corporate and professional updates 29th june 2018

corporate and professional updates 29th june 2018

Direct Tax :

• ITAT notes the assessee-company’s conclusion of the MAP with USA in respect of ‘management charges’ payment and allows withdrawal of the ground of appeal against TPO’s determination of ALP at NIL; On the dispute of Revenue characterizing assessee company’s ‘engineering and design’ services as ITeS, ITAT rejects ITeS classification and remands the matter to the file of the TPO for fresh adjudication; ITAT notes TPO’s inconsistent position over the years and that the TPO’s characterisation was not in tune with the functional analysis and further that TPO had not brought any evidence to support ITeS classification; On the comparability analysis, ITAT allows additional ground raised by assessee for excluding certain comparables  by applying ’employee-cost’ filter : Bangalore ITAT [TS-476-ITAT-2018(BANG)-TP]
• ITAT Delhi held that  Hostel, mess and transport facility surplus cannot be considered as business income if these are incidental to the main object of the Society.  [Society for Educational Excellence Vs. DCIT (ITAT Delhi)]

Indirect Tax

• CESTAT Delhi held that Custom Broker Licence cannot be refused merely for penalization U/s. 114 of Customs Act, 1962.  [M/s Global Marine Agencies Vs CC (Prev.) (CESTAT Delhi)]
• The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected at source (TCS) for another three months till September-end.
• CBEC has issued a circular to all its officers and Commissionerate for Non Initiation / Delay in recovery Proceedings as per the Audit Reports of CAG of India.
• SBI has filed an appeal in the GST tribunal against a tax demand of Rs. 210 crore for providing various services in the 2013-16 period.
• The case pertains to tax liability on services provided by Sebi to entities such as stock exchanges, their members, brokers.

FAQ on E-WAY BILLS:

• Query:Can the ‘consolidated e-way bill’ (CEWB) have the goods / e-way bills which are going to be delivered before reaching the destination defined for CEWB?
• Answer: Yes, the consolidated e-way bill can have the goods or e-way bills which will be delivered to multiple locations as per the individual EWB included in the CEWB.
• That is, if the CEWB is generated with 10 EWBs to move 3 consignments to destination Y and 7 consignments to destination X, then on the way the transporter can deliver 3 consignments to destination Y out of 10 and move with remaining 7 consignments to the destination X with the same CEWB.
• Alternatively, two CEWB can be generated one for 3 consignments for destination Y and another CEWB for 7 consignments for destination

More read:

• Key characteristics for Auto-population of e-invoice
• Overview of Invoice Furnishing Facility (IFF) Under QRMP Scheme

MCA UPDATES

• MCA has issued notification that additional fee @ Rs.100/- per day, after30th June 2018 shall become payable in respect of the annual filing forms (MGT-7 (form for annual return), AoC-4 (Form for balance sheet and profit and loss account), in addition to the existing if filed after due date.

RBI UPDATES

• RBI financial stability report released that Gross NPA ratio of banks to rise to 12.2% by March 2019 if economic conditions stay the same. Bad loans at Indian banks, especially those controlled by the government, will increase further in the year to March 31.

OTHER UPDATES

• DGFT has notified the office address of DGFT and its Regional Authorities and their Jurisdiction and Private SEZs under the Foreign Trade Policy, 2015-20
• Holders of shares in listed companies now face a December deadline to convert them into dematerialized form if they have to transfer or sell them.
• About 2.3 per cent of India’s $2-trillionplus market capitalization is still held in the form of physical stock.

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