corporate and professional updates 3rd may 2018

Direct Tax:

• Delhi ITAT holds that services provided by US entity did not make available technical knowledge, skill, know-how etc to the assessee and thus, does not qualify as fee for included services as per the India-US DTAA and thus not liable to TDS u/s 195, deletes disallowance u/s 40(a)(i). [TS-212-ITAT-2018(DEL)]
• Mumbai ITAT dismisses Revenue’s appeal and allows exemption u/s 11 to assessee-trust during AY 2009-10, rules that activities of the trust were directed for promoting its objects of vegetarianism and distribution of Prasadam and food to the general public to facilitate the furtherance of the very interest of the Lord Krishna consciousness in the society ; During the relevant AY, Revenue had disallowed donation and payment of rent to ISCON by contending that there was no element of any charity conducted by the assessee as the activities and receipts are on commercial line ; Observes that assessee-trust follows the principle of Bhagwat Gita while Cooking, selling and preparation of vegetarian Prasadam and the activities of trust are essential to spread the thought of understanding the Lord Krishna consciousness and vegetarianism Bombay HC [TS-213-ITAT-2018(Mum)]
• ITAT Mumbai held in the case of Parle Products Pvt. Ltd. vs. ACIT that Making addition on estimate basis by rejecting the books of account in the absence of any adverse material brought on record cannot stand. [Parle Products Pvt. Ltd. vs. ACIT (ITAT Mumbai)
• CBDT to recognise transgenders as independent gender, new category amended in PAN form. Now, there will separate column for male, female and transgenders.
• CBDT has proposed changes in the application process for obtaining advance ruling to bring it in line with Base Erosion and Profit Shifting (BEPS) Action 5 objectives.
• Income tax (I-T) department has seized nearly Rs 15 crore in the last two days across Bengaluru, Hyderabad and Punjab. The tax department started its crackdown on cash hoarders amid a cash crunch reported in several states earlier this month.

Indirect tax

• Date for the filing of DVAT Return for Q-4, 2017-18, Pertaining to Petroleum and Liquor Dealers,  has been extended up to 13-05-2018, Vide Circular No. 23, dated 27-04-2018.
• GST Council has set Rs 12 trillion as the target for goods and services tax collections for the current financial year, buoyed by rising tax compliance in the first year of the new indirect tax regime.
• Due dates forGSTR-1 for the month of March for Aggregate Annual Turnover Exceeding Rs. 1.5 Cr or opted to file Monthly Return is 10 MAY, 2018.
• To avoid GST Notice, Reconcile ITC in GSTR-3B with GSTR-2A. Pay GST excess claimed with Interest @ 24% pa. Use Web-GST for automated report

FAQ on E-WAY BILLS:

• Query: How does the taxpayer enter the Part-A details and generate the e-way bill later by entering Part-B?
• Answer: The taxpayer can enter Part-A details and generate the Part-A slip. Sometimes, the taxpayer wants to move the goods himself but wants to update the Part-B later as vehicle number is not available at that point of time. E-way bill expects the user to enter transporter ID or vehicle number. If he wants to move the goods himself, he can enter his GSTIN as transporter Id and generate Part-A Slip. This indicates to the system that he is a transporter and is going to enter Part-B later.

Read our articles:

• E-Invoice Mechanism under the GST
• Blocking/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN
• Reasons for the Movement of Goods under the GST

SEBI updates

• SEBI has barred 28 entities from the capital markets for sending out unauthenticated SMSes in bulk with misleading ‘buy’ recommendations to pump up trading volumes in the shares of Kalpa Commercial.
• SEBI has made Amendment to SEBI w.r.t Monitoring of Foreign Investment limits in listed Indian companies.vide its Circular dated April 5, 2018.

MCA updates

• The Ministry of Consumer Affairs, Food and Public Distribution, has issued the advisory for smooth implementation of the Legal Metrology (Packaged Commodities) (Amendment) Rules, 2017.

Other updates

• Valuation Standards Board of the ICAI has published exposure drafts for the Valuation Standards. Inputs on the same can be given till May 12, 2018. Email: Comments can be sent to commentsvsb@icai.in
• Ministry of Labour & Employment extended Last date for giving comments/suggestions on the Draft Code on Occupational safety, Health and Working conditions, 2018 extended upto 31st May, 2018.

Key dates:

• GSTR-1 for the taxpayers with annual turnover more than Rs 1.5 cr for the March on monthly  basis: 10.05.2018
• Return of TDS/TCS collected in March: 31.05.2018
• Due date for filling of GSTR-6- 31 . may . 2018
• Due date for filling GST TRAN-2- 30.06.2018