CORPORATE AND PROFESSIONAL UPDATES 27TH FEB 2018

Direct Tax:

• Mumbai ITAT allows set off of brought forward house property losses of AY 2009-10 and 2010-11 against income of relevant AY 2012-13 to assessee, holds Sec. 79 provisions inapplicable observing that 2 individual shareholders who became direct shareholders of assessee in AY 2012-13 (50% each) also beneficially held more than 51% of voting power through intermediate companies as at the end of previous year relevant to AY 2009-10 and 2010-11;[TS-82-ITAT-2018(Mum)]
• ITAT Jaipur held that exemption u/s 54F cannot be denied merely for property purchase in wife name. Shri Vivek Jain Vs. DCIT (ITAT Jaipur)
• ITAT (Mumbai) which allowed deduction u/s 80IC for A. Y. 2008-09 where the assessee company made the claim in a revised return of income filed u/s 139(5), filed tax audit report and the prescribed Form 10CCB in support of the claim.

Indirect Tax:

• CESTAT Delhi held that without marketability excise duty not leviable on semi- finished Granules, Extracts and oils.  M/s The Himalaya Drug Co. Vs. CCE (CESTAT Delhi)

Gst updates

• In GSTR-3B, reverse ITC for bills older than 180 days. For Feb return, reverse ITC for bills dt 31.8.17 or before. Pay interest @ 24% p.a.
• In GSTR-1 GST must be exactly equal to Taxable Value X GST Rate rounded off to 2 decimals (for each invoice line item). Other rounding gives error.
• GSTN has enabled online filing of letter of Undertaking LOU. Go to User Services and Select the Tab “Furnishing Letter of Undertaking.

Read more about: What is core Business Activity GST

Read more about: Important decisions made at the  43^rd GST Council  meeting

FAQ on Condonation of Delay Scheme (CODS):

• Query: Defaulting companies and their disqualified directors who have not filed application before NCLT for revival, What is the remedy available?
• Answer: such companies and disqualified directors shall not be eligible to avail benefits under this Scheme as the Scheme clearly lays down that only companies whose application of revival has been filed before NCLT u/s 252 can avail benefits of this Scheme, subject to favourable order from NCLT for revival. Hence, in order to avail benefit under this Scheme, first application has to be made to NCLT u/s 252 and favorable order for revival is also to be obtained during the validity of the Scheme and thereafter overdue documents to be filed within the prescribed time limit under the Scheme.

MCA Update:

• MCA specified that Chapter IX, Section 129 of Companies Act, 2013 Shall not apply to the companies engaged in defense production to the extent of application of relevant Accounting Standard on segment reporting. Dated 23^rdFebruary 2018.

Other updates

• Discounts and Rebates would not form part of ‘Sale Price’: Supreme Court In the case of M/s. Universal Cylinders Limited v. Commercial Tax Officer.
• UIDAI instructs Govt. departments & states not to refuse essential services like medical, school admission, ration through PDS etc for want of Aadhaar.