CORPORATE AND PROFESSIONAL UPDATES 28TH JUNE 2018

Direct Tax :

• Karnataka HC dismisses Revenue’s appeal challenging ITAT’s comparables selection for software developer assessee for AY 2006-07, lays down law on interpretation of ‘substantial question of law’ in respect of appeals against comparables selection in TP cases; [TS-475-HC-2018(KAR)- TP]
• Mumbai ITAT upholds CIT(A)’s order accepting separate benchmarking of assessee’s transactions under Business model 1 – receipt of marketing & support services from AE (choosing foreign AE as tested party) and Business model 2 – assessee’s rendering of ITeS to AE (choosing assessee as tested party) for AY 2004-05; [TS-474-ITAT-2018(Mum)-TP]
• Income-tax department has attached over 1,500 unaccounted properties worth Rs 43 billion across the country within one and a half years of the introduction of the revised benami legislation. Jaipur and Mumbai top the list, with attachments of 200 each.
• TDS, TCS and Reverse Charge Mechanism under Gst provisions kept on hold till 30th September.

INDIRECT TAX

• Indirect tax department has issued notices to companies that added cash balance lying in their personal ledger account (PLA) to the transitional credit when the tax system moved to GST, triggering panic among such companies.

FAQ on E-WAY BILLS:

• Query:Whether the e-way bill can be cancelled?  If yes, under what circumstances?
• Answer:Yes, e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill.  The e-way bill can be cancelled within 24 hours from the time of generation.

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 UPDATES

• MCA has taken an initiative to introduce a chapter on Cross-Border Insolvency within the Insolvency &Bankruptcy Code, 2016 to provide a comprehensive legal framework, considering the fact that corporates transact businesses in more than one jurisdiction and also have assets across many jurisdictions.

SEBI UPDATES

• SEBI issues List of Defaulters as on 31.03.2018 For Non-Payment of Penalty imposed by SEBI through Orders Passed Upto 31.12.2017.

RBI UPDATES

• The Reserve Bank of India has imposed a monetary penalty of ₹ 1,00,000/- (Rupees one lakh only) on Northern Railway Multi-state Primary Co-operative Bank Ltd., Lucknow in exercise of powers vested in it under the provisions of Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949. \
• The Reserve Bank of India has imposed a monetary penalty of ₹ 1,00,000/- (Rupees one lakh only) on Urban Co-operative Bank Ltd., Basti in exercise of powers vested in it under the provisions of Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949.
• RBI has come out with draft guidelines on constituting a board of management (BoM) in addition to the board of directors, for urban cooperative banks (UCBs), with the aim of strengthening the governance in these banks. The BoM will be responsible for credit, risk and liquidity management.

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