Tax on any Gain to Firms under Insolvency Code under hair cut be waived: ASSOCHAM to Govt.
Read more at: http://www.taxscan.in/tax-gain-firms-insolvency-code-hair-cut-waived-assocham-govt/11116/
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Finance minister Arun Jaitley has constituted a Group of Ministers to resolve IT issues faced in the implementation of the goods and services tax and a Committee on Exports to identify steps to the support the export sector.
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The Group of Ministers (GoM) has been constituted under the convenorship of Bihar deputy chief minister Sushil Kumar Modi, in order to monitor and resolve IT challenges faced in the implementation of the new direct tax regime.
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The Group of Ministers (GoM) has been constituted under the convenorship of Bihar deputy chief minister Sushil Kumar Modi, in order to monitor and resolve IT challenges faced in the implementation of the new direct tax regime.
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Most state finance ministers had raised issues concerning IT systems and difficulties faced by traders in filing returns. The government has twice extended the deadline for filing of GST returns.
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Most state finance ministers had raised issues concerning IT systems and difficulties faced by traders in filing returns. The government has twice extended the deadline for filing of GST returns.
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Members of the Group of Ministers are Amar Agarwal, Chhattisgarh's commercial taxes minister, Krishna Byregowda, Karnataka's agriculture minister, TM Thomas Isaac, Kerala finance minister and Etela Rajendar, Telangana finance minister.
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Members of the Group of Ministers are Amar Agarwal, Chhattisgarh's commercial taxes minister, Krishna Byregowda, Karnataka's agriculture minister, TM Thomas Isaac, Kerala finance minister and Etela Rajendar, Telangana finance minister.
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The group will be assisted in its work by chairman and chief executive officer of the Goods and Services Tax Network (GSTN). The Committee on Exports has been set up under the convenorship of the revenue Secretary to look at the issues of the export sector and recommend to GST Council suitable strategies for helping the sector, an official statement said on Tuesday.
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The group will be assisted in its work by chairman and chief executive officer of the Goods and Services Tax Network (GSTN). The Committee on Exports has been set up under the convenorship of the revenue Secretary to look at the issues of the export sector and recommend to GST Council suitable strategies for helping the sector, an official statement said on Tuesday.
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This committee consists of CBEC chairperson and member (customs), DGFT director general, GST Council's additional secretary, director general of Export Promotion from the Central government and commissioners of commercial taxes from the states of Gujarat, Maharashtra, Karnataka, UP and West Bengal
This committee consists of CBEC chairperson and member (customs), DGFT director general, GST Council's additional secretary, director general of Export Promotion from the Central government and commissioners of commercial taxes from the states of Gujarat, Maharashtra, Karnataka, UP and West Bengal
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While most of the taxable articles moved under the GST regime, petroleum products are still governed by VAT system.
Highlights
•Petroleum products are currently not under the GST regime.
•Petroleum products are taxed under VAT system.
•Petrol, diesel will get cheaper if taxed under GST.
•Petroleum products are currently not under the GST regime.
•Petroleum products are taxed under VAT system.
•Petrol, diesel will get cheaper if taxed under GST.
Questions are being asked if Finance Minister Arun Jaitlely-headed GST Council will pay heed to Petroleum Minister Dharmendra Pradhan's suggestion on petroleum prices.
"The Petroleum products' inclusion in GST only way for rational fuel prices," tweeted Dharmendra Pradhan as the petroleum prices reached three-year high. Bringing petroleum products under the GST regime will make the fuels cheaper.
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In Mumbai, petrol prices touched Rs 80 a litre while in Delhi, it is over Rs 70 per litre. If petrol is brought under GST, it may cost as little as Rs 38.10 in Delhi at 12 per cent GST rate.
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It was August 2014, when petrol prices breached Rs 70 mark the last time. Back then the crude oil prices was around USD 98 per barrel. But, now the crude oil prices are hovering around USD 50 per barrel.
WHY ARE PETROL, DIESEL SO COSTLY
According to data released by the Indian Oil Corporation for the petrol price build up in Delhi, the fuel costs only Rs 26.65 at the refineries. Dealers get a litre of petrol at Rs 30.70. But, petrol is sold at Rs 70.39 a litre in Delhi. This means Rs 39.41 is charged as tax component and dealer's commission on every litre of petrol sold in the national capital.
While most of the taxable articles moved under the GST regime, petroleum products are still governed by VAT system. Different states have different rates of VAT applicable on petroleum products.
