Felicitation of Newly Qualified CA held on 15th August 2018 at Branch Premises, Bhayander (West)

Transcription

1 Felicitation of Newly Qualified CA held on 15th August Celebration of Independence Day on 15th August Seminar on Investor Awareness Program held on 15th August Chairman s Communication... 3 Forthcoming Programmes... 4 Direct Taxes - Law Update... 6 Important points to be considered before filing GSTR-3B/GSTR-1 for the month of September Seminar on Internal Audit held on 2nd September Seminar on Statutory Audit held on 16th September 2018 at... 8 Seminar on Tax Audit held on 9th September,

2 Felicitation of Newly Qualified CA held on 15th August 2018 at Branch Premises, Bhayander (West) Celebration of Independence Day on 15th August 2018 at Branch Premises, Bhayander (West) Seminar on Investor Awareness Program held on 15th August 2018 at Branch Premises, Bhayander (West) CA. Sumeet Doshi (Chairman, Vasai Branch) presenting floral bouquet to CA. Sunil Patodia (Past Chairman, WIRC of ICAI) CA. Sivaramakrishnan R CA. Xavier Rajan (Vice Chairman, Vasai Branch) presenting floral bouquet to CA. Sivaramakrishnan R (Speaker) (L-R):- CA. Xavier Rajan (Vice Chairman, Vasai Branch), CA. Sivaramakrishnan R (Speaker), CA. Sunil Patodia (Past Chairman, WIRC of ICAI), CA. Sumeet Doshi (Chairman, Vasai Branch) & CA. Ankit Rathi (Treasurer, Vasai Branch) at the dais Participants 2

3 CHAIRMAN S COMMUNICATION Dear Professional Colleagues, October is known in India not only to recall and celebrate the ideas and ideals of Mahatma Gandhi, whose birthday falls on 2nd October, but also to strengthen and reinforce his messages of love, peace and non-violence in our society that he had given to the world in the interests of humanity. As you know, the Central Board of Direct Taxes has extended the due date for filing of income-tax returns and audit reports from 30th September 2018 to 15th October 2018, for all the assessees liable to file income-tax returns for the assessment year by 30th September However, the liability to pay interest under Section 234A of the Income-tax Act, 1961 will remain. Branch had celebrated Independence Day on 15th Aug followed by Investor Awareness Programme and Felicitation of Newly Qualified CA. Branch also started series of Nine Training Calendar event namely Seminar on Internal Audit, Seminar on Tax Audit & Seminar on Statutory Audit. A mock test is a practice examination for the students before their actual examination to analyze their potential in the examination hall. Branch had organized Foundation/IPCC/ Final Mock Test in order to boost the morale of the students and enhance their confidence. Forthcoming Events Looking forward to the coming months, we have planned an extensive list of programmes for the benefit of Members & Students. We will be hosting Certificate Course on Forensic Accounting & Fraud Prevention organized by Digital Accounting & Assurance Board and Certificate Course on Concurrent Audit of Banks organised by Internal Audit Standards Board of the ICAI. Branch has also schedule GST Audit & Annual Return next event of Training Calendar in association with Vasai Virar CPE Study Circle. MANAGING COMMITTEE CA. Sumeet Doshi Chairman CA. Xavier Rajan Vice Chairman CA. Hemant Shah Secretary CA. Ankit Rathi Treasurer CA. Bhanwar Borana WICASA Chairman CA. Nitesh Kothari Imm. Past Chairman CA. Mukesh Sharma Committee Member EDITORIAL BOARD CA. Sumeet Doshi Chairman CA. Nitesh Kothari Imm. Past Chairman CA. Xavier Rajan Vice Chairman CA. Hemant Shah Secretary A healthy work-life balance that results from a well-managed professional life can let us enjoy our life without stress. As you know, October is a month full of festivities. Apart from Dussehra (Vijayadashami) that falls on 19th October, there are two important birth anniversaries in this month, i.e. those of Mahatma Gandhi and Maharishi Valmiki on 2nd and 24th October respectively. Let us celebrate our festivals spreading peace and love across, as this gives us power to retain and strengthen the fabric of humanity of our country. Exams fever is going on..my warms wishes to all who are appearing in these Exams. Best of Lucks! Volunteers are not paid not because they are wothless, but because they are priceless. - Sherry Anderson CA. Sumeet Doshi Chairman Vasai Branch 3

