CORPORATE AND PROFESSIONAL UPDATES 30TH JUNE 2018

CORPORATE AND PROFESSIONAL UPDATES 30TH JUNE 2018

Direct Tax :

• Supreme Court held that even if the entire expenditure incurred for acquisition of a capital asset is treated as application of income for charitable purposes u/s 11(1)(a) of the act, the assessee is also entitled to claim depreciation u/s 32. Revenue’s argument that the grant of depreciation amounts to giving double benefit to the assessee is not acceptable. {CIT vs. Rajasthan And Gujarati Charitable Foundation Poona (Supreme Court)}
• ITAT Kolkata held that the entire profit credited to the partners’ accounts in the firm would be exempt from tax in the hands of such partners, even if the income chargeable to tax becomes NIL in the hands of the firm on account of any exemption or deduction as per the provisions of the Act.  {Shri Vinod Agarwal Vs. Pr. C.I.T. Central (ITAT Kolkata)}
• Panaji ITAT deletes addition towards undisclosed income relating to alleged deposits of Rs. 8.85 cr made by Karnataka MLA (assessee) in a co-operative bank during AYs 2009-10 to 2011- 12; AO had made additions on the basis of statements given by Bank’s Asst. General Manager (‘GM’) with regard to the entries recorded in the diary found during the course of survey operations u/s. 133A; [TS-336-ITAT-2018(PAN)]
• Gujarat HC rejects capital gains addition on goodwill for AY 1994-95, rejects AO’s stand that assessee (Bisleri International P Ltd) undervalued goodwill (at Rs. 15.67 lakhs) by allocating higher valuation to trademark (Rs.313.50 lakhs) for transfer of trademark, goodwill, technical know-how, etc. to Coca Cola Company; [TS-335-HC-2018(GUJ)]
• CBDT clarified that foreign companies that have their place of effective management (POEM) in India will be taxed at 40%, plus applicable surcharge and cess. Provisions relating to POEM were applicable from the financial year 2016-17. Prior to this, a foreign company was considered as a tax resident of India, only if the control and management of its affairs were wholly in India during that financial year.

FAQ on E-WAY BILLS:

• Query: Which types of transactions 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 from an unregistered person or for reasons other than supply also e-way bill is mandatory.

Read more about: What is core Business Activity GST

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

FAQ on GST:

• Query: Will the out-of-pocket expenses charged by professionals to claim reimbursement of expenses incurred by them for rendering services to their clients be included in the transaction value?
• Answer: Yes. Any expenses incurred by the supplier relating to supply until the services are delivered, and which are charged to the recipient, will have to be included in the transaction value.

GST UPDATE

• GST: E-way bill implementation deferred due to glitches.

MCA Update:

• MCA informs that to access DSC-related services of MCA, new settings are required effective from Feb 03, 2018.
• MCA will ask the CS and CA of the companies concerned to update the information related to their directors at the time of filing of annual results. The information will include details such as passport, PAN number, and contact details along with the physical address of directors.
• With the intent to update the registry, MCA would be conducting KYC of all Directors of all companies annually through a new e-form viz. DIR-3 KYC to be notified and deployed shortly.

SEBI UPDATES

• SEBI has issued List of 1690 Defaulters as on May 31, 2018, for Non-Payment of the penalty imposed by SEBI through Orders passed up to December 31, 2017.

RBI UPDATES

• RBI has introduced a Single Master Form for reporting of FDI in India. Visit the link for more details-https://calalitgoel. com/rbi-new-circular-fdi/.

OTHER UPDATES

• DGFT has allowed submission of application seeking authorization for import / export of restricted items, after making online application, through e-mail instead of physical papers after payment of applicable fees.

KEY DATE:

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

• DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

Quote of the day

“It is fellow’s viewpoint, and he understands ours, then we can sit down and work out our differences understanding that gives us an ability to have peace. When we understand the other.