Just 5 Minutes TAXCON TM INDIA PRIVATE LIMITED

Just 5 Minutes TAXCON TM INDIA PRIVATE LIMITED

Income Tax Act 1. CBDT Dilutes Applicability of Low Tax Effect Circular The CBDT has specified regarding monetary limit for filing of appeal by tax department vide circular no. 3/2018 and also has specified several instances where appeals have to be filed and prosecuted despite their lowtax effect. Now, the aforesaid several instances also included vide F No 279/Misc. 142/2007-ITJ dated 20th August 2018 that:- (a). (b)... (c).. (d) Where addition relates to undisclosed foreign income/ undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account.

Income Tax Act (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). (f) Cases where prosecution has been filed by the Department and is pending in the Court. 2. Amendment in rules for obtaining no tax deduction of tax The Finance ministry has proposed amendments in the Income Tax Rules for obtaining 'no deduction of tax' certificate electronically, a move aimed at minimizing human interface and reducing compliance burden. The tax department proposes to make changes in Form No 13 and related rules under the Income Tax Act

Income Tax Act 3. Proposal for comparing data with different departments Government is planning to compare data filed by companies with different departments to detect discrepancies and check whether there has been any leakage in tax collected, raising the prospect of even greater scrutiny, said people with knowledge of the matter.

Companies Act 1. Due date for filing KYC of directors extended The due date for filing the Form DIR 3 KYC by all the persons having DIN (Director Identification Number) was extended from August 31, 2018 to September 15, 2018 without any filing fee. After the due date, the KYC shall be done after paying fee of Rs 5000/- 2. Due date for filing BEN-2 The Ministry of Corporate Affairs (MCA) has stated the time limit for filing Form BEN 2 (beneficial interest disclosure) shall be 30 days from the date of deployment of BEN - 2 on MCA-21 Portal and no additional fee shall be levied if the same is filed within 30 days of deployment of the said form on MCA Portal.

GST 1. President assent received on Central Goods and Services Tax (Amendment) Act, 2018 The Amendment Act 2018 has got the President assent. Some amendments are:- a) Amendment in RCM on supplies received from unregistered persons Section 9(4) of the CGST Act 2017 amended to provide that reverse charge would attract in case of supplies received from unregistered persons, only in respect of specific class of registered persons and specific categories of goods and services that would be notified through a notification. b) Eligibility and conditions for ITC amended The condition of receipt of goods or services for availing input tax credit under section 16(2), has been amended to provide that where the services have been supplied to any other person on directions of the registered person, it will be deemed that the registered person has received the services;

GST c) Ineligible Input Tax Credit Vehicles Credit of services of general insurance, servicing, repair and maintenance related to motor vehicles will not be allowed, however credit will be allowed where such vehicles are used for the purpose specified or where such services are received by a person engaged in manufacture of such vehicles or a person engaged in supply of general insurance services in respect of such vehicles. d) Consolidated credit or debit notes can be issued for multiple invoices As per Section 34 of the CGST Act, a credit or debit note is required to be issued invoice-wise which is quite cumbersome to correlate. The Govt. has now allowed the registered person to issue consolidated/multiple credit or debit note in respect of multiple/single invoices issued in a financial year without linking the same with individual invoices

GST 2. Facility for refund application for multiple tax period Taxpayers filing refund application for ITC accumulated on account of export of goods and services without payment of tax and on account of supplies of goods & services made to SEZ unit/ SEZ developers without payment of tax, has now been provided with facility to apply for refund for multiple tax period. 3. Late fee Waiver Late fee waived for registered persons who submitted but did not file GSTR-3B for the month of October 2017 after generation of ARN. Waiver of late fee paid for submitting GSTR-6 by ISD (for any tax period) between January 1, 2018 to January 23, 2018.

GST 4. More updates The Govt. has clarified that validity of e-way bill will not require to be extended for goods stored in transporter s godown because the transporter s godown has to be declared as an additional place of business by the recipient taxpayer._ The ministry has notified annual return GSTR 9 form for normal taxpayers and for composition taxpayers - GSTR-9A. The due date for filing details of goods or capital goods sent to job worker and received back in Form GST ITC-04 extended to 30/09/2018 for period June, 2017 to July, 2018

Labour Laws 1. Facility to download EPF Passbook The Employees Provident Fund Organization (EPFO) has initiated a facility, which allows an EPF subscriber to download the EPF passbook using his UAN (Universal Account Number)

Case Laws - Income Tax 1. Cuttack ITAT in Panda Fuels Vs ITO, It has been held that a Firm cannot be assessed for the unexplained cash credit u/s 68 of the Income Tax Act, 1961 in respect of the capital introduced by the partner. 2. Mumbai ITAT in Reliance General Insurance Co. Ltd. Vs ITO, It has been held that the payment made for mere use of a copyrighted article, as the copyright of the software was not transferred to the assessee therefore the payment cannot be treated as royalty. Hence the same is not subject to TDS U/s 195 of the Income Tax Act and as per the Indo-US tax treaty

Case Laws - Income Tax 3. Kerala HC reverses ITAT order The High Court has held that TDS under section 195 is not applicable on payment made by assessee (an Indian co.) to a US co. for providing management, financial, legal, public relations, treasury and risk management service, as they are not Fees for Included Services ( FIS ) under Article 12 of India-USA DTAA 4. ITAT Visakhapatnam in case of Madireddy Venkanna Babu Vs. The ITO It has been held that determination of cost of construction account at CPWD rate - AO directed to allow the rate difference of 15% and supervision charges to the extent of 10% in cost of construction determined by the DVO and recompute the investments subject to minimum of the cost of construction admitted by the assessee.

Case Laws - Indirect Tax 1. Kerala High Court in C P Rasheed Vs STAT It has been held that the Input Tax Credit cannot be granted to a dealer when the registration of the selling dealer was cancelled by the department after the purchase. 2. AAR, Rajasthan in Habufa Meubelen It has been held that where liaison office in India doesnot render any consultancy or other services directly/ indirectly, with or without any consideration and it does not have significant commitment powers, except those which are required for normal functioning of office, on behalf of head office, then reimbursement of expenses and salary paid by head office to liaison office established in India is not liable to GST.

Fortnightly Update No : 302 nd Disclaimer: This is for private circulation only. Every effort has been made to provide the correct information for the facility of our clients. Specific advice/clarification should be obtained in case there is any doubt relating to the aforesaid