4 FORTHCOMING PROGRAMMES FORTHCOMING PROGRAMMES FOR MEMBERS Date Seminar on Timings Venue Speakers Coordinator Fees CPE 7th Oct 2018 Seminar on GST Audit & Annual Return 9.30 am to 5.30 pm Maxus Mall, Branch Premises, 7th Floor, Opp. Tema Hospital, Bhayander (West) CA. Dilip Phadke CA. Jignesh Kansara CA. Manoj Chauhan CA. Xavier Rajan CA. Hemant Shah CA. Nitesh Kothari ` 885 (incl. of GST) 6 Hrs 13th to 28th Oct 2018 (Every Sat & Sun) Certificate Course on Concurrent Audit of Banks 9.30 am to 5.30 pm Maxus Mall, Branch Premises, 7th Floor, Opp. Tema Hospital, Bhayander (West) Eminent Faculties CA. Hemant Shah ` 10,000 (Members born on or after ) & ` 12,750 (Members born before ) 30 Hrs 17th Nov to 8th Dec 2018 Certificate Course on Forensic Accounting & Fraud Prevention 9.30 am to 5.30 pm Maxus Mall Branch Premises, 7th Floor, Opp. Tema Hospital, Bhayander (West) Eminent Faculties CA. Ankit Rathi ` 20, Hrs 4

5 One Day Seminar on GST Audit & Annual Return CPE 6 Hrs October, 2018 Sunday 9.15 am to 5.15 pm Branch Premises, Maxus Mall, Opp. Temba Hospital, Near Bank of India Bhayander (West) Timing Topics Speakers am to pm Key GST Provisions & Preliminary preparation CA. Dilip Phadke relevant to GST Audit & Annual Returns pm to 2.15 pm Clause by clause analysis of Annual Return CA. Jignesh Kansara 3.00 pm to 5.00 pm Clause by clause analysis of GST Audit Report CA. Manoj Chauhan Registration Fees Online Regt. Rs % GST Cheque to be drawn in favor of Vasai Branch of WIRC of ICAI sent to Branch Office Program Chairman:- CA. Sumeet Doshi (Chairman, Vasai Branch of WIRC) Events Coordinators CA. Xavier Rajan CA. Hemant Shah CA. Nitesh Kothari CA. Sajeeve Abraham CA. Joyma Tuscano CA. Sybel Almeida The Institute of Chartered Accountants of India Vasai Branch of WIRC In Association with Vasai Virar CA CPE Study Circle of WIRC For Details Please Contact:- Vasai Branch of WIRC, Branch Premises, Maxus Mall, B Wing 7 th Floor, Opp. Temba Hospital, Temba Road, Bhayander (West). Tel: or vasaibranch@gmail.com Website:- 5

