corporate and professional updates 20th sept. 2018

corporate and professional updates 20th sept. 2018

Direct Tax:

• Bombay High Court held that deduction under section 80IA can be claimed without excluding deduction under section 80HHC.  M/s. Indian Gum Industries Ltd. Vs  JCIT (Bombay High Court)
• ITAT Delhi held that depreciation on IPR cannot be disallowed merely for non use in Manufacturing. Commissioner of income tax Vs Sinochem india co. Pvt. Ltd. (ITAT Delhi)
• The six-member task force appointed by the government to simplify India’s income tax laws is likely to submit its report by end of this month. Earlier this year, the government had formed a task force to draft a new direct tax law to replace the existing Income Tax Act, which has been in force since 1961.
• CBDT Chairman expressed confidence in exceeding Rs 11.5 lakh crore direct tax collection target in current fiscal. In 2018-19 budget, the government had projected a 14.3 per cent rise in direct tax collections to Rs 11.5 lakh crore.
• CBDT said no withholding tax will apply on interest payments made by an Indian company or a business trust to a non-resident in respect of offshore rupee denominated bonds issued between September 17, 2018 and March 31, 2019

Indirect Tax:

• CBEC has extended the period for submitting the declaration in FORM GST TRAN-1 till 31st January, 2019, for the class of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council. Vide order no 4/2018, dated 17th September 2018.
• Thursday (20 SEP 18)is the last date for filing GSTR-3B, GSTR-5 & GSTR-5A for Aug, 2018.
• CBIT&C notifies section 51 of the CGST Act to bring provisions related to TDS into force w.e.f 01.10.2018-N.N.50/2018-CT, dt.13.09.18.
• CBIT&C section 52 of the CGST Act to bring provisions related to TCS into force w.e.f 01.10.2018-N.N.51/2018-CT, dt.13.09.18.
• GST: Restaurant services – The Applicant is not entitled to pay the GST @ 18% with input tax credit – Liable for GST @ 5%, without ITC – AAR, Karnataka in Coffee Day Global Ltd. (2018 (9) TMI 1042).
• Form TRAN-1 reopened for the registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council.
• The GSTPs enrolled on the GST Network under sub-rule (2) of Rule 83 and covered by clause (b) of sub-rule (1) of Rule 83, are required to pass the said examination before 31.12.2018. The examination for such GSTPs shall be conducted on 31.10.2018.It will be a Computer Based Exam. registration portal, link (https://nacin.onlineregistrationform.org/)

FAQ on GST Audit:

• Query:  If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
• Answer: The proper officer has to first issue a notice to the defaulting taxable person under section 32 of MGL requiring him to furnish the return within a specified period of time, which has to be a minimum of fifteen days as per section 46 of MGL.
• If the taxable person fails to file return within the given time, the proper officer shall proceed to assess the tax liability of the return defaulter to the best of his judgment taking into account all the relevant material available with him. This power is given under section 46 of MGL.

SEBI UPDATES 

• SEBI has revised the regulations for share buyback to provide more clarity on the requirement to make public announcements. Separately, the market regulator said credit rating agencies will not carry out any activity other than the rating of securities offered through public or rights issue.

MCA UPDATES

• MCA is considering giving another opportunity to 2.1 million company directors who have failed to comply with the ‘know your customer’ (KYC) norms, according to a senior official. The government could give another 15 days for meeting the compliance norms or reduce the penalty for late filing.

 

RBI UPDATES

• RBI conceded before the Madras High Court that debt resolution and recovery mechanisms, such as Corporate Debt Restructuring Scheme, Strategic Debt Restructuring Scheme, Scheme for Sustainable Structuring of Stressed Assets, Joint Lenders Forum and 5/25 scheme had proved to be ineffective in resolution of stressed assets.

OTHER UPDATES

• 30 SEP 2018is the last date for the payment of Annual Membership and Certificate of Practice fee for the year 2018-19.
• ICAI has further represented to CBDT to extend time for submission of Tax Audit Reports (TAR) and related returns from 30 SEP 2018 to 31 OCT 2018.
• ICAI RVO: announces Next Batch of Educational Course at Hotel Fortune Select Excalibur, Main Sohna road, Sector-49, Gurgaon from 6 Oct to 28th Oct. 2018

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.
• Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(SEP 2018)-OCT 31ST 2018
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