Co-operative Societies cannot use the word “Bank”, cannot Accept Deposits from Non-Members: RBI
Read more at: http://www.taxscan.in/co-operative-societies-cannot-use-word-bank-cannot-accept-deposits-non-members-rbi/14602/
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Issues relating to Territorial Jurisdiction cannot be decided on the Administrative Side of CESTAT: Delhi HC [Read Order]
Read more at: http://www.taxscan.in/issues-relating-to-territorial-jurisdiction-cannot-be-decided-on-the-administrative-side-of-cestat-delhi-hc/14587/
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Non-Disposal of Objections by the AO through a Separate Speaking Order would make Re-Assessment Invalid: ITAT [Read Order]
Read more at: http://www.taxscan.in/non-disposal-objections-ao-separate-speaking-order-make-re-assessment-invalid-itat-read-order/14578/
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ITAT Confirms Re-Assessment ‘approved’ by Higher Authority than the Authority Prescribed in Section 151, Refuse to Follow Precedents [Read Order]
Read more at: http://www.taxscan.in/itat-confirms-re-assessment-approved-higher-authority-authority-prescribed-section-151-refuse-follow-precedents/14593/
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GST: Realty Contractors moves Bombay HC against Discrepancy in Rates
Read more at: http://www.taxscan.in/gst-realty-contractors-moves-bombay-hc-discrepancy-rates/14560/
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GST: Realty Contractors moves Bombay HC against Discrepancy in Rates
Read more at: http://www.taxscan.in/gst-realty-contractors-moves-bombay-hc-discrepancy-rates/14560/
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Company is Guilty for making False Depreciation Claim: Delhi HC Rejects Plea of Accounting Mistake [Read Order]
Read more at: http://www.taxscan.in/company-guilty-making-false-depreciation-claim-delhi-hc-rejects-plea-accounting-mistake/14572/
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ITAT Quashes Assessment since Valid Notice u/s. 143(2) was not Served upon the Assessee [Read Order]
Read more at: http://www.taxscan.in/itat-quashes-assessment-since-valid-notice-u-s-1432-not-served-upon-assessee/14554/
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Penalty for failure to get account audited not justified if assessee acted bona fide. Case Name: Off- Shore India Ltd. vs. Deputy Commissioner of Income-tax (ITAT Kolkata)
AO cannot treat activities of Trust as business without examining the same. Case Name: ACIT (Exemptions) Vs. The Andhra Cricket Association (ITAT Vishakhapatnam)
GST: Unregistered persons with turnover upto 20 lacs (10 lacs for specified states) can make Inter-state supplies of SERVICES ONLY (Not Goods).
Monthly filers can file GSTR1 for Jul 2017 if not already filed. GSTR-1 for Aug, Sep, Oct & Nov can’t be filed now.
A parliamentary panel has asked the finance ministry to allow exporters to use the old system of refunds to mitigate the compliance burden incurred in transitioning to GST.
*Return GSTR- 3B*
*Category of Taxpayer* .
All taxpayers to file along with payment of tax.
*Time Period* *Due Date*
Every month till 20th of the
March 2018 succeeding month
*Return GSTR-1*
*Category of Taxpayer*
Taxpayers with annual aggregate turnover up to Rs. 1.5 crore to file on quarterly basis.
*Time Period* *Due Date*
July-Sep 2017. 31st December 2017
Oct-Dec 2017. 15th February 2018
Jan-Mar 2018. 30th April 2018
*Category of Taxpayer*
Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file on monthly basis.
*Time Period* *Due Date*
July-Oct 2017. 31st December 2017
Nov 2017. 10th January 2018
Dec 2017. 10th February 2018
Jan 2018. 10th March 2018
Feb 2018. 10th April 2018
Mar 2018. 10th May 2018
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: A new functionality is introduced for the taxpayers on GST Portal by which taxpayers can claim *Refund of Excess* amount lying in their Electronic Cash ledger.
For the same, taxpayers can follow the below-mentioned path:
Visit https://www.gst.gov.in/ > Login > Refund Menu > Application for Refund > Select “Refund of Excess Balance in Electronic Cash Ledger” in Refund Type
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Belated deposit of Employees’ Contribution to PF/ESI made before Filing of Income Tax Returns is Not Deductible: Kerala HC [Read Judgment]
Read more at: http://www.taxscan.in/belated-deposit-employees-contribution-pf-esi-made-filing-income-tax-returns-not-deductible-kerala-hc/14525/
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RBI vide its Notification dated 14th November, 2017 has made amendments pertaining to the submission of Annual Performance Report by Indian Companies which has set up/acquired a Joint Venture (JV)/ Wholly Owned Subsidiary (WOS) overseas in terms of the RBI Regulations through Foreign Exchange Management (Transfer or Issue of any foreign security) Amendment Regulations, 2017.