6 Direct Taxes - Law Update CA. Haresh P. Kenia Mobile No. : hpkenia@mtnl.mct.in 1. Income Tax Return-Extension of Due Date of filling Income Tax Return for A.Y (256 Taxman (st) 23) The Central Board of Direct Taxes vide order no. 225/242/2018-ITA.II] dated: extends the due date of filling Income Tax Return as prescribed in sec 139(1) of the Act from 31/07/2018 To 31/08/ Speculative Transactions u/s 43(5) of the Income Tax Act Notified Recognised Stock Exchange Sec 43(5) Explanation 1 proviso (d) of the Income Tax Act. (257 Taxman (st) 1) The Central Government vide notification No. 35/2018 [F. No. 225/111/2018-ITA-11] dated notifies India International Exchange (IFSC) Limited, Gandhinagar, Gujarat (PAN: AAGCB8819B) as a recognised Stock Exchange for the purpose of 43(5) Explanation 1 Proviso (d) w.e.f. the date of publication of this notification subject to fulfilment of certain conditions in respect of trading in derivaties. Please refer to the above notification for conditions specified. 3. Speculative Transactions u/s 43(5) of the Income Tax Act Notified Recognised Stock Exchange Sec 43(5) Explanation 1 proviso (d) of the Income Tax Act (257 Taxman (st) 2) The Central Government vide notification no. 35/2018 [F. No. 225/ 111/2018-ITA-11] dated notifies NSE IFSC Limited, Gandhinagar, Gujarat (PAN:AAFCN4161P) as a recognised Stock Exchange for the purpose of 43(5) Explanation 1 Proviso (d) w.e.f. the date of publication of this notification subject to fulfilment of certain conditions in respect of trading in derivaties. Please refer to the above notification for conditions specified. 4. Tax Audit sec 44AB Deferment of Clauses 30C (GAAR) and 44 (GST) of Form 3CD (257 taxman (st) 3) The Board has clarified that Section 44AB of the Income Tax Act, 1961 read with rule 6G of the Income Tax rules, 1962 requires prescribed persons to furnish the Tax Audit Report along with the prescribed particulars in Form No. 3CD. The existing Form No. 3CD was amended vide notification No. GSR 666(E), dated 20th July, 2018 with effect from 20th August, The matter has been examined and it has been decided by the Board vide circular no. 6/2018 [F.No /9/2018-TPL] dated 17/08/2018 that reporting under the proposed clause 30C and proposed clause 44 of the Tax Audit Report shall be kept in abeyance till 31st March, Therefore, for Tax Audit Reports to be furnished on or after 20th August, 2018 but before 1st April, 2019, the tax auditors will not be required to furnish details called for under the said clause 30C and clause 44 of the Tax Audit Report. 5. Section 270AA, read with section 271(1) (c), of the Incometax Act, Under-reporting and Mis-reporting-penalty for Clarification on immunity provided under section 270AA (257 taxman (st) 3) Section 270AA of the Income-tax Act, 1961 (the Act) inter alia provides that w.e.f 1st April, 2017, the Assessing Officer, on an application made by an assessee, may grant immunity from imposition of penalty under section 270A (not being penalty for misreporting) and initiation of proceedings under section 276C or section 276CC, subject to the conditions specified therein. It has been clarified by CBDT vide circular no 5/2018 [F.No /155/2018-TPL] dated 16/08/2018 that where an assessee makes an application seeking immunity under section 270AA of the Act, it shall not preclude such assessee from contesting the same issue in any earlier assessment year. This clarification is issued on the apprehensions that where an assessee makes the application have seeking immunity under section 270AA of the Act, and in the earlier year(s) penalty under section 271(1) (c) of the Act has been initiated on the same issue, the Income-tax Authority may contend that the assessee has acquiesced on the issue in such earlier year(s), by seeking immunity under section 270AA of the Act and therefore, take an adverse view in the proceedings for penalty under section 271 (1) (c) of the Act. Further, the CBDT has clarified that Income Tax Authority shall not taken an adverse view in the proceedings for penalty under section 271 (1) (c) of the Act in earlier assessment years merely on the ground that the assessee has acquiesced on the issue in any later assessment year by preferring an immunity on such issue under section 270AA of the Act. 6. Section 10A of the Income-tax Act, 1961 Free Trade Zone Computation of admissible deduction under section 10A (257 taxman (st) 4) The CBDT vide circular No.4/2018 [F.No. 279/MISC./140/2015/ITJ], dated 14/08/2018 clarifies as under:- It is clarified that freight, telecommunication charges & Insurance expenses are to be excluded from Export Turnover & Total Turnover while working out deduction admissible u/s 10A of the Act to the extent their attributable to the deliver of the articles or things or computer software outside India. It is further clarified that expenses incurred in foreign exchange for providing technical services outside India are to be excluded from both Export Turnover & Total Turnover while computing deduction admissible u/s 10A of the Act. Therefore, all charges/ expenses specified in 10A explanation 2(IV) of the Income Tax Act are liable to be excluded from total turnover also for the purpose of computation of deduction u/s 10A of the Act. It is further directed that no further appeals may be filled by the department on the above settled issue & those already filled may be withdrawn/not pressed upon. The CBDT sought to issue clarification on the issue whether freight, telecommunication charges and insurance expenses are to be excluded from both Export turnover and total turnover while working out deduction admissible under section 10A of the Act on the ground that they are attributable to delivery of articles or things or computer software outside India has been highly contentious. Similarly, the issue whether charges for providing technical services outside India are to be excluded both from Export Turnover and Total Turnover while computing deduction admissible under section 10A of the Act on the ground that such charges are relatable towards expenses incurred inconvertible foreign exchange in providing technical services outside India has also been highly contentious. The controversy has been finally settled by the Hon ble Supreme Court vide its judgment dated 24/04/2018 in the case of CIT, central-iii v. M/s. HCL Technologies Ltd. [2018] 93 taxmann.com 33(SC). Please refer to the above citation for the extract of the judgement held. 2 6

