*Happy Reading*
=== *Corporate News on 8th August, 2017* ===
*Mint*
=> Health ministry warns on rushed implementation of generics plan
=> Hike in GST cess on luxury cars will dent Make in India, say carmakers
=> NDA set to consolidate its Rajya Sabha position in the next 16 months
=> IRDA defends order on merger of Sahara Life, ICICI Prudential
=> Amazon India posts 88% jump in gross sales volume for June quarter
=> Number of ITR filings for 2016-17 jumps 24.7% to 28.2 million
...........................................
*Business Standard*
=> Sebi may extend trading hours for derivatives market
=> GIC Re files for IPO; might raise Rs 6,000 crore
=> Luxury car firms lash out at govt on cess flip-flop
=> Airtel plans to sell 3.7% in Bharti Infratel for Rs 2,500 crore
=> Gujarat Rajya Sabha poll today: Major blow for Ahmed Patel, NCP to back BJP
=> Zero tax certification for foreign remittances under I-T lens
...........................................
*Economic Times*
=> Amazon India set to make its online food retailing debut during Diwali
=> Centre, Supreme Court mulling radical judicial reform to ease higher courts’ load
=> Under scanner: SEBI sends notices to Angel Networks
=> Suzuki Sport details out, to be launched in Oct
=> Kabul requests India to launch exclusive satellite for Afghanistan
=> Government keen on swift update of law to hike cess on big cars
...........................................
*Financial Express*
=> Rajya Sabha Elections 2017: Edge of the seat contest likely in Gujarat today, Amit Shah, Smriti Irani, Ahmed Patel in fray
=> China says willing to pay price for new North Korea sanctions
=> Supporters of Venezuela President Nicolas Maduro march as hackers back army base attack
=> Gujarat Rajya Sabha elections: NCP to vote for BJP, fate of Ahmed Patel hangs in balance
=> Nepal PM Sher Bahadur Deuba to visit India from August 23
=> Blast rocks Pakistan city of Lahore, at least 35 injured
...........................................
*Hindustan Times*
=> Rajya Sabha poll today: BJP eyes all 3 seats in Gujarat, Ahmed Patel’s fate hangs in balance
=> Chandigarh stalking: Police find key CCTV proof against Haryana BJP chief’s son, Centre asks for report
=> S. Sreesanth eyes cricket return after Kerala High Court lifts life ban, BCCI guarded
=> SUVs, luxury cars to cost more as GST Council okays proposal to hike cess to 25%
=> Jab Harry Met Sejal: Shah Rukh Khan, Anushka Sharma fail to cross Rs 50cr mark over weekend
=> Fruit truck laden with explosive blasts in Lahore, injures 22
...........................................
*Indian Express*
=> Amit Shah, Smriti Irani, Ahmed Patel in fray: Gujarat braces for vote today as BJP, Congress draw battlelines
=> Chandigarh Stalking Case: Have CCTV footage of accused chasing victim, say police
=> 2.83 crore I-T returns: 25% increase in filing of tax returns, says Govt
=> NITI Aayog’s new head Rajiv Kumar hints at more exits, waning ‘foreign influence’
=> Nitish Kumar back in NDA, Bihar package on Centre table
=> Hearing on Jammu & Kashmir's Muslim minority status in Supreme Court today
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*The Hindu*
=> High-stakes battle today for Gujarat Rajya Sabha seats
=> Women’s panel seeks fair probe into stalking case
=> Chinese defence ministry meets visiting Indian media at the height of Doklam crisis
=> Situation grim for Bengal ‘taant’ sari weavers after GST
=> ‘Make In India’ yet to spur manufacturing, says panel
=> Pakistan all set to hoist the tallest flag in its territory
...........................................
*The Times of India*
=> Trai raps Apple for 'colonising data' in India, says it's anti-customer
=> Hafiz Saeed’s Jamaat-ud-Dawa launches political party in Pakistan
=> J&K braces for unrest over Article 35A
=> China bid to play on Nepal fears on Indian aggression
=> I-T returns up 25% as more individuals declare income
=> Doklam stand-off: China's defence ministry does not support 'short war' theory
...........................................
