corporate and professional updates 29TH may 2018

CORPORATE AND PROFESSIONAL UPDATES 29TH MAY 2018

DIRECT TAX

• SC dismisses Revenue’s SLP against Rajasthan HC judgment in case of a transport contractor (‘assessee’); HC had held that assessee-contractor was not liable to deduct TDS u/s. 194C where freight payments are directly made by third party company (i.e. contractee) to truck-owners; HC had rejected Revenue’s stand that since the contractee-company was making payment to truck owners on assessee’s behalf, assessee was liable to deduct TDS as it was the contractor and the truck owner were subcontractors; HC had clarified that “194(c) read with 204(iii) will come into operation only on the payment made by assessee and as rightly discussed since payment is not made by the assessee if at all there is default the default is of Mangalam Cement (i.e. contractee company).”; Thus, upholding HC order, SC opines that “We do not find any ground to interfere with the impugned order.”[TS-257-SC-2018]
• ITAT upholds assessee’s selection of foreign AE as tested party and TNMM as MAM to benchmark transaction of payment fees for advisory and other services to AE for AYs 2011-12 and 2012-13; Directs AO to benchmark the transaction by considering foreign comparables selected by assessee and remits matter for limited purpose of verification of assessee’s claim that its margin was withing 5% range of average margin for comparables, follows ITAT order for AY2009-10 and 2010-11; Separately for benchmarking of IT enabled services for AY 2012-13, ITAT directs exclusion of Excel Infoways Ltd as it was in the process of closing its BPO division in relevant year and in view of its fluctuating profit margin, follows Allscripts India Pvt. Ltd., TIBCO Software India Pvt. Ltd and Qlogic India Pvt. Ltd.ruling; Further directs TPO to verify employee cost to sales ratio of Universal Print Systems Ltd. and exclude it as comparable if the same is less than 25% , follows Goldman Sachs Services ruling : Pune ITAT [TS-362-ITAT-2018(PUN)-TP]
• CBDT Released ITR 6 as well for FY 2017-18, Now All ITRs for AY 2018-19 are available for e-Filing  https://studycafe.in/2018/04/ cbdt-released-itr-1-to-itr-7- forms-for-fy-2017-18-ay-2018- 19.html
• CBDT notified the 6th Amendment Rules wherein it is provided that only Merchant Bankers are entitled to do Valuation of Unquoted Shares and the Chartered Accountants are no more eligible to do so. Rule 11UA w.e.f. on or after May 24, 2018.
• In a major relief to Start-ups, CBDT has notified that Income Tax is not payable on issuing share capital at excess premium by eligible start-ups.Notification No. 24/2018/F. No.370142/5/2018-TPL dated May 24, 2018.
• All seven ITRs are to be filed electronically on the official web portal of the department -https://www.incometaxindiaefigov.in, except for some category of taxpayers, the CBDT had said.
• 31.5.18 is last date to file AIR in Form 61A by Banks etc & also in Tax Audit cases where cash above Rs 2 lacs received against any sale invoice. Penalty of 500 per day for not filing AIR in time. If no transaction to report, file SFT Preliminary Response at Reporting Portal https://report.insight. gov.in

Indirect Tax:

• Central Board of Indirect Tax & Customs gives a notification on applicability of Integrated Goods and Services Tax (integrated tax) on goods supplied while being deposited in a customs bonded warehouse-reg. Vide Circular no 3/1/2018 – IGST, dated 25th May 2018.
• Intra-state e-Way Bill wef 25.05.18 in Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman, Diu, Lakshadweep, Maharashtra & Manipur.
• CBIC- The Circular clarified that integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption.Circular No. 3/1/2018-IGST dated May 25, 2018

FAQ on E-WAY BILLS:

• Query:  Which types of transactions that need the e-way bill?
• Answer: For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including an unregistered person or for reasons other than supply also, e-way bill is mandatory.

 

Other updates

• Consumer complaint not maintainable after settlement through Arbitration. National Consumer Disputes Redressal Commission.
• Employees’ Provident Fund Organization (EPFO) has asked its field offices to credit 8.55% interest rate for 2017-18, the lowest rate since 2012-13 fiscal, into the PF accounts of around 5 crore subscribers.

Key Date:

• Return of TDS/TCS collected in March: 31.05.2018
• Due date for filling of GSTR-6- 31 . may . 2018
• Due date for filling GST TRAN-2- 30.06.2018

• Read more about: What is core Business Activity GST

  Read more about: All about GST Offenses, Penalties, and Appeals