#Economy:The I-Tax Dept has been tasked to add 12.5 million new return filers in the current financial year as part of the Govt's plan to widen the tax base in the country. The CBDT, that makes policy decisions for the I-T dept, has directed the taxman to undertake "focused efforts to significantly increase the tax base in the current financial year of 2017-18."
#Finance:The Govt's digital payments push, mainly online card payments through PoS machines, may leave already capital starved banks bleed by a whopping Rs 3,800 crore annually. After the note-ban last November, the Modi Govt has pushed banks into deploying millions of points-of-sale machines to encourage online payments.The number of PoS terminals post-demonetisation has increased from 13.8 lakh in March 2016 to 28.4 lakh as of July 2017. This has resulted in increase in debit plus credit cards transactions at PoS from Rs 51,900 crore in October 2016 to Rs 68,500 crore in July 2017, with peak reaching in December 2016 to Rs 89,200 crore.
#Union minister Piyush Goyal said the flexi fare scheme of the Railways, which helped it earn an additional Rs 540 crore in less than a year, may be amended to ensure that it brings in revenues without taxing passengers.
#Last date for payment of ICAI Membership and COP Fee for the year 2017-18 is 30.09.2017. Link for payment of membership fee
http://memfee.icai.org/memfee.html
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10 labour laws every Indian employee should know*
According to the United Nations, India has the largest youth population and stands at a point where the dream of becoming the super economy seems a possibility now. With mixed viewpoints of different people, labour laws and reforms has always been a topic of controversy which no one wants to discuss. When the scenario is such, it becomes all the more important for both the parties employers as well as the employees in both organized and un-organized sectors to be well aware about the laws and right for both existing and the on-going reforms.
Labour laws and its reforms has always been a topic of debate and concern since past many years. In this article we have listed some of the important acts that every citizen of India should know.
*🍇1. The Factories Act, 1948*
This act was established to prevent any kind of exploitation on the factory workers by the owners and was created to defend the rights and interest of the employees. As per this law, it is mandatory to assure some sort of working conditions fixed by both the employers or the factory owners for the employees. It is clearly mentioned that the maximum working hours should not be more than 48 hours per week. And one weekly holiday is a must to be provided to any employee.
*🍇2. The Employees Provident Fund Act, 1952*
The Employees Provident Fund (PF) 1952 is to sanction a type of social security to the employees. This particular Act is applicable for every employee who works in a factory or any other establishment whether organized sector or un-organized one, wherein they get welfare such as medical care, housing, retirement pension, benefits of education and financing insurance policy etc.
*🍇3. Maternity Benefit (Amendment) Bill 2017*
Maternity Benefit Act was established in 1961 to benefit expecting mothers and later amendments were made in 2017 to provide more benefits to the expecting employee. The act was made to protect employment of the women employee during the time of maternity and provides her with ‘maternity benefit’ i.e full paid absent from work – to let take care of her child and herself. The new amendments has increased the duration of paid maternity leave available for women employees from the existing 12 weeks to 26 weeks. Along with this, some more clause have been added like maternity leave for adoptive and
commissioning mothers, work from home option, crèche facility and employee awareness at the time of appointment.
*🍇4. The Apprentices Act , 1961*
Under this act, one is allowed to take casual leave of 12 days, medical leave of 15 days and certain other leaves of 10 days in a year (which are paid). And one is just required to work for 42 or 48 hours a week. This is to ensure there is a work-life balance for the employees.
*🍇5. The Workmen’s Compensation Act, 1923*
This act proves to be helpful for the employees injured in an accident. The Workmen’s Compensation Act 1923, was established to provide financial protection to the workers as well as their dependents in the form of compensation, in the case of sudden accidental injury.
*🍇6. The Payment of Gratuity Act , 1972*
Gratuity is nothing but a cumulative part of the salary received by the employees. The company has to provide its employees a set amount as a gratitude for the services performed by them during their tenure with the company.
It is one of the retirement benefits that the company gives to their employees at the time of leaving the company. But to become eligible for this, they have to complete at least one year of service to get the benefit of gratuity in case of his or her death.
*🍇7. The Payment of Wages Act, 1936*
It aims at providing financial assurance of payment of wages or salary without any sort of deductions. As per this act, the employer has not right to take away the money he is entitled to pay. And, not only the assurance, but timely imbursement of wages is also mentioned in this act. Every employee should know that, even if he/she is terminated from the services they are qualified to take their salary for that particular month.
*🍇8. The Industrial Disputes Act ,1947*
As the name suggests, this act was made to protect the employees who has dispute with their employers. No employer can throw the employee out just like that, he has to provide a notice of at least 6 weeks before they terminate you from the service.
*🍇9. The Payment of Bonus Act, 1965*
As a component of profit or productivity, the Payment of bonus Act 1965 makes it mandatory for employers to provide bonus to the employees. If the employee has worked for at least 30 working days in that particular year, he or she is entitled to receive the bonus. Also, if you are not given the same, you can claim your rightful bonus in that same year.
