CORPORATE AND PROFESSIONAL UPDATES 20TH FEB 2018

Direct Tax:

• Assessee wasn’t entitled to claim sec. 54F relief if agreement to sell property wasn’t executed by buyer within the stipulated time frame under the provision of Income Tax Act. ITAT HYDERABAD BENCH ‘A’ Mahesh Malneedi v. Income-tax Officer.

• 153C proceedings couldn’t be invoked against third person without recording satisfaction note; SLP dismissed. SC- Income-tax officer, New Delhi v. Canyon Financial Services Ltd.

• No TDS disallowance without rendering any finding on assessee’s contention that there was no PE of foreign company. ITAT BANGALORE -Telsima Communications (P.) Ltd. v. DCIT.
• Only E-assessment for pending Scrutiny cases (other than Search). If assessee objects to e-assessment, case to be kept on hold. CBDT Instruction 1 of 12.2.18.
• Kerala HC reverses ITAT order for AY 2002-03 and rules in favour of assessee (engaged in manufacture and sale of centrigued latex and rubber), rules that while computing written down value (‘WDV’) u/s. 43(6) for claiming depreciation, the depreciation allowed under the Kerala Agricultural Income Tax Act 1991 (‘AIT Act’) cannot be reduced, however, since only 35% of assessee’s income was deemed to be taxable as per Rule 7A, HC directs AO to take 35% of the cost of the total assets as WDV; [TS-61-HC-2018(KER)]

• Mumbai ITAT dismisses Revenue’s appeal against CIT(A)’s adoption of Rent Capitalisation Method contemplated in Schedule III – Part B of the Wealth Tax Act, 1957 for determining FMV of tenancies, holds Sec. 50C not applicable since the sale consideration received by the assessee as per the agreement to sell, was found to be more than the fair market value of the tenanted galas/building for AY 2006-07 to 2008-09; [TS-638-ITAT-2017(Mum)]
• Last date to file Income Tax Returns (ITRs) for AY 2016-17 and AY 2017-18 is 31st March 2018.
• Authority of Advance Rulings has held that the salary income of a non resident individual for services rendered overseas cannot be taxed in India, even when such salary is paid into a bank account in India. Case TN Santosh Kumar.

Indirect Tax Updates:

• CBEC  has issued Circular No. 1063/2/2018-CX dated 16.02.2018 on the subject “Orders of Supreme Court, High Courts and CESTAT accepted by the Department and on which no review petitions, SLPs have been filed”, in relation to Indirect Taxes.
• CBEC issued Circular No 1063/2/2018 – CX on orders by Supreme Court, High Courts and CESTAT accepted by the Department and on which no review petitions, SLPs have been filed.

GST Updates:

• GST/Excise & Customs: Job worker as manufacturer of goods on job work basis, unless otherwise exempted from payment of duty, is liable to pay duty on job worked goods. CESTAT, MUMBAI -Thermax Babcock & Wilcox Ltd.  v. CCE
• GST/UP Vat: Charger sold in composite package with mobile phones not liable to tax separately: Allahabad HC- Samsung (India) Electronics (P.) Ltd. v. Commissioner of Commercial Taxes
• Global index provider MSCI has slammed Indian exchanges´ decision to terminate licensing and data need agreements with their global counterparts. It said the concerted announcement by the three domestic exchanges was “anticompletive” and would restrict access to the Indian market.
• GST Council is expected to meet early next month to finalize a new & simplified monthly return filing format.
• CBEC vide DO Letter dated Feb. 6 to all Chief & Principal Comm said that “a few field offices have requested clarification as to whether LUT for exports would be accepted by Customs or GST Officials. It is clarified that LUT would have to be accepted by GST Officials.”
• To check Status of Last 5 Returns filed by taxpayer, enter GSTIN in Search Taxpayer option on gst.gov.inwithout logging into account.
• Another petition has been filed before the Delhi High Court on ground of technical glitches in the Goods and Services Tax Network (GSTN) wherein the petitioners, M/s Bhargava Motors were unable to file GST TRAN-01.
• GST Network Chairman Ajay Bhushan Pandey has said the company will try to ensure that stakeholders become fully familiar with the technology system before the re-rollout of the e-way bill system.

SEBI Updates

• Securities and exchange board of India (issue of capital and disclosure requirements) (amendment) regulations, 2018. No. SEBI/LAD-NRO/GN/2018/01 dated 12th February 2018.
• SEBI in consultation with stakeholders has decided to make some changes in extant regulatory provisions to ease the access norms for investment by Foreign Portfolio Investors (FPIs).
• SEBI is readying a framework for issuance of participatory notes (p-notes) from international financial services centres such as GIFT City. It is in talks with FPIs, which act as issuers of p-notes, sources said.

FAQ on  Condonation  of Delay Scheme (CODS):

• Query: Under this Scheme, Can branch offices/liaison offices also file their overdue documents?

• Answer: The Scheme is applicable only to companies under the provisions of Companies Act, 2013 or any previous company law and only to overdue documents as specified above. Therefore, branch offices/liaison offices shall not be eligible to file documents under this Scheme as they are not falling under the definition of Company and neither their annual documents are included in definition of overdue documents.

MCA Update:

• AOC-4 (XBRL) e-form and validation tool is available for IND-AS filling. The form can be filed without additional fee up to 31st March 2018. Stakeholders are advised to plan accordingly.

Key Dates:

• GSTR Return summary for Jan:20/02/2018

Word of Wisdom:

• “The will to win, the desire to succeed, the urge to reach your full potential… these are the keys that will unlock the door to personal excellence.”

Disclaimer:

• The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at https://carajput.com/blog/For any query you can write to singh@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact: singh@carajput.com or call at 09811322785/4 9555 5555 480)