corporate and professional updates 28th aug 2018

Direct Tax :

• Kerala HC reverses ITAT order, holds that payment made by assessee (an Indian co.) to a US co. for providing management, financial, legal, public relations, treasury and risk management service, not Fees for Included Services (‘FIS’) under Article 12 of India-USA DTAA, Sec. 195 TDS not applicable; Rejects ITAT view that the US co. facilitated the assessee to take decisions in the managerial, financial and risk management aspects by providing their knowledge, expertise etc. and hence there was a transfer of specific technology for the purpose of decision making;[TS-473-HC-2018(KER)]
• Kolkata ITAT deletes Sec 68 addition for consideration on sale of shares, allows assessee-individual’s LTCG exemption claim; AO had made addition based on information from Investigation Wing that relevant scrip on which LTCG was earned was involved in bogus LTCG scam and assessee’s PAN was listed in beneficiaries identified by Investigation Wing; [TS-402-ITAT-2018(Kol)]
• Method for estimating the income in the previous year on the basis of net profit at a particular rate while finalising the assessment u/s144 of the Act cannot be applied for all subsequent years – Order of ITAT set aside – CIT Vs. Raees Alam Siddiqui (2018 (8) TMI 1372 – Allahabad HC).
• CBDT has released parameters for manual selection of Income Tax Returns for Complete Income Tax Scrutiny during financial year 2018-19 vide Instruction No. 04/2018 Dated: 20th August 2018.

Indirect Tax:

• CBEC has pricribed the due date for quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of upto Rs.1.5 crores for the quarter July, 2018 to September, 2018 is 15^thNovember 2018.
• CBIT&Cextends the due dates for filing Form GSTR-3B for the m/o JUL’18 & AUG’ 18 for the registered persons in the flood affected Kerala, Kodagu district in Karnataka and Mahe in the UT of Puducherry to 05.10.18 & 10.10.18 respectively– Notification No.36/2018 – CT, dt.24.08.18.
• The modus operandi adopted by the petitioner is to transport the goods without e-way bill and as and when he is caught and the Truck is detained, he will make payment of tax and get the Truck released – HC refuses to grant any relief – Vanrajbhai Hasmukhbhai Chauhan Vs. State of Gujarat (2018 (8) TMI 1376 – Gujarat HC).
• The office of the state GST (erstwhile commercial tax department) has issued a notification offering existing taxpayers a window till August 31 to complete their migration to GST.

FAQ on GST Audit:

• Query: If you are always trying to be normal, you will never know how amazing you can be.
• Answer:   Upon confiscation, the title in the confiscated goods shall vest in the Government and every Police officer to whom the proper officer makes a request in this behalf, shall assist in taking possession of the goods.

Read more:what is GST invoice

SEBI UPDATES

• by over two hours till 5 pm. “It has been decided to permit stock exchanges to set their trading hours in the SLB Segment… between 9 AM and 5 PM,” the Securities and Exchange Board of India (Sebi) said in a circular.

OTHER UPDATES

• ICAI clarifies that the Tax Audit done U/s 44AD, 44ADA and 44AE shall not be taken into account for Counting the Number of Tax Audit limit of 60 per member in practice.
• ICAI releases ICAI Valuation Standard effective for the valuation reports issued on or after 1st July, 2018. Link athttps://resource.cdn.icai.org/51432vsb41162.pdf.
• ICAI:CCBMP publishes an E-Book on“Ready Reckoner on Regulatory Aspects of Articled / Audit Assistants: Capacity Building for CA Firms & Practitioners”.
• Niti Aayog has suggested the government to bring down import duty on gold from the existing level of 10 per cent and also slash the GST rate on the precious metal from the current 3 per cent. It has also recommended the govt to review and revamp the gold monetisation scheme and the sovereign gold bond scheme and introduce new gold savings account in banks.

KEY DUE DATES

• GSTR-3B (aug 2018)-sep 20th, 2018
• GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
• GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-nov 15 , 2018.
• Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(aug 2018)-sep 11th 2018