Corporate and Professional Updates on 1st April 2019

RBI Updates:

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  • RBI has now clarified that the approval of the RBI is not required for opening of Branch Office or a Liaison Office or a Project Office, in case the approval or license/permission by the concerned Ministry / Regulators as the case may be, if the principal business of the applicant falls in the four sectors namely Defence, Telecom, Private Security and Information and Broadcasting. Further, in the case of proposal for opening a PO relating to defence sector, no separate reference or approval of Government of India shall be required if the said non-resident applicant has been awarded a contract by / entered into an agreement with the Ministry of Defence or Service Headquarters or Defence Public Sector Undertakings.
  • The term “permission” used in the Notification does not include general permission, if any, available under Foreign Direct Investment in the automatic route, in respect of the above four sectors.

SEBI Updates:

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  • The Board decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in dematerialized form with a depository. This measure shall come into effect from April 01, 2019. The SEBI has clarified that the this decision does not prohibit the investor from holding the shares in physical form; investor has the option of holding shares in physical form even after April 01, 2019 and shall only apply, if any, investor who is desirous of transferring shares after April 01, 2019 and can only be transferred is the shares are in dematerialized form. Further, the transfer deed(s) once lodged prior to deadline and returned due to deficiency in the document may be re-lodged for transfer even after the deadline of April 01, 2019. The above Board decision is not applicable for demat of shares, transmission.

MCA Updates:

  • MCA has inserted new Rule 38A and has mandated that the application for incorporation of a company shall be accompanied by a linked e-form AGILE (Application for registration of the Goods and Services Tax Identification Number, Employees’ State Insurance Corporation (ESIC) registration PLUS Employees’ Provident Fund Organization registration with effect from 31st March 2019. The application for incorporation of a company under Rule 38 shall be accompanied by e-form AGILE containing an application for registration of the GSTIN with effect from 31st March, 2019, EPFO with effect from 8th April, 2019 and ESIC with effect from 15th April, 2019.

Other Updates:

  • Core Sector Growth slows down to 1.8% in January.
  • Airtel gets Board Approval to raise Rs 32,000 Crore.
  • India to see Lower Productivity, Weak Demand.
  • Govt keen on Amalgamation of PSBs.
  • NCLAT orders resolution on Essar Steel bid by March 8.
  • SEBI wants govt rethink on RBI representation on its Board.
  • NSE to introduce Brent Crude Oil Futures Contract on Mar 1.
  • DBS to convert its India Operations into wholly-owned subsidiary from Mar 1.
  • 2018 best year for M&As as deal values rise 126% to $80 Bn.
  • International Finance Corp to invest $165 Mn in Bajaj Finance, Dodla Dairy.
  • Infosys says Kiran Mazumdar-Shaw sold 1,600 Shares without pre-clearance.
  • Naresh Goyal agrees to step down as Chairman of Jet Airways.
  • Iran buys Indian sugar to ease its oil-money headache.
  • LG India aims for 30% Growth in commercial ACs this year.
  • NIIF, CDC & Eversource Capital to invest $330 mn in Ayana.
  • Lupin launches chronic angina treatment drug in the US.
  • Future Group to bring 7-Eleven Stores to India.
  • Cabinet clears ₹10,000 Crore FAME II scheme.
  • RBI constitutes task force under Usha Thorat on offshore rupee markets.
  • REC Board approves borrowing limit hike,₹11 Per Share Interim Dividend.
  • J&J allowed resuming Baby Talc Production.
  • Fraud-hit PNB ranks highest in implementation of ‘Reforms Agenda’ in 2018.

Key Due dates:

  • ITC in respect of the invoices issued during 2017-18   may be availed till the due date of GSTR 3B for the month of March 2019.
  • The Due Date of GSTR-3B for the month of March 2019 is 20th April 2019.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 14th January 2019

Indirect Tax Updates:

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  • Indian businesses may soon be able to amend goods and services tax (GST) return mandated for carrying forward tax credit from the previous regime for non-IT related errors as well. The GST Council has directed a committee for IT grievance Redressal to quickly draw up a solution that will give relief to industry. Thousands of crores of tax credit claimed by businesses have been denied because of errors in the filing of returns, prompting many to approach judiciary.
  • In Favour of Consumer the revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers. The measure, once implemented, would check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer.
  • The Department of Revenue is also planning to launch a campaign to educate consumers that the dealers opting for composition scheme are not required to charge the goods and services tax (GST) from purchasers.
  • The GST composition scheme, traders and manufacturers are required to pay only 1per cent GST on goods which otherwise attract a higher levy of 5, 12 or 18%. Such dealers are also not permitted to charge GST from the purchaser Of the 1.17 crore businesses registered under GST, about 20 lakh have opted for composition scheme.
  • The Central Board of Indirect Taxes and Customs (CBIC), businesses will have to mandatorily mention in the invoice generated by them that they are composition dealers and, hence, are not required to charge GST. “Simultaneously, we will educate consumers that they should not pay GST while buying goods from composition scheme dealers,” the official said. To ease compliance burden for small businesses, the GST law provides for composition scheme.
  • The GST law does not provide for any appeal on issues related to TRAN1 or TRAN2 and thus many taxpayers filed writs in high court and also secured favorable orders holding the view that bona fide errors should be considered by the government. A number of taxpayers had lobbied the government and the GST Council to allow amendments.
  • Businesses looking to claim tax credit of the pre-GST period under GST could file TRAN1. The government had allowed revision of TRAN1 until December 27, 2017. Many businesses missed doing so and ended up losing large transitional credits, even for typographical errors. The GST Council had allowed a liberal scheme for claiming credit in lieu of taxes paid under the previous regime against GST liabilities. Businesses could claim credit even if they did not have proof of payment under the deemed benefit provision.
  • “Transition credits have been challenging for all businesses and the IT grievance Redressal committee should ideally be considering all issues for the entire period instead of a sunset period and clarify that all genuine errors, whether arising from the GSTN portal issues or committed by the taxpayers would be condoned unless there is mala fide intent according to MS Mani, partner, at Deloitte India.

RBI Updates:

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  • Reserve Bank of India is working towards setting a rule that would link the remuneration of bank CEOs to parameters like balance sheet size of a bank, loan delinquency, profits and governance record. The proposed framework is expected to provide a broad template to the board of directors of banks while approving increase in salary, performance bonus and stock options to the senior most executive. The regulatory guidance that exists today is a general directive on the remuneration of senior officials in broad functions like ‘business’, ‘control’ and ‘risk’.
  • RBI clears the remuneration of a bank CEO and has the powers to claw back a slice of it in case of non-performance or governance lapses. However, a framework would ensure that the board does not have to shoot in the dark while approving the package for the CEO and referring it to RBI for its clearance,” a person aware of the plan told ET.

Other Updates:

  • Fiscal deficit target for 2018-19 likely to be breached.
  • Only 22% shareholders exit IDBI Bank following open offer by LIC.
  • Govt to construct 44 strategic roads along the India-China border.
  • CII calls for agri sector tax sops in Budget 2019.
  • FICCI for cut in corporate tax rate in Budget.
  • Oil output cut: Saudis say OPEC+ move provided a lifeline to US shale.

FAQ’s INSURANCE SECTOR:

QUES. Will the requirements of Letter of Undertaking or Bond be required to be complied with in the case of Life Insurance Premium where the conditions of export of services are satisfied before or at the time of supply of the Life Insurance Service?

ANS. Yes. As per Section 16(3) of the IGST Act, 2017, read with Rule 96A of the CGST Rules, 2017, an exporter is required to submit a Letter of Undertaking or Bond in case the export of service is made without payment of integrated tax.

QUES. When service tax was paid on or before 30th June, 2017 for the services to be provided, but subsequently not provided, whether refund claim can be made under Section 142(5) of the CGST Act?

ANS. Section 142(5) of the CGST Act, 2017 specifically provides for refund of tax paid under the Finance Act, 1994 in respect of services not provided. The same shall be disposed off in accordance with the provisions of the Chapter V of the Finance Act, 1994.

Key Due Dates:

  • TCS return for Dec Quarter for all tax collectors is 15/01/2019.
  • E-Payment of PF for the month of December is 15/01/2019.
  • Payment of TDS for the purchase of Property for December is 30/01/2019.

Quote of the Day:

A professional who doesn’t deliver as committed is not just lazy, he is a liar.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional updates 7th March 2018

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Direct Tax:

  • Under section 57(iii) of the Act, only those expenditure are to be allowed which are related to earning of income from other sources. Since the expenditure claimed by the assessee was not incurred to earn income from other sources, the same cannot be allowed.[Monarch Commodities Pvt. Ltd. Vs.  DCIT (ITAT Bangalore)]
  • Depreciation allowable in assets cost of which has already been allowed as application of income. Amendment in section 11(6) restricting depreciation in such came is prospective in nature.[CIT Vs Rajasthan and Gujarati Charitable Foundation (Supreme Court of India)]
  • The IT department has unearthed a Rs 3,200 crore scam where 447 companies deducted tax from its employees but did not deposit with the government and diverted to further their business interests. The TDS wing of the I-T has initiated prosecution against these firms and in some cases, warrants have been issued, sources said.
  • HC allows deduction of lease rent paid on shed rented out due to delay in start of business- Where business could not be started due to some difficulties and part of shed taken on lease was given on rent, lease rent paid could be said to be on account of business expediency; same was to be allowed.
  • The Central Board of Direct Taxes has notified the scheme for centralized issuance of notice, which may be known as the Centralized Communication Scheme, 2018 and shall come into force on the date of its publication in the Official Gazette.
  • The Central Board of Direct Taxes has notified the scheme for centralized issuance of notice, which may be known as the Centralized Communication Scheme, 2018 and shall come into force on the date of its publication in the Official Gazette.
  • Share premiums can be assessed under Section 68 of the Income Tax Act. Cornerstone Property Investments Pvt. Ltd vs. ITO (ITAT Bangalore).
  • Rent received by an Association of Co-Owners Whose only Objective is to Derive Income from Letting out of Property is Taxable as ‘Income from House Property’: Manek Lodge Properties vs. Add CIT, Mumbai (ITAT).

