corporate and professional updates 27th june 2018

Direct Tax :

• Ahmedabad ITAT rules that mere non-furnishing of Tax Residency Certificate (‘TRC’) cannot per se be treated as a trigger to disentitle the treaty benefits; During relevant AYs 2013-14 and 2014-15, assessee-company paid  installation / commissioning charges to a US entity without deducting TDS on the ground that absent ‘make available, payment doesn’t constitute Fees for Included Services under Article 12 of India-US DTAA; [TS-330-ITAT-2018(Ahd)]
• 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)]
• CBDT has issued an advisory on its official website regarding cash transactions over and above the prescribed limits specified under the law. The advisory issued by the Board remind the taxpayers to not accept cash of Rs. 2,00,000/- or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion.
• Delhi ITAT in the case of Ravina Khurana hearing 15 joint appeals held that there is no justificationimposing the penalty without mentioning the grounds specified in the notice issued under section 274 of the Income Tax Act.
• Rollout of tax collection at source was deferred to July 1; implementation after systems fully ready that will give a breather to Amazon, Flipkart and other e-commerce service providers.

INDIRECT TAX

• Due date of – Tran – 2. Registered persons under GST but unregistered under old regime- June 30, 2018.
• Bombay High Court has held that GST shall be payable on ” one time payment” upon creation of lease for a period more than 60 years even if the Lessor is a body set  up by the State Government and there shall not be any exemption. Builder Association of Navi Mumbai vs. UOI 2018.
• Bombay High Court has held that Cenvat ( now ITC) is mere concession and not as a matter of right and conditions and restrictions imposed for availing the benefits shall have to be complied with. JCB India Ltd Vs.UOI.2018 (3) ZSTPT 140 Bom.
• The Central Government is all set to bring  35 amendments in the current GST laws including clarification for refunds, changes in the enabling provisions for reverse charge mechanism (RCM) and composition scheme and returns filing etc.
• e-way bill – Where goods moved from a DTA unit to a SEZ unit or vice versa located in the same State, there is no requirement to generate an e-way bill, if the same has been exempted under rule 138(14)(d) of the CGST Rules

FAQ on E-WAY BILLS:

• Query:Whether e-way bill is required for all the goods that are being transported?
• Answer:The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees.

RBI UPDATES

• The Reserve Bank of India (RBI) relaxed its April notification, which forbade FPIs from investing more than 20 per cent of their portfolios in bonds issued by a single corporate group.

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