*🍇10. The Employees State Insurance Act (ESIC) , 1948*
This act protects benefits for the workers who are sick and got injured somehow while they were working or on duty. ESIC is a self-financing security form and a health insurance scheme for all workers. This scheme provides medical benefit for the employees and their families.
It also provides dependents’ benefit for the dependent family member in case of death due to any sort of employment injury. In such case, the employers should deposit the money each month in the employee’s A/C. Also, they should grant leave to the protected (insured) employees based on their medical certificates. And, the employer is entitled to cover the expenditures in case of funeral or any other sort of tragedy that happened with their employees while on duty.
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CARO 2016 Complete Notes
In accordance with the provisions of section 143(11) of the Companies Act, 2013 certain class or description of companies shall include a statement on certain specified matters.
These reporting requirements on specified matters has now been prescribed under the Companies (Auditor’s Report) Order, 2016 (CARO – 2016) issued by the Ministry of Corporate Affairs (MCA) vide Order No. S.O. 1228(E) dated 29th March, 2016.
CARO – 2016 has been issued in supersession of the Companies (Auditor’s Report) Order, 2015 and the same shall be applicable from the financial year 2015-16.
Background of the Companies (Auditor’s Report) Order 2016:
Earlier to CARO2016, the Companies (Auditor’s Report) Order, 2015 (CARO – 2015) was issued vide MCA Order No. S.O. 990(E) w.e.f. 10042015. Actually, CARO – 2015 had replaced the Companies (Auditor’s Report) Order, 2003 (CARO – 2003) issued by MCA in pursuance with the provisions of section 227(4A) of the Companies Act, 1956.
With effect from 1st April, 2014, section 227(4A) of the Companies Act, 1956 ceased to be operational after notification of section 143(11) of CA, 2013 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
Thereafter, in exercise of the powers conferred by subsection (11) of section 143 of CA, 2013 and in supersession of the CARO 2003, the Central Government after consultation with the Institute of Chartered Accountants of India makes the CARO 2015.
But, now the similar Order (CARO – 2016) has been issued vide Order No. S.O. 1228(E) dated 29th March, 2016 to be applicable from the financial year 201516 onwards. Hence, you are required to comply with the requirements of CARO – 2016 from financial year commencing on and after first day of April 2015 i.e. FY 2015-16.

Is it mandatory to Comply CARO – 2016?
Yes! In section 143(11) of CA, 2013 it is clearly stated that the Central Government may order for the inclusion of a Statement on specified matters in the Auditor’s Report for specified class or description of Companies.
Accordingly, CARO – 2016 is issued by the CG in pursuance with the provisions of subsection (11) of section 143 as an additional matters to be included in the report of auditors. Therefore, CARO – 2016 should be complied by the Statutory Auditor of every Company on which it applies.
From which Financial Year CARO – 2016 is Applicable?
Every report made by the auditor in pursuance with the provisions of section 143 of CA, 2013 for Financial Year commencing on or after first day of April, 2015 should include CARO – 2016.
Hence, the Companies (Auditor’s Report) Order, 2016 is applicable from FY 201516 and the matters specified therein shall be included in each report made by auditor u/s 143 on the accounts of every company to which CARO – 2016 applies.
Type of Companies covered under the CARO – 2016
The Companies (Auditor’s Report) Order, 2016 shall apply to every company including a foreign company as defined in clause (42) of section 2 of the Companies Act, 2013.
According to section 2(42) of CA, 2013, Foreign Company means any company or body corporate incorporated outside India which—
has a place of business in India whether by itself or through an agent, physically or through electronic mode; andconducts any business activity in India in any other manner.
Class of companies which are excluded from applicability of CARO – 2016
All types of Companies specified in paragraph 1 of CARO – 2016 are specifically exempted from application of CARO. In other words, CARO – 2016 applies to all Companies except certain categories or class of Companies specifically exempted therein.
Accordingly, following are the class of companies whose auditors are not required to comment on matters specified in CARO – 2016.
(i) Banking Company:
CARO – 2016 shall not apply to a banking company as defined u/s 5(c) of the Banking Regulation Act, 1949.
(ii) Insurance Company:
CARO – 2016 shall not be applicable to an insurance company as defined under the Insurance Act, 1938.
(iii) Companies registered with Charitable Objects:
Any company which has been incorporated and licensed to operate under section 8 of CA, 2013 shall not be required to comply with CARO – 2016.
(iv) One Person Company:
A One Person Company (OPC) as defined under clause (62) of section 2 of CA, 2013 is not covered under CARO – 2016. OPC means a company which has only one person as a member.
(v) Small Company:
A small company as defined under section 2(85) of the Companies Act, 2013 is excluded from the scope of CARO – 2016.
