CORPORATE AND PROFESSIONAL UPDATES 30TH JULY 2018

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Direct Tax :

  • Agra ITAT allows Sec. 89 relief to assessee-employee with respect to arrears received in lieu of employer’s contribution to an approved superannuation fund [taxable as perquisite u/s. 17(2)(vii)] during AY 2014-15; Rejects Revenue’s stand that the payments made by employer was perquisites u/s. 17(2), which cannot qualify for relief u/s. 89(1) as it covers salary arrears and arrears for profit in lieu of salary u/s. 17(3) only; [TS-408-ITAT-2018(AGR)]
  • SC clarifies that CBDT’s office memorandum (‘OM’) dated July 31, 2017 regarding stay of demand does not interfere with AO’s power to grant stay on deposit of a lesser amount, pursuant to Revenue’s appeal challenging Delhi HC judgment in LG Electronics India Pvt. Ltd.’s (‘assessee’) case; SC gives credence to Additional Solicitor General Vikramjit Banerjee’s submission before it that the said administrative Circular of the CBDT will not operate as a ‘fetter’ on the Commissioner, since it is a quasi judicial authority; [TS-406-SC-2018]
  • Calcutta HC upholds ITAT order, rejects Revenue’s stand that since possession of land owned by assessee-company was made over to developer pursuant to development agreement (‘DA’) dated February, 2007, capital gains arise in AY 2007-08 in view of Sec. 2(47)(v); HC rules that “it is only the kind of possession that is protected u/s. 53A of the Act of 1882 which is to be regarded as transfer and the mere handing over of possession of an immovable property for any other purpose may not fall within the scope of “transfer” in Section 2(47)(v);[TS-404- (HC-2018CAL)]
  • Kolkata ITAT deletes Sec 68 addition for consideration on sale of shares, allows assessee-individual’s LTCG exemption claim; AO had made addition based on information from Investigation Wing that relevant scrip on which LTCG was earned was involved in bogus LTCG scam and assessee’s PAN was listed in beneficiaries identified by Investigation Wing;[TS-402-ITAT-2018(Kol)]
  • Calcutta HC upholds ITAT order, rejects Revenue’s stand that since possession of land owned by assessee-company was made over to developer pursuant to development agreement (‘DA’) dated February, 2007, capital gains arise in AY 2007-08 in view of Sec. 2(47)(v); HC rules that “it is only the kind of possession that is protected u/s. 53A of the Act of 1882 which is to be regarded as transfer and the mere handing over of possession of an immovable property for any other purpose may not fall within the scope of “transfer” in Section 2(47)(v);[TS-404- (HC-2018CAL)]
  • CBDT has extended the ‘Due Date’ of filling Income Tax Return from 31st July 2018 to 31stAugust 2018, Dated 26th July 2018 (F. No. 225/242/2018/ITA.II).
  • CBDT: The date of Filing of Income tax return for A.Y 2018-19 ( Non Audit) is extended 31-08-2018 Vide Notification No . 225/242/248 dated 26-07-18.
  • CBDT has revised the mandatory tax audit report Form 3CD, which is to be filed by certain taxpayers, to expand the scope of the exercise. An auditor will now have to furnish details related to GST sales, information on transactions covered by transfer pricing provisions, cash transactions and transaction involving TDS.
  • The Delhi High Court directs Central Board of Direct Taxes to accept online filing of tax returns without furnishing Aadhaar number.
  • The Income Tax Department is set to crack down on TDS defaul ts by government and private sector entities, especially e-retail portals, local bodies like panchayats, as the CBDT has directed its assessing officers (AOs) across the country to undertake at least 30 surveys or on-spot checks.
  • The Securities Appellate Tribunal (SAT) on Thursday asked the income tax department to provide clarity on applicability of securities transaction tax (STT) on physically-settled derivative contracts.

