📺 *Updates*
➡1. GST Council may fix tax anomalies, cess hike on cars at meeting to be held on Sept. 9, 2017
➡2. Multimedia speakers with FM radio can be classified as speakers on basis of their main function
Global Enterprises v. Commissioner of Central Excise, Delhi-II
➡3. Sec. 264 revision couldn't be allowed if recovery proceedings were initiated against assessee: HC
Rohit Agrawal v. Principal Commissioner of Income-tax-II*
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*Service Tax:*
1. *E-commerce services-* The respondent is running website through which the interested steel manufacturer/trader are making trade. The buyers of the goods are not accessing any information online or on the respondent's website but they are only interested for sale and purchase of the steel products. Therefore such services are classified as e-commerce services and not online information or database access or retrieval services (OIDAR).
*2017-TIOL-3262-CESTAT-MUM*
2. *Bank Charges-* Charges collected from a/c holders for cheque return, minimum balance violation & non-maintenance of average balance are not penalties and are rightly chargeable to tax.
*2017-TIOL-3269-CESTAT-MAD*
*Central Excise:*
3. *Powers of the Settlement Commission-* Whenever the Settlement Commission comes to the conclusion that the dispute cannot be resolved by it, it has an absolute discretion to refer the matter to the adjudicating authority.
*2017-TIOL-1790-HC-DEL-CX.*
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#Economy:The Govt is looking at feasibility of mandating all unlisted companies to have their shares in dematerialised form, as authorities step up efforts to weed out shell firms. Preliminary discussions have been initiated on the proposal to dematerialise shares of all unlisted firms in a phased manner, which would still be a gargantuan task considering there are more than 1.6 million registered companies in the country. Deliberations are progressing between the MCA and SEBI on the nitty-gritty of keeping shares of all unlisted companies in the dematerialised form.
#The ambitious project to conduct the paperless assessment for income tax payers rose by 78% over the last three years, prompting the department to roll out the regime pan-India by the end of this financial year. The Govt initiative was launched in October 2015 by the I-T dept's policy-making body--CBDT-in select metro cities with an aim to reduce the visit by assesses to tax offices and their interface with the taxman, thereby curbing instances of corruption.
#The Centre proposed rules for a "no-fly list", the first of its kind in the world, that allow airlines to bar unruly passengers from flying for up to two years.The rules were issued months after a parliamentarian was caught on camera assaulting an airline crew member for not being able to provide him a business class seat in an all-economy flight. Disruptive behaviour like physical gestures; abusive behaviour like pushing, kicking and sexual harassment; and life-threatening behaviour will ground offenders for three, six and 24 months, respectively.The proposed rules will be open for public comments for a month before being finalised.
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The Allahabad High Court answered in the negative while making the following three observations:
(1) Section 60(1) of the Code makes NCLT the adjudicating authority for insolvency resolution for corporate persons including corporate debtors as well as “personal guarantors.”
(2) Insolvency proceedings have been initiated, where the SBI has also admittedly submitted its claim before the resolution professional. SBI cannot be allowed to pursue two remedies on the same cause of action
(3) In view of the moratorium, proceedings are still in fluid stage and until liability is crystallised, against debtors/guarantors, there is no occasion for the DRT to proceed against the corporate guarantors.
The Allahabad High Court, therefore stayed the proceedings before the DRT till the time moratorium period exists or resolution plan/liquidation proposal is admitted by the NCLT.
https://barandbench.com/allahabad-hc-liability-guarantors-moratorium-ibc/
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: CBEC Directs Officials to Follow its Instructions & Legal Provisions Strictly while Collecting Duty [Read Circular]
Read more at: http://www.taxscan.in/cbec-directs-officials-follow-instructions-legal-provisions-strictly-collecting-duty-read-circular/10916/
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*Two RUMOURS* are in circulation since today evening:
1. Extension of GSTRs filing dates; and
2. Resignation of Dr Hasmukh Adhia, Revenue Secretary.
*As of now, there is NO EXTENSION OF GSTRs filing DATES*.