According to section 2(85) of CA, 2013 small company means a company, other than a public company,—
paidup share capital of which does not exceed ₹50 Lakhs or such higher amount as may be prescribed which shall not be more than ₹5 Crore; andturnover of which as per its last profit and loss account does not exceed ₹2 Crore or such higher amount as may be prescribed which shall not be more than ₹20 Crore:
Note that the definition of Small Company has been amended vide the Companies (Removal of Difficulties) Order, 2015 [S.O. 504(E)] w.e.f. 13th February, 2015. However, following companies will not qualify as a Small Company:
a holding company or a subsidiary company;a company registered under section 8; ora company or body corporate governed by any special Act;
(vi) Private Company:
The auditors of the following private limited companies are not required to comment on the matters prescribed under CARO – 2016:
Holding/Subsidiary of Public Company: A private company which is not a subsidiary or holding company of a public company; andCapital ≤ ₹1 Crore: A private company having a paid up capital and reserves and surplus not more than rupees ONE Crore as on the balance sheet date; andLoan ≤ ₹1 Crore: Such private company does not have total borrowings exceeding rupees ONE Crore from any bank or financial institution at any point of time during the financial year; andTurnover ≤ ₹10 Crore: Such private company does not have a total revenue exceeding rupees TEN Crore during the financial year as per the financial
Such revenue means revenue as disclosed in Scheduled III to the Companies Act, 2013 and includes revenue from discontinuing operations.
There is another relief for the companies is that the Companies (Auditor’s Report) Order, 2016 shall also not apply to the auditor’s report on Consolidated Financial Statements (CFS) of the company.
Scope of Applicability of CARO – 2016:
The scope of applicability of CARO – 2016 covers more number of companies in compare to the previous CARO – 2003. However, the MCA has now relaxed the application/scope of CARO on the private companies by increasing the applicability thresholds limit and therefore, CARO – 2016 would be applicable to less number of companies w.e.f. April 2015.
You should note that the concept of OPC and Small Company were not existed under the companies Act, 1956 and such class of companies are newly introduced under the provisions of the Companies Act, 2013.
There are mainly two factors which has widened the application of CARO 2016 viz. Small Companies and Foreign Companies.
Small Companies: As we know that the concept of Small Company is newly introduced in the Companies Act, Further, the definition of Small Company has been amended vide the Companies (Removal of Difficulties) Order, 2015 w.e.f. 13th February, 2015.
According to the revised definition of Small Company, the both conditions as prescribed in sub clause (i) and (ii) of clause (85) of section 2 i.e. paidup share capital and turnover criteria should be met by company to fall under the definition of Small Company.
Thus, fewer companies are expected to meet the criteria to fall under the definition of Small Company and therefore be outside the scope of applicability of CARO – 2016.
Foreign Company: In compare to the Companies Act, 1956, the definition of Foreign Company has also been widened in section 2(42) of the Companies Act, Now, a company shall become foreign company if such company or body corporate incorporated outside India has a place of business in India whether by itself or through an agent, physically or through electronic mode and conducts any business activity in India in any other manner.
Hence, more companies would get covered under the applicability of CARO – 2016. Additionally, the reporting requirement has also been enlarged in CARO – 2016 to increase the responsibility of the statutory auditors while preparing their reports in compliance with the provisions of section 143 of the Companies Act, 2013.
Which Matters are required to be included in Auditors Report?
As compared to the CARO – 2003, the reporting requirements under the CARO – 2015 (FY 2014 2015) were significantly reduced from 21 clauses to 12 clauses. However, the Central Government has further increased the number of reporting clauses from 12 to 16 in CARO – 2016 for financial years commencing on or after 1st April, 2015.
As per paragraph 3 of CARO – 2016, following certain matters shall be included in the report made by the auditor under section 143 of the Companies Act, for the financial year commencing on or after 1st April, 2014:
1) Fixed Assets [Clause 3(i)]:
Following matters shall be included in the auditor’s report relating to Fixed Assets of the company.
Proper Records: Whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;Physical Verification: Whether these fixed assets have been physically verified by the management at reasonable intervals;
Whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account;
Title Deed: Whether the title deeds of immovable properties are held in the name of the company. If not, provide the details thereof;
2) Inventory [Clause 3(ii)]:
Following matters shall be included in the auditor’s report relating to Inventory of the company.
Physical Verification: Whether physical verification of inventory has been conducted at reasonable intervals by the management;
Whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account;
3) Loan given by Company [Clause 3(iii)]:
Whether the company has granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships (LLP) or other parties covered in the register maintained under section 189 of the Companies Act, 2013. If so,
Terms and Conditions: Whether the terms and conditions of the grant of such loans are not prejudicial to the company’sRegular Recovery: Whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular;Steps for Recovery: If the amount is overdue, state the total amount overdue for more than 90 days, and whether reasonable steps have been taken by the company for recovery of the principal and
4) Loan to Directors and investment by Company [Clause 3(iv)]:
In respect of loans, investments, guarantees, and security whether provisions of section 185 and 186 of the Companies Act, 2013 have been complied with. If not, provide the details thereof.