As per the data available with the Petroleum Planning and Analysis Cell (PPAC), Delhi charges a VAT of 27 per cent on petrol while it is 47.64 per cent in Mumbai, Thane and Navi Mumbai. This explains the difference of about Rs 9 in the petrol prices in the two cities.
CENTRE'S SHARE IN HIGH PETROL PRICES
Centre imposes excise duty on petrol and diesel. As per the PPAC data, excise duty on petrol has increased by 54 per cent since November 2014. An average increase of 46 per cent has been seen with regard to VAT on petrol while dealer's commission has been increased by as much as by 73 per cent.
Similarly, in the case of diesel, the excise duty has gone up by 154 per cent, VAT by 48 per cent and dealer's commission by 73 per cent. The excise duty on petrol and diesel has been increased on 12 occasions since 2014.
The combined effect of taxation on petroleum product by the Centre and the state governments is that the prices of petrol and diesel have gone back to 2014-level while the crude oil have become cheaper by little less than half.
It is not a surprise that during the same period revenue from petroleum products has increased from Rs 3.32 lakh crore in 2014-15 to Rs 5.24 lakh crore in 2016-17.
WHAT IF PETROLEUM COMES UNDER GST
Under GST, the petrol and diesel prices under the present circumstances will become substantially cheaper. The GST regime provides for taxation rates of 0, 5, 12, 18 and 28 per cent. Petrol and diesel can't be expected to be taxed below 12 per cent.
At 12 per cent GST, the petrol will be sold at Rs 38.1 in Delhi - almost Rs 32 cheaper than the current rate for one litre of the fuel. At 18 per cent, petrol will be 40.05 a litre in Delhi while at 28 per cent, it will cost Rs 43.44 per litre.
If the SUV compensation cess is imposed over and above 28 per cent GST on petrol, it will cost Rs 50.91 in Delhi - still about Rs 20 cheaper than the existing rate.
As for diesel, its current price in Delhi is Rs 58.72 per litre. At 12 per cent GST, diesel will sell at Rs 36.65 in the national capital. At 18 per cent GST, diesel will cost Rs 38.61.
At 28 per cent GST, diesel will cost Rs 48.88 in Delhi and if SUV cess is imposed, the customers will have to pay Rs 49.08 for a litre of the fuel - still Rs 9.64 cheaper than the existing rate.
But, bringing petroleum products under the GST involves politics. Under the GST Act, the decision to bring petroleum products under the new taxation regime can only be taken by the GST Council which has heavy representation from states, which are not ready to let go the hen laying golden eggs
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Delhi HC allows exporter to import without paying IGST*
The Delhi High Court has granted interim relief to an exporter, allowing him to import goods without payment of the integrated goods and services tax (IGST) to the extent allowed by advance authorisations received by him prior to July 1, when GST was enforced.
Advance authorisation is issued for exporters to allow duty-free import of inputs which are physically incorporated in export products. The relief given relates to export orders placed on the petitioner, an exporter of plastic products, before July 1. The next hearing in this case is on February 22.
Prior to GST, import under the Advance Authorisation Scheme (ASS) was exempt from payment of taxes like basic customs duty, additional customs duty, and education cess. A major change since July 1 is additional levy of IGST. While upfront exemption is extended to basic customs duty, exporters are required to pay IGST on import and central, state or Union Territory GST (as the case applicable) on domestic procurement; thereafter, they may claim a refund.
The petitioner in this case had contended that such a mechanism adversely affected his working capital, impacting export orders got prior to July 1, for the fulfilment of which he had to undertake import of inputs. One such export order placed on the petitioner by Walmart Inc, USA, was cited. The petitioner said with the change brought about by the GST regime, he would have no option but to pay IGST out of own sources, causing a working capital blockage. As the petitioner had already used up the overdraft limit with banks, borrowing would have to be done.
Counsel for the customs department said the petitioner could seek refund of the IGST after completion of the export obligation. Hence, there was no ground for a real grievance. The petitioner replied that the prospect of IGST being ultimately refunded was little consolation -- he required liquidity to discharge the additional levy of IGST, failing which the import would get blocked.
Abhishek Rastogi of Khaitan & Co, the petitioner's counsel, said while the order was specific to the petitioner, it did lay down the foundation for benefits that should go to exporters. After GST implementation, he said, the commerce ministry had asked the finance ministry to ensure export benefits continued as these were prior to GST. The finance ministry had not acted on this representation, resulting in exporters loss of working capital on a large scale.