*अमर उजाला*
=> पाक सेना के स्नाइपर शॉट से LoC पर एक जवान जख्मी, हालत गंभीर
=> अहमद पटेल का राज्यसभा चुनाव जीतना हुआ मुश्किल, NCP विधायक बीजेपी को करेंगे वोट
=> J&K: सेना ने की घुसपैठ की बड़ी कोशिश नाकाम, 5 आतंकियों को मार गिराया
=> चंडीगढ़ छेड़छाड़: सवालों से तिलमिलाए SSP, प्रेस कांफ्रेंस बीच में छोड़कर भागे
=> केरल हाईकोर्ट ने क्रिकेटर एस. श्रीसंत पर लगा 'लाइफ टाइम बैन' हटाया
=> नोटबंदी का असर, आईटी रिटर्न 25 फीसदी बढ़ा
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*हिन्दुस्तान*
=> राज्यसभा चुनाव:गुजरात-बंगाल में वोटिंग आज, बीजेपी को मिला NCP का साथ
=> चंडीगढ़ छेड़छाड़ मामला:पुलिस ने बरामद किए 5 CCTV फुटेज
=> धमकी:बैन के बाद उत्तर कोरिया ने कहा- US को चुकानी होगी अपराधों की कीमत
=> अब इजरायल ने कतर के न्यूज चैनल अल जजीरा को बंद किया
=> GST: महंगी होंगी SUV-लग्जरी कारें, सेस बढ़ाने का प्रस्ताव
=> टेक्सटाइल इंडस्ट्री को जीएसटी में बड़ी राहत, अब पांच प्रतिशत ही टैक्स
...........................................
*दैनिक जागरण*
=> टेस्ट सीरीज में इंग्लैंड के इस ऑलराउंडर के प्रदर्शन के सामने फीके पड़े सब
=> गुजरात की सियासी जंग का फैसला आज, मुश्किल में घिरे हैं अहमद पटेल
=> धारा 35ए से छेड़खानी हुई तो होगा जन आंदोलन : फारूक
=> हाफिज सईद के आतंकी संगठन जमात ने बनाई राजनीतिक पार्टी
=> मच्छल में घुसपैठ नाकाम, पांच आतंकी ढेर
=> पाकिस्तान ने परमाणु अप्रसार संधि को नकारा
...........................................
*प्रभात ख़बर*
=> प्रतिष्ठा की जंग, गुजरात में राज्यसभा चुनाव आज, अहमद पटेल के भविष्य का होगा फैसला
=> नये सिरे से आकलन करवाने के मूड में केंद्र सरकार : फ्रिज, एसी या कार है, तो कल्याणकारी योजनाओं का लाभ नहीं!
=> बड़ा खुलासा : अटैचमेंट के डर से राबड़ी देवी ने बालू माफिया को एक दिन में बेचे तीन फ्लैट
=> दिलीप कुमार के स्वास्थ्य में सुधार, अभी भी आईसीयू में: अस्पताल
=> गुरुंग की चेतावनी जल्द वार्ता नहीं, तो शुरू होगी असली पिक्चर
=> जीएसटी में सामान ढोने वाले ट्रकों की भी होगी मॉनीटरिंग
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Banks are closed on 12th /13th /14th /15th August. ...plan accordingly.
Bank holidays in *August 2017*
*12.08.17* (2nd Saturday)
*13.08.17* Sunday
*14.08.17* Monday (Krishna Jayanthi)
*15.08.17* Tuesday (Independence day)
And again
*25.08.17* ( Ganesh chaturthi)
*26.08.17* (4th Saturday)
*27.08.17* Sunday.
Plan your Banking work accordingly 👍🏻
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Issued by CBEC
Invoice and payment voucher by a person liable to pay tax
under reverse charge:
A registered person liable to pay tax under reverse charge
(both for supplies on which the tax is payable under reverse
charge mechanism and supplies received from unregistered
persons) has to issue an invoice in respect of goods or service
or both received by him. Such a registered person in respect
of such supplies also has to issue a payment voucher at the
time of making payment to the supplier.
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SEBI had made amendments in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The amendment was made to enhance the transparency as earlier there was no specific disclosures are required in certain matter such as delay in payment of the Interest/ principal amount with respect to the loans etc. Now, the listed Entity shall make Disclosure of defaults made on payment of Interest/ repayment of principal amount on loans from Banks/Financial Institutions etc. The circular shall be applicable to all listed entities which have listed any of the specified securities (equity and convertible securities). The disclosures shall be made to the stock exchanges when the entity has defaulted in payment of interest / installment obligations on debt securities (including commercial paper), Medium Term Notes (MTNs), Foreign Currency Convertible Bonds (FCCBs), Loans from banks and financial institutions, External Commercial Borrowings (ECBs) etc. The entities shall make disclosures within one working day from the date of default at the first instance of default in the prescribed format. This circular shall come into effect with effect from October 1, 2017. This is to enable listed companies to put appropriate systems in place for prompt submission of disclosures as stipulated in this circular.