5) Deposits [Clause 3(v)]:
In case, the company has accepted deposits, whether the following has been complied with:
Directives issued by the Reserve Bank of India (RBI);
The provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder; and
If an order has been passed by Company Law Board (CLB) or National Company Law Tribunal (NCLT) or Reserve Bank of India (RBI) or any court or any other tribunal.
However, if any of the above not complied with, the nature of contraventions should be stated.
6) Cost Records [Clause 3(vi)]:
If the Central Government has specified maintenance of cost records under section 148 (1) of the Companies Act, 2013 whether such accounts and records have been made and maintained.
7) Statutory Dues [Clause 3(vii)]:
Following matters shall be reported for statutory dues and disputes for tax and duties.
Statutory Dues for more than 6 Months: Whether the company is regular in depositing undisputed statutory dues with the appropriate authorities including:Provident fund;Employees’ state insurance;Incometax;Salestax;Service tax;Duty of customs;Duty of excise;Value Added Tax (VAT);Cess; andAny other statutory
If the company is not regular in depositing such statutory dues, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor.
Dispute for Tax and Duty: In case dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be
Note that a mere representation to the concerned Department shall not constitute a dispute.
8) Repayment of Loans [Clause 3(viii)]
Whether the company has defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders? If yes, the period and the amount of default to be reported.
Note that in case of defaults to banks, financial institutions, and Government, lender wise details to be provided.
9) Utilisation of IPO and further Public Offer [Clause 3(ix)]:
Whether moneys raised by way of Initial Public Offer (IPO) or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not, the details together with delays or default and subsequent rectification, if any, as may be applicable, be reported;
10) Reporting of Fraud [Clause 3(x)]:
Whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated;
11) Approval of Managerial Remuneration [Clause 3(xi)]:
Whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act 2013? If not, state the amount involved and steps taken by the company for securing refund of the same;
12) Nidhi Company [Clause 3(xii)]:
Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining 10% unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet out the liability;
13) Related Party Transactions [Clause 3(xiii)]:
Whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
14) Private Placement or Preferential Issues [Clause 3(xiv)]:
Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so, as to whether the requirement of section 42 of the Companies Act, 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not, provide the details in respect of the amount involved and nature of noncompliance;
15) Noncash Transactions [Clause 3(xv)]:
Whether the company has entered into any noncash transactions with directors or persons connected with him and if so, whether the provisions of section 192 of Companies Act, 2013 have been complied with;
16) Register under RBI Act 1934 [Cause 3(xvi)]:
Whether the company is required to be registered under section 45IA of the Reserve Bank of India Act, 1934 and if so, whether the registration has been obtained.
Reasons to be stated for Unfavorable or Qualified Answers
1) Unfavourable or Qualified Answer:
Where, in the auditor’s report, the answer to any of the questions referred to in paragraph 3 is unfavourable or qualified, the auditor’s report shall also state the reasons for such unfavourable or qualified answer, as the case may be.
2) Unable to Express Opinion:
Where the auditor is unable to express any opinion in answer to a particular question, his report shall indicate such fact together with the reasons why it is not possible for him to give an answer to such question.
Hence, as per paragraph 4 of CARO – 2016, the auditor must give the reasons for unfavourable or qualified answers to the above 16 clauses referred in paragraph 3 of CARO – 2016. However, if the auditor is not able to express his opinion the fact and reason for the same should be indicated in the report.
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General Circular No. 11 /2017
dated 27th September 2017
issued by MCA
Acceptance of Deposits – Clarification on timeline for availability of new DPT 3 Form - New Form DPT-3 shall be made available for E-filing after the month of November, 2017 and till the time the new e-Form is made available, the existing e-form can be used.
This Ministry, vide notification number G.S.R. 1172(E) dated 19th September, 2017 has issued the Companies (Acceptance of Deposits) Second (Amendment) Rules, 2017 thereby amending the Companies (Acceptance of Deposits) Rules, 2014. The said amendment Rules inter-alia provide for substitution of existing Form DPT-3 with a new Form DPT-3. Stakeholders have sought clarifications w.r.t. timelines of the applicability/ availability of the new Form DPT-3.
2. The matter has been examined and it is hereby clarified that new Form DPT-3 shall be made available for E-filing after the month of November, 2017 and till the time the new e-form is made available, the existing e-form can be used.
