CORPORATE AND PROFESSIONAL UPDATES 24TH JULY 2018

CORPORATE AND PROFESSIONAL UPDATES 24TH JULY 2018

Direct Tax;

• Delhi ITAT allows Sec 11 benefit to Indian Olympic Association for AY 2011-12, holds that sponsorship contract for 2010 Asian Games and Youth Olympic Games does not constitute activity in the nature of trade, commerce or business; Elaborately discusses the amendment to Sec 2(15) by Finance Act, 2008 referring to Finance Minister’s Speech, CBDT circular No. 11/2008 as per which the amendment is applicable only to entities whose purpose is of advancement of general public utilities and whether the entity is engaged in activity of trade, etc is a question to be decided based on facts of each case; [TS-396-ITAT-2018(DEL)]
• Delhi Tribunal Special Bench rules that goodwill qualifies for depreciation u/s. 32, follows SC ruling in Smifs Securities Ltd. wherein it had ruled that goodwill falls under the expression ‘or any other business or commercial rights of similar nature’ appearing u/s. 32(1); During relevant AY 2001-02, assessee-company took over all the assets and liabilities of a partnership firm, which inter-alia included goodwill valued at Rs. 10cr.; Rejects Revenue’s stand that since goodwill of a business cannot be transferred separately de hors the transfer of business, it cannot be included in the expression ‘any other business or commercial rights of similar nature’ used in the provision to explain the unspecified intangible assets ; [TS-395-ITAT-2018(DEL)]

INDIRECT TAX

• GST Quarterly Returns approved for taxpayers with turnover less than Rs 5cr (tax payments to continue on monthly basis)
• Sanitary Napkins exempted from GST going forward
• No decision on 1% sugar cess on GST
• GST on bamboo flooring reduced to 12%
• GST on hotels would now be on actual tariff & not declares tariff
• Ethanol for Oil Marketing Companies now GST at 5% vs 18% earlier
• 5% GST ceiling on footwear raised from Rs 500 to Rs 1000
• GST on paints & varnishes, wall putty cut from 28% to 18%
• GST on all leather items cut from 28% to 18%
• A GST on consumer electronics – *TV (up to 27″), Washing Machine, Refrigerator, mixer, juicer, grinder* cut from 28% to 18%
• GST on special purpose vehicles, work truck, trailer cut from 28% to 18%

FAQ on GST Audit:

• Query: Who will bear the cost of special audit?
• Answer: The expenses for examination and audit including he remuneration payable to the auditor will be determined and borne by the Commissioner.

MCA Update;

• Extension of time inviting comments on updating National Voluntary Guidelines till August 10, 2018.

KEY DUE DATES

30 July 2018 –

• Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2018
• Due date for furnishing of challan-cum-statement in respect of tax deducted undersection 194-IA for the month of June, 2018
• Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of June, 2018

31 July 2018 –

• Quarterly statement of TDS deposited for the quarter ending June 30, 2018
• Annual return of income for the assessment year 2018-19 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under section 92E.
• Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2018
• Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2018)
• Application in Form 9A for exercising the option available under Explanation to section 11(1) to apply income of previous year in the next year or in future (if the assessee is required to submit return of income on or before July 31, 2018)
• Statement in Form no. 10 to be furnished to accumulate income for future application undersection 10(21) or 11(2) (if the assessee is required to submit return of income on or before July 31, 2018)
• Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2017-18 and of foreign tax deducted or paid on such income in Form no. 67. (If the assessee is required to submit return of income on or before July 31, 2018.

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