07 December 2017 Updates

Last date to deposit advance income tax installment is 15th December 2017. 

AO must follow CBDT Instructions in Limited Scrutiny Assessments. Reasons in Writing for expanding scope & PCIT approval must.  CBDT Instruction of 30.11.2017.

Government may be looking to use data obtained from GST filings to track those who are escaping income-tax, it is setting up a mechanism wherein data obtained through GST reporting could be correlated with the income-tax filings.

IND-AS Companies to file their Financials  mandatorily in XBRL.【Companies (Filing of Financial Statements in XBRL) Amendment Rules, 2017】 {W.e.f. 06/11/2017}

e-form AOC-4  and AOC-4 XBRL amended to include Demonitization Disclosure (SBN Notes) in the form itself .

RBI has maintained status quo on policy rates. It has however revised its inflation forecast to 4.3-4.7% for Q3 and Q4 but retained GVA growth at 6.7%. CRR cut was not on the cards as there is surplus liquidity in the system.
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 *Updates*

➡1. Creditors could file insolvency plea even if proceedings for computation of debt were pending before DRT.
Anandram Developers (P.) Ltd.
v. National Company Law Tribunal, Chennai

➡2. Mere collection of charges from coaching camps won’t change characters of trust promoting sports & games
Dhaisar Sports Foundation
v. Income Tax Officer (Exemptions)-(1), Mumbai*

➡3. 'Transaction Charges' paid by broker towards facilities provided by stock exchange are not liable for TDS: ITAT
Deputy Commissioner of Income tax-4(2)1, Mumbai
v. Vibrant Securities (P.) Ltd.*

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*Summary of GST provisions on registration*

_Exceptions_ :

I. Notification No.7/2017 of IGST: Job worker is not required to obtain registration provided the following conditions needs to be satisfied:

• Job work service should be provided to registered person
• JW's aggregate TO should be less than or equal to Rs.20 Lakh or Rs.10 Lakh as case may be.
• He should not have been voluntary registered.
• He Should not be providing the JW service to the goods mentioned in Sl.No.151 of the annexure to the rule 138 of CGST rules,2017
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 GST: CBEC releases Format for Filing Anti-Profiteering Application [Read Application Format]

Read more at: http://www.taxscan.in/gst-cbec-releases-format-for-filing-anti-profiteering-application/14811/
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IBC*

1. The Proviso to sub- section (5) of Section 7 or sub-section (4) of section 10 which has provision of removing the defects in the application for initiating the corporate insolvency resolution within 7 days is directory and not mandatory in nature. *2017- 141- CLA (SC)*

2. As per statutory provisions of Section 30, even corporate debtor can submit insolvency resolution plan. Adjudicating authority, if satisfied with the resolution plan approved by the committee of creditors, shall by order approve it, which shall be binding on all concerned. *2017 - 141-CLA - (NCLT)*

3. Adjudicating authority is duty bound to consider the name of another resolution professional, if proposed by the  committee of creditors or may call for name from Insolvency and Bankruptcy Board of India, if no name has been proposed. *2017 141- CLA- (NCLAT)*
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GST: Department Issues Guidelines for Revenue Comparison for Pre-GST & Post- GST Era [Read Letter]

Read more at: http://www.taxscan.in/gst-department-issues-guidelines-revenue-comparison-pre-gst-post-gst-era/14763/
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Once TDS Certificate is issued in the name of the Individual, Firm can’t claim Refund: ITAT [Read Order]

Read more at: http://www.taxscan.in/tds-certificate-issued-name-individual-firm-cant-claim-refund-itat/14769/
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An Unscheduled Bank has to Recognize its Income on NPAs on Accrual Basis: ITAT [Read Order]

Read more at: http://www.taxscan.in/unscheduled-bank-recognize-income-npas-accrual-basis-itat/14781/
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No TDS since Roaming Charges cannot be Deemed as Fee for Technical Services: Vodafone Gets Relief from ITAT [Read Order]

Read more at: http://www.taxscan.in/no-tds-since-roaming-charges-cannot-deemed-fee-technical-services-vodafone-gets-relief-itat/14787/
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ICSI Launches 100% Fees Refund Scheme for Meritorious And Economically Weaker Students Registering In CS Course