The interim relief, he added, was a "beginning for the two ministries to pave a clear Path for exporters". Source - http://www.business-standard.com
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ICAI issues Revised FAQs & MCQs On GST
Read more at: http://www.taxscan.in/icai-issues-revised-faqs-mcqs-gst/11105/
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Now DIN is not working of those who failed to file returns with ROC. Ministry has blocked DIN of defaulters. Error of 'director is disqualified' is being reflected while prescrutiny of forms.
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Banks to issue TDS certificate in name of legal heir after death of deposit holder http://financebirds.com/others/tds-certificate-itc/
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MOU between MCA and CBDT for Automatic and Regular Exchange of Information
Read more at: http://www.taxscan.in/mou-mca-cbdt-automatic-regular-exchange-information/11109/
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Companies Act :
Section 46(2) & 56(1) of the Companies Act, 2013 read with Rule 6 of the Companies (Share Capital and Debenture) Rules, 2013- The above provisions doesn't specifically indicate that Tribunal can give direction to the company to issue duplicate shares. However, it can do so when share certificates are proved to have been lost and the Board of Directors did not exercise its discretion to issue duplicate share certificates. Hasmukh Bachubhai Baraiya vs. Symphony Ltd. [2017] 139 CLA 397 (NCLT)
IBC :
Merely because Notice was not given to Corporate Debtor before admission, the order of the Adjudicating Authority for ascertaining default cannot be rendered illegal, where the appellant had intervened before admission and its objections were considered. Innoventive Industries Ltd. vs. ICICI Bank. [2017] 139 CLA 335 (NCLAT)
(Note: The above judgment has been upheld by The Hon'ble Supreme Court)
(Note: The above judgment has been upheld by The Hon'ble Supreme Court)
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Govt sets Up Committee to receive Profiteering Complaints
Read more at: http://www.taxscan.in/govt-sets-committee-receive-profiteering-complaints/11093/
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Gujarat HC upholds Constitutional Validity of Section 52 of the Gujarat VAT Act, 2003 [Read Judgment]
Read more at: http://www.taxscan.in/gujarat-hc-upholds-constitutional-validity-section-52-gujarat-vat-act-2003/11096/
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Auditors come under lens amid crackdown on shell companies
http://toi.in/WhmU9Z/a19ai
http://toi.in/WhmU9Z/a19ai
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# *MCA* has identified 1,06,578 Directors for disqualification under Section 164(2)(a) of the Companies Act, 2013 as on September 12, 2017.
# *CBDT* has specified the manner for deduction of TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased – Noti.No.08/2017, dt.13.09.2017.
# *CBDT* has told the Supreme Court that there has been a substantial hike in the assets of seven Lok Sabha MPs and 98 MLAs across the country.
# *DGFT* has issued Trade Notice stating that "Contact@DGFT" serviceas single point contact for all foreign trade related issues has been established.
# *WPI*: Higher inflation in food and fuel products drove India’s wholesale price inflation (WPI) to 3.24% in August from 1.88% in July.
# *IT*: Levy of penalty - even voluntary surrender of income will not always necessarily rescue the assessee from the penalty provisions which are in the nature of remedy for loss of possible revenue – DCIT Vs Shri Mukesh Kalubhai Prajapati (2017 (9) TMI 658 - ITAT Ahmd).
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Friday (15-09-17) is last day for Payment of Advance Income Tax in Challan No.ITNS-280- All Assessees (45%) except 44AD cases.
Indian tax authorities have began questioning consultants and accountants on the methodology of their enterprise value estimates after challenging the valuations of startups.
GST Compounding assessee to file GSTR-4 for July to September by 18.10.2017. No GSTR-4A for inward supplies & no Inward supplies details in GSTR-4 for this quarter.
GSTR-3B for the month of August to December 2017 to be filed by the 20th day of the next month and tax liability for a month to be discharged by the 20th day of the next month.
MCA notifying 2,09,032 shell companies and also identifying 1,06,578 directors for disqualification under Section 164(2)(a) of the Companies Act, 2013. It has also directed the banks to restrict operations of banks accounts of these companies.
RBI has clarified that Merchant Discount Rate (MDR) Charges for Government transactions up to Rs.1 lakh through debit cards by all Agency Banks can be claimed as reimbursement from RBI separately as per extant guidelines.
