CORPORATE AND PROFESSIONAL UPDATES 24 TH MAY 2018

 Direct Tax:

• Pune ITAT rejects Revenue’s plea for AY 2009-10 that deduction with respect to Research & Development (R&D) expenditure u/s 35(2AB) is restricted only to the extent of approval granted by Department of Industrial and Scientific Research (DSIR) in form No.3CL;[TS-251-ITAT-2018(PUN)]
• SC admits assesses SLP against Delhi HC judgment directing attachment of assesses bank accounts pursuant to search carried on in respect of the ‘third person’;Based on the facts,HC had observed that prima facie there is a strong case made by the Department that the money in assesses bank accounts is an undisclosed income of the ‘third person’ in respect of whom ‘search’ was carried out;
• Share certificate of permanent establishment (PE) in case when as agent/representative file return on behalf of foreign Co. and if no PE -Format for non PE certificate and to whom it will mark and by whom it is get signed for income tax purpose
• Share draft letter for declaration from foreign Co-as no other income than mentioned/filed in Indian IT return for sending attachment in relation to defective return.

Indirect Tax:

• CBEC has rescinded  the notification number G.S.R. 319(E) dated the 31st March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 31st March, 2018, with effect from the 25th day of May, 2018. Vide notification no 11/2018 – Union Territory Tax, dated 21st May 2018
• DVAT has allowed extension for filing of online return for 4th Quarter of 2017-18. Thereby, the last date of filing of online/hard copy of fourth quarter return for the year 2017-18 in form DVAT-16 has been extended to 28/05/2018.

FAQ on E-WAY BILLS:

• Query:Which types of transactions that need the e-way bill?
• Answer:For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including an unregistered person or for reasons other than supply also, e-way bill is mandatory.

MCA UPDATES

• CBDT has directed the I-T department to form a special team of officers to complete the task of filing petitions against Shell Companies to recover Dues in various NCLT benches across the country by this month-end, and has written to MCA also.

SEBI UPDATES

• SEBI has issued circular w.r.t Investment of own funds (excluding funds lying in Core Settlement Guarantee Fund) by Clearing Corporations in International Financial Services Centre (IFSC).

RBI UPDATES

• The RBI has increased the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under the automatic route from 4:1 to 7:1. However, this ratio will not be applicable if total of all ECBs raised by an entity is up to USD 5 million or equivalent.

OTHER UPDATES

• Finance ministry has tied up with 40 entities, including Flipkart, Swiggy, Patanjali and Amul, which are big job creators, for extending loans to small entrepreneurs under the Mudra scheme.

Key Date:

• Return of TDS/TCS collected in March: 31.05.2018
• Due date for filling of GSTR-6- 31 . may . 2018
• Due date for filling GST TRAN-2- 30.06.2018