Read more at: http://www.taxscan.in/icsi-launches-100-fees-refund-scheme-meritorious-economically-weaker-students-registering-cs-course/14796/
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GST: Govt Likely to introduce release of Goods without Payment of Advance Duty

Read more at: http://www.taxscan.in/gst-govt-likely-introduce-release-goods-without-payment-advance-duty/14808/
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An Industry which Ceases to be a SSI is not Eligible for Income Tax Deduction, says Supreme Court [Read Judgment]

Read more at: http://www.taxscan.in/industry-ceases-ssi-not-eligible-income-tax-deduction-says-supreme-court/14804/
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RBI keeps repo rate “unchanged”, mentions developments taken place growth prospects*

Click here to read more :

http://lawyersconnect.info/rbi-keeps-repo-rate-unchanged-mentions-developments-taken-place-growth-prospects/
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Delhi HC upholds Legality of Arrest under PMLA since Grounds were Communicated to the Accused [Read Judgment]

Read more at: http://www.taxscan.in/delhi-hc-upholds-legality-arrest-pmla-since-grounds-communicated-accused/14798/
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GST data may be used to track income-tax evaders.*

(The government is setting up a mechanism wherein data obtained through GST reporting could be correlated with the income-tax filings.)
  
https://goo.gl/oUS91m

*Rs.8,450 crore package to boost exports post GST.*

(Govt on Tuesday announced incentives worth Rs.8,450 crore to boost exports of goods and services - mainly from labour-intensive segments and the Micro, Small and Medium Enterprises - and to increase employment generation and value-addition)
  
https://goo.gl/icHkrj

*Appointment of CA firms as Internal Auditors for HPL.*

(Applications are invited from CA Firms for appointment as Internal Auditors for the Financial Year 2017-18 for HINDUSTAN PREFAB LIMITED.
Last Date - 13/12/2017)
  
https://goo.gl/eD6AdU
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# *GST* Panel moots wide-ranging revamp to make GST less taxing, recommends composition scheme for services, deferment of the e-way bill till 2019 and abolition of the reverse-charge mechanism.

# *GST*: Govt. is considering the tax collected under GST be used to track income-tax evaders.

# *GSTR-5* for the months of JUL, AUG, SEP & Oct 2017 is due for filing by the non-resident taxable person by 11 DEC 2017.

# *CBDT* has issued detailed guidelines/ directions for completion of cases of limited scrutiny selected through CASS module.

# *RCS*: The Registrar of Corporate Societies, Government of Delhi has made mandatory for all societies to have their own website.

# *GST*: The issue of misclassification and under valuation has to be gone into by the respective AO and not by the detaining officer - Sameer Mat Industries & Anr Vs State of Kerala, ASTO & Anr (2017 (12) TMI 202 - Kerala High Court).

# *IT*: No Penalty can be levied merely by stating in the assessment order that, penalty proceedings u/s. 271(1)(c) is being initiated separately – ABR Auto Pvt. Ltd. Vs. ACIT (2017 (12) TMI 257 - ITAT Delhi).
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 *Updates*

➡1. ITAT quashed Sec. 263 revision as non-deduction of TDS on roaming charges wasn't prejudicial to revenue
Vodafone Digilink Ltd. v. Commissioner of Income-tax, (TDS) Chandigarh.

➡2. Notice issued by advocate of creditor couldn’t be treated as notice under Bankruptcy Code: NCLAT
Senthil Kumar Karmegam
v. Dolphin Offshore Enterprises (Mauritius) (P.) Ltd.

➡3. No Sec. 10A relief if assessee received export proceeds by allotment of foreign co. shares without RBI approval
Deputy Commissioner of Income tax, Range-2 v. E-Soft Technologies Ltd.

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Penalty U/s. 271(1)(c) of Income Tax Act not justified based on mere high stamp duty valuation of property. Case Name : The Income Tax Officer Vs. Shri Ajay Sharma (ITAT Delhi)

GST: Exporters file Table 6A & GSTR 3B for processing of IGST Refund. File RFD 01A on GSTN portal for Unutilized ITC Refund.  Press Release of 29 Nov. 2017. 