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*EXEMPTIONS GRANTED TO PRIVATE COMPANIES UNDER COMPANIES ACT, 2013 ��� CRITICAL ANALYSIS*
Recently, the Ministry of Corporate Affairs has amended the principal notification dated 5th June, 2015 to provide for some more exemptions to private companies, small companies, one person company, and start ups. This article is intended to analyse exemptions that have been granted to the aforesaid entities by the recent notification dated 13th June, 2017.
INTRODUCTION
1. In the Companies Act, 1956, there were specific provisions which granted exemptions to private companies. However, under the Companies Act, 2013 (���the Act���), there are very few provisions which provide for such specific exemptions to private companies. Taking into consideration the representation made by the stakeholders, Chamber of Commerce and Professional Institutes, the Ministry of Corporate Affairs (���MCA���) issued a Notification1 (���Principal Notification���) that provided for certain exemptions. However, the said exemptions are subject to compliance of certain conditions and disclosures. With an objective to provide more exemptions to private companies, the MCA issued yet another Notification2 (���recent MCA Notification���) and provided for some more exemptions to private companies, small companies, start-ups, one person company (���OPC���). The exemptions granted by recent MCA Notification are also subject to certain compliances and disclosures. It is also noteworthy that the recent MCA Notification amends the Principal Notification. This article is a critical analysis of the exemptions to private companies in the light of recent MCA Notification.
REQUIREMENT OF CASH FLOW STATEMENT
2. Pursuant to the extant provisions, OPC, small company and dormant company are not required to attach ���cash flow statement��� to the financial statements. The Principal Notification is amended by the recent MCA Notification and the exemption has been extended to a private company which is a ���start-up��� as recognised by DIPP. It���s noteworthy that the requirement of ���cash flow statement��� remains applicable to the private companies which are not start-ups.
ACCEPTANCE OF DEPOSITS UNDER SECTION 73 OF THE 2013 ACT
3. Pursuant to the recent MCA Notification, the following conditions are not applicable to a private company (subject to conditions, discussed later) for accepting money from its members from time-to-time :
Issuance of a circular to its members including therein a statement showing the financial position of the company, the credit rating obtained, the total number of depositors and the amount due towards deposits in respect of any previous deposits accepted by the company and such other particulars in prescribed form.Filing a copy of the circular along with such statement with the Registrar within 30 days before the date of issue of the circular.Depositing such sum which shall not be less than 15 per cent of the amount of its deposits maturing during a financial year and the financial year next following, and kept in a scheduled bank in a separate bank account to be called as deposit repayment reserve account.Providing such deposit insurance in prescribed manner.Certifying that the company has not committed any default in the repayment of deposits accepted either before or after the commencement of this Act or payment of interest on such deposits.
3.1 According to the recent MCA notification, the above mentioned provisions are not applicable to private company which satisfies any of the following conditions :
Private company which accepts from its members monies not exceeding 100 per cent, of aggregate of the paid-up share capital, free reserves and securities premium account. Under the Principal Notification, the monetary limit was only up to paid-up share capital, free reserves. The same has been extended by including securities premium account, as the same ���securities premium account��� are also shareholders funds.Private company which is a start-up, for 5 years from the date of its incorporation. This exemption has been introduced by the recent MCA Notification. It is noteworthy that private company which is a recognized start-up can raise deposits from its members without any monetary limit. At the same time, the recognised start-up is not required to even comply with conditions relating to the issuance circular, filing of copy of circular with Registrar of Companies, depositing prescribed amount in separate bank account, providing deposit insurance and certification with respect to no default in the repayment of deposits acceptedIf a private company complies with the certain conditions (as given below), it is not required to comply with the provisions of clauses (a) to (e) of sub-section (2) of Section 73 of the Act. These conditions are :Private company is not an associate company or subsidiary company of any other companyIf the borrowings of the private company from banks or financial institutions or any bodycorporate is less than twice of its paid up share capital or Rs. 50 crore, whichever is lower.Private company has not defaulted in repayment of the borrowings subsisting at the time of accepting deposits.
3.2 In my view, this exemption is very critical as it has prescribed three conditions that a private company is required to comply with. The private company in a group of companies will not be able to take the benefit of the said exemption, as it would be either an associate company or subsidiary company of the other company. However, a private company, which is a holding company in a group company, and at the same time satisfies other conditions, can take advantage of the said exemptions. The second condition has been introduced with an objective to impose a monetary limit on the borrowings of the private company. In my view, the third condition is very critical to comply with. The condition relates to no default with respect to the borrowings subsisting at the time of deposits. The ���borrowings��� are not defined and, hence, may include short-term or long-term borrowing or the borrowings from banks/financial institutions or creditors in the course of business. Considering the drafting of the said clause and intention of Government, the ���borrowings��� ought to have been ���borrowings from banks or financial institutions���, but it is not mentioned accordingly in the recent MCA Notification. In the recent MCA notification, it is also clarified that the said companies are required to file a return with the Registrar of Companies in prescribed format with respect to the details of monies accepted.
