CBDT
CBDT has issued Clarification on Indirect Transfer provisions in case of redemption of share or interest outside India under the Income-tax Act, 1961. Concerns have been expressed by investment funds, including private equity funds and venture capital funds. that on account of the extant indirect transfer provisions in the Act, non-resident investment funds investing in India, which are set up as multi-tier investment structures, suffer multiple taxation of the same income at the time of subsequent redemption or buyback. Such taxability arises firstly at the level of the fund in India on its short term capital gain / business income and then at every upper level of investment in the fund chain on subsequent redemption or buyback. The matter has been examined by the Board and it has been decided that the provisions of section 9(1)(i) of the Act read with Explanation 5 thereof shall not apply in respect of income accruing or arising to a non-resident on account of redemption or buyback of its share or interest held indirectly (i.e. through upstream entities registered or incorporated outside India) in the specified funds if such income accrues or arises from or in consequence of transfer of shares or securities held in India by the specified funds and such income is chargeable to tax in India.
RBI
Reserve Bank has issued a press released to cautions the general public regarding risk of trading and dealing in virtual currencies including Bitcoins. Attention of members of public is drawn to the Press Release issued by the Reserve Bank of India (RBI) on December 24, 2013, cautioning users, holders and traders of Virtual Currencies (VCs) including Bitcoins regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs. It has further, clarified that RBI has also clarified that it has not given any licence / authorisation to any entity / company to operate such schemes or deal with Bitcoin or any VC. In the wake of significant spurt in the valuation of many VCs and rapid growth in Initial Coin Offerings (ICOs), RBI reiterates the concerns conveyed in the earlier press releases.
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MCA
MCA has issued circular to give Relaxation of additional fees and extension of last date of filing of Form CRA - 4 under the Companies Act, 2013. The MCA has received several representations about extension of the last date for filing of Form CRA-4 without additional fees on account of Companies (Cost Records and Audit) Amendment Rules, 2017 and for other reasons. The matter has been examined and it has been decided to extend the last date for filing of Form CRA4, for the financial years starting on or after 1st April, 2016, without additional fees till 3lstDecember, 2017.
MCA
MCA has notified the Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Second Amendment, Rules, 2017 which shall come into force from the date of their publication in the Official Gazette. shall come into force from the date of their publication in the Official Gazette. Amendments to the Rules are being carried out to substitute Annexure - III with the new Annexure -III.
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*Clarification from GSTN regarding GSTR1*
Dear Taxpayer,
The taxpayers whose aggregate turnover during preceding financial year exceeded Rs. 1.5 Cr or the new registrants who estimate their turnover to exceed Rs. 1.5 Cr during current financial year, have to file return on monthly basis. Filing of GSTR-1 for the tax period of August, 2017 and onwards is likely to commence soon. In the meantime, such taxpayers can upload the invoices for August, September, October 2017 to avoid last minute rush.
The taxpayers whose aggregate turnover during the preceding financial year remained upto Rs. 1.5 Cr or the new registrants who estimate their turnover to remain upto Rs. 1.5 Cr during current financial year, but who intends to file return on monthly basis, can also upload the invoices for the month of August, 2017.
All other taxpayers liable to file GSTR-1 shall upload the invoices and file GSTR-1 for the quarter ending September, 2017 after the option to file the same is available on the portal. The taxpayers eligible to file return on quarterly basis but have already filed the return for the month of July, 2017, shall have to upload the invoices of August and September jointly and have not to include the invoices of July month again.
The taxpayers who have not filed GSTR-1 for the month of July, are advised to file the same quickly as they will not be able to file GSTR-1 for remainder of quarter (August-September) till they have filed GSTR-1 of July.