CBEC vide Circular No. 18/18/2017-CGST dated 16th Nov,2017 clarified that restriction of refund imposed on unutilized input tax credit of GST paid on inputs via Notification No. 5/2017- Central Tax dated 28/06/2017 in respect of certain specified goods will not be applicable to zero rated supplies. Accordingly, refund of ITC though restricted for other categories of manufacturers, not applicable for zero rated supplies.
ICAI: CAs ought to maintain highest level of ethics and integrity: Council of ICAI Vs. Ashok Kumar & Anr. (Delhi High Court)
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Credit Co-Operative Society Providing Credit Facilities to its Members is Eligible for Sec 80P Deduction: ITAT [Read Order]
Read more at: http://www.taxscan.in/credit-co-operative-society-providing-credit-facilities-members-eligible-sec-80p-deduction-itat/14545/
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📺 *Updates*
➡1. Power of Attorney holder is not competent to file application for insolvency resolution process: NCLT
Shriram EPC Ltd. v. Rio Glass Solar SA
➡2. Construction of 'Traders shops' not to be classified as 'commercial construction service.
Sanjeev K. Gaddamwar
v.Commissioner of Central Excise, Nagpur
➡3. Arrangement of deputing employees from abroad couldn’t be taxed under ‘Manpower recruitment & supply agency service’
Taisei Corporation v. Commissioner of Central Excise, New Delhi*
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Govt. wants simplification of GST returns, it Invites your suggestions on these two models
Model 1..
Self assessed return with Annexure 1 for sales invoices and Annexure 2 for purchase invoices.
Mismatch will be generated and 3 months time given for reconciling. If not auto reversal of ITC.
Model 2..
Self assessed return with only Sale invoices. No purchase invoices need to be uploaded. ITC will be reversed after 3 months if sellers invoices are less than ITC claimed.
Pros and cons of each model requested. Govt wants opinion of stake holders only i.e stps associations, all chambers of commerce, CAs ,State trade associations and industries & commerce and suggest the good acceptable model and share the information on or before 2nd December 2017.
Email:
gstc.secretariat@gov.in
And
contact.gstcouncil@gov.in
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Works Contract – GST provision* :
Schedule II entry no. 5(b) and 6(a) [Section-7 of CGST Act’2017] talks about what will be treated as “Supply of Service”, wherein Works contract has been specified
Clause 5(b)
“Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier.”
Analysis
This clause covers works contract in relation to civil construction. Works contracts in relation to building, complex or any civil structure is treated as supply of service if it is sold before completion of construction.However, if entire consideration on works contract has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier than no GST is leviable on such supply as this become immovable property and GST can’t be levied on sale of immovable property
Clause 6 (a)
The following composite supplies shall be treated as a supply of services, namely: –
(a) works contract as defined in clause (119) of section 2
Analysis
This clause has already been explained above under the section “Works Contract under GST”.
Here, the most important aspect to be highlighted is that about the impact on the buyer of Real Estate due to GST. In Pre-GST scenario the Service tax on real estate transaction was 4.5% and set off was there for input service tax component and the state composite VAT was varying in different states within the range of (1-4)% on the total property value without any input tax benefit. In Post GST regime, residential construction services, will invite GST at the rate of 12 per cent (with Land value included) and 18% (if Land and Construction Services are separately identified), which will apply to developers selling residential units before completion of construction to the home buyers, where transaction costs increases with higher tax rates, but at the same time input credit is available on both, services and material.
Property transaction costs will increase by 6% (with 12% GST), in case no input credit is passed on by developers. If developers pass on the input credit to buyers, the property price increase could be restricted to 1-2%. However, if the developers pass on the credits completely and bring down the base prices, then, home buyers may marginally benefit under the GST regime.
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#Economy:The country’s economic growth recovered to more than 6% in the July-Sept quarter, backed by strong manufacturing, allaying doubts about disruptions caused by the GST. It was destocking in the first quarter of 2017-18 due to pre-GST jitters that had pulled down GDP growth to a more than three-year low.
#The Centre’s fiscal deficit for April-Oct, the first seven months of the financial year, was Rs 5.25 lakh crore or 96.1% of the full-year target of Rs 5.46 lakh crore.
#Manufacturing activity in India rebounded in the second quarter (Q2) of FY18, as companies ramped up production to meet the festive demand, pushing up overall economic growth. Investment activity also witnessed an uptick after lacklustre performance in the last two quarters.
#Finance:The RBI’s six-member monetary policy committee is unlikely to tinker with the policy rate on the December 5-6 review, as inflationary pressures & normalisation of policies by global central banks would keep the Indian central bank cautious. None of the 10 participants of a Business Standard poll on monetary policy expected a change in rates next week, with some even cautioning that the rate-cutting cycle could be over for India.
