CBDT chief tells tax officers to target Rs 3 lakh crores unexplained cash deposits during note ban which is estimated to be the quantum of unexplained cash parked with banks after demonetisation was announced.
DVAT: Date of filing of reconciliation return in Form 9 (CST) for the year 2016-17 has been extended upto 31.12.2017 vide Circular No. 16 dated 29.09.2017.
ICAI suggested 122 issues to the Government on GST Implementation in 3 parts:
1. Law Related Issues
2. Procedural Issue and
3. GSTN Related Issues.
SEBI has asked the exchange to submit a progress report on the collection of the Aadhaar number by the members on a monthly basis. Members are requested to update the Aadhaar number of their clients, in the UCC (Unique Client Code) database of exchange.
In view of introduction of Centralized Distribution Systems (CDS) https://icai-cds.org for sale of ICAI Publications, the existing online sales portal www.icaionlinestore.org has been discontinued.
Today is last date to pay ICAI membership and COP fee. If fee not paid, members name may be removed after today.
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Tax Payers can Migrate to GST till October 31st: Govt Notifies Amended CGST Rules [Read Notification]
Read more at: http://www.taxscan.in/tax-payers-can-migrate-gst-till-october-31st-govt-notifies-amended-cgst-rules/11539/
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Quick Reference to " Managing Director " :-
Legal Provision:-
Section 2(54), 196, 203 of Companies Act, 2013.
Points:-
1. Managing Director means a Director who is entrusted with Substantial Powers of Management.
2. Managing Director may or may not be considered as whole time employee of the Company.
3. The MD on his ceasing to be director will automatically cease to be the MD as well.
4. Managing Director much be director.
4. Form DIR-12 and MGT-14 is required to file with ROC.
5. Sometimes MD is also known as President, Chief operating officer.
6. A company shall not have both MD as well as Manager at the same time.
7. MD can be appointed through Board Resolution, General meeting Resolution, Agreement.
8. Basic administrative acts of routine nature are excluded from powers of MD.
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#Economy:FM said that direct tax collections had risen 15.7% till September 18, adding that undisclosed income of Rs 5,400 crore was also detected while highlighting the impact of demonetisation and the proactive initiatives of the I-Tax Dept.The Minister said the number of taxpayers increased significantly from 4.72 crore in 2012-13 to 6.26 crore during 2016-17.
#Finance:The Govt has extended the deadline for sale of pre-GST goods with stickers of revised rates by three months to December 31.The decision came after several companies and retailers body CAIT highlighted that they are still left with huge unsold stocks of pre-GST goods and need more time to clear that.
#The I-tax dept has decided on an aggressive plan under the black money law to nab tax evaders who have undisclosed income or stashed assets abroad. In an internal communication, the CBDT told I-T officials that the spotlight should be on criminal consequences of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. In the guidelines, it clarified that the Act allowed attaching and confiscating black money holders’ Indian assets against their undisclosed foreign income or assets under the black money law. It also said these evaders could face separate prosecution under the Prevention of Money Laundering Act.
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📺 *Updates*
➡1. Seven days time limit under Bankruptcy Code for removal of defects in insolvency plea not mandatory: SC
Surendra Trading Co. v. Juggilal Kamlapat Jute Mills Co. Ltd.
➡2. Increase in share capital without notice to director tantamounts to oppression: NCLT
K.P. Bopanna v. Vector NDT Technologies (P.) Ltd., Bangalore
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The government has extended the deadline for sale of pre-GST goods with stickers of revised rates by three months to December 31, Consumer Affairs Minister Ram Vilas Paswan said today.
The decision came after several companies and retailers body CAIT highlighted that they are still left with huge unsold stocks of pre-GST goods and need more time to clear that.
After implementing GST from July 1, the government had allowed use of stickers with revised rates, alongside the printed MRP for pre-packaged items to reflect changes in selling price for three months till September 30.
The unsold items had an MRP which included all taxes of pre-GST era but with the implementation of new regime, some of the final retail prices have undergone change due to increase or decrease in tax incidence.
"On packaged commodities, industry can display revised MRP due to GST implementation using sticker/ stamping/online printing up to December 31 2017", Consumer Affairs, Food and Public Distribution Minister Ram Vilas Paswan tweeted.
A senior consumer affairs ministry official said the deadline has been extended following demand from several companies like Wipro, HPL and other non-food companies.
Since food items have expiry date for consumption, there were not many representations from such companies, the official added.
Traders body CAIT today claimed that goods worth Rs 6 lakh crore may become redundant if the last date for using MRP-labelled old stock is not extended beyond September 30.
"The government hereby further permits the manufacturers or packers or importers of pre-packaged commodities to declare the changed retail price (MRP) on the unsold stock manufactured/packed/imported prior to July 1, 2017 after inclusion of the increased amount of tax due to GST, if any, in addition to the existing retail price (MRP), up to December 31, 2017," said a government communication.