7 Important points to be considered before filing GSTR-3B/GSTR-1 for the month of September 2018 CA Monu Verma Mobile No. : camonuverma@gmail.com I. Pending Input Tax Credit to be availed before filing GSTR-3B of Sept 18: Section 16 (4) of Central Goods and Services Tax Act, 2017 provides that the Input Tax Credit (ITC) on the invoices raised during July 2017 to March 2018 can be availed by the registered person on earliest of the following dates: i. On or before the due date of furnishing the return for the month of September 2018 i.e (unless extended), OR ii. Before filing of annual return for July 2017 to March The finance ministry has notified annual tax return forms on , for businesses registered under the GST, in which details of sales, purchases and input tax credit (ITC) benefits accrued to them during fiscal have to be provided in a consolidated manner. The ministry has notified annual return form for normal taxpayers (GSTR-9) and for composition taxpayers (GSTR-9A). The last date for filing the annual return forms is December 31. The annual return form for normal taxpayers has been divided into 6 parts with 19 tables which includes detailed information related to outward supplies, inward supplies, ITC availed, ITC reversed, ineligible ITC, particulars of demand and refund, HSN summary of outward supplies and HSN summary of inward supplies of the transactions declared in returns filed during the financial year ending March Also information with regard to transactions related to financial year ending March 31, 2018 declared in return of April to September are to be declared in the annual return. Hence, the last date of availing the ITC on invoices pertaining to the period July 2017 to March 2018 shall be the due date of filing of GSTR-3B for September 2018 i.e (unless extended). Therefore, the company is advised to avail the pending ITC pertaining to invoices raised in July 2017 to March 2018 by the vendor within the due date of filing the return of September Following activities has to be carried out for each GST registration before filing the GSTR-3B of September 2018 and avail the pending eligible ITC otherwise the ITC on the same shall lapse. a. Reconciliation of ITC availed in GSTR-3B with the Books: Reconciliation of ITC availed in books and that availed in GSTR-3B. There may be instances where due to human/system error, the ITC has not been availed in GSTR-3B. Such invoices are required to be traced so that the ITC can be availed within the time frame. b. Reconciliation of ITC availed in GSTR-3B with ITC available as per GSTR-2A: Presently, there is no requirement to file or verify GSTR 2A return. However, there may be many reasons for difference between credit availed under GSTR-3B & credit appearing under GSTR-2A. For example: There may be case where vendor has not filed the return, resulting of not reflecting the credit in GSTR-2A. And company has booked the same in books and also availed the credit in GSTR-3B, hence, it is advisable to follow up with such vendors in order to get ITC reflected in GSTR-2A. There may be cases where vendor has sent the invoice which the company has not received at all. In such cases, the company is required to follow up with the vendor and get the invoices and then avail ITC within the time prescribed above. There have been instances where GSTIN number was not provided to the vendors initially resulting in issuance of invoice as B2C. In such cases, the company must get the invoices amended from the vendor as B2B before availing the ITC and assure that the vendor rectifies the same in his GSTR-1 not later than GSTR-1 for the month of September A reconciliation between ITC as per GSTR-2A and as per books will reveal such differences (if any). Hence, such activity may be carried out to avail credit at the time of filing September 2018 return within the due date. c. ITC available on distribution by ISD: All the recipient units are required to avail the ISD credit based on the invoices issued by ISD. It is advised that all such ITC distributed on ISD invoices issued in July 2017 to March 2018, shall be availed on or before due date of Sept 2018 return. d. Debit note issued during by vendor for invoices issued in : As per section 16 (4) of Central Goods and Services Tax Act, ITC on debit note issued by vendor during the current year i.e which is pertaining to invoices raised in has to be availed before due date of filing of annual return OR before due date of filing GSTR-3B for the month of September 18, whichever is earlier. Therefore, the company has to evaluate all the debit notes issued during the period to pertaining to the original invoices issued during the period to E.g. ITC on debit note issued by vendor in April 18 against the original invoice pertaining to March 18 has to be availed on or before due date of Sept 2018 return. II. Other important points to be considered before filing GSTR-3B/ GSTR-1 of Sept 18: a. Rectification of error or omission of invoices: In case of any errors made while uploading Invoices in GSTR-1, the company can rectify the invoices in GSTR-1 in subsequent months. However, as per section 37, rectification of such invoices can be made before filing GSTR-1 for the month of September OR before filing annual return, whichever is earlier. Similarly, the invoices which have been missed in GSTR-1 for July 17 to March 18 can be uploaded in GSTR-1 of September Further corrections in GSTR-3B should also be done till the return of September b. Credit Notes: The credit notes for the period to have to be issued & uploaded in GSTR-1 before filing annual return OR before filing GSTR-1 for the month of September, whichever is earlier. If such credit notes are not uploaded on or before filing GSTR-1, then the liability cannot be reduced to that extent. III. Other important points: a. Cross-charging: The Head office provides administration/business support services (Tax/HR/Legal/Finance Team) to other units/ branches located in different states or different registrations i.e. a distinct person which is considered as supply of services and accordingly GST has to be charged on the same. Therefore, Head office has to cross charge and pay GST on the same (if not done) to all distinct persons at the earliest. b. Reverse charge liability paid under normal registration on behalf of ISD unit: Reverse charge liability cannot be discharged under ISD and therefore the same has to be paid under the normal registration in the state in which ISD is registered. Thereafter, an invoice has to be raised on ISD as per rule 54 (1A) for common input services so that the same can be distributed to distinct persons at the earliest. It is advisable that the invoice shall be raised on ISD in the month in which ITC is availed under the normal registration. 2 7

