corporate and professional updates 7th June 2018

Direct Tax:

• Mumbai ITAT rejects applicability of TDS u/s 195 on payment of advertisement expenses and professional and consultancy fees paid to foreign nationals by the UK branch of assessee (a domestic company) during AY 2008-09, deletes Sec. 40(a)(i) disallowance; Observes that UK branch had incurred expenditure in connection with the advertisements in foreign magazines and websites, likewise, consultancy fee was paid in connection with registration of trade mark in UK;[TS-287-ITAT-2018(Mum)]
• Jaipur ITAT deletes disallowance u/s 40A(3) with respect to cash payment made by assessee-firm (engaged in real estate business) against purchases of land during AY 2013-14, observes that the payment was made out of the explained sources, through the registered document and as a disclosed transaction and the identity of the sellers and genuineness of  transaction was established; [TS-276-ITAT- 2018(JPR)]

INDIRECT TAX

• GST: A transaction once reported as B2C cannot be amended later to add GSTIN & convert transaction as B2B. CBIC FAQ 7 (Jun 2018) on Financial Services.
• GST: The location of a supplier will be the state in which the person holds a bank account even if bank branches of other locations are used for rendering services to customers under the GST the government clarified.
• CBIC has launched a tax refund drive in the first fortnight of June and issued instructions to swiftly settle refund claims of exporters that are held up because of mismatches in the returns filed by them.

FAQ on E-WAY BILLS:

• Query: What has to be done by the transporter if consignee refuses to take goods or rejects the goods for any reason?
• Answer:There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons. Under such circumstances, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ with relevant documents, return the goods to the supplier as per his agreement with him.

RBI Update:

• The Reserve Bank of India has imposed a monetary penalty of Rs. 1.00 lakh (Rupees one lakh only) on Abhyudaya Mahila Urban Co-operative Bank Ltd., Channapatna, in exercise of the powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) for violating directives contained in para 3 of Reserve Bank of India.
• NBFC Companies are planning to meet the RBI on the issue of implementation of Ind AS. RBI has deferred the implementation of Ind AS for banks by a year, while it is applicable for NBFCs from April 1, 2018.

MCA Update:

• MCA gives extension for a period of one month for the steering committee on CSR with effect from 3rd June 2018.

SEBI UPDATES

• SEBI has issued Master Circular for Stock Brokers which is a compilation of relevant circulars issued by SEBI which are operational as on date of this circular.

OTHER UPDATES

• ICAI has signed the Mutual Recognition Agreement (MRA) with the South African Institute of Chartered Accountants (SAICA) on June 4, 2018, at SAICA HO, Johannesburg, South Africa. Read more at: https://www.icai.org

KEY DATE:

• QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
• TURNOVER EXCEEDING RS. 1.5 CRORES OR OPTED TO FILE MONTHLY RETURN: GSTR-1 (MAY2018):-10 JUNE 2018

• DUE DATE FOR FILLING GST TRAN-2- 30.06.2018