Corporate and Professional Updates on 24th August 2019

Direct Tax Updates:

• CBDT releases draft New FORM No. 10B and rule 17B: Amendment of Form No 10B of the Income-tax Rules, 1962– Draft notification for inputs from stakeholders and the general public.
• Income-tax authorities do not want to let go the revenue dues owed by shell companies that have been deregistered by the MCA. CBDT to file the restoration application with the National Company Law Tribunal (NCLT). MCA will support their stand.
• Delhi HC upholds ITAT’s characterization of research and information services rendered by McKinsey India to its AE as high-end knowledge-based research services (KPO) for AYs 2011-12 & 2012-13; Noting that the services rendered by assessee were “specialized and require specific skill based analysis and research that is beyond the more rudimentary nature of services rendered by a BPO”, HC concludes that “it would be incorrect to slot the services provided by the Assessee into that of a BPO, when it is more akin to a KPO”; [TS-812-HC-2018(DEL)-TP]
• Ahmedabad ITAT quashes Pr. CIT’s revisionary order u/s. 263 in case of a Pharma co. (assessee) for AY 2014-15, holds that “the foundation for exercise of revisional jurisdiction is sorely missing” as all the issues raised by Pr.CIT have been duly touched by  AO  in his detailed order (running into over 100 pages and resulting in additions/disallowances of whopping Rs.131 Cr.); Considering that assessee is a very big player in the pharma sector, ITAT remarks that “having regard to the staggering turnover and scale of operation, it is virtually impossible for any adjudicating authority to examine and reexamine all the points in a given assessment year to the hilt as perceived by thePr.CIT”;[TS-443-ITAT-2018( Ahd)]

Also, read ;

Taxation on Income from Equity and Debt Mutual Fund

Basic of Bitcoin Taxation in India

INDIRECT TAX

• GST Audit: As per section 16(4) of the GST Act a registered person shall not be eligible to take adjustment of any input tax credit in respect of any invoice pertaining to FY 2017-18 after the due date of filing GSTR3B for the month of Sept 2018 i.e. 20.10.2018.
• Reverse Charge Mechanism on purchases from unregistered persons u/s 9(4) deferred till 30.09.19. Notification 22/2018-CT (Rate) of 6.8.18.
• CBIC has modified the due date for filing of final GST sales returns by businesses with turnover exceeding Rs 1.5 crore to the 11th day of the succeeding month. Currently, such businesses are required to file GSTR-1 or final sales return of a particular month by the 10th day of the succeeding month.
• Lok Sabha approved GST Cess surplus: changes to the relevant law to allow both to dip into the surplus in the GST Compensation Fund at any time during a financial year. The law has hitherto allowed division of the surplus only after a five-year “transition period” (till June 2022), during which states are constitutionally guaranteed a GST revenue growth (over the base year, 2015-16) of 14% per year.

FAQ on GST Audit:

• Query: What is the consequence of compounding of an offence under CGST/SGST Act?
• Answer:Sub-section (3) of section 138 provides that on payment of compounding amount no further proceeding to be initiated under this Act and criminal proceeding already initiated shall stand abated

MCA UPDATES

• Form DIR3-KYC is likely to be revised on MCA21 Company Forms Download page w.e.f. 13th AUG 2018. Stakeholders are advised to check the latest version before filing.

RBI Updates:

• RBI board sought to create a specialised oversight cadre while reviewing the current structure of supervision at the regulator. With a view to strengthening the supervision and regulation of commercial banks, urban cooperative banks and NBFC, the Board decided to create a specialised supervisory and regulatory cadre within the RBI.
• RBI board suggested not extending a credit line to struggling NBFCs because it felt there was no systemic liquidity issue but there were solvency concerns in some large entities. The board also revised circular that would replace the controversial “resolution of stressed assets” framework released by the central bank on February 12, 2018.
• The Reserve Bank of India told non-banking finance companies with assets size of over Rs. 5,000 crores to appoint a Chief Risk Officer (CRO) to improve the standards of their risk management.

SEBI Updates:

• Sebi has issued norms for participation of mutual fund in commodity derivatives like gold, silver, crude, copper, guar, mentha etc. However, MFs won’t be allowed to take positions in sensitive commodities like agri products subject to frequent government intervention and the Essential Commodities Act. Effective May 21.

Other Updates:

• India’s consumer confidence drops in August: Report
• Airtel fastest mobile broadband network, Jio now slowest
• Startups with turnover up to Rs 25 cr to get tax break
• Gadkari eyes Rs 10L crore revenue from Bharatcraft
• Labour code on mandatory minimum wages notified
• CAIT seeks extension of last date to file GST return
• Trump talks up economy, talks down Fed amid mixed data
• EPFO to allocate equity investments equally in Nifty and Sensex firms
• Extraordinary steps needed to deal with financial sector stress : NITI V-C
• FPI norm easing: Big bucks from cash-flush West Asia banks likely
• Govt files IPO document for IRCTC with Sebi, plans to offload 12% stake
• US deficit to hit $960 bn in 2019, top $1 tr in 2020: Report
• Lupin divests its Japanese injectables business to Abu Dhabi company
• Super-rich surcharge leaves financial sector poorer as FPIs pull out ₹6,700 cr
• Brazil, Vietnam tighten grip over coffee market
• Pharma body wants certainty, predictability in price-control mechanism
• Stimulus to industry creates moral hazard, says CEA
• Depositors’ law not applicable to NSEL: Bombay High Court
• Gillette India Q4 net up 32 per cent at ₹46 cr
• Airtel has strong balance sheet: Goldman Sachs
• Domestic air traffic growth falls to five-year low in January-July 2019
• DLF denies charge of non-disclosure of key information in QIP
• Businesses get four months to settle pre-GST tax disputes
• NTPC gets shareholders’ nod to raise up to Rs15,000 crore via bonds
• India-Peru: Fifth round of Trade Negotiations held in New Delhi
• Nepal, India review bilateral ties with special focus on connectivity, economic partnership
• BRICS bank looks to tap into Indian Rupee offshore market
• MCA issues clarification on firms’ merger date
• Rupee crashes to over 8-mth low of 71.81 against USD
• Sensex sinks 587 points; Yes Bank nosedives 14 per cent
• Gold continues bull run, nears Rs 39,000 mark
• ndia’s petrol imports in July hit highest in at least eight years.

Key Due Dates:

• 31 August: INCOME TAX RETURN EXTENDED- Filing income tax for individual and non-corporates [who are not subject to tax audit].
• 31 August: GSTR-9 RETURN FILLING DUE DATE – Annual Return to be filed by Regular Taxpayers filing GSTR 1, GSTR 2, and GSTR 3. It needs to be filed electronically on the GST portal directly or through a facilitation center.
• 31 August: GSTR-9A RETURN FILLING DUE DATE – Taxable Persons paying tax under Section 10 of CGST Act, the composition scheme, are required to submit their annual returns in Form GSTR 9A.
• 31 August: GSTR-9B RETURN FILLING DUE DATE- Annual Return to be filed by e-commerce operators who have filed GSTR 8 during the financial year.
• 31 August: GSTR-9C RETURN FILLING DUE DATE- Taxpayers whose annual turnover exceeds INR 2 crores in a Financial Year are required to get their accounts audited by a practicing Chartered Accountant or Cost Accountant before filing returns in Form GSTR 9C
• 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 31ST  2018.