It is noteworthy that neither Principal Notification nor the recent notification exempts the compliance of clause (f) of sub-section (2) of section 73 of the Act. Therefore, a private company (whether start-up or not) is required to comply with the said condition. The condition relates to providing security, if any, for the due repayment of the amount of deposit or the interest thereon including the creation of such charge on the property or assets of the company. In my view, this condition ought to have been exempted for private company (whether start-up or not) with or without condition or compliances.
ANNUAL RETURN UNDER SECTION 92 OF THE ACT
4. According to section 92, every company shall prepare and file annual return with the Registrar of Companies. The details of the annual return shall be as on the close of the financial year. Amongst others, the company is required to disclose ���remuneration of directors and key managerial personnel��� in the annual return. According to the recent MCA Notification, private company and small company will be required to disclose only aggregate amount of remuneration drawn by directors. The remuneration drawn by key managerial personnel need not be disclosed by private company and small company. However, this exemption is not applicable to DIPP recognized start-ups, which are private companies. Pursuant to the provisions of section 92, the annual return of OPC and small company shall be signed by the company secretary, or where there is no company secretary, by the director of the company. The exemption with respect to signing of annual return has been extended to start-ups by the recent MCA Notification. Accordingly, the annual return of following companies shall be signed by company secretary, or where there is no company secretary, by the director :
OPC,small company andprivate company (if such private company is a ���start-up��� recognized by DIPP).
REPORTING BY THE STATUTORY AUDITOR UNDER SUB-SECTION (3) OF SECTION 143 OF THE ACT
5. According to sub-section (3) of section 143 of the Act, the statutory auditor of the company is required to report certain prescribed matters. For a private company which is satisfying certain conditions (as prescribed below), the statutory auditor is not required to report whether the said company has adequate internal financial controls system in place and the operating effectiveness of such controls. The statutory auditor is not required to report the above matter for ���
private company which is an OPC or small company ; orprivate company which has turnover less than Rs. 50 crore as per latest audited financial statement or which has aggregate borrowings from banks or financial institutions or anybody corporate at any point of time during the financial year less than Rs. 25 crore.
The exemption is not applicable to a private company recognised by DIPP as ���start-up���.
MEETINGS OF THE BOARD OF DIRECTORS UNDER SECTION 173 OF THE ACT
6. It is interesting to note that sub-section (5) of section 173 (relating to ���Meetings of the Board���) has been substituted by the recent MCA Notification whereby, OPC, small company, dormant company and private company (���recognised��� as start-up by the DIPP) shall be deemed to have complied with provisions of section 173, if at least one meeting of the Board of directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than 90 days. The provisions of sub-section (5) of section 173 has been extended to start-ups. It is further clarified in section 174 of the Act (relating to ���Quorum���) that the provisions are not applicable to OPC, if there is one director on its Board of directors. It���s quite astonishing that provisions of the Act are replaced by a Notification issued by MCA.
QUORUM FOR THE MEETING OF THE BOARD UNDER SECTION 174
7. Section 174 states that the quorum for a meeting of the Board of directors of a company shall be one-third of its total strength or two directors, whichever is higher. The provisions further clarify that the participation of the directors by video-conferencing or by other audio visual means shall also be counted for the purposes of quorum. Sub-section (3) of section 174 states that where at any time the number of interested directors exceeds or is equal to two-third of the total strength of the Board of directors, the number of directors who are not interested directors and present at the meeting, being not less than two, shall be the quorum during such time. Such provision is a hurdle for closely-held public companies and private companies. Taking into consideration that there is no exception to the said provision, the recent MCA Notification clarifies that in the case of private companies, interested director may be counted towards quorum in the meeting after disclosure of his interest pursuant to section 184 of the Act. ���Interested director��� as a term has been defined in clause (49) of section 2 of the Act, but the same is referred to only in section 174 of Act. Considering this, there is a proposed amendment [in Companies (Amendment) Bill, 2016] to omit the definition of ���interested director���. Therefore, in my view the amendment suggested by the recent MCA Notification may not have a long-term effect.
PARTICIPATION��� UNDER SECTION 184(2) OF THE ACT
8. Sub-section (2) of section 184 provides that every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement or proposed contract or arrangement entered into or to be entered into with prescribed parties [as elaborated in clauses (a) and (b)] shall disclose the nature of his concern or interest at the Board meeting in which the contract or arrangement is discussed and shall not participate in such meeting. The provision further states that where any director who is not so concerned or interested at the time of entering into such contract or arrangement, he shall, if he becomes concerned or interested after the contract or arrangement is entered into, disclose his concern or interest forthwith, when he becomes concerned or interested or at the first Board meeting held after he becomes so concerned or interested.
