#Economy:The deadline for linking bank accounts, SIM cards and Govt welfare schemes to Aadhaar is now March 31, 2018. The court also ruled that new bank accounts could be opened without an Aadhaar ID number, but that it has to be furnished by March 31. Govt says that Aadhaar linking would reduce the possibility of fraud, corruption and track unaccounted wealth.
#Finance:The GST Council's efforts to resolve exporters' woes on refunds seem to have started yielding results. Exports grew 30.55% in November, a month after it contracted 1.1%, also due to the low base effect and rising petroleum prices. In fact, petroleum products, along with engineering goods, gems and jewellery, and chemicals, drove nearly 80% of the rise in merchandise exports.
#To promote manufacturing in India of solar photovoltaic cells and modules, the ministry of new and renewable energy has drafted a set of proposals for financial and other support of Rs 11,000 crore is proposed.
#The Motor Vehicle Act (Amendment) Bill 2017, is coming up in the Rajya Sabha in this Winter Session. The Bill seeks statuary guidelines for cab aggregators and a 10% annual increase in penalties for traffic rule violations.
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Section 13 read with Rule 50 of CGST Rule govern treatment of Advances received from person who placed the order for supply of either goods or services or both. GST is payable on receipt of advance at the time upon filing of monthly return I.e. 20th of succeeding month. Correspondingly party shall be entitled to take credit of ITC only receipt of invoice from supplier and not before that. In the event of uncertainty about type and nature of supply, GST shall be payable at 18%. Again if it is not clear or certain about type of supply I.e. intra state or inter state, GST shall be payable treating the same as Inter State.
However the above provision shall apply if the advance is either for supply of goods or services and liable to be adjusted against future supply and shall not apply where the amount is by way of Security Deposit not liable to be adjusted against consideration towards supply.
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Nation-wide e-way bill set for rollout from Jan; GST Council to meet on Sat
Under GST rules, ferrying goods worth more than Rs 50,000 within or outside a state will require securing an electronic-way bill by prior online registration of the consignment
http://www.moneycontrol.com/news/business/economy/nation-wide-e-way-bill-set-for-rollout-from-january-gst-council-to-meet-on-saturday-2462363.html
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12% GST on Payment made after GST Rollout towards Under Construction Properties [Read Clarification]
Read more at: http://www.taxscan.in/12-gst-payment-made-gst-rollout-towards-construction-properties/15107/
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The State Governments have pressurised the Central Government to prepone the introduction of E-Way Bill to Check evasion. Transporters will be under lens of the Government. Every transporter, whether registered or not, shall generate a Unique Identification Number from the portal and such number shall be mentioned on all Eway bills. The rules make it mandatory for all transporters to maintain certain records. GST law aims to regulate the transport industry. Let us wish the Government All the Best as they take a first step to bring this Industry which till date is devoid of any such controls.
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🎾 Dear Members!
*GST TRAN-2 form is live on portal now.*
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The New Assessment Procedure proposed by Member(L) :(Draft awaiting for final confirmation)
There will be :
1. Audit Teams,
2. Verification Team
3. Legal Team
4. Recovery Team
5. Prosecution Team
6. Tax Fraud Investigation Team
Cases will be selected for Scrutiny by CASS(Systems).
Systems will push the Return to a team(called Audit Team 1) comprising of PCIT, Addl CIT and AC/ITOs to frame a Questionnaire which once approved by PCIT, will be uploaded by them on the System.
Simultaneously Systems will also push the Return to Audit Team 2, which will also draft a Questionnaire independently, and upload it on the System.
Now Systems will push the Return and both the Questionnaires to Audit Team 3, who will prepare the Questionnaire and upload it on Systems.
Systems will now send the Questionnaire to the Assessee, who will receive the Questionnaire from 'Income Tax Department', not from any AO, Audit Team, PCIT etc.
The Reply filed by the Assessee will be uploaded on the System, and will be pushed to Audit Team 4.
If Audit Team 4 desires any enquiry or verification to be done, it will specify the same, and will upload it on the System, which will send it to a 'Verification Team'.
The 'Verification Team' will carry out the verification, and upload it's Report on the System.
The System will send the Report alongwith Return, earlier Questionnaires, Reply by Assessee etc. to Audit Team 5.
If Audit Team 5 wants to raise any further query on the basis of the Report of the Verification Team or otherwise, it will draft the Querries and upload it on the System.
Systems will issue the Querries to the Assessee.
The Reply sent by the Assessee (uploaded on the System) will be sent by Systems to Audit Team 6.
Again Audit Team 6 may raise Querries, upload on System, Reply to go to Audit Team 7, and so on. Any Audit Team may refer any enquiry or verification to Verification Team, which will submit the Verification Report to the next Audit Team, ie. Audit Team X+1.
At each stage, every Audit Team will be able to see the Return, earlier Questionnaires, Replies by Assessee, Reports by Verification Team etc. However, the identity of each Audit Team will be kept secret from each other.
