CORPORATE & PROFESSIONAL UPDATES 19TH JULY 2018

Direct Tax :

• ITAT deletes TP-adjustment, upholds TNMM over TPO’s CPM as MAM for benchmarking export transaction for Himalaya Drug Company (assessee – partnership firm engaged in the business of manufacture and sale of herbal pharmaceutical products) for AY 2011-12; Rejects TPO’s approach in applying gross profit margin of the domestic consumer product division to the cost of goods sold in exports to AE as ‘factually erroneous and contrary to the mandate of Rule 10B(1)(c)’, notes that though the products sold in the domestic consumer product division were comparable to the products sold to AEs, the functions performed, assets employed and risks undertaken in both the segments were not the same;[TS-614-ITAT-2018(Bang)- TP]
• Gujarat HC holds fresh re-assessment notice issued in March, 2017 on assessee (a share broking company) as invalid absent formal withdrawal of first notice of reopening by AO for AY 2010-11; A re-assessment notice was first issued in 2015, which AO had agreed to withdraw in the first round of litigation before the co-ordinate bench, thereafter a fresh notice was issued in 2017 recording fresh reasons for re-opening;[TS-381-HC-2018( GUJ)]
• CBDT amends Forms for advance ruling; seeks unique number for identification of non-resident.
• CBDTamends Form-34C, 34D, 34DA, 34E & 34EA of application for obtaining an advance ruling and corresponding Rule-44E of the Income Tax Rules, 1962.
• Transfer of case u/s 127 – “Absence of dissenting note” from officer of equal rank who has to agree to the proposed transfer would not constitute Agreement, envisaged U/s-123(2)(a) of the Act, the impugned order held as without jurisdiction – Dilip Tanaji Kashid Vs. Pr.CIT (2018 (7) TMI 1023 – Bombay HC).

More read:

• New TDS deduction No cash transactions exceeding 1 Crore -Section 194N
• Extention of TDS/TCS statement filing Date
• TDS payment to resident contractors

INDIRECT TAX

• Delhi High Court has given relief to exporters utilising a scheme that allows duty-free importers from paying integrated goods and services tax (IGST) on their imports.
• Govt on Monday kicked off a special fortnight-long drive to facilitate pending GST refunds which will last till July 30. During this period, dedicated refund cells and help desks would be provided for exporters to get their refund claims processed in each commissionerate.
• The Indian government is likely to impose a safeguard duty (SGD) of 25 per cent on solar cells and modules imported from China and Malaysia for the coming two years, increasing the cost of more than 85 per cent of the solar capacity in the country.
• FRIDAY (20JUL2018)is the last date for filing GSTR-3B, GSTR-5 & GSTR-5A for Jun, 2018.

FAQ on GST Audit:

• Query:Whether Proper Officer is required to give any notice to taxable person before completing assessment u/s 46?
• Answer:As this provision relates to ‘best judgment assessment’, giving a notice to the taxable person is not required.

MCA UPDATES

• MCA has constituted a 10 Member Committee, headed by the Secretary of Ministry of Corporate Affairs, for review of the penal provisions in the Companies Act, 2013 may be setup to examine ‘de-criminalisation’ of certain offences.
• Due Date forGSTR-3B for month of June 2018 & payment of due tax till this date-June 20, 2018.
• MCA has constituted a 10 Member Committee, headed by the Secretary of Ministry of Corporate Affairs, for review of the penal provisions in the Companies Act, 2013may be setup to examine ‘de-criminalisation’ of certain offences under the Act.
• MCAhas established the Centralised Scrutiny & Prosecution Mechanism (CSPM) and officers are appointed as Inspectors for Compliance of Investor Education & Protection Fund (Section 124-125) provisions conferred under first proviso to sub-section 4 of Section 206 of the Companies Act, 2013.

OTHER UPDATES

• ICAI has submitted 121 suggestions on various topics under GST to  Union Minister of Finance  on General Issues, Definitions,  Classification And Exemption, Scope Of Supply, Composite And Mixed Supply, Composition Levy, Time & Value Of Supply, Input Tax Credit etc

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