Corporate and Professional updates 25th july 2018

Direct Tax;

• SC dismisses Revenue’s appeal against Bombay HC judgment in case of Hercules Hoists Ltd.; HC had dismissed Revenue’s appeal against ITAT order holding that losses of units eligible for Sec 80-IA benefit can be set off against income from other sources and that such losses to be notionally carried forward u/s 80-IA(5) and set off against profits for computing deduction in subsequent years;  [TS-398-SC-2018]
• Delhi HC allows assessee-company’s writ, quashes ITAT’s unreasoned order consolidating appeals absent any notice given to assessee before issuing the consolidation order; HC notes that all these appeals preferred by assessee were pending for a long time and were adjourned by various benches at the behest of the Revenue on the groundthat appeals would be consolidated;[TS-397-HC-2018(DEL)]
• Bombay HC disallows assessee-company’s (engaged in manufacturing copper foils) claim of expenditure incurred on higher education of one of the director’s son during AY 1997-98 who went abroad for pursuing course in ‘Business Administration’, holds that the expenditure was ‘general’ in nature and cannot be said to be incurred wholly and exclusively for the purpose of assessee’s business; [TS-391-HC-2018(BOM) ]
• CBDT clarifies that the Rumors Spreading Across in Social Media regarding Extension in Due Date for Non-Tax Audit Cases is fake. The Income Tax Dept further clarified that there are no such plans to extend this deadline beyond 31st July, 2018.
• Central Board of Direct Taxes makes rules further to amend Appendix II, in Form No. 3CD. These rules may be called the Income–tax (8th Amendment) Rules, 2018, which shall come into force from the 20th day of August, 2018. Vide notification no 33/2018, dated 20th July 2018.
• CBDT amended Tax Audit Report in Form 3CD from 20-8-2018.Important clauses are as follows: Secondary adjustments u/s 92CE, Interest reduction u/s 94B, GAAR, Section 56(2) (x), Deemed dividend u/s 2(22), Compliance under section 269ST, Compliance of FORM 61 or 61A or 61B, & Total expenses of entities registered or not under GST.
• CBDT has directed the taxman to dispose of appeals cases where the tax demand is above Rs 50 crore on priority by the year-end. “Litigation is not only a cost on the credibility of a tax administration system but also an indicator of the robustness and fairness of a system of taxation.

INDIRECT TAX

• CBEC has issued Clarification in case of SB003 errors and extension of date in SB005 & other cases using officer Interface for rectification of errors w.r.t Refund of IGST on export of goods on payment of duty.
• The GST Council has made recommendations on various issues relating to policy, law and procedures, including key recommendations on ‘reduction in GST rates of more than 50 items, rationalisation of return filing system for small taxpayers, further deferring RCM upto 30 Sept. 2019, amendments in GST laws, etc.

FAQ on GST Audit:

• Query: What is the time limit for passing order u/s 46 and 47?
• Answer: The time limit for passing an assessment order under section 46 or 47 is three or five years from the due date for filing the annual return.

Read more about: What is core Business Activity GST

Read more about: All about GST Offenses, Penalties, and Appeals

SEBI UPDATES

• SEBI is keen to mandate companies that have more than Rs.100 crore as long-term borrowings compulsorily raise at least 25% of their funding needs by selling bonds. Sebi has joined RBI in nudging corporates towards the bond market through its latest draft paper.

ORTHER UPDATES

• ICAI Clarifies on IND-AS 115 regarding Real Estate Sector, which came into effect from April 1.

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.)