 64 Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified.

FAQ on GST Audit:

• Query: Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?
• Answer: The best judgment order passed by the Proper Officer under section 62 of CGST/SGST Act shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.
• Query: Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
• Answer: The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.

MCA Updates:

• MCA has made amendments in the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
• These rules may be called the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 20 18, which shall come into force on the date of their publication in the Official Gazette.
• MCA has made amendments to Schedule V of the Companies Act, 2013.
• No govt approval is required for public cos for managerial compensation. Now with effect from 12th September 2018, approval of the Central Government shall no longer be required for the increase in the payment of remuneration to the managerial personnel (in excess of 11 percent of the net profit of a company).

SEBI UPDATES

• SEBI is likely to consider a proposal to allow trading in this segment by foreign entities with exposure to the Indian physical commodity market.
• Besides, the regulator may deliberate on the issue of introducing a common application form for foreign portfolio investors (FPIs) to enter into the domestic capital market as part of the exercise to improve ease of doing business.

OTHER UPDATES

• ICAI has further requested CBDT to extend the time for submission of Tax Audit Reports and related returns from 30th September 2018 to 31st October 2018 as CBDT has not followed Norms of Earlier Years of discussing Important Changes in Tax Audit Report with ICAI, there were Constant changes in Utilities relating to Tax Audit Forms, Delay in the release of utilities and there was Issue in the utility of ITR Form No. 5.
• ICAI releases a compilation of FAQ’s and MCQ’s on GST
• The Companies (Amendment) Act, 2017 (I of 2018); the Central Government hereby appoints the 12th September 2018 as the date on which the provisions of sections 66 to 70 (both inclusive) of the said Act shall come into force.
• ICAI invites applications for the following positions on a contract basis from competent professionals.
• Interested candidates may email their application in structured format at recruitmentdirector@icai.in or can send through speed post to the Consultant – HR at the Institute of Chartered Accountants of India, ICAI Bhawan, I.P. Marg, New Delhi.

KEY DUE DATES

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