CORPORATE AND PROFESSIONAL UPDATES 23RD FEB 2018

CORPORATE AND PROFESSIONAL UPDATES 23RD FEB 2018

Direct Tax:

• A non-resident company supplied billing software to ‘Reliance’ for purpose of billing their customers, in view of the fact that the assessee exclusively owned all Intellectual Property Right (IPR) in software and it had merely granted a copyrighted article to Reliance and not ‘copyright’ in the article, payment received by the assessee was not liable to tax in India as royalty. Mumbai ITAT -Intec Billing Ireland V. Assistant Director of Income Tax (International Taxation).

• Karnataka HC quashed writ challenging ITAT’s order granting a stay of demand during the pendency of the appeal. Karnataka HC- ACIT v. Epson India (P.) Ltd
• Cash discount given by the assessee to its customers for purchasing goods in bulk quantity was in nature of discount in the transaction of sale and, therefore, section 194H had no application to said transaction. ITAT Kolkata- EPCOS India (P.) Ltd. v. Income-tax Officer

• The Central Board of Direct Taxes (CBDT) has notified the ‘Maharashtra Electricity Regulatory Commission’ as a statutory body exempted for the purpose of section 10(46) of the Income-tax Act, 1961.
• Depreciation not to be denied in hands of amalgamated company even if assets transferred in amalgamation were non-functional. ITAT Kolkata-Hindustan Engineering & Industries Ltd. v. DCIT
• Mumbai High Court rejected the arguments of the Revenue that on initiation of proceedings under section 153A of the Act, the reassessment final for assessment years covered under section 153A of the Act stands abated.
• Only the pending assessments get revived under section 153A of the Act. Jawahar B. Purohit Vs. Asst. CIT & Ors. (ITAT Mumbai)

• ITAT Pune held that the assessee has complied with all the conditions for claiming the exemption under section 54B of the Act in the assessment year under appeal. Accordingly, the impugned order is set aside and the appeal of the assessee is allowed. Majid Khan Nisar Khan Vs ITO (ITAT Pune)

• TDS @ 20% for Non PAN Foreign Assessees. Delhi High Court Reads down Stating Treaty Supremacy.

GST Updates:

• GST/VAT : Where assessee claimed input tax credit against output tax liability, such claim could not be denied only because it was made in respect of sale invoices which were not pertaining to same tax period, nor it could be denied on ground that such claim was not made immediately in month or months following month of purchase of goods. Karnataka HC-  Kirloskar Electric Co. Ltd.v. State of Karnataka. 
• Service station wasn’t required to pay ST on amount  received from ‘Maruti’ for providing free vehicle services. CESTAT, ALLAHABAD – Pandit Automobiles v. CCE
• Filing GSTR-3B is now made more Users friendly -EVC facility starts for pvt ltd. fill either CGST or SGST/UGST amount, other tax will get auto filled.
• GST/Service Tax: In a ruling in favor of the construction industry, a two-judge bench of the Supreme Court, held thatservice tax cannot be levied on the value of goods/material supplied free of cost by a service recipient during construction. SC-Commissioner Of Service Tax Vs. M/s. Bhayana Builders (P) Ltd. 

FAQ on Condonation of Delay Scheme (CODS):

• Query:    What is the procedure to avail benefits of CODS scheme?
• Answer:  There is no separate application required to be filed for availing benefits under this Scheme. The defaulting companies shall straight away proceed to upload their overdue documents with the DIN of the disqualified directors as the same shall be temporarily activated under this Scheme pursuant to Para 4 of the Scheme which lays down the procedure for the purpose of this Scheme.
• According to Para 4, the DIN of the disqualified directors associated with such defaulting companies shall be temporarily activated for the validity period of this Scheme to enable them filing of the overdue documents.

SEBI UPDATES

• SEBI Circular dated 15^thFebruary, 2018 which provides for compensation to retail individual investors in IPO where they have failed to get allotment due to bank’s fault.

MCA UPDATES

• No change in Bank Auditors appointment Policy for March 2018. Auditors of the subsidiaries of State Bank of India shall be shifted to SBI for their residual period. 
• Where there is an existing dispute between the parties relating to invoices sent for the services rendered, that would disentitle the petitioner to an order of admission. NR Switch N Radio Services (P.) LTD. Vs ZTE Telecom INDIA (P.) ltd. (NCLT) Chandigarh Bench. 11th October 2017.