corporte and professional updates 15th oct 2018

corporate and professional updates 15th oct 2018

DIRECT TAX

• Bombay High court held that reassessment for non-disclosure of bank A/C which was disclosed during the original assessment is invalid. Akshar Developers Vs Assistant Commissioner of Income-tax (Bombay High Court)

INDIRECT TAX

• Finance ministry rubbishes charge of stuck GST claims worth Rs 23,000 crore.
• Private banks that are being charged GST on transactions undertaken by their business correspondents are starting to increase their charges on remittances. At least two large private sector lenders in the domestic money remittance business have increased charges by at least 20 basis points.
• GST Small business exemption eligible to co-owners separately in case of jointly owned property. In re ElambrancheriKhaldoon (GST AAR Kerala).
• Bombayheld that disallowance of Service Tax U/s. 43B when payment is not received from the customer. PCIT Mumbai Vs. Tops Security Limited (Bombay High Court)

FAQ ON GST AUDIT

• Query: Is summary assessment order to be necessarily passed against the taxable person?
• Answer: No. 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 (proviso to Section 64 of CGST/SGST Act).

MCA Update:

• MCA21 system will be intermittently unavailable from Saturday, 13th October 2018 10.00 Pm to Sunday,14th of October 8:00Am IST due to maintenance activity. Stakeholders are requested to plan accordingly.
• MCA has made amendments in Schedule III of the Companies Act, 2013 (18 of 2013), which shall come into force from the date of publication of this notification in the Official Gazette. Vide notification on 17/62/2015-CL-V-Vol-1, dated 11th October 2018.

RBI UPDATES

• The Reserve Bank of India will sell government cash management bill (CBM), short-term sovereign securities, to raise Rs 15,000 crore as the government would need money amid increasing expenditures. On Monday the central bank will auction those securities that will mature in the next two months. Earlier in the year, it sold such papers as and when required.
• India’s foreign exchange reserves fell below the $400-billion mark again as the week ended October 5 saw a $916-million dip amid market turmoil and pressure on the local currency. The reserves stood at $399.609 billion, RBI data showed.
• Reserve Bank of India (RBI) deputy governor Viral Acharya on Friday said Prompt Corrective Action(PCA) is necessary to stabilize weak banks, Without the PCA imposition, some banks would have incurred even higher losses and required even more taxpayer money for recapitalization.
• RBI will stick to its data-localization directive and the October 15 deadline to comply with it, the central bank strongly communicated in a meeting with payments services providers. Out of 80 payments services providers that were told to store data locally, and not mirror it outside India, 64 said they were ready with local data storage..

SEBI UPDATES

• Markets regulator SEBI Friday imposed a total fine of Rs 7 lakh on three entities for failing to disclose the change in their shareholding in PMC Fincorp. Sebi fined Seabird Retails Pvt Ltd and Seabird Distributors Pvt Ltd Rs 3 lakh each, while it imposed a penalty of Rs 1 lakh on Economy Suppliers Pvt Ltd for violating PIT (Prohibition of Insider Trading) and SAST (Substantial Acquisition of Shares and Takeover) Regulations.
• To ease the cost and compliance burden on the issuer of securities, markets regulator SEBI has done away with the requirement of 1 percent security deposits with exchanges for public issuance of debt securities.
• SEBI asked depository participants to inform on a monthly basis about the average time taken to provide the number of foreign portfolio investors (FPI) applications received and the average time is taken in processing of such applications during the immediate preceding month to by fifth working day of every month, in a prescribed format.

OTHER UPDATES

• Builders across the country are in for a rude shock. They could be soon saddled with a  heavy income tax burden . Developers, according to changes in the will have to pay income tax on the entire fair value — based on the ready reckoner rates — of all properties, they lease out in 2018-19 and later. If a builder, for instance, leases out unsold properties having a combined fair market value of Rs 300 crore, the person may have to fork out more than Rs 90 crore as income tax. This is over and above the tax, the builder has to pay tax on rent earned from the lease.
• The Supreme Court on Friday dismissed a plea by Jaiprakash Associates Ltd (JAL) seeking to restrain ICICI Bank from initiating insolvency proceedings against it.
• India’s basmati-rice exports are expected to pick up, as key importer Saudi Arabia is set to adopt easy residue parameters to take delivery of consignments.
• Several top officials of the State Bank of India (SBI) are on the radar of the Central Bureau of Investigation (CBI) for disbursing loans to beleaguered liquor tycoon Vijay Mallya without conducting due diligence.
• The government Thursday hiked the import duty on certain communication items, including base stations, to up to 20 percent as part of efforts to check a widening current account deficit by curbing imports.
• Govt raised tariffs on certain telecom equipment and components by up to 20%, in its efforts to rein in the widening current account deficit (CAD).  the latest set of imports includes equipment used for industrial use as well as a few components for mobile devices.
• ICAI constituted a High Power Group on Infrastructure Leasing & Financial Services Limited (IL&FS) matter. Terms of Reference would be to study the systemic issues in the IL&FS matter and suggest remedial measures and improvement in the system, and any other matter incidental thereto.

KEY DUE DATES

October 2018 Due Dates:

• 14th October- ADT 1 for Appointment of Auditor
• 31st October- TCS Return for Jul to Sep 2018- Tax Audit & ITR for FY 2017-18
• 18th October- GSTR 4 for Composition Dealer for Jul 2017 to Sep 2018
• 20th October- GSTR 3B – Sep 2018 Month
• 30th October- AOC 4 for FY 2017-18
• 31st October- GSTR 1 for July 2017 to Sep 2018
• 31st Oct- TDS Return for Jul to Sep 2018

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