Indirect Tax:

  • CBEC issued Clarification regarding taxable services provided by the member of the Joint Venture(JV) to the JV and vice versa and inter se between the members of the JV Vide Circular No. 35/9/2018-GST dated 5th March 2018.
  • E-SANCHIT (enabling the registered persons to file documents online) becomes mandatory w.e.f. 15.03.2018.  CBEC DO.No.09/CH (EC)/2018.
  • 03.18 is Last Day to file GSTR-1 for Taxpayers with aggregate turnover of more than Rs. 1.50 Crores for Jan, 2018.

FAQ on Condonation of Delay Scheme (CODS):

  • Query: Can the person chargeable with tax pay the amount of demand along with interest and reduced penalty before the service of show cause notice under sub-section (1) or as the case may be, the statement under sub-section (3) of section 74?a
  • Answer:Yes. The person chargeable with tax pay the amount of tax along with interest undersection 50 and a penalty equivalent to 15% of such tax based on his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. On receipt of such information, the proper officer shall not serve any notice in respect of tax so paid or any penalty payable under the provisions of this Act or rules made thereunder.

 Corporate Law:

  • The Ministry of Corporate Affairs (MCA) has amended the Companies (Accounts) Amendment Rules, 2014 to provide new form AOC-3A for sending financial statements including consolidated financial statements to members, debenture trustees and to all persons other than such members or trustee, being the person so entitled, not less than 21 days before the date of Annual General Meeting by Ind AS Complaint Company
  • MCA notifies form AOC-3A for Ind AS Complaint Co.s to send financial statements to stakeholders. The Companies (Accounts) Amendment Rules, 2018.
  • MCA has notified the Companies (Accounts) Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette i.e. 27-02-2018

Other updates

  • RBI is likely to stick to its target of making digital wallets inter operable by April despite allowing payment companies two additional months to comply with its customer verification requirement.

Key Dates:

  • Submission of forms received in March to IT commissioner: 07/03/2018
  • Payment of TDS/TCS deducted/collected in March: 07/03/2018
  • Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file GSTR-1 for Jan on monthly basis: 10/03/2018
  • Payment  of annual membership and COP fees for the year 2017-18: 15-03-2018
  • PF & ESI Payment for the month of Feb 2018-:15-03-2018
  • GSTR-3B for the Month of February 2018: 20-03-2018
  • due date for linking of Aadhaar number with PAN, mobile, insurance policy, bank accounts etc:-31-03-2018
  • ITR Filling last date for Income Tax Returns (ITRs) for FY 2015-16 and FY 2016-17:-31-03-2018
  • Condonation of Delay Scheme 2018 which allows defaulting companies to file its overdue documents which were due for filing.:-31-03-2018

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional updates 1st March 2018

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Direct Tax:

  • 10(23C) is independent of sec. 11; relief to trust available even if sec. 10(23C) conditions not complied with- Charging of fees is a part of receipt during course of carrying out educational activity which has to be completely applied for that activity alone and therefore, such a receipt has to be seen as an application of income for charitable purpose.ITAT Delhi – Adarsh Public School Vs JCIT.
  • Sum paid for acquiring licence of copyrighted technology was allowable as revenue exp.: Where assessee-company entered into an agreement to take over business of a proprietory concern, in view of fact that in terms of agreement only a license to use copyright was granted to assessee, however, it had not acquired copyright itself, license fee paid by assessee was to be allowed as revenue expenditure. PUNJAB AND HARYANA HC- PCIT Vs. Mobisoft Tele Solutions (P.) Ltd
  • ITAT (Mumbai) which allowed deduction u/s 80IC for A. Y. 2008-09 where the assessee company made the claim in a revised return of income filed u/s 139(5), filed tax audit report and the prescribed Form 10CCB in support of the claim.
  • HC admits assessee’s appeal for AY 2008-09 on the question of law “Whether on the facts and circumstances of the case and in law, the Tribunal was justified in upholding the rejection of segmental Transactional Net Margin Method and adopting the comparable Uncontrolled Price method for determining any adjustment under Chapter X in respect of the purchase of raw materials and sale of finished goods made by the Appellant?”   [TS-106-HC-2018(BOM)-TP]
  • ITAT dismisses assessee’s TP-ground for AY 2009-10 relating to adjustment on royalty and franchise fee, as withdrawn, in view of resolution under MAP; However, regarding disallowance of foreign exchange loss and R&D Cess on royalty payment, accepts Revenue’s contention to remand it back to AO/TPO to pass a speaking order in view of MAP resolution; Also takes note of assessee’s submission that it had accepted the transfer pricing additions as decided in the MAP resolution and thus, there is no justification on the part of the AO/TPO to make any further addition on account of foreign exchange loss and R&D cess . [TS-103-ITAT-2018(DEL)-TP]
  • Mumbai High Court rejected the arguments of the Revenue that on initiation of proceedings under section 153A of the Act, the reassessment final for assessment years covered under section 153A of the Act stands abated. Only the pending assessments zget revived under section 153A of the Act.Jawahar B. Purohit Vs. Asst. CIT & Ors. (ITAT Mumbai)
  • ITAT Pune held that the assessee has complied with all the conditions for claiming the exemption under section 54B of the Act in the assessment year under appeal. Accordingly, the impugned order is set aside and the appeal of the assessee is allowed. Majid Khan Nisar Khan Vs ITO (ITAT Pune)

