Corporate And Professional Updates 5th Feb 2018

Corporate And Professional Updates 5th Feb 2018

RBI Update:

The Reserve Bank of India has imposed a monetary penalty of Rs. 0.50 lakh (Rupees Fifty thousand only) on The Sircilla Co-operative Urban Bank Ltd., Sircilla, Telangana, in exercise of the powers vested in it under the provisions of Section 47A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for violation of Reserve Bank of India directives and guidelines on Exposure Norms and Statutory/Other Restrictions and Know Your Customer (KYC) Norms/Anti-Money Laundering(AML) Measures. Vide press release 2017-2018/2094, dated 1st February 2018

Direct Tax:

Hyderabad ITAT upholds assessee’s liability to deduct tax at source u/s. 195 on payment of sale consideration for immovable property to non-resident vendors (based in US) during AY 2010-11, however, rejects Revenue’s invocation of Sec. 50C (which deems stamp duty valuation as sale consideration) while determining TDS liability of assessee;  [TS-32-ITAT-2018(HYD)]

ITAT Delhi held that if own funds are more than investment in shares, such investment has to be treated to be out of own funds and hence interest expenditure is not required to be allocated to exempt income on proportionate basis as per Rule 8D of the Income Tax Rules. The ACIT, circle-1(1), Gurgoan V. Cairn India Ltd.

Indirect Tax:

CBEC made amendment in Custom Act, 1962(52of 1962) by way of notification no  57/2017- Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 798 (E), dated the 30th June, 2017. Vide notification no 22/2018, dated 2nd February 2018

GST UPDATE

E-Way Bill postponed due to Technical Glitches. The Central Government has decided to postpone the implementation.

CBEC has issued  9 UTGST Tax Rate, 10 Integrated Tax (Rate) and 9 Central Tax (Rate) Notifications which in total amount to 27 Notification to give effect to Changes in GST Rate and its related Provision as recommended by 25th GST Council Meeting.

FAQ on GST:

Query:What is the implication of GST in respect of duty paid goods removed before the appointed date and returned after the appointed date?

Answer:If any duty paid goods are sold/removed not being earlier than six months of appointed date under the earlier law are returned within six months of the appointed date, the seller is eligible for refund of duty paid if the sales is made to unregistered buyer, if the sale is to a registered buyer then he will have to charge GST as a supply.

In case goods are returned after six months from the appointed date, tax is payable by the person receiving the goods as purchase from unregistered supplier and a registered person will have to charge GST as supply as normal.

Other updates

SEBI will now be able to impose a minimum penalty of Rs 5 crore on stock exchanges and clearing corporations if they breach regulations as announcements for the capital markets in the Union Budget 2018.

SBI Invites Applications for Empanelment of Chartered Accountant Firms for Concurrent Audit at State Bank of India.

Key Dates:

Payment of TDS/TCS deducted/collected in Jan: 07/02/2018

Taxpayers with annual aggregate turnover more than Rs.1.5 crore need to file GSTR-1 for December on monthly basis: 10/02/2018

Taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 for December on quarterly basis: 10/02/2018

Quotes of the day:

A broken trust can is described as melted chocolate. No matter how hard u tries to freeze it, it will never return to its true shape.

When you find a dream inside your heart don’t ever let it go because, Dreams are the seeds from which beautiful tomorrows grow.

Read more about: What is core Business Activity GST

Read more about: Important decisions made at the  43^rd GST Council  meeting