📺 *Updates*
➡1. MCA extends due date for XBRL filing for Ind AS compliant companies to March 31, 2018
➡2. No penalty if wife offered due tax during assessment on sum received being beneficiary of her deceased husband: HC
Commissioner of Income-tax -3, Pune v. Smt. Madhuri Satish Misal.
➡3. 30 days limitation period for appeal under Recovery of Debts Act can’t be condoned by Limitation Act: SC
International Asset Reconstruction Company of India Ltd. v. Official Liquidator of Aldrich Pharmaceuticals Ltd.
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*Today's Word of D-DAY:*
*Perplexities*
*Meaning*
Confused conditions
*Example:*
Anti profiteering provisio ns in the gst act are very breif, leaving enough room for perplexities.
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Letters of Forign Govt Depts & Foreign Embassies are to be deemed as ‘Proof of Address’ for Foreign Nationals: Govt Amends PMLA Rules [Read Notification]
Read more at: http://www.taxscan.in/letters-forign-govt-depts-foreign-embassies-deemed-proof-address-foreign-nationals-govt-amends-pmla-rules/12564/
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Appeal can’t be dismissed on Ground of Defect in Form without Granting an Opportunity to cure the same: ITAT [Read Order]
Read more at: http://www.taxscan.in/appeal-cant-dismissed-ground-defect-form-without-granting-opportunity-cure-itat/12589/
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Remittance to Google Ireland paid by Google India for use of its ‘Adwords Programme’ is taxable as Royalty: Google Loses IT Case [Read Order]
Read more at: http://www.taxscan.in/remittance-google-ireland-paid-google-india-use-adwords-programme-taxable-royalty-google-loses-case/12575/
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GOODS & SERVICES TAX UPDATE
CENTRAL GOODS & SERVICES TAX
Clarification on movement of goods on approval basis
The Central Board of Excise & Customs vide Circular No. F. No.10/10/2017-GST dated 18th October, 2017 clarified that goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified.
It is further clarified that all such supplies, where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract integrated tax in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017.
It is also clarified that this clarification would be applicable to all goods supplied under similar situations.
[Refer sub-rule (1) (2) & (3) of rule 55 of the Central Goods and Services Tax Rules, 2017]
Waiver of late fee on filing of GSTR-3B for August and September, 2017
In view of the difficulties being faced during the return filing process and in order to further facilitate taxpayers, the CBEC videNotification No. 50/2017 – Central Tax waived the late fee on filing of GSTR- 3B for the months of August and September, 2017.
The necessary software changes are being carried out in the IT system. Electronic cash ledger of the taxpayers who have already paid the late fee on filing of GSTR-3B either for the month of August or September, 2017 or those who pay such fee before the necessary changes are carried out in the IT system will be credited with the amount of late fee so paid by them.
[Press Release dated 24th October, 2017 and Notification No. 50/2017 – Central Tax Dated 24th Oct, 2017]
Comment : Late fee was paid by the assessee from fee cash ledger, if it would be returned into the fees cash ledger it would not be available to set off against tax liability.
Authorized officer for enrollment of Goods and Services Tax Practitioner
The Central Board of Excise & Customs vide Circular No. F. No. 349/75/2017-GST dated 18th October, 2017 clarified that Assistant Commissioner/Deputy Commissioner, having jurisdiction over the place as the officer authorized to approve or reject the said application for enrolment as Goods and Service Tax Practitioner submitted by applicant in FORM GST PCT-1 in terms of sub-section (1) of section 48 of the Central Goods and Services Tax Act, 2017 read with sub-rule (2) of rule 83 of the Central Goods and Service Tax Rules, 2017.
It is also clarified than the applicant shall be at liberty to choose either the Centre or the State as the enrolling authority. The choice will have to be specified by the applicant in Item 1 of Part B of FORM GST PCT-1.
[Circular No. F. No. 349/75/2017-GST dated 18th October, 2017]
Clarification on taxability of printing contracts
The Central Board of Excise & Customs vide Circular No. F. No. 354/263/2017-TRU dated 20thOctober 2017 clarifies the taxability of printing contracts e.g. books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with design, logo, name, address or other contents supplied by the recipient of such supplies.