GST UPDATES

  • Govt. issues directions on non-utilisation of disputed credit & non-transition of blocked credit-The SCN issued under the Cenvat Credit Rules and last adjudicating authority was held that Cenvat credit was not admissible, then such disputed credit shall not be utilized to discharge the tax liability under GST Act. Further, if blocked credit is carried forward and credit to electronic credit ledger in contravention of Section 140 of the CGST Act, then it shall not be utilized.
  • `Discounts and Rebates would not form part of ‘Sale Price’: Supreme Court In the case of M/s. Universal Cylinders Limited v. Commercial Tax Officer.
  • In GSTR-3B, reverse ITC for bills older than 180 days. For Feb return, reverse ITC for bills dt 31.8.17 or before. Pay interest @ 24% p.a.
  • In GSTR-1 GST must be exactly equal to Taxable Value X GST Rate rounded off to 2 decimals (for each invoice line item). Other rounding gives error.
  • GSTN has enabled online filing of letter of Undertaking LOU. Go to User Services and Select the Tab “Furnishing Letter of Undertaking.
  • UIDAI instructs Govt. departments & states not to refuse essential services like medical, school admission, ration through PDS etc for want of Aadhaar.

FAQ on Condonation of Delay Scheme (CODS):

  • Query:During the period of Scheme as their DIN will be activated, Can disqualified directors associated with active companies (non-defaulting) file their overdue documents?
  • Answer:DIN shall be activated for filing only overdue documents of only defaulting companies and therefore, active companies (non-defaulting) shall not be allowed to file any documents (including overdue documents) with DIN of the disqualified directors during the period of this Scheme. Such companies shall continue to appoint new directors through back-end process notified by concerned ROCs.
  • Query:   What is the procedure to avail benefits of CODS scheme?
  • Answer: There is no separate application required to be filed for availing benefits under this Scheme. The defaulting companies shall straight away proceed to upload their overdue documents with the DIN of the disqualified directors as the same shall be temporarily activated under this Scheme pursuant to Para 4 of the Scheme which lays down the procedure for the purpose of this Scheme. According to Para 4, the DIN of the disqualified directors associated with such defaulting companies shall be temporarily activated for the validity period of this Scheme to enable them filing of the overdue documents.

MCA Update:

  • Stakeholders may please take note that Condonation of Delay Scheme (CODS, 2018) e-form is available for filing purposes.

RBI Updates:

  • The Reserve Bank of India has issued notification regarding Revised guidelines relating to participation of a person resident in India and Foreign Portfolio Investor (FPI) in the Exchange Traded Currency Derivatives (ETCD) Market. Vide notification no RBI/2017-18/134, dated 26thFebruary 2018.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 26TH FEB 2018

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Direct Tax:

Gujarat HC upholds ITAT order, confirms unexplained cash credit addition u/s 68 in case of assessee (an individual), with respect to receipt of unsecured loan despite confirmation from lender;  [TS-71-HC-2018(GUJ)]

Pune ITAT deletes Sec. 40(a)(i) disallowance for non-deduction of TDS u/s. 195 on payment of lease line charges by assessee (an Indian company) to its US parent, holds payment was not royalty under India-USA DTAA; [TS-70-ITAT-2018(PUN)]

Indirect Tax:

CBEC has issued directions under Section 168 of the CGST Act regarding non-transition of CENVAT credit under section 140 of CGST Act or non-utilization thereof in certain cases-reg. Vide Circular  No. 33/07/2018-GST, dated 23rd February 2018.

FAQ on Condonation of Delay Scheme (CODS):

Query:   Which companies cannot file overdue documents under CODS, 2018?