#India is now home to the world’s eighth-biggest stock market, overtaking Canada for the first time in almost a decade. The score: India $2.29 trillion, Canada $2.28 trillion.
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Details of Zero Rated Goods must be included in GSTR 3B: GST Twitter Handle Issues FAQs
Read more at: http://www.taxscan.in/details-zero-rated-goods-must-included-gstr-3b-gst-twitter-handle-issues-faqs/14551/
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Who can opt for Composition Scheme?*
if annual turnover is below Rs 1.5 crore.Supply of Services not eligible for composition except restaurant Services.However
Taxpayers registered under the GST Composition Scheme can supply services with a taxable value of upto Rs.5 lakhs per annum.
*What is the tax rate applicable to a Composition Dealer?*
Manufacturer &traders:1%
Restaurants supply no alchohol :5%
*Must a Composition Dealer maintain detailed records?*
No, a dealer registered under composition scheme is not required to maintain detailed records as in the case of a normal taxpayer.
*Do Composition Dealers have the option to avail Input Tax Credit?*
No, a Composition Dealer is not allowed to avail input tax credit of GST paid to their supplier.
*Can a Composition Dealer issue Tax Invoices?*
No. Since a Composition Dealer is not allowed to avail input tax credit, such a dealer cannot issue a tax invoice as well. A buyer from composition dealer will not be able to claim input tax on such goods.
*Which returns are required to be filed by a taxable person registered under Composition Scheme?*
The taxable person is required to furnish only one return i.e. GSTR-4 on a quarterly basis and an annual return in FORM GSTR-9A.*
*Is liability to pay taxes under Reverse Charge Mechanism covered under the Composition Scheme?*
A Composition Dealer has to pay tax under Reverse Charge Mechanism wherever applicable. There is no exemption to a composition dealer here.
*Can a Composition Dealer collect composition tax separately?*
No, a Composition Dealer is not allowed to collect composition tax from the buyer.
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*What are the penalties applicable on Composition Dealer in case of any default in tax payment?*
If the tax administration has reason to believe that a composition dealer has wrongly availed the benefit under the composition scheme, then such a person shall be liable to pay all the taxes which he would have paid under the normal scheme. Also, he will be liable to pay a penalty equivalent to an amount of tax payable.This penalty will not be levied without giving a show cause notice to the dealer.
*What are the transition provisions if a business transits from Composition Scheme under current regime to Regular Taxation under GST?*
Taxpayers registered under composition scheme under the current regime will be allowed to take credit of input held in stock, or in semi-finished goods or in finished goods on the day immediately preceding the date from which they opt to be taxed as a regular taxpayer.
*What are the conditions for availing input credit on stock lying at the time of transition?*
Following are the conditions which must be addressed by the taxpayer to avail credit on input at the time of transition from composition scheme to the normal scheme:
Such inputs or goods are intended to be used for making taxable supplies under GST law.
Taxpayer was eligible for CENVAT Credit on such goods under the previous regime, however, couldn’t claim it being under composition scheme.
Such goods are eligible for input tax credit under GST regime.
The taxpayer has legal evidence of input tax paid on such goods.
Such invoices were issued within a period of 12 months from GST applicable date.
*What is the treatment for input credit availed when transitioning from normal scheme to Composition Scheme?*
When switching from normal scheme to composition scheme, the taxpayer shall be liable to pay an amount equal to the credit of input tax in respect of inputs held in stock on the day immediately preceding the date of such switchover. The balance of input tax credit after payment of such amount, if any lying in the credit ledger shall lapse.
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*Can I break up my businesses and opt for Composition Scheme for all of them separately?*
Under GST, each business is given a specific identification number called the GSTIN. The GSTIN is associated with the PAN of the business or the business owner. As long as all your businesses are associated with a single PAN, you can choose only one of the schemes for all your businesses – regular or composition scheme. However, if you have businesses with different PANs, then you can opt for different schemes for all of them depending on the turnover of each business.
*Is it true that Composition Dealers can offer the same product at a lower price?*
Yes, since composition dealers cannot charge GST on their sales, so the end consumer pays less money than usual. Composition dealers can also buy from unregistered dealers in order to keep their costs low
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Profit on Sale of Shares is Taxable under the Head Capital Gains: ITAT [Read Order]
Read more at: http://www.taxscan.in/profit-sale-shares-taxable-head-capital-gains-itat/14514/
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ICAI Removes Two CAs for Misconduct as Confirmed by the Allahabad HC [Read Notification]
Read more at: http://www.taxscan.in/icai-removes-two-cas-misconduct-confirmed-allahabad-hc/14540/
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Export Incentives are not Includable while Computing Eligible Profits for Deduction u/s. 80IC: ITAT [Read Order]
Read more at: http://www.taxscan.in/export-incentives-not-includable-computing-eligible-profits-deduction-u-s-80ic-itat/14531/
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*Latest Press Release Dated 29-11-2017 On GST Refund By CBEC*-