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E-Way bill for following Goods is required for movement in Uttar Pradesh if Aggregate value exceed Rs. 50000/-
1. Mentha Oil
2. Supari
3. Iron and Steel
4. Vanaspati and Edible oil
5. Coal tar, tar coal and charcoal
6. Bitumine
7. Coal and coke in all forms
8. All kind of tiles
9. Paper, Newsprint
10. Marble stone
11. Cigarette, Cigar
12. Pan Masala
13. Khani, Zara Surti, Tobacco
14. All kind of Lubricants
15. Tyre,Tube
16. Kattha
17. Milk Powder
18. Paint and Varnish
19. Sanitary goods
20. Wood and Timber
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Apprehensions about Tax Demands on Software Industry are without basis, says Govt
Read more at: http://www.taxscan.in/apprehensions-tax-demands-software-industry-without-basis-says-govt/15008/
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_*Today GSTN has floted a tander for Financial Software_*
👉🏼 _There will be compulsion for using some Government accounting software._
👉🏼 _This software will be available free of cost on GSTN_
👉🏼 _The Dealer who enter the data in that software will be transferred to GSTN_
👉🏼 _Tax Payers need to pay some amount to company who will be provide such software, it will depending on the data uploaded from TaxPayers account to GSTN_ _(say 100 Rs per 100 Outward Supply Invoices)_
👉🏼 _Foreign Companies like EY, Deloitte, PWC & KPMG is rushing for Application_
👉🏼 _KPMG had a Contract with Vodaphone to have such facility_
👉🏼 _Indian Company like tally is also expecting a good competitors for the foreign companies in providing accounting software facilities_
👉🏼 _Interested Party has to withdraw tender document before Before 18th December_
👉🏼 _Last date to submit the tender is 28th December_
Note :
_Accountants and Tax Return Preparers’ Job is at stake as they have to compete to the Multi National Forign Companies_
_Like GSTN, This Government is introducing one more privatisation Of Tax Payers Data_
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GST: Govt Advises to Revise Return in case of Erroneously Availed Transitional Credit
Read more at: http://www.taxscan.in/gst-govt-advises-revise-return-case-erroneously-availed-transitional-credit/15006/
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What is Advance ruling? -
“Advance ruling” means a decision/ruling given to the applicant by the constituted authority on the matters relating GST provisions like registration requirement, exemptions, classification, valuation, ITC etc.
Unlike old Central indirect taxes (Central Excise, service tax) wherein ruling can be sought only on proposed transactions, GST laws provide an advance ruling on all types of transactions whether it is proposed or already occurred.
For this purpose, each state would constitute ‘Authority of Advance Ruling (AAR)’. Many of the states have already constituted the benches. The details of the bench along with communication addresses can be accessed from this link http://www.gstcouncil.gov.in/sites/default/files/Details-of-AAR-as-on_22-11-2017.pdf
Who can apply (persons eligible?)
Unlike old laws which this facility to specified persons, GST law made available this facility to the all registered persons or persons desirous of registration (i.e. unregistered as well).
On what matters/questions, the Advance ruling can be sought?
Section 97(2) of the CGST Act, 2017 (corresponding provisions in all states SGST Acts) provides that ‘advance ruling’ can be sought on the following matters:
Requirement of registration
Classification of any goods or services or both
Applicability of a notification issued under the GST Acts
Determination of the liability to pay tax on any goods or services or both
Determination of time and value of supply of goods or services or both
Admissibility of input tax credit (ITC)
Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
Procedure to be followed:
Application in Form GST ARA-01 shall be made along with filing fee of 10,000/-. Though it was said that application filing is online, as of now, the facility of the filing online is not made available. Hence, applications shall be filed manually with the corresponding bench of the advance ruling.
On receipt of an application, the AAR shall send a copy of the application to the jurisdictional officer and call for all relevant records.
AAR shall grant an opportunity of hearing to the applicant as well as department representative for examining the admissibility of the application. Thereafter, AAR passes an order either admitting or rejecting the application
If the application is rejected, it should be by way of a speaking order giving the reasons for rejection.
If the application is admitted, the AAR shall pronounce its ruling within 90 days of receipt of application. Here again, an opportunity of hearing to the applicant as well as department representative shall be given while arriving the ruling on the questions/matters specified in the application
Application for advance ruling will not be admitted in cases where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act.
If there is a difference of opinion between the two members of AAR, they shall refer the point or points on which they differ to the Appellate Authority of Advance ruling (AAAR) for hearing the issue. If the members of AAAR are also unable to come to a common conclusion in regard to the point(s) referred to them by AAR, then it shall be deemed that no advance ruling can be given in respect of the question on which difference persists at the level of AAAR.
Appeal remedies:
If the applicant or revenue department is aggrieved with the ruling of the AAR, they can file an appeal with AAAR.
The appeal must be filed within 30 days from the receipt of the advance ruling. AAAR has the power to condone the delay of 30 days on being shown the sufficient cause for the delay. Once the total period of 60 days (30 days normal time limit for filing the appeal + extended period of 30 days which AAAR has the power to condone the delay) are expired, the appeal remedy may lose. In this regard, the rationale of the Hon’ble Supreme court decision in case of Singh Enterprises v. Commissioner - 2007 (12) TMI 11 - SUPREME COURT OF INDIA . Only the remedy available is approaching the High court for invocation of the extraordinary jurisdiction under Article 226 of the Constitution of India. Panoli Intermediate (India) Pvt. Ltd. v. Union of India - 2015 (7) TMI 303 - GUJARAT HIGH COURT
The Appellate Authority must pass an order after hearing the parties to the appeal within 90 days of the filing of an appeal.
