Corporate & professional updates 21ST aug 2018

Corporate & professional updates 21ST aug 2018

Direct Tax :

• Mumbai ITAT rules that interest income earned by HSBC Bank (Mauritius) Ltd. (‘assessee’) from investments in debt securities made in accordance with the SEBI Regulations during AY 2011-12, not taxable in India, holds that assessee beneficially owns the interest income.
• therefore grants exemption under Article 11(3)(c) of the India-Mauritius DTAA; [TS-460-ITAT-2018(Mum)]
• Ahmedabad ITAT deletes long term capital gains (‘LTCG’) addition made on assessee-individual, who merely acted as a constituted Attorney in respect of sale of immovable properties by NRIs during AY 2011-12.
• Notes that by virtue of Power of Attorney executed by the NRIs, assessee had only executed the sale deed acting on their behalf, however, AO held assessee as owner of the properties; [TS-459-ITAT-2018( Ahd)]
• CBDT has issued a Circular defers implementation of Clause 30C and Clause 44 of the Revised Tax audit Report Form 3CD upto 31 March 2019, earlier notified on 20 July 2018 to be applicable from 20 Aug. 2018 in view of representations from stakeholders, like ICAI, etc.
• Accordingly, this partial deferment of amendments will not affect other changes made in Form 3CD applicable from 20 Aug. 2018.
• CBDT has clarified that the Existing Form No. 3CD which is required to be submitted along with Tax Audit Report was proposed to be amended with effect from 20th August, 2018 vide Notification No.GSR 666(E) dated 20th July, 2018 by insertion of proposed clause 30C and proposed clause 44 of the Form No. 3CD but after examining the matter by the Board it has been decided that the above stated notification shall become effective w.e.f. 1^st April, 2019. Vide Circular No. 6/2018, dated 17th August 2018.
• Bombay high court directed the CBDT to file its reply by 23 August in a petition filed by the Association of National Exchanges Members of India (ANMI) against the NSE and Sebi.
•  The brokers’ lobby ANMI moved the court against the capital markets regulator Sebi and NSE for holding brokers responsible for collecting STT on physical delivery of derivatives.
• Income Tax collection in the country stood at a record Rs 10.03 lakh crore during 2017-18: CBDT. A record number of 6.92 crore I-T returns were filed, which was 1.31 crore more than 5.61 crore returns filed in 2016-17.
• Mumbai ITAT allows vacancy allowance u/s 23(1)(c) to SachinTendulkar in respect of his Pune Flat, accepts Sachin’s contention that property remained vacant even after making reasonable effort to find suitable tenant.
• Notes that assessee had sent 3 letters to the builder requesting to find tenant for vacant flat, however CIT(A) rejected such evidence in absence of supporting evidence indicating receipt of letters by builder or his reply; [TS-456-ITAT-2018(Mum)]
• Mumbai ITAT allows exemption u/s. 10(23FB) to assessee (a registered Venture Capital Fund) in respect of income earned out of investments made in Venture Capital Undertaking (‘VCU’) for AY 2013-14, quashes CIT’s revisionary order u/s 263.
• Rejects Revenue’s stand that since the VCU where the assessee made investments are dealing in real estate sector, it will not fall under the ambit of VCU definition as per SEBI (Alternative Investment Fund) Regulation, 2012 (which only includes service / manufacturing industry); [TS-462-ITAT-2018(Mum)]

INDIRECT TAX

• The Maharashtra Appellate Authority for Advance Ruling for Goods and Services Tax (AAAR-GST) has ruled that ‘money’ is not ‘goods’.
• Accordingly, it decided against giving Input Tax Credit (ITC) to CMS Info Systems on purchase of motor vehicles, that is, cash-carrying vans that are purchased and used for cash management business and supplied, post usage, as scrap.
• CBEC has issued circular regarding Constitution of Standing Committee under sub-rule (4) of rule 97 of Central Goods and Services Tax Rules, 2017.

FAQ on GST Audit:

• 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.
• Query :What happens to the goods upon confiscation of goods by the proper officer?
• Upon confiscation, the title in the confiscated goods shall vest in the Government and every Police officer to whom the proper officer makes a request in this behalf, shall assist in taking possession of the goods.

More read : 234f income tax

MCA UPDATES

• is likely to be revised on MCA21 Company Forms Download page w.e.f 19th AUG, 2018.Stakeholders are advised to check the latest version before filing.

SEBI UPDATES

• SEBI on drastically cut the timeline for listing of debt securities to six days from 12 days at present, in order to make the existing process of issuance of such securities simpler and cost effective.
• SEBI is looking at the prospect of allowing mutual funds to make use of covered calls as part of their equity strategy.
• Covered calls are an options strategy where an investor holds a long position in an asset and writes (sells) call options (having the right but no obligation to buy) on that same asset to generate an income stream.

OTHER UPDATES

• Ministry of Road Transport and Highways has issued an advisory to states to accept Driving Licence, Registration Certificate or other documents in ‘electronic form’ presented through this platformas valid under the Motor Vehicles Act, 1988 and treat them at par with the certificates issued by the transport authorities..
• The Employees Provident Fund Organization (EPFO) has initiated a facility, which allows an EPF subscriber to download the EPF passbook using his UAN (Universal AccountNumber)2c
• ICAI has issued “Draft list of Voters as on 01.04.2018” and “List of Proposed Polling Booths” for the Elections of the Regional Council and Central Council of The ICAI to be held on 7th and 8th of Dec., 2018. https://icai.org/post.html?post_id=15045

KEY DUE DATES

• GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
• GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST  2018.
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