corporate and professional updates 4th sep 2018

corporate and professional updates 4th Sep 2018

Direct Tax :

• Kerala HC reverses ITAT’s order, allows deduction u/s 36(1)(v) for LIC premium paid in order to indemnify the liability towards gratuity of employees taken over from another company pursuant to business take-over; At the time of take-over of business, the assessee also took over employees with the specific agreement as to the continuation of service without break as also statutory benefits including gratuity for past years; [TS-495-HC-2018(KER)]
• Mumbai ITAT denies a deduction for expenses incurred by the assessee (a JV co. formed by Tata Advances System Ltd. and Lockheed Martin Aerostructure Corporation, USA [‘LMAC’]) as pre-operative expenses, noting that the assessee’s facility for assembling, manufacturing, and supplying aircraft structural articles to LMAC, US was not set up till the end of relevant AY;[TS-450-ITAT-2018(Mum)]
• Calcutta HC upholds ITAT order deleting Sec. 40(a)(ia) disallowance, rules that payment of interest by the assessee (a State-owned housing development co.) for delayed delivery of plot during AY 2005-06, was not in the nature of interest as defined in Sec. 2(28A), TDS u/s. 194A is not applicable.

• Bombay HC dismisses Revenue’s appeal, confirms ITAT order holding assessment order in remand proceedings, which was passed without issuing a draft order u/s 144, as invalid. Observes that once ITAT, in the first round of proceedings, set aside the assessment and remanded it back to TPO to give hearing opportunity to the assessee, “the matter was relegated to the stage of Section 144C(1)”;[TS-773-HC-2018(BOM)- TP]
• CBDT has amended the Income-tax Rules, 1962. These rules may be called the Income-tax (9th Amendment), Rules, 2018, which shall come into force from the 1st day of April 2019 and shall apply in relation to the assessment year 2019-20 and subsequent years

INDIRECT TAX

• Finance Ministry is considering an amendment in the law to raise penalties against companies that fail to pass on GST rate cuts to consumers. At present, the penalty for such an act is 10,000 or the amount of tax evaded, whichever is higher
• CBIC has issued a circular to clarify that the forwarding of samples for testing to the Outside Laboratories till the upgradation of the Revenue Laboratories.
• GST: TUESDAY (11 SEP 2018) is the last date for filing of GSTR-1for the m/o August, 2018 for the taxpayers with Turnover exceeding Rs.1.50 Crores or opted to file monthly Return.

FAQ on GST Audit:

• What would be the action by the proper officer upon conclusion of the audit?
• Answer: The proper officer must without delay inform the taxable person about his findings, reasons for findings and the taxable person’s rights and obligations in respectof such findings.
• Query:Under what circumstances can a special audit be instituted?
• Answer:A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 50 of MGL.

SEBI UPDATES

• SEBI  is working on facilitating the participation of mutual funds and the commencement of portfolio management services in the commodity derivatives market. MCX and custodian banks have submitted a report to SEBI on how issues pertaining to MF participation can be facilitated.

MCA Update ;

• MCA21 system will be intermittently unavailable from Saturday, 1st September 2018 10.00 pm toSunday,2nd September 2018 02.00 pm IST due to maintenance activity. Stakeholders are requested to plan accordingly.
• As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered. Further DIN once associated is NOT eligiblefor surrender. Stakeholders may kindly take note and plan accordingly.
• MCA clarifies that N.N:G.S.R. 307(E) & G.S.R. 308(E), dt.30.03.2017 for disclosure on Specified Banking Notes (SBN) was event specific and hence NOT APPLICABLE for FY 2017-18 or thereafter.

OTHER UPDATES

• Supreme Court reserved its verdict on the SFIO’s plea to stay a Delhi High Court order in a case concerning Bhushan Steel’s erstwhile promoter Neeraj Singal. It said it will pass orders on the plea of the SFIO, while agreeing to hear the probe agency’s appeal against the release order.
• DGFT has eased down the process of making intimation to Regional Authorities about Block-wise fulfillment of EO under the EPCG Scheme by facilitating intimations without using the digital signatures.
• ICAI: 30 SEP 2018is the last date for the payment of Annual Membership and Certificate of Practice fee for the year 2018-19.
• ICAI has issued a Technical Guide on Audit of Urban Improvement Trusts and Development Authorities issued by the Auditing and Assurance Standards Board.

KEY DUE DATES

Due dates for Compliances under GST:

• 10-09-2018- Due date for filing GSTR -1 for the month of August 2018. Applicable for taxpayers with Annual Aggregate turnover More than 1.50 Crore
• 20-09-2018- GSTR-3B for the m/o August 2018

Due dates for Comp under Income tax:

• 07-09-2018- Due date for deposit of tax deducted/collected at source for the month of August 2018
• 14-09-2018- Due date for issue of TDS Certificate for tax deducted under section 194-IA, 194-IB in the month of July 2018
• 15-09-2018- Due date of deposit of second installment of advance tax for the assessment year 2019-20
• 30-09-2018 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA, 194-IB in m/o August 2018
• 30-09-2018 – Audit report under section 44AB for the assessment year 2018-19 in the case of a corporate/non-corporate assessee (who is required to submit return of income on September 30, 2018)

Due dates for under Companies Act;

• 15-09-2018- Application for KYC of all Directors for the year ending 31.03.2018 via form DIR-3 KYC

1. Due dates for Compliance under ESI, PF Acts:

• 15-09-2018- PF Payment for m/o August 2018
• 15-09-2018- ESIC Payment for m/o August 2018

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