corporate and professional updates 26th April 2018

Direct Tax:

• Andhra Pradesh HC confirms ITAT order, holds that allowances paid to employees deputed to UK by assessee (software developer) is taxable as perquisite u/s 17 (2) subject to tax deduction at source, disallows claim for exemption u/s 10(14); Notes that allowances represented lumpsum payment to employees by way of conferring additional advantage in order to meet the high cost towards accommodation and other personal expenditure, thus holds that such expenditure cannot be treated as having been incurred in connection with discharge of their duties within the meaning of Sec 10 (14). [TS-643-HC-2017(AP)]

• Delhi HC reverses ITAT order to allow deduction of liquidated damages paid by the assessee for cancelling earlier agreement to sell immovable property, as expenditure incurred wholly and exclusively in connection with transfer u/s 48(i). [TS-198-HC-2018(DEL)]
• Income tax department has asked country’s top lenders including SBI, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank to pay tax that could run into thousands of crores, on ‘free services’ provided to customers maintaining a minimum account balance, with retrospective effect.

Indirect Tax:

• CESTAT Delhi held that Excise not leviable on scrap not emerging due to a process of manufacture. M/s Varun Beverages Limited Vs. CCE&ST (CESTAT Delhi)
• International fliers buying goods from duty free shops at Delhi’s IGI Airport will have to pay GST. Shops are within the territory of India under GST Act cited by Authority for Advance Ruling

FAQ on E-WAY BILLS:

• Query: If the vehicle, in which goods are being transported, having e-way bill is changed, then what has to be done?

• Answer: The e-way bill for transportation of goods always should have the vehicle number that is physically carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods due to transhipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the changed vehicle number.

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

MCA update

• MCA Forms CHG-1 and MGT-7 are likely to be revised on MCA21 Company Forms Download page w.e.f 13th April 2018. Stakeholders are advised to check the latest version before filing.
• The IBBI has issued a Circular to clarify the situation when the Disciplinary Proceeding shall be treated as Commenced for the Insolvency Professional.

RBI updates

• RBI recent crackdown on crypto currencies has left investors, traders, and crypto exchanges in a fix, prompting them to tap alternative means to convert their crypto currency into rupees and exposing them to the risk of losing their holdings.

SEBI updates

• SEBI is once again caught on the wrong foot, and this time for one of its recent circulars that made public names of over 2,000 entities, which have defaulted on its dues.

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.