Direct Tax

Corporate and Professional Updates on 16th April 2019

Indirect Tax Updates:

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  • India’s recent economic history offers enough evidence to show that tax revenues can be raised even without a rampaging tax bureaucracy or ad-hoc measures such as demonetization. India’s tax-to-GDP ratio improved significantly in the period between 2003-04 and 2007-08 simply because of higher growth and tax reforms.
  • The obsession with raising taxes has often been justified by the fact that India collects less tax as a share of its national income compared to several other large economies. However, compared to other economies at a similar stage of development, India’s tax-GDP ratio appears respectable.

FAQ’s on GST:

QUES. Whether for the services received from a related person / distinct person outside India, the recipient of services would be eligible for full input tax credit?

ANS. In terms of the second proviso to section 17(4) of the CGST Act, 2017, the restriction of reversal of 50% credit would not apply to the tax paid on supplies made by one registered person to another registered person having the same PAN. The non-applicability of 50% reversal is only to the extent of inter-branch services between registered branches having the same PAN in India. Thus, tax paid on services received from a related person / distinct person located outside India would be liable to 50% reversal.

QUES. Whether the provision of section 18(6) for reversal of input tax credit availed on capital goods be applicable to banks only to the extent of the input tax credit availed?

ANS. Yes. The provisions of section 18(6) of the CGST Act, 2017 for reversal of input tax credit availed on capital goods would be applicable to banks only to the extent of the input tax credit availed by it. In case the Bank opts to avail input tax credit to the extent of 50% in terms of the second proviso to Section 17(4) of the CGST Act, 2017, reversal of credit would be in proportion to the actual credit availed by the Bank i.e. only with reference to 50% of the input tax credit availed by it on capital goods.

Other Updates:

  • Exports grow 11% in March; trade deficit narrows.
  • Jet lenders still undecided on funding; board to meet Tue.
  • Infosys’ digital strategy to curb attrition.
  • Samsung says it sold 2 milion A series smartphones in 40 days, clocks USD 500 million in sales.
  • India’s trade deficit narrows to $10.89 bn in March, exports grow 11%.
  • Trump asks Boeing to rebrand 737 Max in ‘what the hell do I know’ tweet.
  • Wipro Q4FY19 preview: Analysts see dip in margins; modest rise in PAT.
  • Net interest margin of NBFCs likely to come under pressure.
  • India’s cotton output to decline to 343 lakh bales in FY19.
  • Export of oilmeals rose 31% to Rs 6,222 cr in FY19.
  • Maruti Suzuki retains top slot even in tough FY19.
  • Work hard stocks rise; firm says USFDA inspection yields no observations.
  • Firms with turnover over ₹2 cr. can now start filing GST audit reports for FY18.
  • IBC cases admitted over RBI circular to continue, says IBBI chief.
  • Lakshmi Vilas Bank to allot near 5% shares to India bulls Housing Finance.
  • Gold falls by Rs 200 on muted demand, extends losses for 4th day.
  • Metropolis Healthcare makes a strong stock market debut; lists up 9% from IPO price.
  • Spice Jet shares surge more than 8% on launch of new international flights.
  • NBFC-MFIs raise Rs 26,000 cr through securitisation in FY19.
  • Rupee drops 25 paise to close at 69.42 vs USD.
  • TCS shares jump nearly 5 pc after Q4 results; m-cap rises by Rs 36,136 cr.
  • Sensex ends 139 pts higher; TCS rallies nearly 5 pc.

Key Due Dates:

  • 18-04-2019 – Quarterly return for taxpayers opting for Composition Scheme(GSTR-4)
  • 20-04-2019 – GSTR-3B for the m/o March 2019.
  • 30-04-2019 – GSTR-1 for the quarter ending March 2019 for taxpayers with Annual Aggregate turnover upto than 1.50 Crore.
  • 14-04-2019 – Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o Feb’19.
  • 30-04-2019 – Deposit of TDS/TCS for m/o March 2019.
  • 30-04-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in month of March’19
  • 30-04-2019 – Due date for uploading declarations received from recipients in Form. 15G/15H during the quarter ending March, 2019.
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