CORPORATE AND PROFESSIONAL UPDATES 24-JAN-2018

CORPORATE AND PROFESSIONAL UPDATES 24-JAN-2018

DIRECT TAX UPDATE

• Tax Payers can login onto new Self Help Portal, https://selfservice.gstsystem.in/ to report issues of GST System. And email:helpdesk@gst.gov.in is being discontinued after the start of Self Help Portal.
• Income Tax Dept sends Notice to 10000 Bit coin Holders. As a nationwide survey revealed that more than $3.5 billion worth of transactions have been conducted over last one and a half year.
• Cash transaction between close family members for giving a support and help not amount to ‘Loan’ u/s 269SS of the Income Tax Act: Kolkata ITAT.
• The Delhi High Court has upheld the constitutional validity of the second proviso to Section 5(1) of the Prevention of Money-laundering Act, 2002 (PMLA).
• CBDT has issued a Circular u/s 119 of the IT Act prescribing the procedure for Processing of ITRs (1~6) u/s 143(1)(a)(vi), i.e. relating to Form 26AS/ Form 16A/ Form 16 which has not been included in computing. Circular No. 01/2018 dt. 10 Jan. 2018
• CBDT has issued a circular w.r.t processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-l to 6 & applicability of Section 143(1) (a) (vi).
• Income from Sub-letting Property under Leave and License Agreement is taxable as “Other Income” under Income Tax Act: Kolkata ITAT.
• Tis Hazari Court, Delhi has ordered judicial custody of the Director of a Delhi based Real Estate and IT Solution Company for non-compliance in Income Tax TDS Default case.

GST UPDATE :

• The period for migration of tax payers from VAT / Service Tax and Central Excise, by filing up Form GST REG-26, got over on Dec 31, 2017. The said facility is thus withdrawn from GST Portal.
• Extension for Today 22.01.2018 of last date to pay GST & file GSTR-3B for Dec 2017. Source- GST Portal.
• W.e.f 25.1.2018, late filing fee of 20 per day for Nil returns & 50 for others for GSTR-1, 5 & 5A. For GSTR-6, late filing of 50 even for Nil returns.
• No GST on Retention Fee charged by Hospitals: Council clarifies Exemptions available to Medical Sector under GST.
• GSTN has provided an Off Line Tool for preparing GSTR-11. Taxpayers having Unique Identification Number (UIN) can now file details of inward supply of goods & services, refund amount claimed etc.
• GSTN has enabled the functionality to save, submit, and file GSTR-4 for Oct-Dec 2017 quarter at GST portal.
• GSTN has provided an online facility at GST portal to lodge complaints / grievances related to processes (application), ledger etc.
• Persons registered under the composition scheme must mention the words “GST Composition Taxable Person” on every notice or sign board displayed at a prominent place at both the principal and the additional place of business.
• It is mandatory to display the Certificate of Registration (Form GST REG-06) in a prominent location at the principal place of business and at every additional place of business.
• It is mandatory to display the GSTIN on the name board exhibited at the entry of the principal place of business and at every additional place of business.
• GSTN has clarified that food prepared in office kitchens and served there shall be taxed at 5% without ITC.
• Get orders from transporters for services to GTA and receive the commission out of truck hire fixed with GTA from transporters are liable to get GST registration if the aggregate amount of commission exceeds the threshold limit.
• GSTN is launching a Self Help Portal (https://selfservice.gstsystem.in/) as a single platform where tax payer call log tickets for any issues or concerns and for quick resolution. This will be live from 22 Jan 2018.
• In GST Council meeting held on Jan 18, 2018 GST has been slashed on 29 items, 54 services; GST return filing will be made simpler.
• GST: Check List for Availing LUT for export of Goods and Services. IEC code certificate is required in case of Export of Service.
• GST Council meeting recommended the Central Government to exempt legal services provided to Government, Local Authority, Governmental Authority and Government Entity. The Council also exempted supply of services by way of providing information under RTI Act, 2005 from the levy of GST.
• The late fee for delayed filing of GSTR-1, GSTR-5 & GSTR-5A is being reduced to Fifty Rupees per day and shall be Rupees Twenty Five in case of Nil returns. The late fee for delayed filing of GSTR-6 shall be Rupees Fifty per day.
• Taxable persons who have obtained voluntary registration will now be permitted to apply for cancellation of registration even before the expiry of one year from the effective date of registration.
• The last date for filing of Form GST REG-29 for cancellation of registration by migrated tax payers is being extended to March 31, 2018.
• 29 Handicraft items have been put in 0% slab. GST rates have also been reduced in few agricultural products.
• The GST Council also discussed how buyers should upload purchases invoices, and the sellers should upload sale invoices.
• Rates revised for 29 goods, 53 services categories.
• CBEC has issued Clarification regarding GST on College Hostel Mess Fees. Supply of food or drink provided by a mess or canteen is taxable at 5% without Input Tax Credit. It is immaterial whether the service is provided by the institution itself or outsources to outside contractor.
• The following policy changes have been recommended by the GST Council in 25th meeting held on Jan 18, 2018:-
• Taxpayers need to file online application for cancellation of GST registration within 30 days from the date from which registration is liable to be cancelled, in case of voluntary cancellation.
• The composition dealers, who opt out of composition scheme and opt to pay as regular tax payers can file ITC-01, to take credit of input tax in respect of input tax held in stocks, input tax contained in semi finished goods or finished goods held in stock or on capital goods on the day immediately preceding the date on which he becomes liable to pay tax under Sec 9. Please refer Sec 18(3) of the CGST Act).
• GST Taxpayers have now being provided with a facility to lodge grievance related to processes (application), ledgers etc on the GST Portal. https://t.co/4BfQcNH7ZH

