corporate and professional updates 7th aug 2018

Direct Tax :

• Karnataka HC dismisses assessee’s appeal challenging ITAT-order on 2 comparables (Jeevan Scientific Technologies Ltd and ICRA Online Ltd) for assessee rendering ITeS to AE for AY 2011-12, follows Softbrands India ruling; Regarding Jeevan Scientific Technologies, stating that ITAT had only remanded the case back to the file of AO/TPO for fresh consideration and therefore its selection as a comparable had not yet become final at the hands of AO/TPO, HC opines that “… we do not find any substantial question of law to be arising with regard to the said company M/s Jeevan Scientific Technologies Ltd(seg)”; [TS-766-HC-2018(KAR)-TP]
• Delhi ITAT rules on the stage at which deduction should be allowed for MAT credit available u/s. 115JAA, holds that MAT credit, inclusive of surcharge and education cess etc. should be reduced from the amount of tax determined on the total income after adding surcharge and education cess and only the resultant amount payable should suffer interest u/s. 234A/B/C; [TS-431-ITAT-2018( DEL)]

INDIRECTTAX

Summary of GST meeting 4th August 2018:

1. GOM for MSME Issues:

• GST Council constitutes a Group of Ministers (GoM) to look into issues of MSME’s.
• Finance Minister’s of Assam, Delhi, Punjab & Kerala will be part of this GoM.
• Finance Minister of State – Shri Shiv Pratap Shukla ji will be head of this GoM.

Further a Sub-Committee to be formed under this GoM. This Committee will interact with MSME’s and listen to issues like

1. Return filing with Turnover upto Rs. 1.50 Crores
2. Competition & Benefits of co’s with turnover upto Rs. 1.50 Crores

Further another sub-committee named fitment committee will submit report and will provide suggestions where rate changes are required.

2. Adding more MSME in GST Network

• After GST Council meeting Mr. Sushil Modi, Finance Minister of Bihar, stated that it was also discussed to add more MSME to the GST Network.
• He also discussed that steps would be taken in next meeting to benefit MSME’s.

3. Cash Back Facility:

• GST Council gives approval for Pilot Project to promote Digital Payments through cash back of GST.
• 20% cash back of GST paid to be proposed. Subject to maximum Rs. 100/-.
• Cash Back applicable on payments through RuPay Debit Card, Bhim, USSD etc.
• It’s on wish of States to launch this incentive scheme or not.

4. West Bengal opposes idea of Digital incentivization of GST!!

• West Bengal Finance Minister Mr. Amit Mitra opposes the idea of Digital incentivization.
• He said that these incentives will come from the GST’s revenue that was collected dearly.
• He also says that total revenue loss in Q1 has been Rs 43,000 cr.

5. Next meeting to be held on month end of September’18 at Goa.

FAQ on GST :

• Query: What are the general disciplines to be followed while imposing penalties?
• Answer:The levy of penalty is subject to a certain disciplinary regime which is based on jurisprudence, principles of natural justice and principles governing international trade and agreements. Such general discipline is enshrined in section 126 of the Act.

 KEY DUE DATES 

• GSTR-3B (JULY 2018)-AUG 20th, 2018
• GSTR-5 (JULY 2018)-AUG 20th, 2018
• GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
• GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
• GSTR-5A (JULY 2018)-AUG 20th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 10TH, 2018.
• Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(july 2018)-Aug 10^th 2018