corporate and professional updates 4th April 2018

Direct Tax:

• ITAT, allows assessee’s miscellaneous petition for AY 2010-11, deletes direction given to TPO to bring in more comparables functionally similar to the assessee after applying 25% RPT filter observing that TPO had already applied 25% RPT filter; Opines that “no such direction is required to be issued by Bench as all comparables fulfilling RPT of 25% were alreadyconsidered by TPO”; ITAT also accepts assessee’s contention that Tribunal, in the original order, had wrongly held that Persistent Systems & Solutions Ltd remained after excluding the other comparables instead of Mindtree Ltd.; Accordingly, rectifies mistake in the original ITAT order by replacing Persistent Solutions Ltd with Mindtree Ltd, holds that “once Persistent Systems & Solutions Ltd is directed to be excluded as per para 18 of the order, then the same cannot be retained as good comparable as mentioned by the Tribunal in para 23”.[TS-203-ITAT-2018(Bang)-TP]

• Wealth Tax: Non striking irrelevant column in notice issued u/s 18(1)(c) renders notice invalid[T.S.Kalyana Chakravarthy Vs Dy.Director of Wealth Tax (ITAT Visakhapatnam)]

More read:

• New TDS deduction No cash transactions exceeding 1 Crore -Section 194N
• Extention of TDS/TCS statement filing Date
• TDS payment to resident contractor

Indirect Tax:

• Kerala High Court held that No prohibition under GST Law on Transporting of Goods to Unregistered Person.  [M/s Age Industries (P) Ltd. Vs The ASST. State Tax Officer (Kerala High Court)]
• Vehicle no. in specified format in Part B of e-way bill can be updated in 15 days from generation of Part A, instead of 72 hours earlier.
• Company may develop the new series of all documents to be issued like Tax invoice. Export Invoice, Bill of supply, Receipt voucher, Payment voucher, Refund voucher, Debit note, Credit Note, Delivery challans for new Financial Year 2018-19.
• Company required to mentioned HSN on the basis of Annual turnover in the preceding F.Y. Up to rupees 1.5 Crore – Nil. More than rupees 1.5 Crore and up to rupees 5 Crore – 2. More than rupees 5 crores – 4.
• company need to apply for fresh LUT for Financial Year 2018-19, in case exporters exporting goods/services without payment of Tax and for supplies made to SEZ without payment of tax.
• Filing of TRANS 2 for July to December 2017.
• Option to file TRAN 1 available for assessee’s who have earlier submitted the TRAN1 but could not file due to technical difficulties.
• In case the turnover of assessee exceeds 1.5 Crores, opt for filing monthly returns, otherwise opt for quarterly returns. (At time of filing GSTR 3B for the month of April-18).
• Company required to fill Form GST CMP 02 in case it want to opt composition scheme.
• Decision to opt for special valuation provisions or go with normal provisions specifically in case of supply of services in relation to the sale or purchase of foreign exchange.
• ITC Credit: As per 2nd provision of section 16(2) of CGST Act, 2018 in case the payment for purchase not made within 180 days, then the assessee is required to reverse the ITC booked with interest. Thus, command require to analyses the creditors for FY 2017-18.
• Banking companies and financial institutions to decide either to opt normal provisions for calculation of ITC required to be reversed or go with special provision (50% reversal).

FAQ on Condonation of Delay Scheme (CODS):

• Query: Can the person chargeable with tax pay the amount of demand along with interest and reduced penalty before the service of show cause notice under sub-section (1) or as the case may be, the statement under sub-section (3) of section 74?
• Answer: The person chargeable with tax pay the amount of tax along with interest under section 50 and a penalty equivalent to 15% of such tax based on his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. On receipt of such information, the proper officer shall not serve any notice in respect of tax so paid or any penalty payable under the provisions of this Act or rules made thereunder.

Key dates

• Filing of GSTR-4 for jan-2018-march-2018: 18.04.2018
• Filing of GSTR-1 for feb 2018(turnover more than Rs1.50 cr):10.04.2018