CORPORATE AND PROFESSIONAL UPDATES 31ST AUG 2018

Direct Tax :

• Delhi ITAT rejects TPO/DRP’s Net Asset Value (NAV) based ALP for benchmarking consideration for sale of shares in an Indian company by assessee (Singapore company) to another non-resident entity (AE) for AY 2012-13 [TS-897-ITAT-2018(DEL)-TP]
• Delhi ITAT confirms Rs. 80 lakh bogus share capital subscription addition u/s 68 in case of assessee (a private limited company) for AY 2005-06, also confirms unaccounted expenditure addition in respect of commission @ 2.5% for arranging the accommodation entries, upholds re-assessment[TS-496-ITAT-2018(DEL)]
• ITAT: Grants stay considering earlier-year refunds due; Comparables selection for software-developer in dispute [TS-891-ITAT-2018(DEL)-TP]
• CBDT has extended the due date for filing income tax returns (ITR) for all income tax assessees in Kerala to September 15, 2018, as per an official release.
• CBDT has decided, in super-session of Circulars issued, that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified.
• CBDT told the Bombay High Court that 0.10% STT would be levied on physical delivery of shares in the equity derivatives segment. A division bench of justices B R Gavai and M S Karnik had last week sought clarity from the CBDT on the STT rate after the ANMI filed a petition.
• Penalty u/s. 271D r.w.s. 269SS – No penalty u/s. 271D can be levied on an assessee where the loans have been accepted in an assessment u/s. 143(3) of the Act made by the AO as genuine – DCIT Vs. Akash InfraCom Project Pvt. Ltd. (2018 (8) TMI 1489 – ITAT Cuttack).
• Bad debts – CIT (A) and Tribunal concurrently held that the respondent bank would also be a scheduled bank and consequently allowed the bad debts u/s 36(1)(viia)(a) of the Act. Such being the position, we find no error in the view –  CIT Vs. Saurashtra Gramin Bank (2018 (8) TMI 1558 – Gujarat High Court).

More read :      Tax audit limit for fy 2019 20

INDIRECT TAX

• Govt is planning to compare data filed by companies with different departments to detect discrepancies and check whether there’s been any leakage in tax collected, raising the prospect of even greater scrutiny, said people with knowledge of the matter.
• GSTIN has addeda New facility for filing of refund application for multiple tax period, which is available for supplies made without payment of Tax for i). Export of Goods & Services; and ii). Supplies made to SEZ Unit / SEZ Developer.
• Tax officials are working on a proposal to link electricity connection of some manufacturers with GSTIN to keep a tab on power consumption. This will act as an anti-evasion measure to dissuade taxpayers from underreporting sales.

FAQ on GST Audit:

• Query:What is Prosecution?
• Answer:Prosecution is the institution or commencement of legal proceeding; the process of exhibiting formal charges against the offender. Section 198 of the Criminal Procedure Code defines “prosecution” as the institution and carrying on of the legal proceedings against a person.

RBI UPDATES

• RBI tightened norms for bad loan resolution by setting timelines for resolving large NPAs, failing which banks will have to mandatory refer them for insolvency proceedings. It also withdrew existing debt restructuring schemes such as SDR and S4A.
• RBI has issued definitions of different resolution plans and an indicative list of financial difficultly, and directed lenders to share data on certain defaulted borrowers with the central bank’s database on large exposures on every Friday.

MCA UPDATES

• The 10-member committee, which submitted its report, has made various recommendations as part of larger efforts to promote ease of doing business and better compliance levels.

OTHER UPDATES

• The presence of an arbitration clause in the share purchase agreement would not cause any impediment with regard to initiation of CIRP because u/s 7 of the Code the mentioning of an arbitration clause in the disputed agreement is no bar to the admission of the petition and initiation of CIRP unlike Section 8 & 9 of the Code – Dinesh Chand Jain & Ors. Vs. Fantastic Buildcon Pvt. Ltd. & Ors (2018 (8) TMI 1541 – NCLT, New Delhi).

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