Taxability in the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services.
Taxability in case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc.supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] isancillary to the principal supplyof goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff.
[Circular No. F. No. 354/263/2017-TRU dated 20th October 2017]
CBEC to Redistribute Cases in Jurisdictions to Reduce Pendency of Cases With Commissioners (Appeal)
In order to clear the pendency of cases as on 30th June 2017 before the Commissioners of Central Excise and Service Tax (Appeals), the CBEC will redistribute the cases pending in the jurisdiction of a Principal Chief/ Chief Commissioner of Central Excise and Service Tax, among other Commissioner rank officers posted in that jurisdiction.
[Press Release dated 17th October, 2017]
Reduction in GST Rate on Food preparations for free distribution to economically weaker sections
The Central Government vide Notification No. 39/2017-Central Tax (Rate) dated 18th October, 2017has notified the central tax rate@2.5 % on intra-State supplies of goods in case of food preparations which put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government with effect from 18thOctober, 2017.
When the supplier of such food preparations produces a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union Territory concerned to the effect that such food preparations have been distributed free to the economically weaker sections of the society under a programme duly approved by the Central / State Government concerned, within a period of 5 months from the date of supply of such goods or within such further period as the Jurisdictional commissioner of the Central/ State/ Union Territory tax as the case maybe, may allow in this regard. Similar notification has been brought under UTGST Act, 2017 vide Notification No. 39/2017-Union Territory Tax (Rate) dated 18th October, 2017.
[Notification No. 39/2017-Central Tax (Rate) dated 18th October, 2017,Notification No. 39/2017-Union Territory Tax (Rate) dated 18th October, 2017]
IGST Rate in case Export on supply of taxable goods by a registered supplier to a registered recipient
W.e.f. 23rd October, 2017, The Central Government videNotification No. 40/2017-Central Tax (Rate) dated 23rd October, 2017exempts the intra-State supply and inter state supply of taxable goods in excess of the amount calculated@0.05 % and @ 0.1% respectively by a registered supplier i.e Merchant Exporter to a registered recipient i.e Ultimate Exporter for export is subject to fulfilment of the following conditions namely:
Supplier shall supply the goods to the Recipient on a tax invoice.
Recipient shall export the said goods within a period of 90 days from the date of issue of a tax invoice by the Supplier.
Recipient shall indicate theGSTIN of the Supplier and thetax invoice number issued by the Supplier in respect of the said goods in the shipping bill or bill of export i.e Merchant exporter details should come in shipping bill.
Recipient shall be registered with an Export Promotion Council or a Commodity Board recognized by the Department of Commerce.
Recipient shall place an order on Supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of the Supplier.
When goods have been exported, the Recipient shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) and tax invoice of the Supplier along with proof of export general manifest or export report having been filed to the Supplier as well as jurisdictional tax officer of such supplier.
Further, the Supplier shall not be eligible for the above-mentioned exemption if the registered recipient fails to export the said goods within a period of 90 daysfrom the date of issue of tax invoice.
Similar notification has been brought under UTGST Act, 2017vide Notification No. 40/2017-Union Territory Tax (Rate) dated 23rdOctober, 2017 and under IGST Act, 2017 vide Notification No. 41/2017--Integrated Tax (Rate) dated 23rdOctober, 2017.
[Notification no 40/2017- Central Tax (Rate) dated 23rd October, 2017,Notification No. 40/2017-Union Territory Tax (Rate) dated 23rdOctober, 2017, Notification No. 41/2017--Integrated Tax (Rate) dated 23rd October, 2017]
Amendment in CGST Rules
The Central Government videNotification No. 47/2017 – Central Tax dated 18th October, 2017 hereby makes the following rules further amend of the Central Goods and Services Tax Rules, 2017, namely:-
Earlier in 3rd proviso sub-rule (1) of rule 89 of CGST Rules, 2017 only recipient may file the application for claiming refund in case deemed exports supplies. Now supplier ie. Merchant Exporter may also file application for claiming refund subject to condition as specified in notification. Central Government videNotification No. 47/2017 – Central Tax dated 18th October, 2017 substituted the 3rdproviso in the following manner namely: -
“Provided also that in respect of supplies regarded as deemed exports, the application may be filed by
the recipient of deemed export supplies; or
the supplier of deemed export supplies in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund”
In rule 96A, in sub-rule (1), in clause (a), after the words “after the expiry of three months”, the words “, or such further period as may be allowed by the Commissioner, “shall be inserted.
