Corporate and Professional Updates 7th April 2018

Corporate and Professional Updates 7th April 2018

Direct Tax:

• ITAT deletes TP-adjustment of Rs. 339.17 crores in respect of receipt of management support services from AE for AY 2012-13; Relies on co-ordinate bench ruling in assessee’s own case for AY 2011-12 wherein similar adjustment was deleted; Noting that there was no change in facts and circumstances during the year, ITAT follows co-ordinate bench ruling and holds that Nil-ALP determination in respect of management support services is ‘unwarranted’ and deletes TP-adjustment
• An ITAT also deletes AMP-adjustment of Rs.1.03cr made by TPO/DRP following co-ordinate bench ruling in assessee’s own case in AY 2011-12 which had in turn relied on Maruti Suzuki ruling; Noting that TPO/DRP had categorically accepted the basic fact that assessee was a manufacturer and also engaged in distribution of products, rejects Revenue’s contention that assessee was only a distributor and thereby Sony Ericsson decision would apply to the case [TS-219-ITAT-2018(Kol)-TP]
• ITAT Cochin held that the beneficial shareholders of the lender company are partners of the assessee- firm and therefore the deemed dividend u/s 2(22)(e) has to be assessed only in the hands of the partners and not in the hands of the assessee- firm. [M/s.Kerala Transport Co. Vs. The Asst. Commissioner of Income-tax (ITAT Cochin)]
• The ITAT Delhi held that Builder has to pay tax based on completion stage if significant risk and reward are transferred to buyer. [Commissioner Of Income Tax Del Vs. M/S Banaras House Ltd. (Delhi High Court)]
• CBDT has released the new Income-tax return (ITR) Forms for Assessment Year 2018-19. It incorporates the changes made by the Finance Act, 2017 in the Income-tax Act and asks taxpayers to provide figures of Ind AS complaint financial statements, GSTR no., GST turnover, etc.
• A CBDT releases interim action plan for first quarter of FY 2018-19; Sets May 31st deadline for issue of Sec. 142(1)/148 notices in all cases in respect of cash deposits data pushed under ‘Operation Clean Money’.
• CBDT Sets June 30th deadline for disposal of assessments in at least 25 cases (20 in International Taxation cases) per AO  of limited scrutiny, set-aside assessment, reopened assessment u/s 147 and OCM scrutiny.
• The CBDT sets June 30th deadline for collection of 100% demand as on April 1, 2018 in cases where TDS has been made but not deposited in the Govt. account.
• CBDT further instructs processing of TDS/TCS defaults for prosecution in atleast 10 cases already identified in earlier two financial years and updating their status by June 30.
• A CBDT TPOs & each DRP to pass a minimum number of orders through the Income tax Business Application Module (ITBA).
• CBDT Sec. 201(1)/(1A) orders to be passed in all cases where TDS surveys have been conducted till 31st March, 2018.
• Further CBDT sets KRAs in respect of audit objections, investigation units & LTUs.
• Shares of unquoted shares to be taxed at (deemed) fair value

MCA updates

• Condonation of Delay Scheme, 2018 extended by MCA upto 30.04.2018. General Circular No. 02/2018.
• Extension to 30.04.2018 of last date to file AOC-4 XBRL e-Forms using Ind AS. MCA General Circular No. 01/2018.

FAQ on E-WAY BILLS:

• Query: Why is the e-way bill required?
• Answer:Section 68 of the Goods and Services Tax Act mandates that the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. Rule 138 of Goods and Services Tax Rules, 2017 prescribes e-way bill as the document to be carried for the consignment of goods of value more than rupees fifty thousand. Government has issued a notification under rule 138 of Goods and Services Tax Rules, 2017 mandating to carry e-way bill for transportation of goods of consignment of value more than rupees fifty thousand. Hence e-way bill generated from the common portal is required to be carried.

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

• More more :Reasons for the Movement of Goods under the GST

  More more:Refund mechanisum under GST service export