corporate and professional updates 18th july 2018

Direct Tax :

• Delhi ITAT remits issue of ALP-determination in respect of assessee’s provision of business support services to AE considering that entire TP analysis was made by the TPO on the basis of wrong FAR of the assesse as well as comparables for AY 2010-11; Opines that “when the entire TP analysis is based upon the wrong FAR of the comparables and the TPO has assumed wrong functions being performed by the taxpayer, the entire subsequent exercise as to selecting the comparables has become erroneous and is of no use to determine the arm’s length price of international transaction for determining ALP of international transaction rather entire exercise needs to be carried out afresh”; [TS-521-ITAT-2018( DEL)-TP]
• ITAT remits ALP determination of royalty payment to AE for AY 2010-11; Relies upon ITAT order in assessee’s own case for AY 2007-08 and 2008-09; TPO had restricted the ALP for royalty at 1% of net sales under CUP while assessee had used TNMM for determining ALP of royalty payment; Separately, ITAT rejects assessee’s ground to set aside DRP’s order alleging judicial bias, observes that no instance of bias was brought to its notice; [TS-524-ITAT-2018(Bang)-TP]
• TDS not deductible on Advance Received towards Professional Fee which is returned back. Shri A. Naga Srinivas Vs DCIT ( ITAT Hyderabad)

INDIRECT TAX

• The govt is likely to retrospectively amend laws governing the GST to deny transitional credit to taxpayers against cesses levied in the earlier indirect tax regime.
• The govt has issued guidelines for IGST refunds for goods and services supplied to units in SEZ. The detailed guideline are based on notification/circulars issued by the Finance and Commerce Ministries.

FAQ on GST Audit:

• Query: Is summary assessment order to be necessarily passed against the taxable person?
• Answer: In certain cases, like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax (proviso to Section 64 of CGST / SGST Act).

Read more about: What is core Business Activity GST

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

MCA UPDATES

• MCA has set up a 10-member committee to review the penal provisions in the Act. The committee, may propose decriminalisation and suggest ways in which to replace the provisions with an in-house mechanism, where a penalty could be levied in instances of default.

RBI UPDATES

• RBI has directed to the Banks that effective from September-15-2018, the Banks shall also mention the name of Purchaser of the Demand Draft/Pay Order/ Banker’ Cheques etc. on the Face of such Instruments.

OTHER UPDATES

• The results of ICAI Final Exam, Foundation Exam and CPT held in May/June 2018 will be declared on Friday, the 20th July 2018 around 6.00 P.M and that the same can be accessed at icai.orgicaiexam.icai. org caresults.icai.org icai. nic.in

KEY DUE DATES

• GSTR-3B (Jun 2018)-Jul 20th, 2018

• GSTR-5 (Jun 2018)-Jul 20th, 2018

• GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018

• GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018

• GSTR-5A (Jun 2018)-Jul 20th, 2018

• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018