3. This issues with the approval of Competent Authority.
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CBEC issues clarification on certain transitional issues arising w.r.t. payment of service tax after June 30; Clarifies that in cases where service was received and payment thereof was made before July 1 but service tax was paid by July 5 / 6, details of credit should be indicated in Part I of Form ST-3 by filing revised return; Accordingly, to give assessees an immediate and viable window to file revised returns within 45 days, CBEC states that all ST-3 returns for the period April – June 2017 which have been filed upto and inclusive of August 31, shall be deemed to have been filed on August 31; Once details of such credit are reflected in ST-3, assessee may proceed to fill in the details in Form GST TRAN-1; Assessees who were not registered under ACES and who want to make payment of service tax on after July 1, can avail the category of “non assessee registration” in registration module of ACES : CBEC Circular
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Maharashtra Govt Takes Strict Penal Actions against Persons including Composition Dealers for Not Displaying GSTIN in Sign Boards
Read more at: http://www.taxscan.in/maharashtra-govt-takes-strict-penal-actions-persons-including-composition-dealers-not-displaying-gstin-sign-boards/11380/
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Bombay HC Strikes Down Levy of Local Body Tax on E-Recharge: Upholds Levy on SIM Cards & Recharge Coupons [Read Judgment]
Read more at: http://www.taxscan.in/bombay-hc-strikes-levy-local-body-tax-e-recharge-upholds-levy-sim-cards-recharge-coupons/11461/
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FM Interactions with Trade/ Industry/ Professionals- 28th September 2017
The interaction was to seek solutions for matters posing difficulty for trade & industry especially the SMEs and small businesses. FM stated that the decision making process is smooth and sought solution to issues on rate fixation, drafting anomalies, legal issues, fitment issues, return filing challenges, long term impact on industries, procedures how to improve. Various sectors made suggestions which were being recorded diligently. Listening was very high. Some suggestions captured by me are enumerated below:
1. Export sector- While rate of Re is encouraging, the high logistic costs in India, credit accumulation, import without IGST, faster refunds, drawback to be continued till petroleum + electricity are got into GST, 5% for job work across sectors were suggestions
2. Tally – Tax on advance not to be continued, RCM- only beyond limit, GSTR manual filing would be very challenging, offline tools not integrating with gstn.
3. Laghu Udyog- Quarterly returns for those under 150 lakhs, no RCM for those under 150 L, delay in payment of monies by government organisation- working capital not possible to be borne by smaller businesses, allow composition to job work- 150 l.
4. GST suvidha providers felt they got no time to link and interconnect to the offline utilities due to very shirt time lines. They wished to get some time to test, they felt that other than payment, compliance could be deferred for 6 months by which time well integrated system would be in place. GSTN explained that they can take 3 lakh concurrent user and planned to increase that as most smaller assessees coming in late. Larger entities filing early.
5. Independent firms- to intimate due dates well in advance, credit across state & centre, advance ruling authority faster, integrating GSTN with ERP a challenge, State wise registration for TDS can be avoided, existing contracts getting impacted, transfer of money in sgst to igst , C form for petroleum products, EPC contracts, tax holiday – alternative scheme etc.
6. Advocates – Allow revision of return, remove URS 9 (4), payment to vendor within 180 days not necessary. Most govt concerns would be in this category.
7. Institute of Chartered Accountants of India - Compulsory registration due to interstate supplies against 1 nation 1 tax, small businesses impacted, coverage under 9(3) should not trigger 9(4), RCM only above 1.5/ 2 crores, composition to be extended to services, credit allowed to buyer/ receiver, 40% disputes in credit, credit blockages/ restriction to be removed, transitional credit for manufacturers. Service providers, traders for inputs and CG to be even and uniform as increased tax being borne, exempted supply includes RCM- ridiculous, non taxable supplies not be included, the next stage of matching would create double the difficulty that has been caused till now and provisional credit to be allowed to all sme with reconciliation to be completed by june 2018 and then only credit denied, help desk responsiveness needed, definition of aggregate turnover for 20l to be only on taxable and not on non taxable asn exports as it was in the past in CE/ ST, instruction to govt concerns/ govt dept to pay in time. The 122 suggestion booklet from ICAI shared. Hosted on web site of IDTC of ICAI
Hoping that many of the above issues noted by the senior officers of revneu as well as GSTN see a relaxation of the rigours faced and simplification of the tax rates as well as rules.
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MCA
MCA has issued Office Memorandum as recommendation and has invited Public Comments for integration of Name Reservation ( INC-1) with Spice E-Form under Companies Act, 2013. Spice E Form has been introduced whereby procedures of obtaining DIN by the proposed Directors, name reservation, incorporation, allotment of Pan has been integrated into one service, facilitating incorporation of Company. However, availing DIN allotment or name reservation services independently is also simultaneously available to cater to those stakeholder who wish to proceed with incorporation in a piecemeal manner. Therefore, Suggestions are invited from the Stakeholders for further simplification of processes aimed at further easing the starting of a business, which may be filed online at comments.nameintegration@mca.gov.in on or before 05/11/2017.