The *prerequisites for sanction of refund of IGST paid* are
1. Filing of GSTR 3 B and
2. Table 6A of GSTR 1 on the GSTN portal and
3. Shipping Bill on Customs EDI system by the exporter.
It is essential that *exporters should ensure that there is no discrepancy in the information furnished* in Table 6A of GSTR 1 and the Shipping Bill. It has been observed that certain common errors such as incorrect Shipping Bill number in GSTR1, mis-match of invoice number and IGST amount paid, wrong bank account etc. are being committed by exporters while filing their returns. *These errors are the sole reason for delay in grant of refunds, or rejection thereof*. While information has been made available to Exporters on the ICEGATE portal if they are registered, they may also contact jurisdictional Customs authorities to check the errors they have committed in furnishing information in GST returns and Shipping Bill, and rectify them at the earliest. As the Customs system is designed to automatically grant refunds without involvement of any officer by matching information that is furnished on GSTN portal and Customs system, the *onus is on the exporters to fill in all the details accurately*. Exporters may therefore take due precaution to ensure that no errors creep in while filing Table 6A of GSTR 1 of August 2017 and onwards. The *facility for filing GSTR 1 for August 2017 would also be ready by 4th December 2017*. In case of wrong entries made in July, Table 9 of GSTR 1 of August month would allow amendments to GSTR 1 of July 2017.
*Refund of Input Tax Credit*: As far as refund of the unutilized input tax credit on inputs or input services used in making exports is concerned, *exporters shall file an application in FORM GST RFD- 01A* on the common portal where the amount claimed as refund shall get debited from the electronic credit ledger of the exporter to the extent of the claim. Thereafter, a proof of debit (ARN- Acknowledgement Receipt Number) shall be generated on the GSTN portal, which is to be mentioned on the print out of the FORM GST RFD-01A and to be submitted manually to the jurisdictional officer. The exporters may ensure that all the necessary documentary evidences are submitted along with the Form GST RFD 01A for timely sanction of refund. *Exporters are therefore advised to immediately file*-
(a) Table 6A and GSTR 3B, if not already done, for processing of IGST refund
(b) RFD 01A on GSTN portal for refund of the unutilized input tax credit on inputs or input services used in making exports and
(c) GSTR 1 for August 2017 for amending details provided in July GSTR1 wherever required.
Government has taken various measures to alleviate the difficulty and is committed to providing speedy disbursal.
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📺 *Updates*
➡1. Interest on sum advanced to sister concern not to be set-off against interest paid on loan for business
Mathew Joseph v. Assistant Commissioner of Income-tax
➡2. Govt. ask exporters to file Table 6A of GSTR-1 correctly for fast refund of GST
➡3. Act of ‘Drug Association’ of mandating NOC as prerequisite for appointment of stockiest is anti-competitive
Sudeep P.M. v. All Kerala Chemists & Druggists Association.
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Purchase and Sale of Shares through Stock Exchange can’t be treated as ‘Bogus’ when the Same was Evident through Broker’s Note: ITAT [Read Order]
Read more at: http://www.taxscan.in/purchase-sale-shares-stock-exchange-cant-treated-bogus-evident-brokers-note-itat/14473/
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👉🏻RBI asks cooperative societies not to use word Bank in names.*
(It has come to the notice of Reserve Bank of India (RBI) that some co-operative Societies are using the word "Bank" in their names. This is a violation of Section 7 of the Banking Regulation Act, 1949)
👇🏻 👇🏻 👇🏻
https://goo.gl/TTeCWn
*👉🏻Exporters advised to file Table 6A and GSTR 3B for processing of IGST Refund.*
(Exporters advised to file Table 6A and GSTR 3B for processing of IGST Refund and for Refund of the unutilized Input Tax Credit, Errors by exporters while filing their returns are the sole reason for delay in grant of refunds or rejection thereof.)
👇🏻 👇🏻 👇🏻
https://goo.gl/Ar7sJG
*👉🏻Appoint of Internal Auditors for Airports Authority of India.*
(Appointment of Chartered Accountants Firm as INTERNAL AUDITOR for carrying out Internal Audit of AAICLAS’s cargo activities at various Airports from Financial Years 2016-18)
👇🏻 👇🏻 👇🏻
https://goo.gl/r1vQ6z
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CCI Imposes Rs. 52.24 cr Penalty on BCCI for the Anti-Competitive Conduct [Read Order]
Read more at: http://www.taxscan.in/cci-imposes-rs-52-24-cr-penalty-bcci-anti-competitive-conduct/14494/
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Govt. has set up the National Anti-Profiteering Authority amid reports that some companies, particularly restaurants, are not passing on the benefit of the GST rate cuts to consumers.
