CORPORATE AND PROFESSIONAL UPDATES

CORPORATE AND PROFESSIONAL UPDATES

Direct Tax :

• Allahabad HC reverses ITAT order and rules in favour of Revenue for AY 1997-98, upholds AO’s addition of excise duty payable to the value of closing stock; Rejects ITAT’s view that since the excise duty was payable on goods lying in bonded warehouse, the assessee-company did not incur any cost on account of excise duty which can be added towards closing stock;[TS-400-HC-2018(ALL)]
• HC allows assessee’s (a foreign company) writ, sets aside final assessment order passed u/s 143(3) without passing draft assessment order as mandated by DRP provisions u/s 144C(1) for AY 2011-12; Notes that while giving effect to Tribunal’s order in remand proceedings, AO passed a final order without passing a draft assessment order; [TS-719-HC-2018(BOM)-TP]
• Karnataka HC dismisses assessee’s appeal against ITAT-order holding that AO was justified in adopting reasonable operating profit margin for ALP computation in absence of relevant material to the contrary for AY 2006-07; Follows co-ordinate bench ruling in Softbrands wherein it was held that “unless the finding of the Tribunal is found ex facie perverse, the Appeal u/s. 260-A of the Act, is not maintainable”; [TS-629-HC-2018(KAR)-TP]

Summary of Amendments:

1. 4 – GSTIN to be mentioned.
2. 19 – Allowance under Section 32AD is to be reported.
3. 24 – Deemed gains under Section 32AD to be reported.
4. 26 – Clause (g) of Section 43B (sum payable to Indian Railways for use of assets) has to be reported.
5. 31 – Cash receipts more than INR 2,00,000 under Section 269ST is to be reported.
6. 34 – Details with respect to transactions not disclosed in TDS Return/ TCS Return is to be reported.

 

Tax Audit 3CD Revised:

(6 Amendments + 9 Insertions)
Summary of Amendments:

1. 29A – Advance received on capital asset forfeited to be reported here {Section 56(2)(ix)}.
2. 29B – Income of gifts exceeding INR 50,000 to be reported here {Section 56(2)(x)}.
3. 30A – Details about “Primary Adjustments” in transfer pricing to be reported here as per Section 92CE.
4. 30B – Limitation of Interest deductions for borrowings from a AE upto 30% of EBITDA is to be furnished here.
5. 30C – Details of Impermissible Avoidance Agreement to be furnished as referred to in Section 96.
6. 36A – Dividend received under Section 2(22)(e) is required to be reported here.
7. 42 – Details w.r.t. Form 61 (details of no PAN Form 60 received), Form 61A (SFT) and Form 61B (SRA) is to be provided here.
8. 43 – Details w.r.t. CbC Reporting as referred to in Section 286 is required to be reported.
9. 44 – BREAK UP of total expenditure in respect of GST Registered and Unregistered Entities is required to be given.

FAQ on GST Audit:

• Query:Is summary assessment order to be necessarily  passed against the taxable person?
• Answer: In certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be  ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax (section 48 of MGL).

RBI Update:

• Directions under Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) – The United Cooperative Bank Limited, Bagnan Station Road (North), P.O. – Bagnan, Dist – Howrah, Pin – 711303, West Bengal.

KEY DUE DATES

30 July 2018 –

• Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2018
• Due date for furnishing of challan-cum-statement in respect of tax deducted undersection 194-IA for the month of June, 2018
• Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of June, 2018

31 July 2018 –

• Quarterly statement of TDS deposited for the quarter ending June 30, 2018
• Annual return of income for the assessment year 2018-19 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under section 92E.
• Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2018
• Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2018)
• Application in Form 9A for exercising the option available under Explanation to section 11(1) to apply income of previous year in the next year or in future (if the assessee is required to submit return of income on or before July 31, 2018)
• Statement in Form no. 10 to be furnished to accumulate income for future application undersection 10(21) or 11(2) (if the assessee is required to submit return of income on or before July 31, 2018)
• Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2017-18 and of foreign tax deducted or paid on such income in Form no. 67. (If the assessee is required to submit return of income on or before July 31, 2018.)
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