Businesses had held discussions with consumer affairs ministry regarding unsold stocks, which took up the matter with the revenue department.
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The persons who only supply goods/services on which reverse charge applies are exempted from registering under GST registration.
For example, For example, Ola Cabs enlist drivers to ply their cars. Drivers are providing chauffeur/driving services to Ola and Ola is the service receiver.
Ola pays GST on the drivers’ services on reverse charge basis. Drivers are not required to register under GST thus removing the burden of tax compliance for individuals with limited resources (drivers) to large companies (Ola) with enough resources.
Sections coming into force-Notification 1 & 9/2017
With the Notification of 19th June and 28th June, most of the CGST Act is now in force. Only sections 51 & 52 (TDS & TCS respectively) are not applicable as the government has relaxed TDS & TCS provisions for the time being to give more time to the e-commerce sellers.
Sections 42(9) & 43(9) are not applicable.
These clauses say that if the output tax liability is reduced (or input tax credit is increased) due to a debit note (or a credit note) [mismatch of invoices reconciliation] then such amount shall be refunded by crediting electronic ledger. This is not applicable right now as there will not be any reconciliation for 2 months.
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CBDT allows Correction in PMGKY 2016 Challan
Read more at: http://www.taxscan.in/cbdt-allows-correction-pmgky-2016-challan/11536/
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Quick Reference to "Removal Of Directors" :-
Legal Provision:-
Section 169 of Companies Act, 2013.
Points:-
1. Section 169 is applicable to All Companies.
2. Ordinary Resolution in the General meeting is required.
3. A Special Notice is also required for removal of Directors.
4. Special Notice can be given by person holding atleast 1% of total voting power or holding value of shares of Minimum ₹ 5 lakh.
5. A director appointed by NCLT u/s 242 and Nominee Director cannot be removed from the Company.
6. New Director who is appointed in place of director removed shall hold office until the date upto which the Director removed would have held office if he had not been removed.
7. If no person is appointed then the BOD can fill the vacancy as Casual vacancy.
8. The removed director shall not be reappointed.
9. Form DIR-12 is required to file with ROC for removal of Directors.
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Commissioner Dvat vide Circular No. 16 dt. 29/09/2017 has extended the date of online filing of Reconciliation Return in CST Form 9 for 2016-17 containing details of Central statutory forms upto 31/12/2017.
Link: https://drive.google.com/open?id=0B55yXVmVzOsGVVdtMF9tYXEwTmc
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Petition in Delhi HC challenges IGST on Banking Services Provided to Head Office abroad: HC issues Notice [Read Order]
Read more at: http://www.taxscan.in/petition-delhi-hc-challenges-igst-banking-services-provided-head-office-abroad-hc-issues-notice/11515/
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Issue relating to Classification under TN VAT Act cannot be adjudicated in a Writ Petition: Madras HC [Read Order]
Read more at: http://www.taxscan.in/issue-relating-classification-tn-vat-act-cannot-adjudicated-writ-petition-madras-hc/11519/
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CBEC Notification No 91/2017-NT dated 26.9.2017 and CBEC Circular No 39/2017- Customs dated 26.9.2017 regarding Important Changes in Customs Valuation Rules.
With effect of this Circular,
a) CIF Value will now become the Assessable Value.
b) 1 % Landing Charge which was so far being levied will no longer be required to be computed while calculating the Assessable Value.
c) All other charges pertaining to the shipment will form part of the cost.
It may further be noted that Customs EDI System is still not yet been updated to incorporate the above change. At present, Assessments are still being carried out by calculating 1 % landing charge. It has been given to understand that the system will be updated in next few days.
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# *GST*: CBEC issues Clarification regarding reflection of transitional credit arising out of payment of Service Tax on RCM basis after 30.06.17 and by 5th/6th JUL, 2017 – Cir.No.207/5/2017-ST, dt.28.09.2017.
# *CBDT* Chairman tells tax officers to target Rs.3 Lakh Crore unexplained cash deposits during note ban.
# *IT*: 200 information technology employees in Polaris Software, Hyderabd forced to return money for faked disability and chronic illness of family members in order to fraudulently claim income tax refund.
# *IT*: SC confirmed the levy of income tax on receipt of enhanced compensation & interest thereon even by an interim order passed by the Court – CIT Vs Chet Ram (HUF) (2017 (9) TMI 1532 - Supreme Court)
# *IT*: Addition on the basis of entry found in the "bahi" of third party - any entry found on loose papers in the premises of the third party without any corroborative evidence, cannot be made basis for addition in the case of the assesse – Cosmos Infra Eng. (India) Ltd. Vs DCIT (2017 (9) TMI 1515 - ITAT Chandigarh).
