Corporate and professional updates 19th sep. 2018

corporate and professional updates 19TH Sep. 2018

DIRECT TAX

• ITAT Mumbai held that deemed dividend provision not applicable if assessed is neither registered nor beneficial shareholder of payer company. DCIT Vs M/s. Gilbarco Veeder Root India Pvt. Ltd. (ITAT Mumbai)
• ITAT Delhi held that TDS under section 194H applicable on discount on repaid products offered to distributors by telecom service providers. Tata Teleservices Ltd. Vs ITO (ITAT Delhi)
• Pune ITAT rules on selection of MAM and use of internal comparables for benchmarking export and import transactions of the assessee (manufacture of heavy commercial vehicles) for AY 2009-10; In respect of assessee’s export of trucks to developing countries (like South Africa, Ethiopia, and Indonesia) through its German AE, notes that though assessee was raising bills on German AE for export of trucks the goods were not sent to Germany to the developing countries directly because Germany had stricter emission norms; [TS-228-ITAT-2018(PUN)-TP]
• Chandigarh ITAT grants partial stay to GlaxoSmithKline Consumer Healthcare Limited for AYs 2008-09 to 2010-11 in respect of demand raised on account of advertisement, marketing, and promotion (AMP) expenses; Noting that 10% of the substantive demand raised for AY 2008-09 was already paid and, also the assessee’s contention that demand would not have survived if directions in ITAT Special Bench ruling in LG Electronics case were followed, ITAT opines that “assessee has made a prima facie case.[TS-235-ITAT-2018(CHANDI)-TP]

Indirect Tax:

• CBEC has issued Guidelines for Deductions and Deposits of TDS by the DDO under Vide circular no 65/39/2018.
• The government has notified the GSTR-9C form for the annual GST audit under which every taxpayer above Rs 2 crore turnover in a financial year would need to fill up a reconciliation statement and also obtain a certification of the audit.
• Gujarat High Court struck down provisions of the GST law that forbid the transition of excise duty credits on purchases prior to June 30, 2016.
• The GST law did not allow credit of invoices that were more than one-year-old i.e., invoices that were dated prior to June 30, 2016.
• Now search by PAN will fetch all the GSTINs registered against the entered PAN in different States/ UT’s, along with the status of registration in a tabular format. On clicking of GSTIN hyperlink, taxpayer details will be displayed.
• Around 22.5 crore e-way bills have been generated across India till September 13 since the new electronic billing system was introduced on April 1. The e-way bill system kicked off as part of the new GST regime for transporting goods worth >Rs 50,000.
• CBEC has issued Clarification regarding the processing of refund claims filed by UIN Vide circular no 63/37/2018.

 

FAQ on GST Audit:

• 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 o
• fMGL 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: What would be the action by the proper officer upon the conclusion of the audit?

• Answer: The proper officer shall, on the conclusion of the audit, within 30 days inform the taxable person about his findings, reasons for findings, and the taxable person’s rights and obligations in respect of such findings.

RBI UPDATES

• RBI may conduct OMO purchases worth Rs 1 lakh crore this fiscal. Market players expect more open market operations (OMOs) via bond purchase programs would help offset the fallout of the 30-40 basis points spike in short-term rates at a time when liquidity in the banking system is drying up amid increased outflows.
• Government announces merger of Bank of Baroda, Dena Bank, and Vijaya Bank.  https://www.wbca.st/T73xgvw
• RBI stepped up its intervention this week Foreign exchange reserves fell below $400 billion, for the first time since November 11, 2017, in the first week of September. As of September 7, foreign exchange reserves stood at $399.28 billion.

MCA UPDATES

• MCA: the last date for filing form DIR-3 KYC without fee has expired on 15th Sep 2018. The process of deactivating the non-compliant DINs is in progress and is likely to be completed by 17th September 2018. 21 lakhs Directors failed to file KYC for DIR3.

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 Issue in the utility of ITR Form No. 5.
• ICSI Representation to MCA for Extension of DIR 3 KYC filing due date on September 14, 2018, but it seems MCA is not in the mood to extend the Due date Further.
• ICAI invites Suggestions on the evaluation of the examination answer books system. The group formed to review the evaluation of the examination answer book system invites Suggestions/ Feedback of the CA students on the evaluation of the examination answer books system.
• IBBI clarified that a person, who is not a member of the CoC, does not have voting right in the CoC. A person, who is not a member of the CoC, cannot be regarded as one who has voted against a resolution plan or abstained from voting.

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-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.

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