corporate and professional updates 30th aug 2018

Direct Tax :

• Delhi ITAT holds that payment made by assessee company to individuals (resident of Germany and Switzerland)  for AY 2008-09 and 2009-10 cannot be taxed as ‘fees for technical services’ under Article 12 of India Germany and India Switzerland DTAA, TDS u/s 195 inapplicable; Perusing the evidence in the form of copies of trials conducted by NR, email exchanges and working protocol, ITAT holds that services rendered were ‘independent scientific services’ falling under Article 14 – ‘independent personal services’, but same cannot be brought to tax in India absent a fixed base in India or non-resident recipients staying in India for 120 days or more;[TS-492-ITAT-2018(DEL)]
• Delhi ITAT denies assessee company’s claim for set-off of long term capital loss (LTCL) arising on sale of shares against long term capital gains (LTCG) arising on sale of property for AY 2012-13, rules that the share transaction was a sham transaction, a colourable device to generate loss to avoid capital gains tax on property sale; During relevant AY, assessee had entered into sale agreement for a property and received part consideration thereof, immediately thereafter assessee entered into collaboration agreement with group co. (CRPL) to develop the same property and received earnest money, out of which Rs. 7.5 cr. was transferred to the account of another group co. (VBPL) towards share allotment at a premium of Rs. 190 per share;[TS-491-ITAT-2018(DEL)]
• Due Date for Income Tax Return(AY 2018-19) for assessee whose account not required to be Audited- Aug 31, 2018.

INDIRECT TAX

• GST Council cut rates on over 100 items, including footwear, refrigerator, washing machine and small screen TV, while the widely demanded sanitary napkins have been exempted from the levy. The revised tax rates will come into effect from July 27.
• GST portal has added a new facility for filing of refund application for multiple tax period.“Taxpayers filing refund application for ITC accumulated on account of export of goods or services without payment of tax and on account of supplies of goods and services made to SEZ units/SEZ developers without payment of tax, has now been provided.”
• GST returns comprises of two types of return – periodic and annual returns. Periodic returns are monthly or quarterly returns for reporting transactions during the month or quarter, while annual return is for reporting the summary of the periodic returns filed during a financial year.
• As per section 16(4) of the GST Act a registered person shall not be eligible to take adjustment of any input tax credit in respect of any invoice pertaining to FY 2017-18 after the due date of filing GSTR3B for the month of Sept 2018 i.e. 20.10.2018.

FAQ on GST Audit:

• Query:  Is ‘mensrea’ or culpablemental state necessary for prosecution under CGST/SGST Act?
• Answer:   However, Section 135 presumes the existence of a state of mind (i.e. “culpable mental state” or mensrea) required to commit an offence if it cannot be committed without such a state of mind.

SEBI UPDATES

• SEBI plans ‘on tap’ bond market which gives corporates the flexibility to time the market, prune cost, and dramatically cut down on paperwork for raising money, will soon be a reality in India.

Punjab National Bank, Multi Location , Multi State

• Description :Empanelment of CA firms for concurrent audit assignment
• Last Date: 20/9/2018
• Address :Multi Location, Multi State

KEY DUE DATES

• GSTR-3B (aug 2018)-sep 20th, 2018
• GSTR-5 (aug 2018)-sep 20th, 2018
• GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
• GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
• GSTR-5A (aug 2018)-sep 20th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31st, 2018.
• Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(aug 2018)-sep 11th 2018