Aadhaar has to be mandatorily linked to your mobile & PAN also to be shared with financial institutions and has to be submitted to avail the various social security schemes before31.12.2017.
Supreme Court: Cooling off period mentioned in Section 13-B(2) of Hindu Marriage Act is not mandatory. It is open to the District Court/ Family Court to exercise its discretion to waive off the period in the facts of the case.
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TDS on Interest on Capital Gains Scheme Deposits (Death of Depositor): CBDT Clarification – CA Club
https://caclub.in/tds-on-interest-on-capital-gains-scheme-deposits-death-of-depositor-cbdt-clarification/
https://caclub.in/tds-on-interest-on-capital-gains-scheme-deposits-death-of-depositor-cbdt-clarification/
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CBDT has been asked to consider Inclusion of Service Charge while Assessing Tax: Ram Vilas Paswan
Read more at: http://www.taxscan.in/cbdt-asked-consider-inclusion-service-charge-assessing-tax-ram-vilas-paswan/11080/
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Quick Reference to "Revised Secretarial Standard -1 " (Few Aspect only) :-
Points:-
1. Revised SS-1 is not applicable to OapC in which there is only 1 director and Section 8 Companies.
2. A Board meeting can be convened on any day ( Including National Holiday ).
3. Notice of Board meeting issued to directors can be through hand or speed post or facsimile or registered post or email or other electronic means but exclusive "Courier ".
4. The Proof of Notice and it's delivery shall be kept by company for minimum of 3 years from the date of meeting.
5. The Company shall hold atleast 4 meetings of its board in each calendar year but maximum gap between two meeting cannot be more than 120 days.
6. It is not mandatory that Board shall meet at least once in every calendar quarter.
7. A director is entitled to participate in respect to such item after disclosure of his interest in case of private company only.
8. The attendance register shall be bound at least in every 3 years.
It should be preserved fir 8 F.Y. from the date of last entry made .
It should be preserved fir 8 F.Y. from the date of last entry made .
9. It is not necessary to mention time of Conclusion of meeting in the minutes.
10. The Board Report shall include Statement on Various Compliances applicable to secretarial standards.
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*No papers to show CA's link with offence in Money laundering Case says Court.*
(A special court earlier this week granted bail to CA Rajesh Aggarwal, on the grounds that there are “no documents on record” to show that he is connected with the commission of offence under Sections 3 and 4 of the Prevention of Money Laundering Act. There are reasonable grounds to believe that he is not guilty of such offences and there is no likelihood that he would commit any such offence - Judge said in his order.)
http://www.casansaar.com/news-CA/No-papers-to-show-CAs-link-with-offence-in-Money-laundering-Case-says-Court/9233.html
(A special court earlier this week granted bail to CA Rajesh Aggarwal, on the grounds that there are “no documents on record” to show that he is connected with the commission of offence under Sections 3 and 4 of the Prevention of Money Laundering Act. There are reasonable grounds to believe that he is not guilty of such offences and there is no likelihood that he would commit any such offence - Judge said in his order.)
http://www.casansaar.com/news-CA/No-papers-to-show-CAs-link-with-offence-in-Money-laundering-Case-says-Court/9233.html
*Govt sets up panel to receive profiteering complaints under GST.*
(A four-member standing committee, comprising tax officials of the Centre and states, has been set up to receive complaints of undue profiteering by any entity under the new goods and services tax (GST) regime. The Standing Committee on anti-profiteering will act as a complaint processing machinery and will refer any cases it finds fit for investigation to the Directorate General of Safeguards)
http://www.casansaar.com/news-GST/Govt-sets-up-panel-to-receive-profiteering-complaints-under-GST/9230.html
http://www.casansaar.com/news-GST/Govt-sets-up-panel-to-receive-profiteering-complaints-under-GST/9230.html
*Auditors come under lens amid crackdown on shell companies.*
(A multi-agency clampdown has begun on shell companies to tackle the black money menace wherein the role of auditors has come under the scanner for alleged connivance in facilitating illegal transactions. On Tuesday, the government said more than 1.06 lakh directors would be disqualified for their association with shell companies.)
http://www.casansaar.com/news-Auditing/Auditors-come-under-lens-amid-crackdown-on-shell-companies/9232.html
http://www.casansaar.com/news-Auditing/Auditors-come-under-lens-amid-crackdown-on-shell-companies/9232.html
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*Updates*
➡1. Banks to issue TDS certificate in name of legal heir after death of deposit holder of Cap Gain Account: CBDT
Notification no. 7/2017 13th sept 2017
Notification no. 7/2017 13th sept 2017
➡2. CBEC explains provision related to ‘Non- Resident taxable person’ under GST
➡3. Issue of reassessment notice before concluding assessment proceeding initiated u/s 142(1) was invalid: ITAT
Medapati Venkayamma v. Income-tax Officer, Ward-2, Amalapuram.