If members of AAAR differ on any point referred to in appeal, it shall be deemed that no advance ruling is issued in respect of the question under appeal.
Other points to be noted:
An advance ruling pronounced by AAR or AAAR shall be binding only on the applicant and on the concerned officer or the jurisdictional officer in respect of the applicant. This clearly means that an advance ruling is not applicable to similarly placed other taxable persons in the State. It is only limited to the person who has applied for an advance ruling.
The law does not provide for a fixed time period for which the ruling shall apply. Instead, it Law provides that advance ruling shall be binding till the period when the law, facts or circumstances supporting the original advance ruling have not changed.
However, an advance ruling shall be held to be ab initio void if the AAR or AAAR finds that the advance ruling was obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts. In such a situation, all the provisions of the CGST/SGST Act shall apply to the applicant as if such advance ruling had never been made (but excluding the period when the advance ruling was given and up to the period when the order declaring it to be void is issued).
An order declaring advance ruling to be void can be passed only after hearing the applicant.
Few decisions under the old laws that are relevant under GST also:
Merely because another subsidiary is carrying out the same activity and its case is pending with any officer, another subsidiary will not become ineligible to obtain AR in relation to the same question. - IN RE: A. TEX (INDIA) PVT. LTD. 2004 (3) TMI 100 - AUTHORITY FOR ADVANCE RULINGS ; GSPL India Transco Ltd. v. Union of India - 2012 (8) TMI 753 - Gujarat High Court
Advance Ruling cannot be sought on a question based on a circular issued by Board as a circular is not a notification. IN RE: Jason James Clemens 2004 (11) TMI 5 - AAR (New Delhi)
While undoubtedly ruling given in a particular case binding only in respect of reported transaction of the concerned applicant with concerned departmental officers, nevertheless said ruling can have persuasive value in other cases. Columbia Sportswear Company v. Director of Income Tax - 2012 (8) TMI 105 - SUPREME COURT ; In Re: T.T. Recycling Management India Pvt. Ltd 2016 (8) TMI 389 - AUTHORITY FOR ADVANCE RULINGS ;
Decisions of the Appellate authority of the advance ruling can be challenged before High Courts as well as Supreme court. Columbia Sportswear Company v. Director of Income Tax - 2012 (8) TMI 105 - SUPREME COURT
Benefits of Advance Ruling:
Helps in planning GST liability & impact on the business well in advance;
It brings certainty in determining the tax liability;
Helps to avoid long drawn and expensive litigation;
It is inexpensive, expeditious and binding;
It provides certainty and transparency to assessee with respect to an issue which may potentially dispute by the revenue department.
As the Indirect taxes are to be collected from the recipients. In case suppliers missed collecting the tax or collected less tax, the suppliers may end up paying taxes from their pockets (including any litigation expenses). In this background, it is advisable to file the advance ruling and future compliance can be made based on the ruling and unexpected demands can be avoided.
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The Delhi High Court has given relief to those asking for tax credits on pre-GST stocks lying for more than 12 months. Importers of fast-moving consumer goods, among others, are going to benefit from the interim order.
The order is important because the deadline for filing TRAN 1, the form for claiming tax credits on pre-GST stocks, is December 27.
In the pre-goods and services tax (GST) regime, importers used to get tax credits on the payment of countervailing duties. However, these benefits were allowed for pre-GST stocks only if inventories were there for 12 months prior to the roll-out of the GST. The new indirect tax system was rolled out on July 1.
Abhishek Rastogi of Khaitan & Co said companies contested this, arguing that those who did not have invoices were given the credit in the range of 40-60 per cent without specifying the time limit. In that sense, there was unfair advantage for those who did not have invoices, while those who possessed receipts were restricted by the time-limit, he said.
The companies also disputed the policy on the grounds of promissory estoppel, which means that promise made by the sovereign will be valid for subsequent period unless public interests are involved.
The court gave interim relief to companies pending final order.
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Mere Issuance of a Cheque that was Subsequently Cancelled and Returned would not constitute ‘Payment of Sum’ attracting ‘Deemed Dividend’: Allahabad HC [Read Order]
Read more at: http://www.taxscan.in/mere-issuance-cheque-subsequently-cancelled-returned-not-constitute-payment-sum-attracting-deemed-dividend-allahabad-hc/14995/
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# *CII*’s Budget wish list for lowering the Corporate Tax Rate from 30% to 18%, with the withdrawal of tax incentives, exemptions, surcharges and cesses, will send a powerful message to India Inc. and global investors that India is an attractive investment destination.
