Corporate and professional updates 9th sep 2018

CORPORATE AND PROFESSIONAL UPDATES 9TH SEP 2018

Direct Tax :

• ITAT Delhi held that tax exemption cannot be denied to IOA merely for receiving sponsorship.  The D.C.I.T. Vs India Olympic Association (ITAT Delhi)
• Kerala HC expresses disagreement with Cochin ITAT ruling in The Kadakkarappally Service Co-op Bank and Nagpur ITAT ruling in Buldana Urban Cooperative Credit Society Limited allowing Sec. 80P benefit on unexplained cash credits addition made u/s. 68; Assessee (a credit cooperative society) had filed a writ challenging the appellate authority order granting stay subject to payment of 50% demand and had relied on the aforesaid ITAT rulings with respect to unexplained cash credits addition made u/s. 68 for deposits received in cash during AY 2011-12; [TS-494-HC-2018(KER)]
• Jaipur ITAT upholds AO’s stand of recognizing revenues in respect of advance received by the assessee (engaged in residential township development) from the customers during AY 2012-13 applying percentage completion method (PCM’) [Category 1], but rejects AO’s action of recognizing entire sale consideration in case of sale deeds executed [Category 2];[TS-617-ITAT-2017(JPR)]
• Delhi ITAT upholds revision u/s 263 in order to tax gift received by assessee-HUF from mother of Karta (not a member of HUF) u/s 56(2)(vii) for AY 2013-14; During relevant AY, the assessee received 75000 equity shares from mother of the Karta of assessee-HUF, rejects assessee’s stand that the said gift was not covered by 56(2)(vii) taxability as it would qualify as gift from ‘relative’; [TS-10-ITAT-2018(DEL)]
• Attention Taxpayers! 15.09.2018 is last date for payment of your second instalment of Advance Tax. Non/short payment will attract levy of interest.

Indirect Tax:

• CBEC has waived the late fee paid under section 47 of Central Goods and Service Tax act, 2017. Vide notification no 41/2018, dated 4th September 2018.

• A CBEC has extended the time limit for making the declaration in FORM GST ITC-01 of the CGST Rules, 2017 by registered persons who have filed the application in FORM GST-CMP-04 of the CGST Rules, 2017 between the 2nd day of March, 2018 and the 31st day of March, 2018, for a period of thirty days from the date of publication of this notification in the Official Gazette.Vide notification no 42/2018, dated 4th September 2018.

• CBEC has extended the time limit for making the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another, during the period from July, 2017 to June, 2018 till the 30th day of September 2018.Vide notification no 40/2018, dated 4th September 2018.
• The CBEC has issued a circular regarding the E-way bill in case of storing of goods in the godown of the transporter. Vide Circular No. 61/35/2018-GST.

FAQ on GST Audit:

• Query: Who can conduct audits of taxpayers?
• Answer: As per section 49 of MGL, any officer of CGST or SGST authorized by his Commissioner by a general or specific order may conduct an audit of a taxpayer. The frequency and manner of audit will be prescribed in due course.
• Query:  Under what circumstances can a special audit be instituted?
• Answer: A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 50 of MGL.

MCA Update:

• As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN. DINs obtained letter have to be surrendered. Please note that on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically
• mapped to the retained DIN.In respect of an individual with a single DIN, if it is/was once associated with any LLP or Company, it is NOT eligible for surrender. Stakeholders may kindly take note and plane accordingly.
• MCA21 system will be intermittently unavailable from Saturday, 8th September 2018 10.00 pm to Sunday, 9th September 2018 02.00 pm IST due to maintenance activity. Stakeholders are requested to plan accordingly.
• MCA has issued the much awaited circular w.r.t Relaxation of additional fees and extension of last date of filing of Form BEN-2 under the provisions of the Section 90 of the Companies Act, 2013.

SEBI UPDATES

• SEBI may soon dilute some of the controversial provisions notified in its April 10 circular on foreign portfolio investors (FPIs). Sources say the regulator is mulling exempting people of Indian origin (PIOs) from the ambit of the new KYC norms.

RBI UPDATES

• RBI has notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2018 which shall come into force with effect from the 1st day of September, 2018.
• Reserve Bank of India has made amendments to the Reserve Bank of India (Note Refund) Rules, 2009 to enable the public to exchange mutilated notes in Mahatma Gandhi (New) series at bank branches and RBI offices, which are smaller in size compared to the earlier series. Vide notification no RBI/2018-19/46, dated 7th September 2018.

OTHER UPDATES

• Union government doubled the pecuniary limit to Rs. 20 lakh for filing loan recovery applications in the Debt Recovery Tribunals (DRTs) by banks and financial institutions, to help reduce the pendency of such cases.
• The rupee crossed the 72-a-dollar mark on Thursday but retreated on intervention by the Reserve Bank of India (RBI). The currency fell to 72.07 a dollar in intra-day trade but closed just below the 72-mark.

KEY DUE DATES 

• GSTR-3B (AUG 2018)-SEP 20th, 2018
• The GSTR-5 (AUG 2018)-SEP 20th, 2018
• GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
• A GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
• GSTR-5A (AUG 2018)-SEP 20th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
• Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(AUG 2018)-SEP 11th 2018

 

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