corporate and professional updates 26th june 2018

corporate and professional updates 26th june 2018

Direct Tax :

• Mumbai ITAT rules that capital gains of Rs. 455.70 Cr. arising to assessee-company (a tax resident of Singapore), pursuant to trading in Indian securities during AY 2011-12, not taxable in India under Article 13(4) of India-Singapore DTAA; Rejects Revenue’s stand that in view of Article 24 (Limitation of Benefit clause), capital gains exemption under Article 13(4) cannot be allowed since income was not repatriated to Singapore, ITAT clarifies that Article 24 does not have much relevance insofar as it relates to applicability of Article 13(4); [TS-321-ITAT-2018(Mum)]
• Kolkata ITAT dismisses Revenue’s appeal for AY 2009-10, deletes long term capital gains (‘LTCG’) addition u/s. 50B, made by the AO on transfer of Trading and Distribution (‘T&D’) division of assessee-company (GE Healthcare OY’s wholly owned subsidiary) to Wipro GE Healthcare vide demerger (approved w.e.f. April 1, 2008); [TS-320-ITAT-2018(Kol)]
• Validity of reopening of assessment beyond 4 years – there is no mention that income amounting to ₹ 1 lac or more is believed to have escaped assessment – reassessment proceedings held to be null & void ab-initio –Usha Agarwal Vs. ITO (2018 (6) TMI 1175 – ITAT Agra).
• Assessment u/s 153A – Addition u/s 68 – the burden had shifted to revenue to show the basis of some reliable and tangible material which could indicate undisclosed receipts out of books of accounts in the hands of assesse – we cannot improve upon what AO could have done himself – addition made by AO on account of alleged receipts of cash deleted – Godwin Construction Pvt. Ltd. Vs. ACIT, CC & Vice Versa (2018 (6) TMI 1172 – ITAT Delhi).
• CBDT has proposed clear-cut timelines by which excess amount assessed by transfer pricing officials (TPOs) over what was declared by associated enterprises of multinational corporations (MNCs) has to be brought in India. These timelines relate to advance pricing agreements (APAs) and mutual agreement procedures (MAPs).

INDIRECT TAX

• Services provided by TPADL with respect to the non-tariff charges recovered from their customers are not eligible for exemption and TPADL is liable to pay tax on the aforesaid recovery made from their customers – AAR, Rajasthan in TP Ajmer Distribution Ltd. (2018 (6) TMI 1196).
• The service provided by M/s. Rishi Shipping is classifiable as ‘Rental or leasing services involving own or leased non-residential property’ (Service Accounting Code – 9972) leviable to GST @ 18% – AAR, Gujaratin Rishi Shipping (2018 (6) TMI 1195).
• CBEC has issued modifications to the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular No. 41/15/2018-GST dated 13.04.2018.
• E-Way bill generation touches 10-crore mark over 80 days after its launch on April 1, e-way bill generation hit the 10-crore mark. “Ten crore E-Way bills in two months and 21 days and still it is showing an upward trend.
• Short term accommodation, conferencing, banqueting etc provided to SEZ developer/ unit to be treated as Inter-State supply. Circular 48 of 14.6.18.

FAQ on E-WAY BILLS:

• Query:How does the unregistered transporter get his unique id or transporter id?
• Answer:The transporter is required to provide the essential information for enrolment on the EWB portal. The transporter id is created by the EWB system after furnishing the requisite information. The details of information to be furnished are available in the user manual.

 

OTHER UPDATES

• Overriding IBC, 2016 – Since NCLT is not a forum superior to the High Court, it’s orders cannot be construed as injuncting this Court from proceeding with a winding up proceeding in which it has clear jurisdiction to hear and decide – Vinod Jain Vs. Jaipur Metals & Electricals (2018 (6) TMI 1167 – Rajasthan HC).
• ICICI Bank NSE 0.91 % has disclosed that it has received a whistleblower complaint, alleging irregularities in respect of 31 loan accounts worth Rs 6,082 Crore.
• The allegations pertain to incorrect accounting of interest income on non-performing assets (NPAs) as fees and overvaluation of security provided for corporate loans.
• Prime Minister Narendra Modi called for targeting double-digit GDP growth for breaking into the USD 5 trillion economy club and said India’s share in world trade has to more than double to 3.4 per cent.

KEY DATE:

• QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
• DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
• More read: Reasons for the Movement of Goods under the GST
  

  More read:Refund mechanism under GST service export