Answer:   Companies which have been struck off by ROCs or whose name have been removed from the Register of Companies u/s 248(5) of the Companies Act, 2013 by the ROCs shall not be eligible to file documents under this Scheme. Such companies can however, make application to NCLT for revival and upon successful order for revival avail benefits of this Scheme during the period of its validity only.

RBI Update:

The Reserve Bank of India (RBI) today launched the Ombudsman Scheme for Non-Banking Financial Companies (NBFC) vide Notification dated February 23,2018  for redressal of complaints against NBFCs registered with RBI under Section 45-IA of the RBI Act, 1934. Dated 23rd February 2018.

 Quotes of the day

“There are two primary choices in life; to accept conditions as they exist, or to accept the responsibility for changing them.”

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate And Professional Updates 5th Feb 2018

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RBI Update:

The Reserve Bank of India has imposed a monetary penalty of Rs. 0.50 lakh (Rupees Fifty thousand only) on The Sircilla Co-operative Urban Bank Ltd., Sircilla, Telangana, in exercise of the powers vested in it under the provisions of Section 47A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for violation of Reserve Bank of India directives and guidelines on Exposure Norms and Statutory/Other Restrictions and Know Your Customer (KYC) Norms/Anti-Money Laundering(AML) Measures. Vide press release 2017-2018/2094, dated 1st February 2018

Direct Tax:

Hyderabad ITAT upholds assessee’s liability to deduct tax at source u/s. 195 on payment of sale consideration for immovable property to non-resident vendors (based in US) during AY 2010-11, however, rejects Revenue’s invocation of Sec. 50C (which deems stamp duty valuation as sale consideration) while determining TDS liability of assessee;  [TS-32-ITAT-2018(HYD)]

ITAT Delhi held that if own funds are more than investment in shares, such investment has to be treated to be out of own funds and hence interest expenditure is not required to be allocated to exempt income on proportionate basis as per Rule 8D of the Income Tax Rules. The ACIT, circle-1(1), Gurgoan V. Cairn India Ltd.

Indirect Tax:

CBEC made amendment in Custom Act, 1962(52of 1962) by way of notification no  57/2017- Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 798 (E), dated the 30th June, 2017. Vide notification no 22/2018, dated 2nd February 2018

GST UPDATE

E-Way Bill postponed due to Technical Glitches. The Central Government has decided to postpone the implementation.

CBEC has issued  9 UTGST Tax Rate, 10 Integrated Tax (Rate) and 9 Central Tax (Rate) Notifications which in total amount to 27 Notification to give effect to Changes in GST Rate and its related Provision as recommended by 25th GST Council Meeting.

FAQ on GST:

Query:What is the implication of GST in respect of duty paid goods removed before the appointed date and returned after the appointed date?

Answer:If any duty paid goods are sold/removed not being earlier than six months of appointed date under the earlier law are returned within six months of the appointed date, the seller is eligible for refund of duty paid if the sales is made to unregistered buyer, if the sale is to a registered buyer then he will have to charge GST as a supply. In case goods are returned after six months from the appointed date, tax is payable by the person receiving the goods as purchase from unregistered supplier and a registered person will have to charge GST as supply as normal.

Other updates

SEBI will now be able to impose a minimum penalty of Rs 5 crore on stock exchanges and clearing corporations if they breach regulations as announcements for the capital markets in the Union Budget 2018.

SBI Invites Applications for Empanelment of Chartered Accountant Firms for Concurrent Audit at State Bank of India.

Key Dates:

Payment of TDS/TCS deducted/collected in Jan: 07/02/2018

Taxpayers with annual aggregate turnover more than Rs.1.5 crore need to file GSTR-1 for December on monthly basis: 10/02/2018

Taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 for December on quarterly basis: 10/02/2018

Quotes of the day:

A broken trust can is described as melted chocolate. No matter how hard u tries to freeze it, it will never return to its true shape.

When you find a dream inside your heart don’t ever let it go because, Dreams are the seeds from which beautiful tomorrows grow.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 16-JAN-2018

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RBI Update:

The Reserve Bank of India has today notified that the Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in M/S Granules India Ltd. has increased from 24% to 49% of its paid up capital. Vide press release 2017-2018/1918, dated 12th January 2018.

Direct Tax:

Ahmedabad ITAT holds that payment for  information technology (IT) related services rendered to assessee-company (manufacturer of rail coaches) by vendor company (CSCIPL)  during AYs 2008-09 to 2014-15 should be treated as fees for  technical services (‘FTS’) attracting TDS u/s 194J & not annual maintenance contract simplicitor attracting TDS u/s 194C, rules that it is not the medium of contract or payment but the nature of services rendered by the payee which is the crucial factor to determine whether or not they amount to technical or professional services;

[TC-622-ITAT-2017(Ahd)]

SC dismisses Revenue’s SLP against Bombay HC quashing block assessment for the block period 1989-90 to 1999-2000; Bombay HC had accepted assessee’s stand that issuance of Sec. 158BC notice by AO, Nagpur was without jurisdiction; [TC-11-SC-2018]

Cash transaction between close family members for giving a support and help not amount to ‘Loan’ u/s 269SS of the Income Tax Act: Kolkata ITAT.