8 Seminar on Internal Audit held on 2nd September 2018 at Branch Premises, Bhayander (West) CA. Delzad Jivaash CA. Jignesh Kansara (L-R): CA. Daya Bansal (Coordinator), CA. Xavier Rajan (Vice Chairman, Vasai Branch), CA. Vishal Vakil (Speaker), CA. Sumeet Doshi (Chairman, Vasai Branch) & CA. Jimesh Jain (Coordinator) at the dais CA. Sourabh Jain CA. Vishal Vakil Participants Seminar on Statutory Audit held on 16th September 2018 at Branch Premises, Bhayander (West) CA. Pankaj Tiwari CA. Garvish Gandhi (L-R): CA. Sumeet Doshi (Chairman, Vasai Branch), CA. Garvish Gandhi (Speaker), CA. Vijendra Jain (Coordinator) & CA. Shashank Sah (Coordinator) at the dais 8

9 Seminar on Tax Audit held on 9th September, 2018 at Branch Premises, Bhayander (West) (L-R): CA. Anadi Bhase (Coordinator), CA. Sumeet Doshi (Chairman, Vasai Branch), CA. Sanjeev Lalan (Speaker), CA. Amit Agarwal (Convenor, Bhayander CPE Study Circle), CA. Hemant Shah (Secretary, Vasai Branch) & CA. Xavier Rajan (Vice Chairman, Vasai Branch) at inaugural session CA. Sumeet Doshi (Chairman, Vasai Branch) presenting floral bouquet to CA. Sanjeev Lalan (Speaker) also seen CA. Amit Agarwal (Convenor, Bhayander CPE Study Circle) (L-R): CA. Vijendra Jain (Coordinator), CA. Nitesh Kothari (Past Chairman, Vasai Branch), CA. rajesh Patil (Speaker), CA. Amit Agarwal (Convenor, Bhayander CPE Study Circle) & CA. Xavier Rajan (Vice Chairman, Vasai Branch) CA. Nitin Bhuta CA. Rajesh Patil CA. Sanjeev Lalan Participants Editor: CA. Sumeet Doshi Published by Vasai Branch of Western India Regional Council of The Institute of Chartered Accountants of India and printed at Finesse Graphics and Prints Pvt. Ltd., 309, Parvati Ind. Est., Sun Mill Compound, Lower Parel, Mumbai Tel. : The views and opinions expressed or implied are those of the authors or contribution and do not necessarily reflect those of Vasai Branch. Unsolicited articles and transparencies are sent in at the owner s risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or in whole, without the consent of Vasai Branch. DISCLAIMER: The Vasai branch is not in any way responsible for the result of any action taken on the basis of the advertisement published in the Newsletter. The members, however, may bear in mind the provision of the Code of Ethics while responding to the advertisements. To Undelivered please return to : The Institute of Chartered Accountants of India, Vasai Branch of WIRC Address: Maxus Mall, B Wing, 7th Floor, Above Maxus Banquet Hall, Temba Road, Bhayandar (West) Thane Contact: / / vasaibranch@gmail.com Website: 9