CORPORATE & PROFESSIONAL UPDATES 28TH MAY 2018

Direct Tax:

• kolkata ITAT rules that assessee (an Indian BPO company) not liable to deduct TDS u/s. 195 on payment of market support fees to US entities​ (including  assessee’s US based wholly owned subsidiary)​ for securing orders and solicit business from foreign customers during AY 2012-13; [TS-265-ITAT-2018(Kol)]
• SC admits Revenue’s SLP challenging Gujarat HC judgment granting Article 8 relief under India-Singapore DTAA to assessee (a Singapore based shipping company);
• Delhi HC admits cross appeals filed by NDTV & Income tax Department, frames substantial questions of law & lists the matter for hearing in September; HC to decide whether the Tribunal ‘erred’ in upholding the Rs. 642 cr addition made on NDTV u/s 69A of Income tax Act, with regards to the $150 mn overseas funding raised by the company
• CBDT has constituted a Task Force vide Office Order with a mandate of drafting an appropriate direct tax legislation keeping in view the direct tax system prevalent in various countries, the international best practices, the economic needs of the country.

Indirect Tax:

• CBEC has amend the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Vide notification no 45 /2018 – Customs, dated 23rd May 2018.
• introduced intra-state e-way bill for two states and five Union Territories (UTs) from 25.5.2018. The remaining states — Chhattisgarh, Goa, J&K, Mizoram, Odisha, Punjab, Tamil Nadu and Delhi — would be brought in the system from June 3 to cover the entire country.
• Government is exploring the possibility of creating new categories in its tariff structure that will allow it to impose import duties on hi-tech products without violating a global agreement that mandates nil duties.
• 132 of the CGST Act, issuance of an invoice without supply of goods and wrongful utilization of input tax credit is a cognizable and non-bailable offence if the amount involved is over Rs 5 Cr.

FAQ on GST

• Query:IF EXPORT SALE SHOWN AS DOMESTIC IN GSTR 3B BUT GST 1 FILLED CORRECTLY WHETHER REFUND CAN BE CLAIM .
• Answer:Refund can be claimed by making necessary adjustments in next month gstr3b As you must be aware, at time of filing the refund , portal is mapping the refund with gstr3b So once you make correction in gstr3b , then you will be able to file form rfd

Read more about: What is core Business Activity GST

Read more about: All about GST Offenses, Penalties, and Appeals

FAQ on E-WAY BILLS:

• Query:Whether e-way bill is required for all the goods that are being transported?

• Answer:The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees. Kindly refer to the e-way bill rules for other exemptions.

MCA updates

• The insolvency ordinance has specified that the Limitation Act 1963 will apply for proceedings before the NCLT and NCLAT.

OTHER updates

• NSE and MCX entered into merger talks ahead of the implementation of the universal exchange framework in October. The two entities are planning to approach SEBI) as early as this month.
• Please submit your Self-declaration Form Online to avail 20 Unstructured CPE Hours for Calendar Year 2017 from the link https://cpeapp.icai. org/member/login. Last Date of submission: 31st May, 2018

Key Date:

• Return of TDS/TCS collected in March: 31.05.2018
• Due date for filling of GSTR-6- 31 . may . 2018
• Due date for filling GST TRAN-2- 30.06.2018