corporate and professional updates 25th April 2018

 

 

Direct Tax:

• It is a fundamental rule of law of taxation that, unless otherwise expressly provided, income cannot be taxed twice. A taxing Statute should not be interpreted in such a manner that its effect will be to cast a burden twice over for the payment of tax on the taxpayer unless the language of the Statute is so compelling that the court has no alternative than to accept it. In a case of reasonable doubt, the construction most beneficial to the taxpayer is to be adopted Mahaveer Kumar Jain vs. CIT (Supreme Court)
• Delhi HC reverses ITAT order for AY 1999-2000, rejects substitution of market value as full value of consideration for sale of shares by assessee (an individual) to its related entity [TS-197-HC-2018(DEL)]

Indirect Tax:

CESTAT Delhi held that No Service Tax on Sale of Books and Materials to Franchise M/s Jet king Info train Ltd Vs. CC Delhi-I (CESTAT Delhi)

GST Audit program may be prepared considering the various aspects to be covered in the report, i.e., checks to be performed to verify the following:

• Whether the books of account and related records maintained are sufficient for verification of the correctness, completeness and accuracy of the returns.
• Whether the annual return filed reflects the correct figures and includes all the transactions effected during the year that require disclosure.
• Whether the value of outward supplies, and inward supplies declared in the annual return includes all the outward supplies and inward supplies, respectively, effected during the year.
• Whether the inclusions and exclusions to / from the value of supply are in accordance with the provisions of the law.
• Whether the exemptions claimed in the annual return are in conformity with the provisions of the law;
• Whether the amount of ITC determined as  eligible and ineligible have been determined in accordance with the provisions of the law.
• Whether the classification of outward supplies, rate and amount of tax thereon, and nature of tax, is correct.
• Whether the other information given in the return is correct and complete.

FAQ on E-WAY BILLS:

• Query: Can Part-B of e-way bill be entered by any transporter?

• Answer: Part-B can be entered only by the generator of the EWB and transporter assigned in it. That is, the generator of EWB indicates who is authorized to move the goods by entering his transporter id. Only such transporter can login and update the Part-B.

Read our articles:

• E-Invoice Mechanism under the GST
• Blocking/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN
• Reasons for the Movement of Goods under the GST

Key dates:

• GSTR-1 for the taxpayers with annual turnover up to Rs 1.5 cr for the January to March on Quarterly basis: 30.04.2018
• Payment of TDS/TCS collected in March: 30.04.2018
• E-filing of form 15G/H for March Quarter: 30.04.2018