# *MCA* has notified the Companies (Cost Records & Audit) Amendment Rules, 2017. The amendments shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2016.
# *DGFT* has notified the revised Foreign Trade Policy 2015-2020 which shall come into force from 05-12-2017.
# *GST*: Case of petitioners is that the contract works for which the agreements were executed prior to 01.07.2017, GST can’t be imposed and 2% VAT alone is applicable - WP disposed of with direction to commissioner - Coimbatore Road Contractors Welfare Assn. Vs State of Tamil Nadu & Orss (2017 (12) TMI 515 - Madras HC)
# *IT*: Levy of interest for late deposit of TDS for two months is incorrect since the time gap is not exceeding one month – Bank of Baroda Vs. DCIT, CPC, TDS, Ghaziabad (2017 (12) TMI 523 - ITAT Ahmedabad).
# *ST*: Demand of service tax on the sharing of clinical establishment (infrastructure) with Doctors is not justified as business support service – Sir Ganga Ram Hospital & many other Hospitals Vs. CCE, CCE&STs (2017 (12) TMI 509 - CESTAT New Delhi).
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Income Tax Deptt starts issuing notices for prosecution under Income Tax Act. Till now prosecution provision was invoked sparingly and primarily on wilful tax evaders. Now, prosecution proceedings are being initiated for not filing tax returns or for short or even delayed remittance of TDS by business entities.
Direct Tax Collections for FY 2017-18 has shown the growth of 14.4 percent between the month of April-November this fiscal, the CBDTentral said. As per the board, the provisional figures of Direct Tax collections up to November 2017 have shown that the net collections stand at Rs 4.8 Lakh Crore.
Penalty u/s 271C can be levied for non-deduction of TDS and not for delayed deduction of TDS. Case Name : ITO Vs. M/s Liver Foundation (ITAT Kolkata)
Bankers are looking to speed up the resolution of 28 accounts including Videocon Industries BSE -4.90 %, Jaiprakash AssociatesBSE -1.67 % and Uttam Galva Steel as a December 13 deadline looms.
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Optional Papers in Place of ISCA
Under the new CA Final Revised Syllabus, ISCA has been removed. Instead, Paper 6 is made as an ‘Elective Paper’. Students can choose any of the following Optional papers:
1.Risk Management
2.International Taxation
3.Economic Laws
4.Capital Markets
5.GFRS
6.Multi-Disciplinary Case Study
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Advertising Hoardings qualify as ‘Tangible Assests’: ITAT Allows 100% Depreciation [Read Order]
Read more at: http://www.taxscan.in/advertising-hoardings-qualify-tangible-assests-itat-allows-100-depreciation/14971/
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Breakdown and Technical Snags of Machineries during Trial runs cannot be a reason for denying Depreciation: Bombay HC grants relief to L & T [Read Judgment]
Read more at: http://www.taxscan.in/breakdown-technical-snags-machineries-trial-runs-cannot-reason-denying-depreciation-bombay-hc-grants-relief-l-t/14977/
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#Economy:The retail inflation shooting to a 15-month high of 4.88% in November as compared to 3.58% in the preceding month and factory output sliding in October on subdued performance by mining and manufacturing. The IIP, continued to decline and fell to a three-month low of 2.2% on annual basis in October mainly due to subdued performance of mining and manufacturing sectors coupled with a contraction in output of consumer durables.
#Finance:The first year premium of the life insurance companies grew by a marginal 5.8% to Rs 16,994.95 crore in November. State-owned LIC registered a fall of over 1.5% in new premium collection at Rs 12,336.53 crore, the private players together clocked Rs 4,658.42 crore during November, up 32% from Rs 3,533.33 crore a year ago.
#In a relief to IT companies, a Rs 10,000 crore service tax demand notices on dozens of IT companies has been set aside.The tax dept had slapped service tax demand notices on about 200 information technology and IT-enabled services companies in the country. It had asked them return export benefits claimed between 2012 and 2016 on softwares provided to clients outside India.
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📺 *Updates*
➡1. AO couldn’t ask assessee to furnish 'source of source' to assess income under sec. 68: HC
Prayag Tendu Leaves Processing Co. v. Commissioner of Income-tax.
➡2. No penalty just because assessee withdrew rebate claim during assessment which it had claimed inadvertently
Gopalratnam Santha Mosur
v. Income-tax Officer, International Taxation-2(2), Chennai*
➡3. Adjustment towards loan extended to AE was to be made considering LIBOR rate prevailing at that time.
Commissioner of Income-tax, Jaipur-II v. Vaibhav Gems Ltd.
🙏�Thank you🙏�
Have a nice day