Supreme Court in a judgement restraining independent directors of Jaiprakash Associates from transferring any personal assets over a group company’s insolvency issue has sent shock waves through the independent directors’ fraternity, with experts warning that there would be few takers for this role.
SEBI plans to introduce rules on the participation of retail investors in algorithmic trading, a system widely regarded as giving its sophisticated institutional practitioners an edge.
Govt. wants RBI rate cut before March, Impatient for faster economic growth, government is lobbying for a reduction in official interest rates in coming months, as it expects inflation to stay close to a 4 per cent target.
Draft Bank Branch Auditors Panel of Chartered Accountants/firms for the Year 2017-18 available upto 4th December, 2017. at http://meficai.org/draftpanel.jsp Still if there are any observations please call at 011-30110444 and 011-30110440.
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NCLT - IBBI
The National Company Law Tribunal has for the first time directed that a liquidator be appointed in place of an existing resolution professional in the case of a company which has no feasible resolution plan in sight marking a new chapter in the evolving Insolvency and Bankruptcy Code. The tribunal has directed the winding up of Keshav Sponge and Energy, whose petition was admitted on February 16 this year. The company had filed the petition after it failed to repay more than Rs 85 crore to its creditors including Punjab National Bank. Since the committee of creditors unanimously has approved, appointment of the liquidator for initiation of liquidation the resolution professional already appointed is to be replaced. The order has empowered the committee of creditors to appoint liquidator other then the resolution professional. The tribunal said in its order that it would approve the plan in the interest of all stakeholders and in the interest of welfare of about 150 workers and nearly 600 persons who are directly or indirectly dependent upon the operation of the company for their livelihood.
MCA
The Ministry of Corporate Affairs (MCA) has prepared the second list of 18 companies which deposited unusually large sums of cash in their bank accounts soon after demonetisation. Collectively, these companies had deposited around Rs 10,000 crore between them. Many of which are now dormant and have already been blacklisted by the government. Most of the companies are from RoC Delhi, Mumbai, and Andhra Pradesh. Investigations further revealed that most of the 18 companies were operating under two different names While one of them active, the other was dormant which was invariably used to route illegal money. Dreamline Manpower Solution Private Limited, is on the top of the list which has deposited Rs 3166 crore was in existence for just six years, before its name was struck off by the RoC recently. The company’s last annual general meeting was held in September 2014, according to RoC records. The company has a paid-up capital of Rs 1 lakh and has only two directors Both directors are the boards of eight other companies.
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SC rejects bail application of accused on his failure to explain source of demonetized notes
November 24, 2017 [2017] 87 taxmann.com 260 (SC)
PML Act : Where appellant accused failed to explain source from where he had acquired huge amount of demonetized currency recovered from him, his prayer for bail on being arrested for offence u/s 3&4 of PML Act was rightly rejected
• Facts : Bail application of appellant accused who was arrested for offence u/s 3&4 of PML Act for depositing Rs. 38.53 Crore in cash of demonetized currency into bank accounts of companies and getting demand drafts issued in fictitious names with intention of getting them cancelled and thereby converting demonetized currency into monetized currency on commission basis was rejected
• Held that there was inexplicable silence or reluctance of appellant in disclosing source from where such huge value of demonetized currency and also new currency had been acquired by him. Fact that no limit for deposit was specified, in demonetisations in Notification dated 8-11-2016 would not extricate appellant from explaining source from where such huge amount had been acquired, possessed or used by him. Volume of demonetized currency recovered from office and residential premises of appellant, including bank drafts in favour of fictitious persons and also new currency notes for huge amount, leave no manner of doubt that it was outcome of some process or activity connected with proceeds of crime projecting property as untainted property. Possession of such huge quantum of demonetized currency and new currency in form of Rs.2000/ notes, without disclosing source from where it is received and purpose for which it was received, appellant had failed to dispel legal presumption that he was involved in moneylaundering and property was proceeds of crime. Thus, opinion of Sessions Court and High Court rejecting prayer for grant of regular bail to appellant was not to be interferred with.
■■■
[2017] 87 260 (SC) SUPREME COURT OF INDIA Rohit Tandon
v.
Enforcement Directorate DIPAK MISRA, CJI
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#Economy:The multi-agency group constituted by the Govt to investigate the Paradise Papers on offshore financial holdings is planning to take stringent action against tax evaders named in the leaked documents.The group, headed by the CBDT chairman and representatives from the ED, the RBI, and the FIU, has called its first meeting on December 1 to discuss the strategy to clamp down on the people who allegedly parked their illicit money outside India.
#Finance:The target for completion of 10 lakh houses by November 2017 has been achieved as on November 29, 2017, under the Pradhan Mantri Awas Yojana (Gramin). The Centre aims to build 51 lakh houses by March 31, 2018.
