Corporate and professional updates 9th aug 2018

Corporate and professional updates 9th aug 2018

Direct Tax :

• Ahmedabad ITAT rejects assessee’s methodology towards adjustment and set off of brought forward loss and unabsorbed depreciation while calculating book profit for AY 2011-12, holds the same not in tune with the aim and object of clause (iii) to Expalnation 1 of Sec. 115JB; Notes that though assessee has restricted the quantification of set off to be lower of unabsorbed loss and unabsorbed depreciation
• However, it has given primacy to unabsorbed losses over unabsorbed depreciation for quantifying carry forward of them for set off in succeeding year;[TS-435-ITAT-2018(Ahd)]
• Kerala HC confirms Single Judge order, upholds taxability u/s. 56(2)(viib) with respect to excess share premium received by assessee-company (a closely held co.), despite satisfactory explanation on source of funds and genuineness proved by assessee.
• Rejects assessee’s stand that provision u/s 56(2)(viib) would not be applicable unless the test u/s 68 is satisfied, states that Sec.56(2)(viib) is triggered at the stage of computation of income itself.
• when the share application money received is above the face value and it cannot be controlled by provisions of Sec.68;[TS-434-HC-2018(KER)]

• CBDT has specified ‘Director General, Central Economic Intelligence Bureau (CEIB)’ for the purpose of section 138.
• The CBDT has also directed that in respect of info. received from foreign jurisdiction, confidentiality clause to be adhered and the information couldn’t be shared with other agencies till prior permission of sharing foreign jurisdiction is received.
• The Central Board of Direct Taxes’ (CBDT) latest Central Action Plan, for instance, seeks to incentivise the CIT (Appeal), the first appellate forum, to pass ‘quality’ orders with additional credit of two units per order.

INDIRECT TAX

• Extension of RCM applicability on procurement from Unregistered Vendor vide notification no. 22/2018-Central Tax (Rate); Dated 6th August 2018, till 30 September, 2019.
• CBEC-The Central Government, on the recommendations of the Council, allows all Provisional Identification Number (PID) to apply for the Goods and Services Tax Identification Number (GSTIN) by 31st August, 2018.
• Foreigners coming to India may not get GST refunds on goods purchased and carried back by them as the government has not invoked relevant provisions of the Integrated Goods and Services Tax Act yet, the Finance Ministry has said in reply to an RTI query.

FAQ on GST Audit:

• Query:What action can be taken for transportation of goods without valid documents or attempted to be removed without proper record in books?

• Answer:If any person transports any goods or stores any such goods while in transit without the documents prescribed under the Act (i.e. invoice and a declaration) or supplies or stores any goods that have not been recorded in the books or accounts maintained by him, then such goods shall be liable for detention along with any vehicle on which they are being transported.

MCA Update:

• Pursuant to introduction of GST, the Companies (Cost Records and Audit) Rules, 2014 are to be amended to incorporate resultant changes.
• Accordingly, the Draft Companies (Cost Records and Audit) Amendment Rules, 2018 have been placed on the Ministry’s website www.mca.gov.in for suggestions/ comments.
• MCA has amend the Companies (Cost Records and Audit) Rules, 2014 These rules may be called the Companies (cost records and audit) Amendment Rules, 2018. Which shall be deemed tohave been substituted with effect from the 1st day of April, 2017.
• Form DIR-3 KYC is likely to be revised on MCA21 portal w.e.f. 9th AUG 2018. As per the revised form, stakeholders may kindly note that ‘Aadhaar’ shall now be mandatory only for applicants who are ‘Residents of India’. Stakeholders are advised to check the latest version before filing.(click here to view)

SEBI UPDATES

• SEBI barred Inventure Growth and Securities as well as its directors and other senior officials from the capital markets for four years for concealing “material information” and making false and inadequate disclosures in the IPO documents.

OTHER UPDATES

• ICAI – Empanelment of Members to act as Observers at The Examination Centres for The Chartered Accountants Examinations November / December 2018 – (03-08-2018)

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