Indirect Tax:

CBEC made amendment in Custom Act, 1962 by way of notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table, which shall be further amended in the manner specified in the corresponding entry in column (3) of the Table. Vide notification no 3/2018, dated 12th January 2018.

FAQ on GST:

Query:  Is there any special document required to be carried during transportation of taxable goods?

Answer: Yes. The person in charge of a conveyance carrying any consignment of goods of value exceeding a specified amount to carry with him such documents and devices as may be prescribed by the Government. On interception of the conveyance, the person in charge shall produce the prescribed documents and devices for verification and allow inspection of goods by the proper officer.

Key Dates

GST Returns Summary for December: 20/01/2018

GST UPDATES

GSTN has provided an Off Line Tool for preparing GSTR-11. Taxpayers having Unique Identification Number (UIN) can now file details of inward supply of goods & services, refund amount claimed etc.

GSTN has enabled the functionality to save, submit, and file GSTR-4 for Oct-Dec 2017 quarter at GST portal.

GSTN has provided an online facility at GST portal to lodge complaints / grievances related to processes (application), ledger etc.

Persons registered under the composition scheme must mention the words “GST Composition Taxable Person” on every notice or sign board displayed at a prominent place at both the principal and the additional place of business.

Delay in producing E-Way Bill is a Mere Technical Breach: Allahabad High Court Deletes Penalty against M/S Raj Iron & Building Materials, a division bench of the Allahabad High Court under GST law.

Other updates

The Delhi High Court has upheld the constitutional validity of the second proviso to Section 5(1) of the Prevention of Money-laundering Act, 2002 (PMLA).

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE 8-Jan-2018

Image result for corporate and professional updates

MCA update:

MCA is proactively designing a Front Office service (replacing INC-1 eform with Web-Form) for Name Reservation and Change of Name for
companies capturing only absolutely essential information from the applicants. The said service is likely to be rolled out on 26th January 2018.

 

The Companies (Amendment) Act, 2017, has received the assent of the President on the 3rd January, 2018. It shall come into force on such date as the Central Government may, by notification in the Official Gazette.

RBI Update:

The Reserve Bank of India will shortly issue Rs. 10 denomination banknotes in the Mahatma Gandhi (New) Series, bearing signature of Dr. Urjit R. Patel, Governor, Reserve Bank of India. The new denomination has motif of Sun Temple, Konark on the reverse, depicting the country’s cultural heritage. Vide press release 2017-2018/1848, dated 5th January 2018.

 

RBI issues updated Master Direction on Foreign investment in India dated 4th Jan 2018 RBI/FED/2017-18/60 FED Master Direction No. 11/2017-18.

 

Direct Tax:

Madras HC allows assessee-HUF’s writ, grants waiver of interest under Sections 234A (for delay in furnishing the return of income), 234B (for default in payment of advance tax) and 234C (for shortfall/deferment in the payment of advance tax) for AYs 1997-98 and 1998-99​​, observes that when the property continues to remain undivided, the assessee cannot anticipate the ​​accrual/receipt of such income​; [TS-613-HC-2017(MAD)]

Mumbai ITAT rejects Revenue’s request for constitution of Special Bench on software taxation matter involving various Reliance ADAG group of companies (‘assessees’)   rejects the constitution of Special Bench;  [TS-2-ITAT-2018(Mum)]

Indirect Tax:

CBEC has issued  Clarifications regarding levy of GST on accommodation services, betting and gambling in casinos, horse racing, admission to cinema, homestays, printing, legal services etc.{Vide circular no  27/01/2018, dated 4th January 2018.

Key Dates:

Taxpayers with annual aggregate turnover less than Rs. 1.5 Cr. Need to file Quarterly GSTR 1 from July to September : 10/01/2018

Taxpayers with annual aggregate turnover more than Rs. 1.5 Cr. Need to file monthly GSTR 1 from July to November : 10/01/2018

FAQ on GST:

 Query:   Who can direct the registered person to get his records audited under Section 66?

Answer: An officer not below the rank of Assistant Commissioner may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited.

Gst updates

Taxman plans to match GST invoices to plug leakage. Instead of asking taxpayers to match invoices, we may do it ourselves at the back end. We may follow a risk-based approach; when the gross level of transactions does not match, we may match invoices.

Input Tax Credit Reversal in GST has begun from Dec 28, 2017. If you are availing ITC and have not made payment to the supplier of goods or services within 180 Days from the date of Invoice then ITC Credit availed need to be reversed. Interest @ 18% p.a. also needs to be paid on the amount of ITC so reversed.