*WHEREAS Dr. Hasmukh Adhia, Revenue Secretary has tweeted TODAY evening *:
"Dr Ajay Bhushan Pande will hold charge of chairman GSTN in place of Navin Kumar who retired recently. He is DG UIDAI (Aadhar). He brings with him his vast experience of implementing complex IT projects. I welcome him to the Team GST of Revenue deptt."
Source:https://twitter.com/adhia03/status/906147981610573824 & https://twitter.com/adhia03/status/906148445299253249.
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Payments made to Non-Residents through Agent is subject to TDS: Bangalore ITAT [Read Order]
Read more at: http://www.taxscan.in/payments-made-non-residents-agent-sunject-tds-bangalore-itat/10885/
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Companies Act :
The NCLT is constituted to render speedy justice in time bound manner without giving scope to raise frivolous pleas in between by amending pleadings. P Ram Bhoopal and Others vs. Pragnya Riverbridge Developers Ltd. and Others. [2017] 139 CLA 255 (NCLT)
IBC :
Petitioner will not lose locus standi to file petition to initiate Corporate Resolution Process solely on the ground that it has got itself reimbursed from the insurer of goods. Macquarie Bank Ltd. vs. Uttam Galva Mettalics Ltd. [2017] 139 CLA 216 (NCLT)
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21st GST Council Meeting Tomorrow to Fix Tax Anomalies, Cess hike on Cars
Read more at: http://www.taxscan.in/21st-gst-council-meeting-tomorrow-fix-tax-anomalies-cess-hike-cars/10919/
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Govt to Ultilize 1% of Its’ Additional Tax Revenue for the Efficiency & Development of CBDT
Read more at: http://www.taxscan.in/govt-ultilize-1-additional-tax-revenue-efficiency-development-cbdt/10914/
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# *GST*: EEPC urges Commerce & Industry Minister - Suresh Prabhu to intervene and push for release of at least 90% of GST refunds to exporters immediately after the shipping bills are filed with the authorities.
# *GST* collection for July, 2017 touches Rs.94,700 crore from 44 lakh businesses.
# *PMGKY*: The I-T Dept. has collected a tax of Rs.2,451 crore from 21,000 people who disclosed Rs.4,900 Crore black money under the Pradhan Mantri Garib Kalyan Yojna (PMGKY) post DeMon that closed on 31 MAR 2017.
# *MCA*: The Central Government delegates powers to Regional Directors to make representations in case of Reduction of Share Capital by the Company.
# *Ministry of Labour and Employment - The Code on Wages Bill 2017* - As part of labour law reforms, the Government has undertaken the exercise of rationalisation of the 38 Labour Acts by framing 4 labour codes viz Code on Wages, Code on Industrial Relations, Code on Social Security and Code on occupational safety, health and working conditions.
# *NFL*: Government kick starts National No Fly List (NFL) for domestic passengers in India - could be banned from flying for 3 months to three years or more from today, in case the passenger is an unruly passenger.
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ICAI Forms Group for suggesting ways and means to resolve Inter Unit Reconciliations issues under GST Regime
Read more at: http://www.taxscan.in/icai-forms-group-suggesting-ways-means-resolve-inter-unit-reconciliations-issues-gst-regime/10881/
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: Loss on the sale of Mutual Fund is Business Loss, Not Capital Loss: ITAT Delhi [Read Order]
Read more at: http://www.taxscan.in/loss-sale-mutual-fund-business-loss-not-capital-loss-itat-delhi-read-order/10873/
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IMA not Liable to Pay Tax for receiving Endorsement Fee Income for Promoting Pepsi and Dabur [Read Order]
Read more at: http://www.taxscan.in/ima-not-liable-pay-tax-receiving-endorsement-fee-income-promoting-pepsi-dabur/10867/
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Startups and unlisted subsidiaries of some major Indian companies and multinationals find themselves in the crosshairs of the income tax department for raising funds through preference shares in excess of what it considers the fair market value.