INDIRECT TAX

  • E-commerce companies to face tax audit over GST refund issue: The anti-profiteering authority has ordered audit of major e-commerce companies like Flipkart, Amazon and Snapdeal, to find out whether they have refunded the excess GST collected from the consumers.
  • Central Government has now given effect to the recommendations of GST Council vide various notifications dated July 26, 2018 and all such notifications, unless specifically mentioned, shall be effective from July 27, 2018.
  • The Goods and Service Tax Council would exclusively consider issues related to micro, small and medium enterprises taxpayers at its 29th meeting scheduled for August 4, a finance ministry official said.
  • GST Tribunal (GSTAT) will come into effect soon, providing a higher judicial forum for businesses to redress disputes under the new tax framework. The GST Council approved creation of the tribunal with a national bench in Delhi and three regional benches in Chennai, Kolkata and Mumbai.
  • CBIC has notified that the services supplied by individual Direct Selling Agents (DSAs) to banks/ non-banking financial company (NBFCs) are taxable under Reverse Charge Mechanism (RCM). Notification No. 15/2018.

FAQ on GST Audit:

  • Query: When can a taxable person pay tax on a provisional basis?
  • Answer:As a taxpayer has to pay tax on self-assessment basis, a request for paying tax on provisional basis has to come from the taxpayer which will then have to be permitted by the proper officer. In other words, no tax officer can suomoto order payment of tax on provisional basis. This is governed by section 44A of MGL. Tax can be paid on a provisional basis only after the proper officer has permitted it through an order passed by him.
  • Query: Under what circumstances a best judgment assessment order issued under section 46 be withdrawn?
  • Answer: The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand  withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.

MCA Update:

  • Form DIR6 is likely to be revised on MCA21 Company Forms Download page w.e.f 26th JUL 2018. Stakeholders are advised to check the latest version before filing.
  • Updating of Email ID and Mobile number in DIR-6 has been temporarily disabled till further notice. Stakeholders may kindly take note..

RBI Update:

  • Directions under Section 35A of the Banking Regulation Act, 1949 (AACS) – The Kapol Co-operative Bank Ltd, Mumbai, Maharashtra.

SEBI UPDATES

  • SEBI proposed Unified Payments Interface (UPI)-based payments for retail investors investing in IPO. The move will help cut down the time taken between closing of an IPO and listing of the security from current six days to just three days.
  • SEBI proposed measures to provide promoters a say in the price offered to shareholders of companies that are planning to delist from stock exchanges. The proposal is aimed at plugging loopholes in the current delisting method for companies. Issuing a draft paper, Sebi has suggested for a price discovery as per reverse book building (RRB) method, along with considering counter offer of promoter .

OTHER UPDATES

  • Parliament passed the Fugitive Economic Offenders Bill to prevent economic offenders from fleeing the country and evading the legal process. It also gives teeth to the Enforcement Directorate to confiscate the property of fugitive economic offenders.
  • Cash-on-delivery (COD) method of payment option provided by online retailers such as Flipkart and Amazon may be a regulatory grey area as per the Reserve Bank of India’s (RBI’s)
  • India will soon lay down the ground rules for professionals to assess the value of businesses, including those slipping into bankruptcy, according to Insolvency and Bankruptcy Board of India (IBBI) chairperson M.S. Sahoo.
  • ICAI vide announcement dated July 25,2018 has requested the members to add/update their mobile number and email-id in the records of ICAI in order to enable the ICAI to send bio-data of candidates, important election related announcements, etc. to members.
  • Cheque bounce law passed in lok sabha on 23.07.18. 20 % immediately to pay to party, 20 % to deposit in court, 100 % to pay with interest if found guilty within two month. Penalty will be charged 20% to 100% for guilty by court.

KEY DUE DATES

30 July 2018 –

  • Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2018
  • Due date for furnishing of challan-cum-statement in respect of tax deducted undersection 194-IA for the month of June, 2018
  • Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of June, 2018

31 July 2018 –

  • Quarterly statement of TDS deposited for the quarter ending June 30, 2018
  • Annual return of income for the assessment year 2018-19 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under section 92E.
  • Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2018
  • Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2018)
  • Application in Form 9A for exercising the option available under Explanation to section 11(1) to apply income of previous year in the next year or in future (if the assessee is required to submit return of income on or before July 31, 2018)
  • Statement in Form no. 10 to be furnished to accumulate income for future application undersection 10(21) or 11(2) (if the assessee is required to submit return of income on or before July 31, 2018)
  • Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2017-18 and of foreign tax deducted or paid on such income in Form no. 67. (If the assessee is required to submit return of income on or before July 31, 2018.)
Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at https://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

One thought on “CORPORATE AND PROFESSIONAL UPDATES 30TH JULY 2018

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