GSTN has advised that Taxpayers should file online application for Core Amendment or Non-Core Amendment one at a time. Once the first amendment is reflected in their Registration Certificate on the GST Portal, only then they should file the application for second amendment.

GST: Truck owners carrying the goods are exempt and not required to take      registration even though aggregate value of service exceeds Rs. 20 lakhs during last year Vide Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017.

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

 

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE

                Image result for corporate and professional update                                                              

 Direct Tax:

ITAT Jaipur held that deduction u/s. 54 can be claimed for house purchase in wife’s name. Shri Radhey Shyam Arora Vs. Income Tax Officer (ITAT Jaipur)

 ITAT Kolkata held that section 194C TDS not applicable on transport charges reimbursed to suppliers. Assistant Commissioner of Income Tax Vs Sri Gobinda Gupta (ITAT Kolkata)

 ITAT Kolkata held that Reimbursement of expense incurred during foreign visit to Director by Company is not taxable as Perquisite. Gaurav Seksaria Vs. ITO (ITAT Kolkata)

ITAT Kolkata held that additional depreciation allowable to company in generation and distribution of electricity even prior to 1-4-2013.  Damodar Valley Corporation Vs. Dy. CIT (ITAT Kolkata)

Indirect Tax:

CBEC make amendments in Central Goods and Services Tax Rules, 2017. These rules may be called the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2017 which shall come into force on the date of their publication in the Official Gazette. Vide notification no 75/2017, dated 29th December 2017

CBEC waives the amount of late fee payable under section 47 of the said Act, by any registered person for failure to furnish the return in FORM GSTR-4 by the due date, which is in excess of an amount of twenty five rupees for every day during which such failure continues. Vide notification no 73/2017, dated 29th December 2017.

CBEC extend the time limit  for furnishing the details of outward supplies in FORM GSTR-1  by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year. Vide notification no 72/2017, dated 29th December 2017.

CBEC extend the time limit for  or furnishing the details of outward supply  in FORM GSTR-1 by  such class of registered persons having aggregate turnover  upto 1.5 crore rupees in the preceding financial year or the current financial year. Vide notification no 71/2017, dated 29th December 2017. 

FAQ on GST:

Query: What happens in cases where the tax demand confirmed is enhanced in appeal / revision proceedings?

Answer:  The notice of demand is required to be served only in respect of the enhanced dues. In so far as the amount already confirmed prior to disposal of appeal/revision, the recovery proceedings may be continued from the stage at which such proceedings stood immediately before such disposal.

RBI Update:

The  applicable average base rate to be charged by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning January 01, 2018 will be 8.96 per cent. Vide press release 2017-2018/1767, dated 29th December 2017. 

Quotes of the day

“Plant your garden and decorate your own soul, instead of waiting for someone to bring you flowers.”

 We look forward for your valuable comment www.carajput.com

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Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DECEMBER 11 2017

DIRECT TAX:

  • Direct tax collections increased by 14.4% to Rs 4.8 lakh crore during April-November this financial year. The net direct tax collections represent 49% of the total Budget Estimates of direct taxes for 2017-18. The gross collections (before adjusting for refunds) have increased by 10.7% to Rs 5.82 lakh crore during April-November, 2017. Refunds amounting to Rs 1.02 lakh crore have been issued during April-November, 2017.
  • CBDT has issued Clarification on Indirect Transfer provisions in case of redemption of share or interest outside India under the Income-tax Act, 1961.
  • ITAT Ahmedabad held that wherever any irregularity crept in the proceedings, the proceedings itself cannot be declared void, rather irregularity deserves to be rectified.[Late Shri Atulkumar Mansukhlal Shah Vs. ITO (ITAT Ahmedabad)]
  • ITAT Mumbai held that the assessee is having sums deposited in the foreign bank account, it was incumbent upon the assessee to disclose the same in the subsequent years, unless the assessee produces necessary evidence that the afore-said deposit has been liquidated. Thus, once the Assessing Officer has come to the possession of the information that the assessee is beneficiary of deposits in foreign bank accounts and from the return of income filed by the assessee, the Assessing Officer notices that the interest from the said deposit in accounts has not been disclosed in the return of income, the reopening of the case is duly justified. The computation and assessment of interest is reasonable and justified. [Mr. Hasmukh I. Gandhi Vs. Dy. CIT (ITAT Mumbai)]
  • ITAT Ahmedabad held that addition based on Fake sale deed is not sustainable. [Shri Gopichand Chhabaria Vs. CIT (ITAT Ahmedabad)]

INDIRECT TAX:

  • Refund procedure for refund claims in respect of zero rated supplies has been initiated by the Government. However, the refund process for other cases has not been initiated as of now.