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SC Confirms Block Assessment since ‘Reasons to believe’ shall not be disclosed for Search Proceedings [Read Order]
Read more at: http://www.taxscan.in/sc-confirms-block-assessment-since-reasons-believe-shall-not-disclosed-search-proceedings/11506/
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No filing of GST Returns for August till due dates of filing of GSTR-1, 2 & 3 for July are over but data of Outward Supplies can be saved in GSTR-1.
Small Traders, Manufacturers & restaurants may opt for availing the composition scheme till 30th Sept, 2017 having turnover upto Rs. 75 lakh taxing at 1, 2 & 5 %. First such return, for quarter July-Sept, 2017 has to be filed by 18th Oct, 2017. FORM GSTR-4A is not to filed for this quarter.
GST new services made available on portal:
i) REG_011 : Application for Amendment of Registration - Core Fields, deployed in portal.
ii) REG_012 : Processing of Amendment Application, deployed in portal for tax officials.
ii) REG_19 : Suomoto Registration along with payment option, deployed in portal.
iv) GSTR 3B issue
If the user enters multiple decimal values in Section 3.2 and section 3.1a IGST is equal to section 3.2, save GSTR3B is showing business validation error. In browser java script when the decimal values are getting summed up, more than 2 digits are getting added which is causing this validation issue, so same has been rounded off to 2 digits.
v) EVC Filing Issue in Transition form 1
Change completed successfully
vi) Transfer of Charge –BO System Error thrown while trying to transfer the charge. Fix is done in order to avoid this issue.
Central Govt extended the deadline for obtaining Aadhaar for availing govt schemes and subsidies by three months to December 31. The extension is, however, only for those who are yet to apply of Aadhaar.
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Penalty under Rule 209A of Central Excise Rules can be imposed only when person has physically dealt with Excisable Goods: Bombay HC
Read more at: http://www.taxscan.in/penalty-rule-209a-central-excise-rules-can-imposed-person-physically-dealt-excisable-goods-bombay-hc/11488/
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👉🏻Quarterly GST returns may be for Small Firms.*
(Govt is considering a proposal from the industry to allow small firms to file quarterly returns even as they pay taxes on a monthly basis under the Goods and Services Tax (GST) regime. discussions were on regarding the threshold limit for small firms who could be granted such a relaxation)
👇🏻 👇🏻 👇🏻
https://goo.gl/Br5jZX
*👉🏻Window for GST composition scheme to be open till Sept 30*
(The GST Department has announced that the window for adopting the composition scheme under the GST Act for small traders, producers, and restaurants will be open till September 30)
👇🏻 👇🏻 👇🏻
https://goo.gl/k6wVa3
*👉🏻Clarification on Payment of Service Tax in Transitional Period.*
(In order to give compliant assessees who had filed their ST 3 return by the due date or some days later, an immediate and viable window to file revised returns, all ST3 returns for the period 1-4-2017 to 30-6-2017 which have been filed upto and inclusive of the 31st day of August 2017, shall be deemed to have been filed on 31-8-2017. Once details of such credit are reflected in the ST-3, the assessee may proceed to fill in the details in Form GST TRAN-1)
👇🏻 👇🏻 👇🏻
https://goo.gl/Wa2aXf
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📺 *Updates*
➡1. AO of old jurisdiction couldn’t pass order just because PAN of assessee was still lying within his jurisdiction
Capstone Securities Analysis (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle- 1(1), Pune
➡2. Non-maintenance of books couldn’t be accepted as valid plea to delete section 68 additions: HC
Arunkumar J. Muchhala v. Commissioner of Income-tax -8
➡3. No sec. 153A assessment of subsidiary co. if its name wasn’t mentioned in search warrant issued to holding co.
Dorf Ketal Chemicals LLC v. Deputy Commissioner of Income-tax, Central Circle-45, Mumbai*
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Quick Reference to " Books of Accounts" :-
Legal Provision:-
Section 2(13), 128 of Companies Act, 2013.
Rule 3 of Companies (Accounts) Rules, 2014.
Points:-
1. The Books of Accounts must give true and fair view.
2. Cash basis for maintenance of books is prohibited.
3. Only Double entry system is allowed.
4. Normally, Books of A/C's Include :-
# Money received, Expenses.
# Sales and purchase of goods and Services.
# Assets & Liabilities.
5. All the Books of Accounts shall be kept at the registered office of the Company.
6. If company wants to maintain that books of Accounts in other place in india then Board Resolution should be passed. & Form AOC-5 should be filled within 7 days from Board Resolution date.
7. Company can keep Books of Accounts in electronic mode.
8. The Branch offices are required to send proper detailed return at quarterly basis to the registered office of the Company. And it's open for inspection to Directors during business hours.
9. The Books of Accounts shall be Preserved for Minimum 8 Financial years.
10. CFO, MD, WTD in charge of Finance and other person charged by board are responsible for maintaining Books of Accounts.
11. There should be proper Storage, Retrieval, Back-up for Books of Accounts.
12. The Books of Accounts must must not include any fictitious transaction. It should not Suppress any Transaction.
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