Medapati Venkayamma v. Income-tax Officer, Ward-2, Amalapuram.
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Quick Reference to " Consolidated Financial Statements" :-
Legal Provision :-
Section 129 (3) , 129(4) 129 (6) of Companies Act, 2013.
Rule 5 of Companies ( Accounts) Rules, 2014.
Rule 6 of Companies ( Accounts ) Rules, 2014.
Notification - 4th September, 2015.
27th July, 2016 - (Accounts) Amendment Rules, 2016.
Points:-
1. The Consolidated Financial Statements is required to prepare if Company has one or more subsidiaries.
2. The Consolidated Financial Statements are Combined Financial Statements of Parent Company and it's subsidiaries.
3. The Consolidated Financial Statements shall be made as per Schedule III of the Companies Act with Accounting Standards.
4. The Consolidated Financial Statements is required to be laid before AGM and shall be prepared in the same manner in which Financial Statements of the Company is prepared.
5. As per Rule 5 of Companies ( Accounts) Rules, 2014 deals with Form AOC-1 wrt Consolidated Financial Statements.
6. The Central Government by Notification , may exempt any class or classes of Companies from complying with Such requirements.
7. The Subsidiaries also includes Joint venture and Associate Companies.
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Connectivity Services rendered under Master Supply Agreement to a Foreign Entity constitute ‘Export of Service’: Delhi HC Allows Refund to Verizon India [Read Judgment]
Read more at: http://www.taxscan.in/connectivity-services-rendered-master-supply-agreement-foreign-entity-constitute-export-service-delhi-hc-allows-refund-verizon-india/11089/
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#Economy:As many as 1,222 NGOs across the country have been directed by the home ministry to validate the bank accounts in which they receive foreign contribution, failure of which will invite punitive action. In a circular, the ministry said all NGOs registered under the FCRA should receive foreign donations in a single designated bank account. However, it is seen that a number of such organisations have not validated foreign contribution designated accounts, causing problems for the banks to comply with the FCRA provisions that they (banks) report to the central Govt within 48 hours of such receipt or utilisation of foreign contribution. The Modi Govt, which has tightened the rules for NGOs, has already cancelled registration of more than 10,000 non-Govt organisations in the last three years for alleged non-filing of annual returns as mandated in the FCRA. In addition, renewals of more than 1,300 NGOs have been denied or they were closed in recent past for allegedly violating various provisions of the FCRA.
#Finance:MF investments through the SIP route touched a new high of Rs 5,206 crore in August. A record 700,000 new SIP accounts were also opened during the month, taking the total tally of such accounts to around 16 million. Nearly half of the new accounts prefer the SIP mode over the traditional lump-sum or one-time investment option. Investor flows through the SIP route have been growing, which is a positive sign for the industry.
#India Post Payments Bank is gearing up to provide its financial services through all of 1.55 lakh post offices and 3 lakh employees by the end of 2018 -- which will create India's second-largest payments bank in terms of reach. In the private space, Airtel Payments Bank, launched in January this year, started operations with a network of 2.5 lakh merchants. Payments banks can accept deposits of up to Rs 1 lakh per account from individuals and small businesses.
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*Service Tax:*
1. *Franchise services-* As per service tax law there is no exemption provided to franchise service relating to educational activity.
*2017-TIOL-3317-CESTAT-MUM*
*2017-TIOL-3317-CESTAT-MUM*
2. *Place of provision of service-* As per Master Supply Agreement, where it is clearly evident that recipient of service is Verizon US, the service is an export and not chargeable to tax.
*2017-TIOL-1863-HC-DEL-ST*
*2017-TIOL-1863-HC-DEL-ST*
*Central Excise:*
3. *Availing area based exemotion-* Unit' and 'factory' cannot be accorded same meaning for purpose of Notification No. 50/03-CE. The notification grants exemption to new industrial units or existing industrial units undertaking substantial expansion. The exemption is not with reference to a factory.
*2017-TIOL-3299-CESTAT-DEL*
*2017-TIOL-3299-CESTAT-DEL*
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