According to the MCA���s Principal Notification, in the case of private companies, the provisions shall apply with an exception that the interested director may participate in such meeting after disclosure of his interest. Whether such participation means ���discussion��� or ���voting��� or both? In my view, the MCA ought to have clarified expression ���participate��� in the recent MCA Notification.
APPLICABILITY OF MCA NOTIFICATION
9. Pursuant the recent MCA Notification, the exceptions, modifications and adaptations provided shall be applicable to a private company which has not committed a default in filing its financial statements (under section 137 of the Act) or annual return (under section 92 of the Act) with the Registrar of Companies. By this amendment, the MCA has amended the Principal Notification as well. However, it is interesting to note that there is a reference of ���default���. So the question that arises is : Can a private company take advantage of the MCA���s Notification (Principal and Recent Notification) if such company ���delays��� (but not ���default���) in either filing its financial statements or annual return? Another question that arise : Suppose if the private company ���defaults��� (or ���delays���, as interpreted) in either filing its financial statements or annual return, then is such company required to amend its articles of association (which it had amended pursuant to the Principal Notification) ?
CONCLUSION
10. The present notification provides for the exemptions for various classes of private companies as: (i) small company, (ii) OPC, (iii) private company recognised under start-up India, (iv) private company not recognised under start-up India. For every exemption for each class of private company, the MCA has prescribed separate conditions. The complexity is further compounded when the applicability of the MCA Notification is taken into consideration. Also, taking into consideration the number of start-ups recognised and registered by DIPP are very less, if the exemptions are granted to private company as a whole (rather than bifurcating exemptions between small company, OPC, start-up, etc.), the Government would be better placed to achieve the objective of ���ease of doing business���.
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[Designing Charges & Tooling Cost Reimbursed by the Customers is part of ‘Sales Turnover’ under Bombay Sales Tax Act: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/designing-charges-tooling-cost-reimbursed-customers-part-sales-turnover-bombay-sales-tax-act-bombay-hc/10049/
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Namaste
*Daily News Alert:*
*GST:* Taxpayers who have not filled Part B of their enrollment application, and would like to seek cancellation of registration, may do so now on GST Portal. Such taxpayers are requested to login with chosen username for activated Provisional Ids and opt for cancellation.
*GSTR-3B Return is now available* on the Portal. Form GSTR-3B needs to be filed by a taxable person under GST for submitting the provisional assessment of the tax liability. A taxable person has to file the GSTR-3B for the invoices generated in July by August 20, 2017.
CBEC asks Exporters to register their Bank Accounts with Customs for IGST Refunds
*SEBI:* Disclose Loan default within one working day: SEBI to listed Companie - Disclosures by listed entities of defaults on payment of interest/ repayment of principal amount on loans from banks / financial institutions, debt securities, etc.
*Case Study:* Kerala HC allows IT Returns filing without Quoting of Aadhaar - Prasanth Sugathan Vs. Union Of India (High Court Of Kerala At Ernakulam)
*ICAI Live Webcast* on GST - 8th Aug 2017 - 10.00 am to 5.30 pm on Classification under GST, Transition, Documentation, Migration issues, Job work etc. to view click here http://estv.in/icai/08082017/
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Income from Turnkey- Contract of Plantation would not constitute ‘Agricultural Income’: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/income-turnkey-contract-plantation-not-constitute-agricultural-income-bombay-hc/10045/
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CBEC has formally issued the notifications for extending the due dates for filing or returns GSTR-1, GSTR-2 and GSTR-3. Earlier, the Govt had only issued a press release announcing the extension of dates. The due date for Form GSTR 3B has also been notified. The due dates are now.
20th August - GSTR 3B for July
5th Sept - GSTR 1 for July
10th Sept - GSTR 2 for July
15th Sept - GSTR 3 for July
20th Sept - GSTR 3B for August
20th Sept - GSTR 1 for August
25th Sept - GSTR 2 for August
30th Sept - GSTR 3 for August
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Online Travel Agents liable to Deduct 1% TCS under GST: Provision kept in abeyance for the Time being, says CBEC [Read FAQs]
Read more at: http://www.taxscan.in/online-travel-agents-liable-deduct-1-tcs-gst-provision-kept-abeyance-time-says-cbec/10038/
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Companies Act :
Investigation ordered into affairs of the Company is justified where the order is made on the basis of material on record with proper application of mind. Writ Petition challenging the order is liable to be dismissed. Sunair Hotels Ltd. Vs. Union of India and Anr. [2017] 139 CLA 52 (Del.)