CBDT
CBDT has issued the notification to the prescribed the procedure to be followed w.r.t TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased. It has been brought to the notice of CBDT that in cases of deceased depositor who has made deposits under the Capital Gains Accounts Scheme, 1988, the banks are deducting TDS on the interest earned on such deposits in the hand of the deceased depositor and issuing TDS certificates in the name of the deceased depositor, which is not in accordance with the law. The Principal Director General of Income-tax (Systems) has specifies that in case of deposits under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased TDS on the interest income accrued for and upto the period of death of the depositor is required to be deducted and reported against PAN of the depositor, and TDS on the interest income accrued for the period after death of the depositor is required to be deducted and reported against PAN of the legal heir, unless a declaration is filed under sub-rule(2) of Rule 37BA of the Income-tax Rules, 1962 to that effect
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Download E-Book on GST Issued By ICAI along with GST ACTs, Rules, Rates, FAQs and MCQs, Chapter Wise File in ppt and Lots More at One Place here👇🏻👇🏻
https://acasouravbagaria.wordpress.com/2017/09/23/e-book-on-gst-issued-by-icai/
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Govt Clarifies Issues on Payment of Service Tax in Transitional Period 👇🏻👇🏻
https://acasouravbagaria.wordpress.com/2017/09/28/govt-clarifies-issues-on-payment-of-service-tax-in-transitional-period/
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Date of Final Occupation should be considered for Calculating the period of eligibility for Capital Gain Exemption: ITAT [Read Order]
Read more at: http://www.taxscan.in/date-final-occupation-considered-calculating-period-eligibility-capital-gain-exemption-itat/11477/
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Dear Members,
*Clarification on service tax paid by 6th July for June RCM - Transitional Credit*
In the cases where service tax for RCM liability for June liability was not paid by 30.6.2017 and paid by 6th July 2017, credit would have been allowed in the month of payment (i.e in July)
Assessee were facing issue how to claim ITC of same in Trans1 under GST?
CBEC has issued the circular that in such cases, details of such payment to be given in ST-3 service tax return of April to June 17 itself in Part I and Part H.
If return is already filed(which will be the maximum case), service tax revise return can be filed by *15th October 2017* (irrespective of your service tax return filing date) and credit of same can be taken under GST by filing Trans1.
Further if Trans1 is also filed, it can be revised once upto *31st October 2017*
Happy filing!!
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Interest on enhanced Compensation received under the Land Acquisition Act is not subject to Capital Gain Tax: ITAT Ahmedabad [Read Order]
Read more at: http://www.taxscan.in/interest-enhanced-compensation-received-land-acquisition-act-not-subject-capital-gain-tax-itat-ahmedabad/11439/
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जीएसटीएन नंबर दुकान या संस्थापना के मुख्य बोर्ड पर बडे अक्षरो में दर्शाना जरुरी, ना दर्शाने तथा जीएसटीएन नंबर बील में सही ना बताने पर या गलत बील देने पर १० हजार से २५ हजार रुपये तक का दंड का प्रावधान
New Circular : Displaying GSTIN NO.
Trade Circular 43T/ 2017
Mandatory for Displaying GSTIN No. On Your Office or Establishment Board, Non-issuance proper invoice & Incorrect Invoice. Penalty of Rs. 10 Thousand to 25 Thousand.
Penalty for non-display of GSTIN on Board, incorrect Invoice & on Composition dealers.
2. Legal Provision
The person registered under the GST Act is expected to follow certain rules with respect to display of GSTIN as prescribed under the law.
Rule 18 of the Maharashtra Goods and Service Tax Rules, 2017 reads as:
..”Rule 18- Display of registration certificate and Goods and Service Tax Identification Number on the name board” –
• Every registered person shall display his certificate of registration in a prominent location at his principal place of business and that every additional place or places of business.
• Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or places of business.
3. Expected Compliance
The above rule clearly says that every registered person shall display his certificate of registration at his principal place of business and at every additional place or places of business. It is also required to display his GSTIN on the name board which should be exhibited at the entry of his principal place of business and at every additional place or places of business.
The GSTIN should be prominently displayed in bold letters so as to be easily visible to visitors especially to the customers/vendees
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Delhi HC Issues Guidelines for Re-Opening of Assessment under Income Tax Act [Read Order]
Read more at: http://www.taxscan.in/delhi-hc-issues-guidelines-re-opening-assessment-income-tax-act/11471/
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# *GSTIN* portal activated amendment of core fields like trade name, legal name, and constitution, place of business & addition / deletion of additional place of business.
# *ICAI*: 30 SEP 2017 is the last date of payment of Membership & Certificate of Practice (CoP) Fee for FY 2017-18. The fee can be paid online by clicking at http://memfee.icai.org/memfee.html.
# *MCA*: Banks have started the process of scanning account details of directors disqualified by the MCA to analyze their links with shell companies and check whether they diverted funds.
# *MCA* has issued Office Memorandum as recommendation and has invited Public Comments for integration of Name Reservation (INC-1) with Spice E-Form under Companies Act, 2013.
# *IT*: The account appeared to be in the nature of current adjustment accommodation account where movement of funds are in both ways on need basis - the sum of can also not be regarded as deemed dividend U/s. 2(22)(e) - Ravindra R Fotedar Vs ACIT (2017 (9) TMI 1459 - ITAT Mumbai)
# *ST*: Refund of input services - export of goods - for the eligibility of refund, the nexus between inputs or input service and the final goods/services has to be loser. There is no requirement of one to one co-relation between inputs and outputs – CSEC&ST, BBSR-II Vs East India Minerals Ltd. & (Vice-Versa).