Input tax credit on reverse charge mechanism will be available in the same month for which tax under reverse charge mechanism is paid.
State laws repugnant to Insolvency and Bankruptcy Code (IBC) are void, says supreme court: http://www.thehindu.com/news/national/state-laws-repugnant-to-ibc-are-void-says-supreme-court/article19637068.ece
If your multipurpose empanelment form application selected for submission of financial documents, visit http://www.meficai.org/financialdocuments.jsp for more details.
The Insurance regulatory and development authority of india (IRDAI) will soon allow insurance brokers to offer consultancy for claims not exceeding Rs10 crore without the need for regulatory approvals. For claims exceeding Rs.10 crore, the brokers will have to seek prior approval from the regulator.
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*FAQ GST* *Composition*
*Q.1*Whether a person can avail the composition scheme on Small Retail Trading of goods if he is holding both incomes like Sale of business: Rs.25 lakh (Small Retail Trader) and Rental income:Rs.12lakhs, whereas the person was registered earlier in VAT Composition Scheme and was paying Service Tax on rental income?
*Ans1*Renting is a service and supplier of service, except restaurant service, cannot opt for composition scheme. Since you are supplying both goods & services, you are not eligible for composition scheme.
*Q2* Can traders selling on ecommerce portals avail composition scheme if their turnover is less than 75 lakhs?
*Ans2* No, Sub-section (2) of section 10 refers.
*Exports*
*Q3*:Whether every registered person who intends to export requires fresh Bond/LUT even if the same was issued on or before 30 Jun, 2017 and is still live i.e. not one year old.
*Ans3* Circular No. 4/4/2017 - GST dated 07.07.2017 clarifies this. Old LUT/bond is valid till 31.07.2017, after which fresh LUT/Bond in the new format is required to be submitted.
*Q4* Someassessees had multiple central excise registrations under the earlier regime and were
having different LUT/ Bond for each premises. In GST, there will be single registration for such
assesses. Do they require furnishing fresh bond/LUT for their principal place of business or the existing Bond/LUT issued to them prior to 30.06.2017 shall be applicable for the export purpose.
*Ans4* Circular No. 4/4/2017 - GST dated 07.07.2017 clarifies this. Old LUT/bond is valid till 31.07.2017, after which fresh LUT/Bond in the new format is required to submitted.
*Q5* With reference to clause 5 of Rule 96 A as inserted vides Ntf No. 15/2017 – Central Tax dated 01st July 2017 “(5) The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond.” It may be clarified as to whether any conditions and safeguard has been notified by the Board as on date, as certain parties have filed LUT
for export in this office.
*Ans5* Yes,conditions and safeguards have been specified by Notification No. 16/2017-Central Tax dated 07.07.2017 and clarified in detail in Circular No. 4/4/2017 - GST dated 07.07.2017. The sum and substance of these documents is that the facility of Letter of Undertaking in place of a bond is
available to a registered person who is either (a) a status holder as specified in the Foreign Trade Policy 2015-2020; or (b) who has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year. The person should not have been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees.
*Q6* In case of export of services, who will pay the service tax as for Bhutan, Nepal and Bangladesh?
*Ans6* The place of supply is outside India but as the supplier is located in India, it is a case of inter-State supply and subject to IGST. It will be zero rated if the sale proceeds are realized in convertible foreign exchange.
*Q7* Will GST be debited in duty credit scrips such as Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS)?
*Ans 7* No.
*Q8* In view of definition of ‘export of goods’ given in Section 2(5) of the IGST Act, 2017, the supply of goods by the manufacturer to merchant exporter cannot be treated as exports as he is not taking out the goods out of India. He is supplying the goods to the merchant-exporter. Therefore, is the manufacturer required to pay CGST and SGST in all cases of exports by merchant-exporter even though the goods are being sealed in container for export from the premises of manufacturer-exporter? Does the merchant-exporter have the option either to avail option of Bond/LUT or to pay IGST for export of such goods?