MCA UPDATE

• MCA had decided to strike off the names of 120,000 more companies from the official records for various noncompliances as part of its continuing fight against the black money menace. Nearly 226,000 firms have been deregistered and around 309,000 directors associated with these entities have been disqualified.
• New Name Reservation Service to be available on MCA by 26.01.18. Stakeholders are requested to use SPICe for incorporation immediately instead of Form INC-1.
• MCA has issued circular on its website stating that process for ‘reactivation’ of the DINs in respect of disqualified Directors has been completed and the status of the relevant DINs are now reactivated.

SEBI & RBI UPDATE

• SEBI has approached PMO and MCA to look into its proposal mandating listed companies to make public disclosures within a day of loan defaults. According to sources, the market regulator is keen on implementing its initial proposal with certain changes.
• A SEBI issued Circular on Online Filing System for Offer Documents, Schemes of Arrangement, Takeovers and Buy Backs dt 19-01-2018; SEBI Circular Participation by Strategic Investor(s) in InvITs and REITs dt 18-01-2018;
• SEBI has clarified that NBFCs can invest 25% in REITs: To make real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
• BSE has directed all listed companies to henceforth file all corporate announcements in machine-readable format only, i.e. searchable PDF format only.
• RBI released draft directions on hedging commodity price risk and freight risk in overseas markets. Comments on the draft directions are invited from banks, market participants, and other interested parties by January 31, 2018.
• Govt and RBI may postpone the implementation of IndAS for banks because of the legislative changes and additional capital requirements the process would entail.
• RBI said that Banks in India must improve the pricing of loans based on risk assessment, a skill that would have helped them avoid non-performing assets.
• FDI Policy eased for Single Brand Retail, Pharma, Construction, Civil Aviation & Power Exchanges.
• IBC (Amendment) Act, 2017 has received the assent of the President on 18th Jan. 2018 and has been published in Official Gazette on 19th Jan. 2018.
• IBBI has issued a circular w.r.t Fees payable to insolvency professionals and to other professionals appointed by the insolvency professionals.
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