Corporate and professional updates 4th oct 2018

CORPORATE AND PROFESSIONAL UPDATES 4TH OCT 2018

Direct Tax:

• ITAT Cuttack held that remuneration to partners cannot be disallowed merely because the share of partners is not fixed or the deed does not provide for the manner of qualification of such remuneration. Panda Fuels Vs ITO (ITAT Cuttack)
• Recovery of dues – attachment of property – Period of limitation – The incompetent authority, therefore, cannot prejudice the legal rights of petitioner flowing from statutory provisions or eclipse the same in any manner.
• Notice is, therefore, beyond a period of three years and, therefore, hit by Rule 68B( 1)  – Bombay High Court in case of [M/SRambilas Gulabdas (HUF), Vs. Tax Recovery Officer, Range-7, CIT (Vidarbha) Nagpur M/S Rambilas Gulabdas(HUF) , Vs. Tax Recovery Officer, Range-7, CIT (Vidarbha) Nagpur]

• TDS u/s 194H – credit card commission expenses – payments to banks on account of utilization of credit card facilities would be in the nature of bank charge and not in the nature of commission within the meaning of sec. l94H  – ITAT Bangalore in case of [Velankani Information Systems Ltd. Vs. The DCIT, Circle 7 (1) (2), Bangalore And Vice-Versa]
• Diversion of income by overriding title at source – This is where we feel the tax avoidance effort has been made by the parties and we cannot uphold the same in the overall analysis of the facts and legal position applicable to the facts of the present case  – Karnataka High Courtin case of The Pr. CIT Vs. M/S. Chamundi Winery AndDistillery]
• Rejection of books of accounts – GP estimation – Fall in gross profit ratio could be due to various reasons, and cannot be the sole and only ground to reject the book results in entirety and frame best judgment assessment – Delhi High Court in case of [The Pr. CIT-9 Vs. IBILT Technologies Ltd.]
• Rajasthan High Court gave directions to CBDT for further extension of Income Tax Return filing date and Tax Audit Return filing date to 31st October-2018 and waiver of interest u/S 234A of the Income Tax Act.

Indirect Tax:

• CBEC has issued a circular regarding Modification to the Guidelines for Deductions and Deposits of TDS by the DDO under GST as clarified in Circular No. 65/39/2018-DOR dated14.09.2018. Vide circular no 67/41/2018.
• CGST/Tamil Nadu GST: Where petitioner could not avail input tax credit in view of lack of clarity in new transitional provisions under GST Act, it was directed to place all material facts in accordance with Circular No. 39/13/2018-GST, dated 3-4-2018 before Jurisdictional Officer, who would forward same to Nodal Officer.

FAQ on GST Audit:

• Query: Can documents that had earlier been filed with some wrong information be revised under this Scheme?
• Answer: The reason is, the Scheme clearly specifies that only overdue documents due for filing up to 30.06.2017 should be filed under this Scheme and therefore revision of previously filed annual filing e-forms shall not be taken on record.

MCA UPDATES

• MCA plans to put in place a stricter disclosure framework for independent directors, including providing details about their resignations from companies, as part of continuing efforts to bolster corporate governance standards.
• Form DIR-12 is likely to be revised on the MCA21 Company Forms Download page w.e.f 4th OCT, 2018. Stakeholders are advised to check the latest version before filing.
• As part of process re-engineering of LLP incorporation forms, Form 1,
  Form 2, Form 2A, Form 17, Form 18, and Form 5, web-service/revised forms
  (RUN-LLP, FiLLiP, Addendum to FiLLiP, Form 17, Form 18 and Form 5) shall be available on portal w.e.f 2nd October 2018.

OTHER UPDATES

• SBI has lowered the ATM cash withdrawal limit to Rs 20,000 a day, from Rs 40,000. The lower limit will be effective from October 31. “In view of the increase in the number of complaints received by banks around fraudulent transactions at ATMs.

KEY DUE DATES

October 2018 Due Dates:

• 5th October- DIR 3 KYC of Directors
• 7th October- TDS Deposit – Sep 2018 Month
• 14th October- ADT 1 for Appointment of Auditor
• 15th October- TCS Return for Jul to Sep 2018 – Tax Audit & ITR for FY 2017-18
• 18th October- GSTR 4 for Composition Dealer for Jul 2017 to Sep 2018
• 20th October- GSTR 3B – Sep 2018 Month
• 30th October- AOC 4 for FY 2017-18
• 31st October- GSTR 1 for July 2017 to Sep 2018
• 31st Oct- TDS Return for Jul to Sep 2018

 

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