MCA Has extended the last date for filing of Form CRA-4 without additional fees on account of Companies (Cost Records and Audit) Amendment Rules, 2017 till 3lst December, 2017. 

RBI has built up a Rs 31 billion position in rupee dollar forwards as a continuous foreign fund inflow has necessitated active intervention by the central bank in the spot market.Forwards contracts are designed to buy foreign currencies at pre agreed prices.

The Registrar of Corporate Societies, Government of Delhi has made mandatory for all societies to have their own website.
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Notice Sent to Company returned as ‘Addressee Left’: Kerala HC Upholds Ex-parte Assessment since Director received Notice send to him [Read Judgment]

Read more at: http://www.taxscan.in/notice-sent-company-returned-addressee-left-kerala-hc-upholds-ex-parte-assessment-since-director-received-notice-send/14718/
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Bombay HC upholds Amendment in Bombay Sales Tax Act treating ‘Port Trusts’ as Deemed Dealers [Read Judgment]

Read more at: http://www.taxscan.in/bombay-hc-upholds-amendment-bombay-sales-tax-act-treating-port-trusts-deemed-dealers/14739/
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Govt sets Up Special Court for Speedy Trial of Company Law related Offences [Read Notification]

Read more at: http://www.taxscan.in/govt-sets-special-court-speedy-trial-company-law-related-offences/14748/
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 *Important Tax Compliance Due Dates for December* 

07-12-2017- Due date for deposit of tax deducted /collected for the month of November, 2017.

15-12-2017 - Third instalment of advance tax for the assessment year 2018-19

15-12-2017 - Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of October, 2017

15-12-2017- ESIC & PF Payment for month of November.

20-12-2017- GSTR-3B for the month of November.

24-12-2017 – Due date of GSTR-4 for Composition Dealers under GST for the quarter July-September, 2017 is extended to 24th Dec 2017

27-12-2017- Due date for submission of original GST TRAN-1 & Revision of already submitted GST TRAN-1, both, is 27th Dec, 2017. (Revision can be done only once)

30-12-2017 - Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of November, 2017

31-12-2017 – Due date of GSTR-6 (filed by an input service distributor) for the month of July 2017 has been extended to 31st Dec 2017

31-12-2017 - Due date for filing GSTR -1 for the Quarter ending Sep 2017 i.e. July to Sep - as Applicable for taxpayers with Annual Aggregate turnover up to 1.50 Crores

31-12-2017 - Due date for filing GSTR -1 from the month of July to Oct 2017 - as Applicable for taxpayers with Annual Aggregate turnover more than 1.50 Crores
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TDS is Payable on Payment of Non-Competent Fee when Assessee treated the same as Business Expenditure: ITAT [Read Order]

Read more at: http://www.taxscan.in/tds-payable-payment-non-competent-fee-assessee-treated-business-expenditure-itat/14728/
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Advance given by a Company to Its Director for Sale of Land is not Deemed Dividend: ITAT [Read Order]

Read more at: http://www.taxscan.in/advance-given-company-director-sale-land-not-deemed-dividend-itat/14731/
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GST: Odisha registers 2.3 per cent Increase in Tax Collection

Read more at: http://www.taxscan.in/gst-odisha-registers-2-3-per-cent-increase-tax-collection/14736/
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ITAT Allows Exemption to Donations made by Trust to a University approved u/s 10(23C)(vi) though both the Entities Claimed Deduction on the same [Read Order]

Read more at: http://www.taxscan.in/itat-allows-exemption-donations-made-trust-university-approved-u-s-1023cvi-though-entities-claimed-deduction/14701/
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 *Updates*

➡1. Outsourcing operations carried on by an Indian subsidiary do not constitute a PE in India, says Supreme Court

➡2. No Sec. 41(1) addition if holding co. wrote off advance given to subsidiary with direction to recover it in future
Airline Allied Services Ltd.
v. Deputy Commissioner of Income-tax, Circle 1(1), New Delhi*

➡3. Subscription money advanced for purchase of share would not fall within definition of financial debt: NCLT
ACPC Enterprises v. Affinity Beauty Salon (P.) Ltd.