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UAE to Collect Excise Tax from 1 October
Read more at: http://www.taxscan.in/uae-collect-excise-tax-1-october/11452/
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Govt Exempts Receipts from FIFA under-17 Football World Cup from Income Tax Net
Read more at: http://www.taxscan.in/govt-exempts-receipts-fifa-17-football-world-cup-income-tax-net/11421/
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Taxmen slap big penalty to check evasion of GST
http://www.ecoti.in/2W926Z
via The Economic Times App(Download Now):
http://ecoti.in/etapps
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Quick Reference to " Dormant Company":-
Legal Provision:-
Section 455 of Companies Act, 2013.
Points:-
1. Dormant Company means a inactive company which has not carrying any business or significant accounting transaction in last 2 F.Y.
2. It is technically different from Defunct Company.
3. The Company can make application in form MSC-1 to to get Dormant Status. Special Resolution is required.
4. Registrar issue Certificate in form MSC-2. to Company.
5. Return of Dormant company can file in form MSC-3.
6. To get again active status by Dormant Company form MSC-4 is required to file. Then Registrar give Certificate in form MSC-5.
7. No investigation is carried out against company for obtaining Dormant Status.
8. It should not be listed company.
9. There should not be default on workmen's due.
10. Cash flow statement is not required for Dormant Company.
11. The Company should not have outstanding loan, outstanding tax, outstanding deposits, duties etc before applying for Dormant Status.
12. The Board of Directors can meet atleast once in each half of the calendar year and gap between 2 meetings should not be less than 90 days.
13. No prosecution is pending against the Company.
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GSTIN portal opens amendment of core fields like trade name, legal name, and constitution, place of business & addition / deletion of additional place of business.
30.9.2017 (Saturday) is last date to opt for composition scheme for 2017-18 on www.gst.gov.in. File returns as regular assessee till 30 Sep & GSTR-4 from Q3.
30-09-2017- those who have submitted FLA on the basis of provisional financials are required to submit the revised FLA return based on audited accounts by 30th September.
30-09-2017- Due date for payment of last installment (i.e., 50% of tax, surcharge and penalty) under Income Disclosure Scheme, 2016.
03-10-2017- GSTR-1 for July for persons with turnover more than Rs. 100 Crores.
07-10-2017- Due date for deposit of tax deducted /collected for the month of September, 2017.
10-10-2017- Due date for filing GSTR -1 for the month of July’2017.
15-10-2017- PF payment for September.
15-10-2017- ESIC payment for September.
20-10-2017- GSTR-3B for the m/o September.
29-10-2017- Annual filing of Accounts / financial statements of the Company for the financial year ended March 31, 2017.
31-10-2017- Due date for filing GSTR -2 for the month of July’2017.
31-10-2017- Due date for submission of original GST TRAN-1 and revision of already submitted GST TRAN-1, both, is 31st October, 2017. Please note, though time for revising GST TRAN-1 is given till 31st October, 2017, revision can be done only once.
31-10-2017- TDS return for the quarter ending September 30 ’2017.
31-10-2017- CBDT has extended the due date for filing the return of Income as well as various audits prescribed under the Income tax act from 30th September’2017 to 31st October’2017.
Pay ICAI Membership/COP Fee online on Link :- http://memfee.icai.org/memfee.html for the year 2017-18 by 30th September.
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Assessee can avail the benefit of Capital Gain Exemption if Possession of the New Property is transferred within 2 Years: Delhi ITAT
Read more at: http://www.taxscan.in/assessee-can-avail-benefit-capital-gain-exemption-possession-new-property-transferred-within-2-years-delhi-itat/11411/
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*Important Tweets Posted on @askGSTech & @askGST_GOI twitter Handel in past Few Days-(PART-4)
1. Gst is not applicable on *sale of used car by an individual*
2. *HSN code for self invoices raised under RCM* will depend upon goods / services being procured. To be shown in Table 4B of GSTR-2.
3. *GST paid to bus operator* for employee transportation is available as credit because only rent-a-cab credit is blocked.
4. *Transfer of land development rights* is taxable under gst. And time of supply is as per Section 13 and value as per Section 15
5. *Reduction in rate is effective from date of Notification*- Like Press release dated 5-8-17 reduced GST on certain job work to 5%. Notification issued on 22-8-17. Rate reduction effective from 22-08-2017 I.e from the date of notification
6. *Claim of ITC paid on RCM basis for inward supply* from unregistered dealer has to to manually declared in table-4 of GSTR-2, it will not get auto populated
7. A trader purchased goods from SSI- excise opted out unit and such goods are in stock as on 30-6-17. *Is deemed credit available* in CGST Vide Trans 1. Yes, please see Rule 117(4) of CGST Rules.
8. *Advertisement Billboard located at Delhi* & service provider also in delhi & service recipient at mumbai than CGST+SGST will be charged
9. *Returns under Central Excise Act* will continue for non-GST goods.