IBC :
Where the Corporate Debtor itself is initiating the process of Insolvency, it is incumbent on the Corporate Debtor to disclose all the facts including facts in relation to the debts owed by it to its creditors as well as of assets of the Corporate Debtor. In Re : Unigreen Global (P.) Ltd. [2017] 139 CLA 101 (NCLT)
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U Turn for GTA Industry
Welcome step which GSTN council has done in its meeting held on 05 August 2017 wherein they have made the GTA Industry, which was in earlier in Indirect Tax regime under reverse charge mechanism ( except when services provided to unregistered parties/ proprietorship) has come under the ambit of Forward charge under the GST regime.
With such move, GTA shall be charging the GST @12% and availing the Input Tax Credit. This welcome step shall reduce the cost of the services for the GTA Industry as credit of motor vehicle which constitute major cost will be available to the GTA Industry along other credit benefits including credit on self supplies invoices raised between the distinct persons.
For the same , each GTA has to analyse the cost benefit analysis which they have to make between the forward charge or reverse charge basis the below.
1 Compliance cost which GTA has to suffer on account of obtaining the registration in each states
2 Profitability of GTA under reverse charge v/s Forward Charge by taking the benefit of Credit under reverse charge in both the situation
3 Additional working capital blockage in the form of upfront payment of tax under forward charge v/s under reverse charge basis the debtor cycle.
4 Increase in the business opportunity wherein the customer accepts more from forward charge GTA as they will get the following benefits
a) Credit of the tax paid on day -1 v/s reverse charge they have to pay the tax first and then take the credit
b ) Reduced compliance cost for the customer under Forward charge
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Breaking: Govt Extends Time limit for Furnishing GST Returns to September [Read Notification]
Read more at:http://www.taxscan.in/govt-extends-time-limit-furnishing-gst-returns-september/10027/
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“Professional Updates:
*GST Council* in its 20th Meeting on 05 AUG 2017 (SAT) has approved the following:
# Authorize the FinMin to increase Cess on Motor Cars exceeding 1500CC or 4 Meters in length to 25% Vs 15%.
# E-Way bill will be implemented w.e.f. 1st OCT 2017.
• No e-Way bill for exempted goods.
• No e-Way bill for goods travelling within a radius of 10 kms.
# Anti-profiteering mechanism will be implemented by appointing state wise committees.
# Changed / Reduced GST Rates on the following items:
• Textile Job Works @ 5%
• Job work for printing of books, newspapers, etc. @ 5% (if Input used are supplied by the publisher), otherwise taxed @ 12%.
• Works Contract for Government @ 12% with full ITC.
• Agriculture Services provided post-Harvest and storage of food grains @ 12% Vs. 18%
• GTA given option to pay 12% GST with full ITC under forward charge or 5% GST without ITC (The option to be chosen at the beginning of financial year)
• Rent a Cab Operator – Given option to pay GST @ 12% with full ITC or 5% GST without ITC.
• Tractor Parts @ 18 % Vs. 28 %
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GST Council confirms Applicability of RCM on Legal Services
Read more at: http://www.taxscan.in/gst-council-confirms-applicability-rcm-legal-services/10009/
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New process of refund under the Income tax Act
Refund process under the Income tax becomes more stricter than earlier through the amended Section 143 (1) A of the Income Tax Act,
The Income tax department is suspecting that most of the taxpayers are getting refunds by declaring the taxable income comparatively lesser than the issued Form 16/16A. The Income tax department also find out that most of the salaried employees are taking credit of House Rental Allowances, Leave Travel Allowances and deductions under 80C to 80U without supporting evidences or supporting with fake documents.
To come over from this issue, the Income tax department amended section 143(1) A, where the tax payer will get intimation from the department regarding the deviation from their salary shown as per filed Income tax returns with the calculated salary as per Form 16 issued by the company or deviation from the income shown as per the Form 16 A or as per the 26 AS.
The taxpayer who gets the intimation notice u/s 143(1) A should reply to the notice within 30 days along with the supporting documents in the Income tax portal. It is mandatory that the scan copies of genuine documents are available with them at the time of filing income tax returns or within 30 days from the date of notice. The actual amount of taxable income as per the Form 16 or Form 16 A will be taken for the computation and it will be processed further by the income tax department if the taxpayer not replies to the notice within the prescribed time.
The taxpayers can verify the Part –A of Intimation u/s 143 (1) A, it will be very clear about the mismatches happened with your filed Income Tax return and Form 16.
