CA Rohit Jaiswal: 17 August 2017 Updates

Insolvency Law and Home Buyers of Jaypee Infratech:

The insolvency proceedings initiated by the National Company Law Tribunal against Jaypee Infratech have left thousands of home buyers in dilemmatic and vagabond conditions.

There were confusions between home buyers, professionals, other persons etc. in which form home buyers should claim their dues as:
**Form B is meant for claims by operational creditors;
**Form C is meant for claims by financial creditors; and
**Form D is for claims by workmen and employees.

Since home buyers don’t fall in any of above three categories, Insolvency and Bankruptcy Board of India issued a Notification dated 16th August, 2017 regarding amendment in IBC Regulations to notify Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2017, whereby it is now provided u/r 9A that:

"A person claiming to be a creditor, other than those covered under regulations 7, 8, or 9, shall submit proof of its claim to the interim resolution professional or resolution professional in person, by post or by electronic means in Form F of the Schedule."

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PRESS INFORMATION BUREAU

GOVERNMENT OF INDIA

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On Clarification regarding availability of Transitional Credit for GST

New Delhi, August 17, 2017
Shravana 26, 1939

As per the rules, the Goods and Services Tax (GST) for the month of July 2017 has to be paid by 20th August, 2017. Only after the payment of full GST, return in summary Form 3B can be filed.
Concerns have been raised about the form for claiming transitional input tax credit not being available on the GSTN website. This form will be available on the GSTN website from 21st August, 2017. In view of this, a small window of opportunity is being given to all the taxpayers. For those taxpayers who do not want to claim any transitional input tax credit have to necessarily pay the tax and file return in Form 3Bbefore the due date of 20th August, 2017. The taxpayers who want to avail the transitional input tax credit should also calculate their tax liability after estimating the amount of transitional credit as per Form TRANS I. They have to make full settlement of the liability after adjusting the transitional input tax credit before 20th August, 2017. However, in such cases, they will get time upto 28th August, 2017 to submit Form TRANS I and Form 3B. In case of shortfall in the amount already paid vis-à-vis the amount payable on submission of Form 3B, the same will have to be paid with interest @ 18% for the period between 21stAugust,2017 till the payment of such differential amount.

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DSM/SBS/AK

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Manufacturer of Food Items can claim ITC on Rent: Food Supplied in Non-AC Areas of A/C Restaurants Attracts 18% GST, says CBEC [Read FAQs]

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*GSTR 3B*: CBEC has just clarified on filing of GSTR-3B on its Tweeter handler @askGST_GOI.

Tweet # 1 of 5: There are rumours floating around that the last date for payment of GST and filling of return in FORM-3B is being extended by a week.

Tweet # 2 of 5: These rumours are unsubstantiated.

Tweet # 3 of 5: There is no change in the last date for payment of GST as per the self-assessed liability.

Tweet # 4 of 5: However for taxpayers who want to claim transitional credit the time period for only filing of return in FORM3B is EXTENDED by one week.

Tweet # 5 of 5: However even those taxpayers will SETTLE self-assessed liability (after adjusting transitional ITC) of GST by 20th August.

*DVAT*: The Due Date of filing of DVAT Returns in Form 16, 17 & 48 for Q1 of FY2017-18 has been EXTENDED upto 01 SEP 2017 - Circular # 13 dt.17-08-2017.

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CBEC Issues Guidelines for Provisional Release of Seized Imported Goods Pending Adjudication [Read Circular]

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Tax Officers to donate one-day Salary to Prime Minister’s Relief Fund to help Flood-Affected States

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Filing procedure- GSTR-3B:

Last date of GSTR 3B filing is 20 Aug 2017.

Step by step guidance:
1. After login, select Return Dashboard.
2. Select Financial Year 2017-18 and Month July. Click Search and Select GSTR-3B
3. Declare your liabilities and ITC claims in Section 3.1 and 4 respectively by clicking on the tiles and furnishing the required information. Transitional ITC cannot be claimed in GSTR 3B. It can be claimed only through TRANS 1 and TRANS 2.
4. Enter details of interest, if payable, in Section 5.1. Late fee will be computed by the
system.
5. Click on Save GSTR-3B button. After you save the data, Submit button will get enabled. Please note that after submit, no modification is possible. Hence ensure that details are filled correctly before clicking on Submit button.
6. On clicking Submit GSTR-3B button, System will post (debit) the self-assessed
liabilities including system generated late fee in Liability Register and credit the claimed ITC into ITC ledger.
7. After this the Payment of Tax tile will be enabled, please click it and declare your
payment details to pay the taxes and offset the liability.
8. Click CHECK BALANCE button to view the balance available for credit under Integrated Tax, Central Tax, State Tax and Cess. (This includes transitional credit also, ifRAN-1 and 2 are submitted). This will enable you to check the balance before making the payment for the respective minor heads. The balance is also displayed when the mouse is hovered on the applicable data entry field in payment section.
9. Please fill out the section that specifies how you wants to set-off your liabilities using a combination of Cash and ITC.
     a.   System checks if you have sufficient Cash/ITC balance.
     b   It also checks if the Reverse charge liabilities are set-off only through CASH.
     c.   System also checks if all liabilities are set-off. Part payment is not allowed in GSTR-3B. Hence, ensure sufficient balance in cash and ITC Ledger to Offset liability
     d.   In case of ITC utilisations, the system checks the prioritization rules viz. IGST. Credit has to be first utilised for paying IGST liability and remaining for CGST liabilityeafter SGST liability; SGST credit has to be first used for paying SGST liability and then IGST liability; CGST Credit has to be first used for CGST liabilityremaining for IGST Liability; SGST credit cannot be used for paying CGST liability and CGST credit cannot be used for paying SGST liability
     e.   Transition ITC, if available in ITC ledger, can be used for payment of liabilities of GSTR 3B

10. Click the OFFSET LIABILITY button to pay off the liabilities
11. Click on declaration statement
12. Select Authorized Signatory filing the Form
13. Click on File GSTR-3B button with DSC or EVC
14. Message for successful filing will appear and Acknowledgement will get generated.