10. *Mistake in GSTR-3B*? can be corrected while filing GSTR-1. Mistake in GSTR-1, can be rectified only in next month's return.
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Please find below the updates on the new services made available on portal and defect fixed
1) REG_011 : Application for Amendment of Registration - Core Fields, deployed in portal
2) REG_012 : Processing of Amendment Application, deployed in portal for tax officials
3) REG_19 : Suomoto Registration along with payment option, deployed in portal
4) 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.
Bug fixed and Change completed successfully
5) EVC Filing Issue in Transition form 1
Change completed successfully
6) Transfer of Charge –BO System Error thrown while trying to transfer the charge. Fix is done in order to avoid this issue.
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Embedding of taxes makes Indian products uncompetitive as other nations do not levy any tax on goods meant for export.
Exporters may get an outright exemption from the integrated goods and services tax ( IGST) on imported inputs that currently don’t face basic customs duty to help perk up the sector, which has been hit hard by rupee appreciation, said government officials. Also under consideration is a refund mechanism for taxes paid on local inputs used by exporters, they said.
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A final call on the matter will be taken by the GST Council, when it meets on October 6.
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“A scheme is under discussion... It could be taken up by the council,” said one of the officials. The proposal is under close examination, said another official.
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Exporters had access to duty-free inputs under the previous tax regime. Some of these inputs continue to be exempt from basic customs duty, but face IGST. Industry wants at least these inputs exempted under the GST regime to begin with. The industry says outright exemption would provide long-term solution to its woes.
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“The biggest issue for exporters at present is liquidity. Firstly, there is issue of blocked refunds and the other is that payment of taxes has to be done upfront. Banks do not provide loans for payment of taxes… Exemption will help provide a solution on a long-term basis.
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Expeditious refunds will help address the immediate problem of liquidity,” said Ajay Sahai, director-general of the lobby group Federation of Indian Export Organisations (FIEO).
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Embedding of taxes makes Indian products uncompetitive as other nations do not levy any tax on goods meant for export.
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The problem has been compounded for exporters as there has been a delay in the refund of taxes they paid on inputs, leading to working capital issues. If the GST Council decides on such a framework for exporters, it will resolve the issue of cash flows and bring them on par with their foreign counterparts.
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The government is keen to address issues concerning exports expeditiously since the sector contributes substantially to job creation, as it seeks to revive growth that slumped to a three-year-low in the June quarter.
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“The issue is being looked at with a sense of urgency,” said the second official. The government will ensure that the local industry isn’t put to any disadvantage on account of the strategy to help exporters. Finance ministry officials have been holding intensive deliberations on the framework of the scheme.
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They discussed the matter on Monday and will meet on Tuesday with commerce department counterparts.
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Exporters, particularly the smaller ones, have begun to face working capital issues with tax refunds getting stuck after the rollout of GST on July 1. They are also unable to price their products for advance Christmas orders as there is no clarity on refunds yet, in what could have ramifications for the broader exports sector.
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RUPEE’S CLIMB HURTING EXPORTS
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The rupee’s climb has eroded export competitiveness, with the currency strengthening more than 4% against the dollar since the beginning of the year, prompting intervention by the central bank, experts have said. The rupee closed at 65.12 versus the dollar on Monday, the lowest in six months amid global and domestic worries. Excluding the fall in the local unit’s value in the past few trading sessions, the rupee has gained about 5.50% this year.
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According to FIEO, the cumulative order book position is down 15-20% from the year earlier. India exported goods worth $274.6 billion in FY17, just 4.7% higher than $262.2 billion in FY16.
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Exporters have claimed that refunds worth Rs 65,000 crore in the July-October period are stuck. The government has disputed this figure.
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According to another government official, refunds worth only about Rs 600 crore for July have been held up. Moreover, over 60% of exporters have opted for the previously available duty drawback scheme.
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The refunds issue has cropped up largely due to the extension in the filing date for returns following technical glitches in the GST Network. At its last meeting on September 9, the GST Council had set up a committee headed by revenue secretary Hasmukh Adhia to look into the issues faced by exporters and draw up a plan for their resolution. The panel held detailed discussions with exporters and is now working on a framework to resolve them.
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ET View: Refund Exporters Swiftly
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An outright exemption may not be in line with GST law. In any case, there’s provision for exporters to provide a bond or letter of undertaking to avoid IGST. There’s also much scope for faster refund of taxes already paid, by better leveraging IT for instance. Shipping bills having IGST invoice need to be deemed as application for prompt refund of taxes paid along the value chain.
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📺 *Updates*
➡1. Sum received from Co. was deemed dividend if shareholder failed to prove that it was received through sale of land
Kapil N. Shah v. Income Tax Officer, Ward 12(2)(1), Mumbai.
➡2. Now FPIs can participate in Commodity Derivatives in IFSCs subject to riders: SEBI
➡3. Prasar Bharti abuses its dominant position by demanding licence fee for use of common transmission structure
🙏�Thank you🙏�
Have a nice day