#SEBI has imposed a penalty totalling Rs 10 lakh on two individuals for providing unregistered investment advisory services through WhatsApp messages. They were providing such investment advisory services without obtaining registration and appear to have solicited and induced investors through WhatsApp and websites to deal in securities on the basis of their investment advice and stock trading tips and also guaranteed unrealistic returns.
#A country wide advisory has been sent to all field formations of the Army and paramilitary forces warning of a cyber attack through mobile phones.The advisory comes in the wake of inputs received by the Union Home Ministry from agencies like the R&AW and NTRO. All personnel have been advised to immediately uninstall the app and format their cellphones. The apps dubbed as Chinese spyware includes TrueCaller, Weibo, WeChat, UC News, UC Browser and Baidu Maps.
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Mere reduction in Shares of Profit of a Partner resulting in increase Profit of Another will not Constitute a ‘Gift’: Kerala HC [Read Judgment]
Read more at: http://www.taxscan.in/mere-reduction-shares-profit-partner-resulting-increase-profit-another-will-not-constitute-gift-kerala-hc/14489/
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GST on "High Sea Sales" and "In-bond sale of imported goods"*
1. *'High Sea Sales'* is a common trade practice whereby the original importer sells the goods to a third person before the goods are entered for customs clearance. After high sea sale of the goods, the Customs declarations i.e. bill of entry, etc.,are filed by the person who buys the goods from the original importer during the said sale.
Thus, IGST under Customs Tariff Act would be leviable on such goods when the high seas buyer gets the imported goods cleared from Customs after filing bill of entry. The applicability of the proviso to *Section 5 of the IGST Act* comes into play. As per the proviso, IGST on such sale transaction which pertains to goods imported into India, would be leviable only under Customs Tariff Act.
*In-bond sale of imported goods*
There are instances when the importer does not want clearance of the imported goods immediately due to factors such as market price, saleability, requirement in the factory of production, paucity of funds etc. The importer would prefer to warehouse such goods till the time such goods are required. The importer is also allowed to sell the goods at the time when they are lying in bonded premises and in such cases bill of entry for clearance from the bonded premises is filed by such buyer. As per Customs Valuation provisions the Customs duty is payable in such situation only on the value at the time of import i.e. the value declared while filing in-bond bill of entry. Therefore, IGST as part of the customs *duty shall be leviable on such goods when these are cleared from the bonded premises but only on the original import value not covering the margin, if any, realized by the importer through in-bond sale.*
Here again the question arises about the applicability of GST under IGST Act on sale of imported goods by such importer. This issue again got represented to CBEC which has now issued a *Circular 46/2017-Cus dated 24.11.2017.* As per this Circular, such sale of goods while they remain deposited in customs bonded warehouse would qualify as supply under GST Act and the provisions of IGST would apply in terms of Section 7 of IGST Act. Section 7 says that supply of goods imported into the territory of India, till they cross the customs frontier of India, is treated to be a supply in the course of inter-State trade or commerce.
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ALL ABOUT E-WAY BILL
Electronic Way Bill in GST .... All you wanted to Know . .......
Intro
A waybill is a receipt or a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods and the details include name of consignor, consignee, the point of origin of the consignment, its destination, and route.
Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal.
Rule 138 of the CGST Rules, 2017 provides for the e-way bill mechanism and in this context it is important to note that “information is to be furnished prior to the commencement of movement of goods” and “is to be issued whether the movement is in relation to a supply or for reasons other than supply”.
E-Way Bill under GST
E-way bill is an electronic document generated on the GST portal evidencing movement of goods. It has two Components-Part A comprising of details of GSTIN of recipient, place of delivery (PIN Code), invoice or challan number and date, value of goods, HSN code, transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and reasons for transportation; and Part B comprising of transporter details (Vehicle number).
As per Rule 138 of the CGST Rules, 2017, every registered person who causes movement of goods (which may not necessarily be on account of supply) of consignment value more than Rs. 50000/- is required to furnish above mentioned information in part A of e-way bill. The part B containing transport details helps in generation of e-way bill.
Who should generate the e-way bill and why?
E-way bill is to be generated by the consignor or consignee himself if the transportation is being done in own/ hired conveyance or by railways by air or by Vessel. If the goods are handed over to a transporter for transportation by road, E-way bill is to be generated by the Transporter. Where neither the consignor nor consignee generates the e-way bill and the value of goods is more than Rs. 50,000/- it shall be the responsibility of the transporter to generate it.
Further, it has been provided that where goods are sent by a principal located in one State to a job worker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment.
Also, where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration, the e-way bill shall be generated by the said person irrespective of the value of the consignment.
How is it generated?
