corporate and professional updates 18th may 2018

CORPORATE AND PROFESSIONAL UPDATES 18TH MAY 2018

Direct Tax:

• Gujarat HC reverses ITAT order, holds that payment to education society for recouping deficit in payment of tuition fees of employees’ children does not amount to perquisite for AY 2000-01 and 2001-02.
• Notes that the children of the employees were studying in that Education Society and were paying fees at a subsidized rate and burden borne by assessee per child per month never exceeded Rs. 1000; [TS-246-HC-2018(GUJ)]
• Ahmedabad ITAT opines that location of AO, at the point of time when Tribunal hears and determines the case, is relevant for determining jurisdiction of bench to hear stay/appeals, however,  directs registry to place matter before the President for final decision on transfer of assessee’s case to Delhi benches ; [TS-240-ITAT-2018(Ahd)]
• Where asssessee had charged depreciation for wind mills at a higher rate than what is mentioned in Schedule XIV of Companies Act, 1956,as windmill had not performed at expected level and nothing was brought on record to show how and on what basis, higher rate of depreciation was arrived,while computing book profit AO had restricted the depreciation as per Schedule XIV of Companies Act, 1956 and holding that assessee had no reason to provide depreciation at a higher rate.-Indus Finance Corporation Ltd. v. Deputy Commissioner of Income Tax.
• HUF does not come under specified category of relative under section 56(2) (vii), Explanation (e); therefore, money received by an individual from HUF as gift would not considered as valid gift.-Gyanchand M. Bardia v. Income Tax Officer.
• Incurred in connection with issue of shares was to be held as capital in nature: Madras- HC Sterling Holiday Financial Services Ltd. v. Assistant Commissioner of Income Tax.
• Income Tax could be levied only when real income would accrue to assesse. Where a dispute was pending between assessee-contractor and builders, only income that had come to assessee in relevant assessment year would be taxable and not income that would have come to it if claims against builders were allowed.-HC of Kerala- Commissioner of Income Tax v. Sushil Thomas Abrahum.
•  for individuals and HUF having income from any sources except profits and gains of business and profession, including NRIs.
• ITR-1 Sahaj was activated earlier by the department for resident Indians having income from salaries, house property and bank interest with total income of up to Rs 50 lakh.

INDIRECT TAXES

• Constructing residential accomodation for police couldn’t be classified as construction of complex services.-CESTAT New Delhi BENCH, Gupta Construction Company v. Commissioner of Central Excise.
• Replacing old damaged water lines of villages was classifiable as commercial construction services.-CESTAT New Delhi- Vijay Kumar Kataria v. Commissioner of Central Excise, Delhi.
• Where applicant is a supplier of materials for erection of towers, testing etc. called Tower Package and supply of allied services like survey and erection of towers etc. and wants a ruling on whether he is liable to pay tax on freight bills.
• It is held that applicant supplies works contract service and GST is to be paid at 18 per cent on entire value of composite supply, including supply of materials, freight and transportation, erection, commissioning etc.and it is merely a composite supplies.-AAR West Bengal-EMC Ltd.,In re.
• GST waives off late fees from October for taxpayers who were unable to file GSTR-3B due to technical issues of Trans-1 filing, failed to file TRANS-1 before December 27, 2017.
• Accommodation and restaurant services provided by applicant engaged in hotel business within premises of Hotel, to employees and guests of SEZ units cannot be treated as supply of goods and / or services to SEZ units in State; said services constitute ‘intra-State’ supplies and are taxable accordingly-AAR Karnataka.
• 31 May is last day to file GSTR-1 for April if turnover 1.5 cr or more. For May file by 10 June & for June by 10 July i.e before GSTR-3B. Notification No. 18/28 March.
• No late Filing fee if GSTR-3B from October 17 – April 18 filed by 31 May, where TRAN-1 submitted by 27 December but filed by 10 May due to technical issues.

FAQ on E-WAY BILLS:

• Query: How is the validity of the e-way bill calculated?
• Answer:The validity period of the EWB is calculated based on the ‘approx. distance’ entered while generating the EWB. For every 100kms one day is a validity period for EWB as per rule and for part of 100 KM one more day is added. For ex. If approx. distance is 310KMs then validity period is 3+1 days.

OTHER UPDATES

• Aadhaar not mandatory for central govt. employees for getting pension: Minister of State for Personnel. Press Trust of India.
• DGFT has issued trade notice w.r.t Non-submission of complete Appendix 4E, containing technical details, chemical reactions and data sheet for advance authorisation applications on self declaration basis under Para 4.04 and 4.07 of HBP for cases relating to NC-4.

Key Date:

• GSTR Return summary for April: 20.05.2018
• 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
• more updates for related blogs are:

  • GST Return compliances calendar- Nov 2020

  • SALIENT FEATURES OF NEW GST SYSTEM IN INDIA

  • Key points of 42nd GST council Meeting headed By FM N. Sitharaman

  • GSTN enable auto-populated in the E-invoice information into GST Return -1

  • Delayed in payment of GST then Intt to be paid on net GST liability from Sep 1, 2020.

  • Effect of GST on Advertisement and Cinema Industry

  • GST Impact on Import and Export 

  • GST Impact on Real Estate