In FORM GST RFD-01, Cesscolumn has been added appropriately.
[Notification No. 47/2017 – Central Tax dated 18th October, 2017]
Supplies as Deemed Exports
The Central Government videNotification No. 482017 – Central Tax dated 18th October, 2017 notified the following supplies of goods as deemed exports :-
Supply of goods by a registered person against Advance Authorisation.
Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation.
Supply of goods by a registered person to Export Oriented Unit.
Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation.
[Refer Notification No. 482017-Central tax dated 18th October, 2017]
Evidences for Claiming Refund under Deemed Export
The Central Government videNotification No. 492017 – Central Tax dated 18th October, 2017notifies the following as evidences which are required to be produced by the supplier of deemed export supplies for claiming refund, namely:-
Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder or Export Promotion Capital Goods Authorisation holder, as the case may be, that the said deemed export supplies have been received by the said holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient Export Oriented Unit that said deemed export supplies have been received by it.
An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed of by him.
An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund.
[Notification No. 492017 – Central Tax dated 18th October, 2017]
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# *GST*: CBEC has issued a press release to Waive off late fee on filing of GSTR-3B for the months of AUG & SEP 2017.
# *GST* Collections for the m/o September, 2017 stood at Rs.92,150 crores in line with the collections for the months of JUL & AUG of Rs 92,283 crores & Rs.90,669 crores respectively.
# *GST*: CBEC has issued Clarification on issues wherein the goods are moved within the State or from the State of registration to another State for supply on approval basis – Cir.No.10/10/2017-GST, dt.18.10.2017.
# *IBBI*: MCA has finally notified that the powers and functions vested in it under section 247 of the said Act shall now be delegated to the Insolvency and Bankruptcy Board of India,
# *CBDT* has issued Clarification related to guidelines for establishing 'Place of Effective Management' (PoEM) in India. The concept of 'Place of Effective Management' (PoEM) is being used for deciding residency status of a company, other than an Indian Company.
# *IT*: Transfer of cases - Jurisdiction - prior requirement of the law for having the valid order on basis of positive Agreement between two competent authorities is missing - transfer made without valid/required order u/s 127 is invalid - Shri Yogesh Yadav Vs ITO (2017 (10) TMI 927 - ITAT Delhi).
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*ICAI Awards 2017*
11th ICAI Awards to be held on *19th January, 2018* at Nehru Centre, Mumbai.
All Eligible Members are requested to file their online nomination form at the earliest.
🏆 Awards Category
🎖 CA Corporate Contributor
🎖 CA Professional Achiever
🎖 CA CFO
🎖 CA Business Leader
🎖 CA Entrepreneur
🎖 CA Lifetime Achievement
🎖 CA Exemplary Contribution to Society
🎖 CA Distinguish Contributor in Civil Services
Visit at https://awards.icai.org for detailed information.
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CBDT has issued Clarification related to guidelines for establishing 'Place of Effective Management' (PoEM) in India. PoEM is being used for deciding residency status of a company other than an Indian Company.
GSTN starts - Cancellation of Registration of Migrated Taxpayer. The Taxpayers who have not issued tax invoice can avail this service. Form GST REG-16 need to be filed.
If GST Primary Authorized Signatory is dead/ not traceable, approach jurisdictional Tax Officer to set new Authorized Signatory in GST Portal.
Collections under GST are Rs 92,150 crore in September against Rs 90,669 crore in the previous month. However, these were marginally lower by Rs 133 crore than Rs 92,283 crore in July.