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GST Returns –Due date for filing specified returns extended - Notification Nos. 59-63/2017–Central Tax, all dated 15-11-2017 have been issued for this purpose.

Return

Month/Quarter

Revised due date

Additional comments

GSTR-4

For the quarter July to September 2017

24-Dec-2017

To be filed by Composition supplier.

GSTR-5

For the month July, August, September & October 2017

11-Dec-2017

To be filed by a non-resident taxable person.

GSTR-5A

For the month July, August, September & October 2017

15-Dec-2017

To be filed by person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient.

GSTR-6

For the month July

31-Dec-2017

To be filed by Input Service Distributor (ISD).

ITC-04

For the quarter July to September 2017

31-Dec-2017

In respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another.

v  Late fees for delayed filing of GSTR-3B waived – Late fee payable by any registered person for failure to furnish the return in FORM GSTR-3B for the month of October, 2017 which is in excess of an amount of twenty five rupees for every day. Provided that where the total amount of central tax payable in the said return is nil, waived to the extent which is in excess of an amount of ten rupees for every day, Notification No. 64/2017-Central Tax, dated 15-11-2017.

v  GSTR-3B made mandatory till March 2018 - Notification Nos. 56/2017-Central Tax, dated 15-11-2017.

SI. No.

Month

Last date for filing of  return in FORM GSTR-3B

1

January 2018

20th February 2018

2

February 2018

20th March 2018
3 March 2018

20th April 2018

v  Due date for filing GSTR-1 – Notification Nos. 57-58/2017-Central Tax, dated 15-11-2017 Time limit for furnishing the details of outward supplies in FORM GSTR-1 by such class of registered persons,

having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year

Months for which the details in FORM

GSTR-1 are furnished

Time period for furnishing the details in FORM GSTR-1

July - October, 2017

31st December, 2017

November, 2017

10th January, 2018

December, 2017

10th February, 2018

January, 2018

10th March, 2018

February, 2018

10th April, 2018

March, 2018

10th May, 2018
having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year

Months for which the details in FORM

GSTR-1 are furnished

Time period for furnishing the details in FORM GSTR-1

July - September 2017

31st December, 2017

October - December 2017

15th February, 2018

January - March 2018
30th April, 2018

 v  Rate of GST reduced on large number of goods and services - As decided by the GST Council in its 23rd meeting held on 10thNovember, the rates of GST on number of products and services have been reduced.

List of 28% GST rated goods has been pruned substantially, from 224 tariff headings to 50 tariff headings,

Rates have also been reduced on several goods from 18% to 12% (Condensed milk; Pasta; Curry paste, mayonnaise and salad dressings; Medicinal grade oxygen, etc.),

from 18% to 5% (fly ash; puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya, etc.) and

from 12% to 5% (finished leather, chamois and composition leather; fly ash brick, etc.).

Similarly, rate of GST on guar meal, khandsari sugar, bangles of lac / shellac, uranium ore concentrate and specified dried vegetables has come down to nil. 

In respect of services, stand-alone restaurants irrespective of being air conditioned or otherwise, would be liable to GST at the rate of 5%, without the facility of input tax credit (ITC).

Restaurants in hotel premises having room tariff of less than Rs. 7500 per unit per day are also covered under this rate of tax, without ITC. 

Notification Nos. 41, 42 and 46/2017-Central Tax (Rate), all dated 14-11-2017 and effective from 15-11-2017.

Exemption to tax payment at time of receipt of advance - Notification No. 66/2017-Central Tax, dated 15-11-2017 to exempt all registered persons [except taxpayers who opted for composition levy under Section 10 of CGST Act] from payment of tax on advances received in case of supply of goods.

v  Registration exemption to specified service provider providing service through electronic commerce operator - This exemption is available to service providers having an aggregate turnover of less than Rs. 20 lakh (Rs. 10 lakh in case of special category States) in a financial year. Notification No. 65/2017-Central Tax, dated 15-11-2017.

