corporate and professional updates 7th july 2018

Direct Tax :

• Karnataka HC upholds ITAT order, allows Sec. 10B deduction to assessee-company (100% EOU) in respect of the ‘Deemed Export’ of goods made by it through a third party during AYs 2009-10 & 2010-11, follows co-ordinate Bench order in Tata Elxsi Ltd. rendered in context of Sec. 10A; Rejects Revenue’s stand that Tata Elxsi case was distinguishable as both the units therein were located in STP, however, in present case, the entity through whom the export was made by assessee was not a 100% EOU; [TS-345-HC-2018(KAR)]
• Karnataka HC dismisses Revenue’s appeal challenging ITAT’s comparables selection for software developer assessee for AY 2006-07, lays down law on interpretation of ‘substantial question of law’ in respect of appeals against comparables selection in TP cases; Highlighting that the existence of a substantial question of law is sine qua non for maintaining an appeal before HC u/s 260A (pari materia with Sec 100 r.w.s. 103 of Civil Procedure Code), reiterates that findings of fact cannot be disturbed while dealing with appeals u/s 260A unless such findings are ex-facie perverse, unsustainable and exhibit a total non-application of mind by the Tribunal to the relevant facts and evidence, relies on various precedents;  [TS-475-HC-2018(KAR)-TP]
• CBDT extended the deadline for the PAN-Aadhaar linking to March 31-2019. The policy-making body of the tax department issued an order, under Section 119 of the Income Tax Act, extending the deadline.
• CBDT was not justified in rejecting application  for  condonation  of  delay  in  filling   return  where assessee  had  uploaded return sometime  past  00:00  hours   of  the last  date  as  extended  as   the   assessee  has  encountered   certain hardship in  uploading  his return. CBDT & Ors.  vs.  Regen Infrastructure & Services (P) Ltd. ( High Court – Madras)

INDIRECT TAX

• AAR rules on taxability of high seas supplies, holds that goods which are sold on high seas sale basis are ‘non-taxable supply’ as no tax is leviable on them till the time of Customs clearance in accordance with Section 12 of Customs Act r/w Section 3 of Customs Tariff Act; Notes that as per the arrangement, applicant would be buying products from overseas related party at arm’s length pricing against purchase orders received from customers in India and before goods cross the Customs frontier, would be sold by applicant to such customers; [TS-275-AAR-2018- NT]
• GST implementation has resulted in an increase in direct tax collections with 44 per cent rise in advance tax collections in April-June quarter, despite challenges to the global economy, demonetization and anti-black money measures, direct tax collection has gone up 18 per cent and the impact of GST was not fully visible last year.

FAQ on E-WAY BILLS:

• Query: What is bulk generation facility and who can use it?
• Answer:Through this facility, user can upload multiple invoices and generate multiple e-way bill at one go .This facility can be used by the taxpayers or transporters who have automated their invoice generation system. In one go, they can prepare bulk requests for e-way bills in a file from their automated system, and upload it on the common portal and generate e-way bill in one go.

Read more about: What is core Business Activity GST

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

MCA UPDATES

• MCA crackdown on shell companies:As many as 1,313 “listed” entities that have failed to file their annual reports for two years face the prospect of being struck off the registrar of companies’ (ROC) database. The move is a continuation of the MCA efforts to weed out shell companies.
• The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets on or before 15 TH JULY, 2018.

KEY DUE DATES

• GSTR-3B (Jun 2018)-Jul 20th, 2018

• GSTR-5 (Jun 2018)-Jul 20th, 2018

• GSTR-6 (Jul’17 – Jun’18)- Jul 31st, 2018

• GSTR-4 (Apr-Jun, 2018)-Jul 18th, 2018

• GSTR-5A (Jun 2018)-Jul 20th, 2018

• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (Apr-Jun, 2018)-Jul 31st, 2018
• Turnover exceeding Rs. 1.5 Crores or opted to file monthly Return GSTR-1 (Jun 2018)- Jul 10th, 2018