Corporate and Professional updates 6th March 2018

Corporate and Professional updates 6th March 2018

Direct Tax:

• ITAT upholds Revenue’s plea that assessee (a private limited company & engaged in real estate business) received high share premium as a conduit to route the funds involved as a ‘layering’ process, holds that share-premium of Rs.49.5cr is taxable u/s 68 as unexplained cash credit for AY 2008-09[TS-97-ITAT-2018(Bang)]

• Delhi HC reverses ITAT’s order, holds that advance received by the assessee from Ginza (in which it had more than 10% shareholding) during AY 1995-96 cannot be termed as ‘advance in the course of business and thus, taxable as deemed dividend u/s 2(22)(e)[TS-90-HC-2018(DEL)]

• Mumbai ITAT allows assessee’s claim of set-off of loss from commodity derivatives against derivative profit during AY 2012-13, holds that assessee was engaged in speculative business and therefore inter-se set-off is allowed[TS-89-ITAT-2018(Mum)]

Indirect tax

• CESTAT has ruled that activity of arranging press conferences, press releases, interviews etc for clients would not amount to event management service and the same not cover service tax under the said category. Case: M/s Perfect Relations Ltd.
• CBEC has launched Single Window Interface for Facilitating Trade (SWIFT) which will enable the Importers electronically lodges their customs clearance documents at a single point.

Mca updates

• MCA introduces Form AOC-3A for companies who need to comply with Accounting Standards as per Ind AS.
• MCA  is in the process to implement in the dematerialization of Shares of unlisted Co. compulsory Demat policy would create an audit trail in securities transactions and enhance the credibility of institutional investment in unlisted companies.

Other updates

• The Union Budget has extended the benefit of tax-free withdrawal from the National Pension System (NPS) to non-employee subscribers of the scheme.
• ICAI LAST DATE FOR PAYMENT OF ANNUAL MEMBERSHIP AND COP FEES FOR THE YEAR 2017-18 IS15.03.2018

FAQ on Condonation of Delay Scheme (CODS):

• Query: If any defaulting company or disqualified director has not filed an application before any court/tribunal for the overdue documents and disqualification, then what is required to be attached in the e-Form CODS 2018?

• Answer:In such cases, the option “Not Applicable” shall be selected in e-Form CODS 2018 and nothing shall be required to be attached thereafter.

Key Dates:

• Submission of forms received in March to IT commissioner: 07/03/2018
• Payment of TDS/TCS deducted/collected in March: 07/03/2018
• Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file GSTR-1 for Jan on monthly basis: 10/03/2018