v  Reduced rate of GST for specified supplies to research institutions, etc. (Effective form 15-11-2017) - Notification No. 45/2017-Central Tax (Rate), dated 14-11-2017 has been issued to provide for 2.5% CGST on specified goods supplied to public funded research institutions, universities, IITs, NITs, IISC (Bangalore), research institutions, departments and laboratories of Central / State Governments and Regional Cancer Centre (Cancer Institute). This list excludes hospitals.

v  IGST exemption to inter-State movement of rigs, tools and spares - Inter-State movement of such goods between distinct persons shall be treated neither supply of goods nor supply of services and no IGST will be levied. Circular No. 21/21/2017-GST, dated 22-11-2017 issued, however notes that such exemption will not be available if movement is for further supply of such goods, and that GST will be payable on repairs and maintenance of such goods.

v  EOUs –Procedure for procurement from DTA - CBEC has prescribed procedure and safeguards in respect of supply of goods to EOU, in order to ensure smooth processing of refund claims in respect of such deemed exports. EOU in this regard is required to intimate, in a prescribed form, to the registered supplier and to jurisdictional officers of the supplier and that of EOU. As per Circular No. 14/14 /2017-GST, dated 6-11-20017, tax invoice as endorsed by EOU will be considered as proof of deemed export supplies made by the registered supplier to the EOU. 

v  Refund of unutilised ITC in case of export of fabrics, available - Manufacturer of fabrics is eligible for refund of unutilized ITC of GST paid on inputs (other than ITC of GST paid on capital goods) in respect of fabrics manufactured and exported by him. Circular No. 18/18/2017-GST, dated 16-11-2017 clarifying this, observes that restriction on refund of unutilised ITC under Notification No.5/2017-Central Tax (Rate) would not apply to zero rated supplies.

 v  Terracotta idols eligible for nil GST rate -Tax Research Unit of the Ministry of Finance has clarified that as terracotta is clay based, terracotta idols will be eligible for Nil rate under Sl. No.135A of Notification No. 2/2017-Central Tax (Rate), dated 28-6-2017, which prescribes nil rate for clay idols. Circular No. 20/20/2017-IGST, dated 22-11-2017.

 v  Milling of paddy into rice liable to GST -Circular No. 19/19/2017-GST, dated 20-11-2017issued by Ministry of Finance clarifying that milling of paddy into rice on job work basis is liable to GST at the rate of 5%, on the processing charges (and not on the entire value of rice) under Sl. No. 26 of Notification No. 11/2017-Central Tax (Rate). According to this circular milling of paddy is not an intermediate production process in relation to cultivation of plants.
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User not opted in as composite taxpayer for selected quarter*

Before reading the whole article one thing you need to be clear that you cannot get any proper solution from my article regarding the above mentioned error, because GST authority still have no solution regarding this error, so who am I to solve this error.

I am only trying to clear the misconceptions that many GST Helpdesk call attenders are spreading towards the taxpayers regarding this error and also trying to suggest what to do in this situation.

As you know that Composition taxpayers need to file GSTR-4 in quarterly basis. Hope you may know about GSTR-4 and its provisions. According to GST portal currently following taxpayers can be able to file file GSTR-4

The migrated taxpayers who have opted to pay tax under composition scheme by filing intimation in Form GST CMP-01 before 16 August 2017.The taxpayers who have obtained new registration in GST regime and opted to pay tax under composition scheme while filing application in Form GST REG-01

The dashboard will be made available shortly to:

The taxpayers who have opted out from the composition scheme by filing intimation in Form GST CMP-04 stating the effective date of withdrawal between 1st July to 30th Sep 2017.

Currently the return filing of Jul-Sep quarter is going on.

In the return filing dashboard you can find two options, INITIATE FILING and PREPARE OFFLINE. You need to download GSTR-4 offline tool from the portal. Then fill the details, generate JSON file and upload it in the PREPARE OFFLINE field. After that you need to fill details in INITIATE FILING field and file the return. Its a very easy process and there is nothing to think more about it.

But if your luck is bad, then you may face some technical errors with a error report like "User has not opted-in as a composite taxpayer for the selected Quarter Period"

This kind of error is enough to hang your brain. You can not be able to upload your JSON file if this error occurred because there is no option to generate and download error report.