corporate and professional updates 2nd june 2018

Direct Tax:

• Jaipur ITAT deletes disallowance u/s 40A(3) with respect to cash payment made by assessee-firm (engaged in real estate business) against purchases of land during AY 2013-14, observes that the payment was made out of the explained sources, through the registered document and as a disclosed transaction and the identity of the sellers and genuineness of  transaction was established; Notes that only at the insistence of specific sellers, assessee withdrew cash and made payment to them despite having sufficient bank balance, observes that in order to secure the deal, assessee had no other option but to make the payment in cash; [TS-276-ITAT-2018(JPR)]

• Delhi ITAT refuses to delete Rs. 489 cr capital gains addition, however gives one more chance to assessee (Gagan Infraenergy) to establish the ‘genuineness’ and ‘validity’ of  the  transaction that it claims, is ‘gifting’ of 1.76 cr shares to another co.; Gagan Infra’s counsel argued that the company gifted 1.76 cr shares that it held in Jindal Steel (flagship operating co. of O.P. Jindal group), to another co., pursuant to a “family realignment” of O.P. Jindal Group;[TS-275-ITAT-2018(DEL)]
• Income Tax Deptt launched and activated all the seven ITR forms for e-filing by taxpayers, after more than a month of them being notified.

Indirect Tax:

• CBEC has made amendment by way of notification no 4/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 676 (E), dated the 28th June, 2017.
• Due date for filing GSTR-6 by ISD for July, 2017-June, 2018 is extended till 31.07.2018. Notification to be issued shortly. Source: twitter- cbic.gov.in
• Government has refuted exporters’ claim that Rs 20,000 crore of GST refund is pending, and said there has been no dip in refunds as it announced a special refund fortnight beginning May 31.

FAQ on E-WAY BILLS:

• Query:How does taxpayer enter Part-A details and generate e-way bill, when he is transporting goods himself?
• Answer:Sometimes, taxpayer wants to move the goods himself. E-way bill Portal expects the user to enter transporter ID or vehicle number. So if he wants to move the goods himself, he can enter his GSTIN in the transporter Id field and generate Part-A Slip. This indicates to the system that he is a transporter and he can enter details in Part-B later when transportation details are available.

Read more about: What is core Business Activity GST

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

RBI Update:

• RBI has issued notification regarding Withdrawal of Exemptions Granted to Government Owned NBFCs. Vide notification no RBI/2017-18/181, dated 31st May 2018.

SEBI updates

• SEBI directed rating agencies to set up committees to hear the appeals of issuers aggrieved by the ratings assigned to them. Currently, there is no stipulated mechanism to review such issues.

MCA UPDATES

• ROC, Delhi & Haryana in its drive to clean the registry has issued notice of striking off of 1171 LLP’s under Section 75 of LLP Act, 2008 read with Rule 37 of LLP Rules, 2009.

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 (MAY2018):-10 JUNE 2018
• DUE DATE FOR FILLING GST TRAN-2- 30.06.2018