MCA has finally notified that the powers and functions vested in it under section 247 of the said Act shall now be delegated to the Insolvency and Bankruptcy Board of India, subject to some conditions.
Govt announced it would invest over Rs 9 trillion to recapitalize state-owned banks and build new roads and highways its biggest move yet to shore up an economy growing at its slowest in three years.
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GST: Govt Extends Due date for filing GST ITC-04
Read more at: http://www.taxscan.in/gst-govt-extends-due-date-filing-gst-itc-04/12579/
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👉🏻4 million income taxpayers spared from demands for return discrepancies.*
(It is now personal income taxpayers’ turn to get relief from the rigours of taxation. About 4 million income taxpayers, who were to get extra tax demands for their FY17 income due to discrepancies in their tax returns, will now be spared.)
👇🏻 👇🏻 👇🏻
https://goo.gl/pS42Ed
*👉🏻GST registration can now cancelled on GSTN portal.*
(The utility REG 29 is available on the portal just below the profile section once a taxpayer logs into GSTN.)
👇🏻 👇🏻 👇🏻
https://goo.gl/TDqwpr
*👉🏻OBC Invites Applications For Empanelment Of Insolvency Resolution Professionals.*
(ORIENTAL BANK OF COMMERCE invites applications for empanelment of Insolvency Resolution Professionals for the period 2017-2018. Last Date for application - 04/11/2017)
👇🏻 👇🏻 👇🏻
https://goo.gl/hftHCK
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*GST* the cancellation of Migrated Dealers is started on GSTN
*Income Tax:* CBDT extends due date for filing of Country-by-Country Report for 2016-17 to 31.03.2018 Circular No. 26/2017 - (25/10/2017)
*Case Study:* TDS not deductible on Reimbursement of expenses billed separately - ITO Vs Deepak Bhargawa (ITAT Delhi)
*Ministry of Finance:* General Provident Fund (GPF) and other similar funds shall carry interest at the rate of 7.8% w.e.f. 1st October, 2017 to 31st December, 2017.
*MCA delegates* it's powers for regulating valuers - to IBBI
http://www.mca.gov.in/Ministry/pdf/delegationOfPowers_Section247_24102017.pdf
*MCA to restore DIN* to enable disqualified directors to file return of cos. other than defaulting co.: HC Dr. Reddy's Research Foundation v. Ministry of Corporate Affairs
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Value declared in Wealth Tax Return cannot be taken as Cost of Acquisition for Computing Capital Gain Income: Delhi HC [Read Judgment]
Read more at: http://www.taxscan.in/value-declared-wealth-tax-return-cannot-taken-cost-acquisition-computing-capital-gain-income-delhi-hc/12534/
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Interest Received on FDRs before the Commencement of Business constitute ‘Other Income’: HC [Read Judgment]
Read more at: http://www.taxscan.in/interest-received-fdrs-commencement-business-constitute-income-hc/12538/
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Provisions of Deemed Dividend do not attract If Recipient is not a Shareholder: SC Upholds Delhi HC decision [Read Order]
Read more at: http://www.taxscan.in/provisions-deemed-dividend-not-attract-recipient-not-shareholder-sc-upholds-delhi-hc-decision/12549/
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Outsourcing of Services by US Company to Indian Subsidiary does n’t constitute PE: SC [Read Judgment]
Read more at: http://www.taxscan.in/outsourcing-services-us-company-indian-subsidiary-nt-constitute-pe-sc/12555/
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📺 *Updates*
➡1. Outsourcing work to Indian subsidiary wouldn’t give rise to fixed place PE; SC upholds Delhi HC’s decision
Assistant Director of Income-tax-1, New Delhi v. E-Funds IT Solution Inc.
➡2. Distribution fee paid by Google India to Google Ireland for use of its ‘Adwords programme’ is taxable as royalty
➡3. AO couldn’t withhold refund merely by issuing sec. 143(2) notice claiming extended period to process refund.
Corrtech International (P.) Ltd.
v. Deputy Commissioner of Income-tax*
🙏�Thank you🙏�
Have a nice day