An e-way bill contains two parts- Part A to be furnished by the person who is causing movement of goods of consignment value exceeding Rs. 50,000/- and part B (transport details) to be furnished by the person who is transporting the goods. Where the goods are transported by a registered person- whether as consignor or recipient, the said person shall have to generate the e-way bill by furnishing information in part B on the GST common portal. Where the e-way bill is not generated by registered person and the goods are handed over to the transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01.
A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1 and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading.
In the above case, the registered person will not have to upload the information in Part A of FORM GST EWB-01 for generation of e-way bill and the same shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.
Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) generated by the common portal, shall be made available to the supplier, the recipient and the transporter on the common portal.
The details of e-way bill generated shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill. In case, the recipient does not communicate his acceptance or rejection within seventy-two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.
Purpose of E-Way Bill
E-way bill is a mechanism to ensure that goods being transported comply with the GST Law and is an effective tool to track movement of goods and check tax evasion.
Validity of E-Way Bill
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The validity of e-way bill depends on the distance to be traveled by the goods. For a distance of less than 100 Km the e-way bill will be valid for a day from the relevant date. For every 100 Km thereafter, the validity will be additional one day from the relevant date. The “relevant date” shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours. In general, the validity of the e-way bill cannot be extended. However, Commissioner may extend the validity period only by way of issue of notification for certain categories of goods which shall be specified later.
Further, if under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GST EWB-01.
Cancellation of E-Way Bill
Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Center notified by the Commissioner, within 24 hours of generation of the e-way bill. However, an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B of the CGST Rules, 2017 .
The facility of generation and cancellation of e-way bill will also be made available through SMS.
Finer Points
An e-way bill has to be prepared for every consignment where the value of the consignment exceeds Rs. 50,000/-. Where multiple consignments of varying values (per consignment) are carried in a single vehicle, e-way bill needs to be mandatorily generated only for those consignments whose value exceeds Rs. 50,000/-. This does not however preclude the consignor/consignee/transporter to generate e-way bills even for individual consignments whose value is less than Rs. 50000/- per consignment. For multiple consignments being carried in the same vehicle, the transporter to prepare a consolidated e-way bill by indicating serial number of each e-way bill, on the common prior to commencement of transport of goods.
There is always a possibility that multiple vehicles are used for carrying the same consignment to its destination or unforeseen exigencies may require the consignments to be carried in a different conveyance than the original one. For such situations, the rules provide that any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of the conveyance in the e-way bill on the common portal in FORM GST EWB-01.
The person in charge of a conveyance has to carry the invoice or bill of supply or delivery challan, as the case may be; and a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner. However, where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill:
(a) Tax invoice or bill of supply or bill of entry; or
(b) A delivery challan, where the goods are transported for reasons other than by way of supply.
It is also be noted that the Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods.
E-Way bill to be issued whether for supply or otherwise
E-way bill is to be issued irrespective of whether the movement of goods is caused by reasons of supply or otherwise. In respect of transportation for reasons other than supply, movement could be in view of export/import, job-work, SKD or CKD, recipient not known, line sales, sales returns, exhibition or fairs, for own use, sale on approval basis etc.
Exceptions to e-way bill requirement
No e-way bill is required to be generated in the following cases
a) Transport of goods as specified in Annexure to Rule 138 of the CGST Rules, 2017
b) goods being transported by a non-motorized conveyance;
c) goods being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for
clearance by Customs;
d) in respect of movement of goods within such areas as are notified under rule 138(14) (d) of the SGST Rules, 2017 of the concerned State; and
e) Consignment value less than Rs. 50,000/-
Consequences of non-conformance to E-way bill rules
If e-way bills, wherever required, are not issued in accordance with the provisions contained in Rule 138 of the CGST Rules, 2017, the same will be considered as contravention of rules. As per Section 122 of the CGST Act, 2017, a taxable person who transports any taxable goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to a penalty of Rs. 10,000/- or tax sought to be evaded (wherever applicable) whichever is greater. As per Section 129 of CGST Act, 2017, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made there under, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure.
Enforcement
The Commissioner or an officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra- State movement of goods.
The physical verification of conveyances may also be carried out by the proper officer as authorized by the Commissioner or an officer empowered by him in this behalf. Physical verification of a specific conveyance can also be carried out by any officer, on receipt of specific information on evasion of tax, after obtaining necessary approval of the Commissioner or an officer authorized by him in this behalf.
A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty-four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.
Once physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in the State, unless a specific information relating to evasion of tax is made available subsequently.
Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal.
Conclusion
The e-way bill provisions aim to remove the ills of the erstwhile way bill system prevailing under VAT in different states, which was a major contributor to the bottlenecks at the check posts. Moreover different states prescribed different e-way bill rules which made compliance difficult. The e-way bill provisions under GST will bring in a uniform e-way bill rule which will be applicable throughout the country. The physical interface will pave way for digital interface which will facilitate faster movement of goods. It is bound to improve the turnaround time of vehicles and help the logistics industry by increasing the average distances traveled, reducing the travel time as well as costs.