GST UPDATE:

  • GST Advisory* – If you opt for reset of GSTR3B, late fee inadvertently gets visible for months for which it has been waived off.
  • Finance:After slashing the GST rates of over 200 items last month, the Govt on Saturday hinted at reviewing levies on the items in the top 28% tax bracket.
  • Unsold inventory of imported chocolates, confectionery and cosmetics, which attracted 28% IGST during inbound shipments but are now retailing with an 18% levy, can claim refunds on the excess tax paid
  • GST: Unauthorized search and seizure by BIEO, HC grants interim relief. Case M/s. Kumar Traders And Company & Anr. Vs. The State of Assam (Guwahati High Court)

FAQ on GST: 

Query:  What will be the place of supply of banking services and other financial services, stockbroking services?

Answer: As per Section 12(12) of the IGST Act, 2017, the place of supply of banking services shall be the location of the recipient of service as available on the records of the supply of services. If the location of recipient of service is not on records of the supplier, the place of supply shall be the location of supplier of service.

MCA UPDATE:

  • MCA has issued circular to give Relaxation of additional fees and extension of last date of filing of Form CRA – 4 under the Companies Act, 2013
  • MCA has notified the Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Second Amendment, Rules, 2017 which shall come into force from the date of their publication in the Official Gazette

RBI UPDATE:

  • RBI’s latest guidelines on merchant discount rates (MDR) have brought some respite to the digital payments industry, many payment executives ET spoke to feel that the central bank needs to ensure equitable distribution of MDR between the various participants of digital transactions
  • RBI has permitted overseas branches and subsidiaries of Indian banks to refinance the existing External Commercial Borrowings (ECBs), giving them a level playing field vis-à-vis their global counterparts.

OTHER UPADATE:

  • RBI* has launched an SMS campaign and a ‘missed-call’ helpline to warn people against prize money frauds.
  • RERA Registration requirement* of any Project under RERA – No registration of the real estate project shall be required where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight units inclusive of all phases.
  • The Financial Resolution and Deposit Insurance Bill, 2017 (FRDI Bill),* introduced in the Lok Sabha on August 10, 2017, is presently under the *consideration of the Joint Committee* of the Parliament.
  • ICAI Clarifies* on Rumors of Reservations in CA course – The general public is hereby advised not to pay any heed to such messages as being circulated by unscrupulous persons.
  • IBC*: Clause (e) of Section 2 of the Code has been substituted with three clauses. This would facilitate the commencement of Part III of the Code relating to individuals and partnership firms in phases.
  • IBC*: NCLT has struck down an attempt by a group of banks to block an insolvency resolution plan by citing the 75% vote share requirement prescribed under Section 30(4) of the IBC, 2016.
  • BITCOIN*: Government is planning to set up panel to decide on bitcoin policy. The RBI has last week warned the public of the risks related to virtual currencies (VCs).
  • NIRC Seminar on Impact Analysis Of GST* On Various Sectors On Saturday 16th December, 2017 at Hotel The Park, Parliament Street, New Delhi register at http://www.nircseminars.org/
  • Real estate firms are once again adding inventory at a faster clip as sales offtake fails to keep pace with the rising supply of new properties. At the end of March this year, top listed developers were sitting on unsold inventory worth Rs 99,000 crore. If receivables (the amount due from buyers for partial sales) are included, the amount comes up to Rs 1.16 lakh crore, highest in the last decade. The total value of unsold inventory is equivalent to 26 months’ worth of sales and highest in the last seven years. This was around 23 months during the end of FY16.
  • The CII Business Confidence Index has climbed up to the level of 59.7 during October-December 2017 compared to 58.3 in the previous quarter, reflecting an improvement in perception regarding overall economic conditions amidst indications of a normalisation in business situation post the recent disruptions like GST. The survey underscores the perception that the economy is on a sustainable recovery path, with the many Govt interventions having an impact on the ground. The climb in business confidence underpins the hope that the upward trend one is seeing on macro figures would be sustained.
  • The SBI has changed the names and IFSC codes of branches located in major cities such as Mumbai, New Delhi, Bengaluru, Chennai, Hyderabad, Kolkata and Lucknow, among others.The bank has put up the list of branches with old and new names and IFSC codes on its website.

KEY DATES:

  • 15 DEC 2017* is the last date for payment of 3rd installment of Advance Tax for AY    2018-19.
  • 11 DEC 2017* GSTR-5 for July to October  2017

WORD OF WISDOM:

*चन्द्रगुप्त*: किस्मत पहले ही लिखी जा चुकी है, तो कोशिश करने से क्या मिलेगा ! *चाणक्य*: क्या पता किस्मत मैं लिखा हो की कोशिश से ही मिलेगा।

“Life is found in the dance between your deepest desire and your greatest fear.”

We look forward for your valuable comment

FOR FURTHER QUERIES CONTACT US:

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Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)