Let us know the steps to be followed for replying to the notice u/s 143(1) A to get the refunds or to agree to the additions,
Steps to be followed to reply:
Step 1: Log on to https://www.incometaxindiaefiling.gov.in/
Step 2: Login through your User ID (PAN) and Password
Step 3: Choose E-Proceedings and then Click on e-Assessments/Proceedings
Step 4: Click on the link placed under Proceeding Name
Step 5: Click on the link placed under Reference ID to verify once with your return
Step 6: Click on the option ‘Submit’ to respond for the intimation u/s 143(1) A
Step 7: In the response column you can choose 'Agree for Addition'
***** You can choose the above option if Income tax return filed with unintentional errors, further your total income will be considered with the actual additions as per the intimation and you have to file Revised return within 15 days from the date of response.
Step 8: In the response column you have to choose 'Disagree to the addition'
***** If your form 16/form 16 A does not given effects to the deductions what actually it supposed to be then you can choose this option, further the relevant documents also to be upload for getting refunds along with the proper reason to be chosen from the drop box. Here no need to file a revised return after a given response.
For Example: (If Salaried employees)
** Choose 'Allowances exempt claimed under Return not in form 16' for the below
Conveyance Allowance - To the maximum of Rs.19200 per Annum
HRA not clamed under Form 16 - But it should be under section 10(13A) of the Income tax Act
** Choose 'Deductions claimed under return not in Form 16' for the below
LIC Premium, Medical Insurance, Recurring Deposits, House loan Repayments, Fixed Deposits above 5 Years, PPF and other 80C to 80U deductions
It is always better to file the tax returns with proper income as per your Form 16/Form 16A, the taxpayer can check 26 As once before filing their Income tax returns for better ideas. Even we can get refunds if there are genuine documents as per law. It’s always better to consult with an Expert before giving any response to the process mentioned above.
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: 25% growth in number of Income Tax Returns filed in current fiscal Advance Tax (Personal Income Tax) collections up by 41%
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 07th August, 2017.
PRESS RELEASE
25% growth in number of Income Tax Returns filed in current fiscal Advance Tax (Personal Income Tax) collections up by 41%
As a result of demonetization and Operation Clean Money, there is a substantial increase in the number of Income Tax Returns(ITRs) filed. The number of Returns filed as on 05.08.2017 stands at 2,82,92,955 as against 2,26,97,843 filed during the corresponding period of F.Y. 2016-2017, registering an increase of 24.7% compared to growth rate of 9.9% in the previous year. The growth in returns filed by Individuals is 25.3% with 2,79,39,083 returns having been received upto 05.08.2017 as against 2,22,92,864 returns in the corresponding period of F.Y. 2016-2017. This clearly shows that substantial number of new tax payers have been brought into the tax net subsequent to demonetization.
The effect of demonetization is also clearly visible in the growth in Direct Tax Collections. Advance Tax collections of Personal Income Tax (i.e. other than Corporate Tax) as on 05.08.2017 showed a growth of about 41.79% over the corresponding period in F.Y. 2016-2017. Personal Income Tax under Self Assessment Tax (SAT) grew at 34.25% over the corresponding period in F.Y. 2016- 2017.
The above figures amply demonstrate the positive results of the Government’s commitment to fight the menace of black money. CBDT is committed in its resolve to eradicate tax evasion in a non intrusive manner and widening of tax base.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
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No TDS on Payments made for providing SMS Services: Bombay HC [Read Order]
Read more at: http://www.taxscan.in/no-tds-payments-made-providing-sms-services-bombay-hc/10017/
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Delhi HC allows Expenditure Incurred prior to recognition of R & D Center [Read Judgment]
Read more at: http://www.taxscan.in/delhi-hc-allows-expenditure-incurred-prior-recognition-r-d-center/10012/
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There's no perfect life but we can fill it with perfect moments.
Life is best for those who are enjoying it. Difficult for those who are comparing it. Worst for those who are criticizing it. Your own attitude defines your life.
Government has postponed the filing of GSTR 1,2 & 3 for July and August, 2017.
In the place of these monthly returns, GSTR 3B has been introduced. Deadlines for July GSTR 3B is 20th August 2017 .
GST Council (20th) meeting Update
i. Total Registration- 86 lacs
ii. E way bills given in-principle approval
a. Limit of 50000 not changed
b. Eway bill not to be issued for exempted goods
c. Eway bill not to be issued of goods are travelling within 10 km radius
iii. Jobwork of all kinds of textiles will be taxed at 5%. Earlier some types of jobwork were taxed at 18%
iv. Rates on tractor parts brought down to 18%
v. Government given work contracts like roads bridges canals will now be taxed at 12% with credits. Earlier this was 18%.
vi. Anti profiteering mechanism will get kick started by appointing state wise committees.