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Trust is Eligible for Exemption u/s 11 even though Confusion Exists regarding the Specified Persons: ITAT [Read Order]
Read more at: http://www.taxscan.in/trust-eligible-exemption-u-s-11-even-though-confusion-exists-regarding-specified-persons-itat/14458/
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Purchase of Shares of AE can’t be regarded as International Transaction and Investigation u/s 92 cannot Applicable: ITAT [Read Order]
Read more at: http://www.taxscan.in/purchase-shares-ae-cant-regarded-international-transaction-investigation-u-s-92-cannot-applicable-itat/14469/
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*Invoking extended period of limitation not justified where non-collection of service tax by assessee was known to department*
Where department already had sufficient materials against assessee for failure to collect service tax and to proceed within limitation period as prescribed under section 73(1), show cause notice issued by invoking extended period of limitation was not justified.
CItation: [2017] 87 taxmann.com 197 (Delhi)]
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Income from Nationalized Banks is Business Income, Eligible for 80-P Deduction: ITAT [Read Order]
Read more at: http://www.taxscan.in/interest-income-nationalized-banks-business-income-eligible-80-p-deduction-itat/14449/
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Assessment can’t be Re-Opened When there is No Failure on the part of Assessee to Disclose Material facts: ITAT [Read Order]
Read more at: http://www.taxscan.in/assessment-cant-re-opened-no-failure-part-assessee-disclose-material-facts-itat/14441/
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ITAT deletes Addition Applying Sec 50C since Assessee has not Received any Consideration from Sale [Read Order]
Read more at: http://www.taxscan.in/itat-deletes-addition-applying-sec-50c-since-assessee-not-received-consideration-sale/14454/
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Finance Ministry directs Exporters to File Table 6A and GSTR 3B for Processing of IGST Refund and for Refund of the Unutilized Input Tax Credit
Read more at: http://www.taxscan.in/finance-ministry-directs-exporters-file-table-6a-gstr-3b-processing-igst-refund-refund-unutilized-input-tax-credit/14464/
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CBDT has issued directions related to some important issues which are to be considered by AO while framing scrutiny assessments pertaining to filing of revised/belated returns by assessee’s post-demonetisation.
GST collections fell to Rs 83,346 crore in October, from more than Rs 90,000 crore in each of the first three months after the new tax regime was rolled out on July 1.
CBEC has issued a circular to clarify the Applicability of IGST / GST on goods transferred / sold while being deposited in a warehouse.
India's GDP growth rate is expected to rise to 6.2 per cent in the second quarter of the current fiscal as the adverse impact of demonetisation and GST appears to be bottoming out, Ficci's latest Economic Outlook Survey.
The Centre is willing to extend the deadline for mandatory linking of Aadhaar to various services till March 31, 2018, it told the Supreme Court on Monday.
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👉🏻Tax advisers may come under Income Tax department's scanner.*
(Action can be taken against a tax adviser if it’s proven that an advice is being imparted with a sole intent to escape tax. Such penal provisions are embedded under Income-tax Act, the newly amended Benami Act.)
👇🏻 👇🏻 👇🏻
https://goo.gl/erSgMo
*👉🏻Income Tax notices to 1.16 lakh for cash deposit of over Rs 25 lak.*
(The Income Tax Department has slapped notices on 1.16 lakh individuals and firms who made cash deposits of more than Rs 25 lakh in bank accounts post note ban but failed to file returns by the due date.)
👇🏻 👇🏻 👇🏻
https://goo.gl/qP9WVQ
*👉🏻NBCC invites applications for Appointment of Internal Auditors of its construction projects*
(NBCC Invites Expression Of Interest For Appointment Of Internal Auditors For The Financial Year 2017-18 For Undertaking Internal Audit Of Construction Projects.)
👇🏻 👇🏻 👇🏻
https://goo.gl/M9gsBe
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📺 *Updates*
➡1. Trust was entitled to sec. 10(23C) exemption in respect of additions assessed u/s 68 by AO: ITAT
Assistant Commissioner of Income-tax, (Exemption) Circle, Aurangabad v. Gurudatta Shikshan Sanstha*
➡2. Bonus shares to be treated as foreign exchange asset if original shares were purchased in foreign exchange.
Shashi Parvatha Reddy
v. Deputy Commissioner of Income-tax-2 (International Taxation), Hyderabad*
➡3. Trust registration couldn't be cancelled just because it received donation from party providing bogus transactions
Dr. B.G. Memorial Trust v. Commissioner of Income-tax, (Exemptions) Kolkata.
🙏Thank you🙏
Have a nice day
