Corporate and Professional updates 2nd july 2018

Direct Tax :

• Calcutta HC rules that in search cases, the due date for filing return, in order to avail carry forward of loss [as required u/s 139(3)], stands extended till the date specified in notice u/s. 153A(1)(a); HC holds that since the search operations in case of assessee-individual were initiated on September 2, 2004, it was no longer necessary for assessee to file his regular return for subject AY 2004-05  by October 31, 2004 [i.e due-date u/s. 139(1)]; [TS-337-HC-2018(CAL)]
• ITAT Kolkata held that assessee is having only one portfolio that is of investment and is consistently following to declare capital gain or loss on sale on investment, dividend is earned on investment and there is not stock in trade portfolio. Besides, the assessee is consistently valuing investment at cost and does not claim the diminution in valuing of investment. We have noted the intention of the assessee that the Board of Directors of the assessee company has passed the resolution stating that the motive of the company is to deal in investment and not to trade in shares, therefore, we are of the view that assessee’s income i.e Short term Capital Gain by way of sale of investment should be assessed under the head ‘capital gain’ instead of ‘business income’. Therefore, we direct the Assessing Officer to treat the assessee as an investor and assess the income under the head ‘Short term Capital Gain’.[DPJ Viniyog Pvt. Ltd. Vs DCIT (ITAT Kolkata)]

INDIRECT TAX

• New GST return forms would be introduced from January 1 after successful beta-testing of the software, Finance Secretary Hasmukh Adhia said. He said wrong input tax credit claims are a potential area of evasion in the GST regime and one-to-one invoice matching is the key to checking evasion.
• CBIC extends RCM relaxation by 3 months upto 30th September 2018, Notification issued.

FAQ on E-WAY BILLS:

• Query: How many times can Part-B or Vehicle number be updated for an e-way bill?
• Answer:The user can update Part-B (Vehicle details) as many times as he wants for movement of goods to the destination. However, the updating should be donewithin the validity period.

Read more about: What is core Business Activity GST

Read more about: Important decisions made at the  43^rd GST Council  meeting

RBI Update:

• The Reserve Bank of India has released the data on External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB) and Rupee Denominated Bonds (RDB) both, through Automatic Route and Approval Route, for the month of May 2018.

MCA UPDATES

• MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC.  Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC  on or before 31 Aug,2018.

OTHER UPDATES

• Public sector lender Indian Bank has decided to withdraw a resolution related to dividend payment after the RBI said, the bank can declare dividend after fully providing for mark-to-market (MTM) loss, gratuity and any other provisions.
• The Central Board of Trustees, EPF in their meeting have approved the proposal for insertion of Paragraph 68HH in EPF Scheme, 1952 provisioning Advance from the fund to a member who ceases to be in employment for a continuous period not less than one month.
• Indian Overseas Bank invite applications from CA Firms for assignment of Concurrent Audit in the Prescribed Format. The Application downloaded from the website should be filed in and duly signed by authorised signatory and should be emailed to conauditapp@iob.inin pdf format on or before 06-07-2018.

KEY DATE:

• QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018

• TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (JUNE 2018):-10 JULY  2018

• DUE DATE FOR FILLING GST 3B- 20.07.2018