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👉🏻BSE, NSE likely to begin audit of 100 suspected shell companies.*

(Stock exchanges BSE and NSE are likely to initiate audit on 100 out of 331 suspected shell companies in the first batch in coordination with SEBI. A panel of auditors will soon be appointed for first stage of audit of select 100 companies.)
👇🏻 👇🏻 👇🏻
http://www.casansaar.com/news-Auditing/BSE-NSE-likely-to-begin-audit-of-100-suspected-shell-companies/9160.html

*👉🏻Cabinet approves CGST refund scheme.*

(The government has approved a new metro rail policy, a scheme to refund central goods and services tax( CGST) to industrial units in Himachal Pradesh, Uttarakhand, Jammu & Kashmir and the North-East ctill 2027, and changes to strategic disinvestment policy to speed up decision-making)
👇🏻 👇🏻 👇🏻
http://www.casansaar.com/news-GST/Cabinet-approves-CGST-refund-scheme/9159.html

*👉🏻Banks' Auditors under lens: RBI seeks explanation on differences in write-downs.*

(RBI has questioned scores of auditors at 27 public sector banks on the process and logic they had used to compute and report write-downs at the lenders. RBI has sought written explanation on differences in the write-down assessments by its own inspectors and those certified by the auditors.)
👇🏻 👇🏻 👇🏻
http://www.casansaar.com/news-Auditing/Banks-Auditors-under-lens-RBI-seeks-explanation-on-differences-in-write-downs/9162.html

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ICAI - Empanelment of Members to act as Observers at The Examination Centres for The Chartered Accountants Examinations November / December 2017 - (10-08-2017) - http://resource.cdn.icai.org/46209exam36340.pdf

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➡1. Govt. allows refund of CGST and IGST to eligible units situated in excise-free zones.

➡2. Frequent dealings in shares which were held as stock-in-trade would trigger tax on gains as business income
Srinivasan Narayanasamy v. Assistant Commissioner of Income-tax, Chennai.

➡3. SEBI exempts open offer obligations for acquisitions pursuant to resolution plans approved under Bankruptcy Code

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*Important GST Points*
1. *In case of ex-factory sale* where movement has been contemplated of goods through a transporter in the contract whether arranged by buyer or seller, place of supply shall be the place of business of buyer.
2. *GST will be Paid on Reimbursement* Claimed by employee because it is expenditure of company itself - only that the employee first paid on behalf of company
3. *Goods Returned to Unregistered Dealer* than he will charge GST while returning goods as it must have taken ITC of those goods
4. *Remuneration to partners over & above share of profits not in nature of employer-employee relationship*- . As per the Case of *Bharat Prasad v. Paras Singh Jute Mills, (1907), 34, Cal. 289* - Share in partnership is actionable claim and as per Schedule 3 of CGST Act- actionable claims are not taxable under GST
5. *Calculation in case of MRP Products*- GST is payable on basis of sale price - If sale at MRP, then make back calculations and charge GST such that total amount charged is equal to or les than MRP.
6. *If Form Like C Form not Recd*- you have to get form like C, F etc. within three months -otherwise Vat credit is not allowed to be carried forward as SGST;

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#Economy:The I-Tax dept is preparing one more list of penny stocks based on the findings of an earlier probe into market operators who facilitate money laundering/tax evasion through listed companies. Lot of penny stocks so called because they quote at an absolute low price belong to companies with no genuine business activity. These companies are shell firms, which exist for helping the wealthy either evade taxes or launder their undisclosed income. Earlier this year, the I-T dept had prepared a list of 84 penny stocks and shared it with the SEBI. The list currently being prepared is expected to have some 250 names. The I-T dept came across the fresh names while probing the money trail of the market operators.

#Finance:Industries in the north eastern and Himalayan states will continue to get tax exemption till March 2027, albeit as refund, under the GST regime. Within the framework of the GST Act each industry will be entitled to its own refund mechanism during this particular period March 31, 2027. As per the scheme, industries which commenced operations during the period got excise tax holiday for 10 years, FM said, adding that there is a separate residuary period for every industry because of commencement of production and their consequent entitlement of 10 year exemption.

#In an attempt to make drugs affordable to all, the Govt has planned a fresh pharmaceutical policy. The policy draft says that the Govt will fix trade margins for drugs as well. At present, the National Pharmaceutical Pricing Authority is in the process of fixing trade margins for a number of medical devices like orthopedic knee implants and cardiac stents.The issue of unreasonable trade margins and bonus offers by various stockists, distributors and retailers has been adversely affecting both the industry as well as consumer interest. After detailed stakeholder consultations, the level of trade margins will be prescribed to create a level playing field for the industry and to bring down the prices.

#SEBI has notified relaxed norms for stake purchase in distressed listed companies by lenders, exempting them from making open offers for shareholders.The relaxation will be subject to certain conditions, including shareholders' approval of the stake acquisition by way of special resolution. The Sebi decision comes against the backdrop of the Govt and the RBI stepping up efforts to tackle the menace of bad loans, amounting to over Rs 8 lakh crore.

🇮🇳भारत माता की जय🇮🇳

CA Rohit Jaiswal

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Friday, 18 August 2017

17 August 2017 Updates