corporate nd professional updates 6th sep 2018

Direct Tax :

• Madras HC holds that assessee (TVS Motor Co Ltd) is required to gross-up the amount of fees for technical services (FTS) paid to University of Warwick, for the purpose of deducting TDS under India-UK DTAA during AYs 2002-03 and 2003-04; Assessee had entered into agreement with
• UK based university for providing certain technical services for which it had agreed to bear Indian taxes, however, assessee deducted TDS at 15% on actual payment made to NR without grossing up;[TS-497-HC-2018(MAD)]
• ITAT Delhi held that registration U/S. 12AA cannot be denied for mere failure to produce original copy of MOA.The Managing Committee Aminia Muslim Girls School Vs Principal CIT (Exemption), (ITAT Delhi)
• Delhi ITAT confirms Rs. 80 lakh bogus share capital subscription addition u/s 68 in case of assessee (a private limited company) for AY 2005-06, also confirms unaccounted expenditure addition in respect of commission @ 2.5% for arranging the accommodation entries, upholds re-assessment; Based on information from the Investigation wing that certain companies (floated by one Mr. Tarun Goyal) subscribing to assessee’s share capital were involved in providing accommodation entries, AO had initiated reassessment proceedings;  [TS-496-ITAT-2018(DEL)]
• Delhi ITAT denies assessee company’s claim for set-off of long term capital loss (LTCL) arising on sale of shares against long term capital gains (LTCG) arising on sale of property for AY 2012-13, rules that the share transaction was a sham transaction, a colourable device to generate loss to avoid capital gains tax on property sale;  [TS-491-ITAT-2018(DEL)]
• 07 SEP 2018 (FRIDAY) is the Due date for deposit of tax deducted /collected at source for the m/o AUG 2018.
• CBDT has released parameters for manual selection of Income Tax Returns for Complete Income Tax Scrutiny during FY 2018-19. Through Computer Aided Scrutiny Selection (CASS), cases are being selected in two categories viz. Limited Scrutiny & Complete Scrutiny in a centralized manner under CASS-2018.
• If AO is allowed to reopen assessment after the order of CIT(A), then tax payers may loose confidence on the judicial system of this country – Rapid Care Transcription Pvt. Ltd. Vs. ITO (2018 (9) TMI 65 – ITAT Chennai)

INDIRECT TAX

• CBIT notifies GST Annul Return in Form-9 (Rule-80) for the period from 01 JUL 2017 to 31 MAR 2018, required to be filed along with statutory GST Audit Report till 31 DEC 2018 – Notification No.39/2018, dt.04.09.2018.

more updates for relates blogs are:

What are the interim dividend and final dividend?

What is the Process to get back shares from IEPF

CLOSURE OF SUBSIDIARY COMPANY

Compliance for Foreign Subsidiary Companies in India

Key Highlights of RACP Bill, 2020 and Companies (Amendment) Bill,2020

 FAQ on GST Audit:

• Query: What is the period within which the audit is to be completed?
• Answer: The audit is required to be completed within 3 months from the date of commencement of audit or within a further period of a maximum of 6 months subject to the approval of the Commissioner.
• Query:Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
• Answer:The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand  withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.

MCA UPDATSE

• MCA estimates out of 3.3 million directors (expected to carry out know your customer or KYC process) only 1.5 million or 40-50 percent could be genuine, rest could be dummy directors.
• The government plans to have examinations for individuals who want to become independent directors as part of bolstering the corporate governance framework, according to Union Minister P P Chaudhary.
• The central government is considering a review of auditing standards to plug loopholes in the wake of the recent spate of resignation by auditors, many of them exiting listed firms abruptly or ahead of quarterly results.Auditors in as many as 204 listed companies have resigned between January 1 and July 17 this year, as per the filings on MCA-21 software, sparking fears among investors.The shares of many of these companies have taken a huge beating, some falling 20-60%, over the abrupt exits by auditors.

RBI Update;

• The Reserve Bank of India has clarified that All Scheduled Commercial Banks in India having more than ten banking outlets (excluding Regional Rural Banks), are required to appoint IO in their banks. The IO shall, inter alia, examine customer complaints which are in the nature of deficiency in service on the part of the bank, (including those on the grounds of complaints listed in Clause 8 of the Banking Ombudsman Scheme, 2006) that are partly or wholly rejected by the bank.Vide press release 2018-2019/542, dated 3rd September 2018.

SEBI UPDATES

• For the first time, SEBI approached ICAI asking for a panel of Chartered Accountant firms/ LLPs for Inspection of Mutual Fund. Accordingly, a panel has been submitted to the SEBI.

KEY DUE DATES.

Due dates for Compliances under GST:

• 20-09-2018- GSTR-3B for the m/o August 2018
• 10-09-2018- Due date for filing GSTR -1 for the month of August 2018. Applicable for taxpayers with Annual Aggregate turnover More than 1.50 Crore

Due dates for Comp under Income tax:

• 07-09-2018- Due date for deposit of tax deducted/collected at source for the month of August 2018
• 14-09-2018- Due date for issue of TDS Certificate for tax deducted under section 194-IA, 194-IB in the month of July 2018
• 15-09-2018- Due date of deposit of second installment of advance tax for the assessment year 2019-20
• 30-09-2018 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA, 194-IB in m/o August 2018
• 30-09-2018 – Audit report under section 44AB for the assessment year 2018-19 in the case of a corporate/non-corporate assessee (who is required to submit return of income on September 30, 2018)

Due dates for under Companies Act;

• 15-09-2018- Application for KYC of all Directors for the year ending 31.03.2018 via form DIR-3 KYC

1. Due dates for Compliance under ESI, PF Acts:

• 15-09-2018- PF Payment for m/o August 2018
• 15-09-2018- ESIC Payment for m/o August 2018