SEBI widens default disclosure rules as Bank loans worth at least Rs 12 lakh crore have at present been classified as NPAs. So it compulsory for listed companies to make a disclosure to the stock exchanges if they default on any interest or principal payment obligation to banks.
Aadhaar now mandatory for death certificates except Jammu & Kashmir, Assam and Meghalaya wef. October 1, death certificates will be issued only after relatives of the deceased provide Aadhaar number to authorities.
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: 🎾 *GST Payment Process*
*Highlights*
1.🐌 Only 25 banks have been authorised to collect GST.
2. 🐌Private Banks, HDFC, ICICI and Axis Banks are not eligible to collect GST.
3. 🐌Regd persons having their accounts with these banks can pay only through NEFT/RTGS only.
4. 🐌All tax challans are to be created only after logging into your GST account.
5. 🐌CPIN will be generated for each such challan created.
6. 🐌Such challan can be used to pay later but only within 15 days.
7.🐌 Such challans having CPIN are also required even if you wish to pay through epayment or debit/credit card.
8. 🐌After payment of challan either at bank or epayment mode, a CIN number will be generated.
9. 🐌If payment is made through NEFT/RTGS, then you have to log in to your account and enter your UTR number in your profile.
10. 🐌Three days after the generation of CIN or entering your UTR, your tax payment will be reflected in your e-cash ledger.
11. 🐌Only after the payment is reflected in your e-cash ledger, you can adjust/pay your output liability.
12. 🐌This concept of three days is different from what is in IT, etc.
*Conclusion*
🏵You must pay your taxes well 3 days before you file your GSTR-3.Only then you will be able to file your GSTR-3.
🏵In other words, if last date of filing GSTR-3 is 20th, then last date of payment will be 17th.
🙏So please be sure to pay off your tax liability by 15-17th of each month.
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Sec 12AA Registration cannot be Denied to a Trust Merely on Ground of Absence of Dissolution Clause in the Deed: Bombay HC
Read more at: http://www.taxscan.in/sec-12aa-registration-cannot-denied-trust-merely-ground-absence-dissolution-clause-deed-bombay-hc/10004/
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🙏 *नमस्कार*🙏
जय श्री सालासर बालाजी
चिंतित व्यक्ति के मन में राक्षक अपना स्थायी डेरा जमा लेता है, फिर वह न कार्य आरम्भ करने देता है और न सफलता प्राप्त करने देता है।
📺 *Updates*
➡1. Now listed entities need to disclose loan defaults within one working day: SEBI
CIR/CFD/CMD/93/2017
➡2. CBEC explains concept of Aggregate turnover and Margin scheme under GST
➡3. Analysis of Section 115BBDA of the Act vis-à-vis taxability of mutual fund above the specified limit.
➡4. NCLT allows conversion of public Co. into a private Co. as it wasn’t prejudicial to interest of stakeholders.
NATIONAL COMPANY LAW TRIBUNAL, CHENNAI BENCH Chettinad Cement Corporation Ltd.,
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Rounding of tax etc. under GST:
Section 170. The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.
Thus, from the above the following points may be concluded:
•The amount of tax or interest payable shall be rounded off to nearest rupees.
Manner of rounding off:
Rounding of under GST shall done at the stage where tax is actually liable to be paid. As per section 12 / section 13 tax is payable at the time of supply which is generally at the time of issue of invoice by the supplier. The extract of the section 12 and section 13 of the act is given below:
Section 12: Time of supply of goods i.e., liability to pay tax in case of supply of goods:
(1) The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of goods shall be the earlier of the following dates, namely:—
1.the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or
2.the date on which the supplier receives the payment with respect to the supply:
Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.
Explanation 1.––For the purposes of clauses (a) and (b), “supply” shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.
Explanation 2.––For the purposes of clause (b), “the date on which the supplier receives the payment” shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.
Section 12: Time of supply of services i.e., liability to pay tax in case of supply of services:
(1) The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following dates, namely:—
•the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or
•the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or
•the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply:
Provided that where the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount.
Explanation.––For the purposes of clauses (a) and (b)––
1.the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment;
2.“the date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.
Conclusion:
Rounding of tax shall be done at each time when liability to pay tax arises. Under the normal circumstances liability to pay tax arises at each time when an invoices is issue to the recipient and hence at each invoice level rounding off the tax needs to done and the aggregate tax liability for a tax period (which is on monthly basis) shall be paid within 20 days after the end of the particular month.
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GST Gyan-SAC (GST) code for CAs.
998221 Auditing
998222 Accounting
998223 Payroll
998231 Corporate Tax consultancy
998232 Individual Taxation
998224 Other similar services
Thanks For Reading.