*Ans 8* - Yes, The manufacturer would be liable to pay CGST and SGST.The merchant-exporter has the option either to avail option of Bond/LUT or to pay IGST for export of such goods.There is no provision on the lines of Form H in CST under GST.
*Q9* As per Rule 96A of Central Tax, the LUT is to be accepted by the Jurisdictional Commissioner, Udaipur whereas in pre GST era the same was accepted by the jurisdictional Deputy/Assistant Commissioner Kota. The Commissioner of Kota region has office at Udaipur which is 290 Kilometers away from Kota due to which it is impractical to file LUT at Udaipur with Commissioner as compared to previous procedure.
*Ans9* Circular No. 2/2/2017-GST dated 04.07.2017 has clarified that an exporter wishing to export without payment of integrated tax may approach the jurisdictional AC/DC for acceptance of bond/LUT. Circular No. 4/4/2017-GST dated 07.07.2017 has further clarified that the bond /LUT shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the
principal place of business of the exporter.
*Q10-* As per sub-rule 5 of rule 96A of Central Tax Rule, Board will notify where LUT is to be furnished in place of Bond. Since Board has not notified so far, therefore, this office is of the view that Bond is to be furnished in all cases as of now. Please clarify
*Ans10-* The Board has, vide Notification 16/2017-Central Tax dated 07.072017, specified the conditions and safeguards under which an exporter may file a LUT instead of a bond.
*Q11-* Whether in case of assesses exporting goods under LUT in Central Excise Act 1944, can export goods after 01.07.2017 under GST on the basis of the said LUT filed under Central Excise Act, 1944 until that LUT expires.
*Ans11-* In terms of Para 6 of Circular No. 4/4/2017 dated 07.07.2017 exports are allowed under existing LUTs/Bonds till 31st July 2017. Exporters shall submit the LUTs/bond in the revised format latest by 31st July, 2017.
*Q12* There is lack of clarity in the trade regarding the eligibility conditions for the LUT/Bond as per the Notification No. 16/2017 – Central Tax. Para i(b) of the said notification requires the exporter to receive the due foreign inward remittances amounting to a minimum 10% of the export turnover, which should not be less than one crore
rupees, in the preceding financial year. It is not clear for the exporters having an export turnover of say Rs. 5 Crore. For such people whose 10% of the export turnover is below one crore, what is the implication? Are those exporters who have
received their total due inward remittance of e.g. Rs. 5 Crore eligible for availing the facility of LUT?
*Ans12* - Condition i(b) in the said Notification means that:
the registered person should have received at least 10% of his/her export turnover as foreign inward remittance in the preceding financial year and the foreign inward remittance in the preceding financial year should not be less than one crore rupees. E.g. if a registered person has an export turnover in FY 2016-17 of Rs. 5 crores and has received foreign inward remittance of Rs. 5 crores in the same FY, then he shall satisfy Condition i(b), and shall be eligible
for execution of LUT.
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#SEBI #NSE #BSE ready for time extension till 5:30 PM. Final date announcement on Monday.
Sources.
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: ITAT Surat Bench Inaugurated by Union Minister Ravi Shankar Prasad
Read more at: http://www.taxscan.in/itat-surat-bench-inaugurated-union-minister-ravi-shankar-prasad/10870/
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📺 *Updates*
➡1. Ind AS: FAQs on Disclosures in Ind AS Financial Statements
➡2. CBEC compiles FAQs of 100 e-mails received by GST Policy Wing
➡3. Prior to 2-6-2016, Rule 8D formula of indirect exp. was applied after setting off interest income with interest cost.
Principal Commissioner of Income-tax - 3 v. Nirma Credit & Capital (P.) Ltd.
➡4. Sum paid to retain shareholding in a co. was an investment eligible for deduction under sec. 57
Commissioner of Income-tax-IV, Nagpur v. Ballarpur Industries Ltd., New Delhi.
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