At some stage, some Audit Team (say Audit Team 15) may be satisfied that the Order can be finalised. They will prepare and upload the Draft Order on the System.
Systems will send the Draft Order to the next Audit Team (16 in this example).This Audit Team will redraft the Order prepared by the preceding Audit Team, and will upload this Final Order on System.
Systems will send the Final Order to the Assessee.
In less complicated cases, some earlier Audit Team, say 7 or 8, or even earlier, may draft the Order (with the next Audit Team finalizing it), and in complicated cases, the number of Audit Teams involved may be much more (20 ? 30 ? 40 ? ... depending upon the facts of the case).
In between if any Audit Team wants, it can refer any legal issue to 'Legal Team'. It was not specified whether the opinion of 'Legal Team' will be sent to the Audit Team requesting for the opinion or to Audit Team X+1.
After the Assessment Order is passed, the recovery will be done by 'Recovery Team'.
Thus the Assessment will be done by various Audit Teams, headed by PCITs, which will work seperately from each other, without being aware of the constitution or identity of the preceding Audit Teams. Assessee will also not be aware of identity or constitution of any of the Audit Teams. Audit Teams will be helped by Verification Team, Legal Team.
After Assessment, Recovery Team and Prosecution Team (if required), will do recovery, prosecution work.
For Search & Seizure operations and Surveys, there will be 'Tax Fraud Investigation Team'.
The TFI Team will conduct Searchs etc. and will also do post Search inquiries. The TFI Team will almost complete the assessment. It will file 'Memorandum of Charges' having entire findings, assessment of Income etc., supported by all evidences, before a Panel...this Panel was stated to be a Panel of Commissioners, comprising of several CITs. This Panel will finalize the Assessment Order.
To sum up :
1. The normal Scrutiny cases will be scrutinized & finalized by a succession of Audit Teams (headed by Principal CITs).
2. Search will be done and post -Search investigation by TFI Team, with Assessment of Search cases being finalized by Panel of Commissioners.
3. Verification Team and Legal Team will help the Audit Teams, and post assessment work will be done by Recovery Team and Prosecution Team. May get extended to GST also.
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Commissioner Dvat vide
Notification No. 1219 dt. 15/12/2017 has extended the date of online filing of Ratewise Closing Stock details as on 31/3/17 & 30/6/17 upto 31/12/2017.
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Addition in respect of Gift cannot be made merely on Conjecture or Surmises: ITAT Mumbai [Read Order]
Read more at: http://www.taxscan.in/addition-respect-gift-cannot-made-merely-conjecture-surmises-itat-mumbai/15098/
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ICAI - Exposure Draft of the Guidance Note on Audit of Banks 2018 edition issued by the Auditing and Assurance Standards Board - (14-12-2017) - https://resource.cdn.icai.org/47969aasb-icai-auditofbanks2018.pdf
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ICAI - Announcement for next examination of Certificate course on Forex & Treasury Management on 27th and 28th Jan, 2018 - (15-12-2017) - https://resource.cdn.icai.org/31988upcoming-fxtm.pdf
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ED to issue FEMA notices to 46 Indian entities in PANAMA case
https://goo.gl/bGSTzm
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Relevance of relevant date in case of export
The time limit of filing the refund claim is to be checked from the "relevant date". This term is defined in explanation 2 to section 54. This update is about the interpretation of term "relevant date" & its significance in determining the time limit for filing the refund claim.
Section 54(1) of CGST Act, 2017 prescribes that any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed. Therefore, the refund application may be filed before expiry of two years from the relevant date.
Further, the term relevant date is defined in explanation 2 to section 54. This explanation provides various dates for different types of exports like if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India; in the case where tax is paid provisionally under this Act or the rules made thereunder, the date of adjustment of tax after the final assessment thereof; in the case of refund of unutilised input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises; etc. Therefore, different types of relevant dates are prescribed for different types of refund.
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In case of refund of unutilized Input tax credit, the relevant date is prescribed as the end of financial year in which such refund claim arises. Some experts are of he view that for filing the refund claim, the relevant date is to be seen as the starting date for filing the refund claim. In other words, as per view taken by them, the refund claims of unutilized credit under GST cannot be filed before 31.3.2018.
On the other hand, there is another school of thoughts which is of view that the term "relevant date" has been defined for restrictive purpose. The definition of "relevant date" as given in the explanation to section 54 is simply meant to calculate the time limit under this section. Reading the explanation with sub section 1 of section 54; it is clear that the registered person may make an application before the expiry of two years from the relevant date which in case of refund of unutilized credit is end of financial year. It is worthwhile to mention here that refund claim may be filed even before the end of financial year as the definition of relevant date is simply for the purpose of determining the last date of filing the refund claim which in case will be two years from the end of financial year. This means, in case of refund of unutilized credit accumulated during the financial year 2016-17; the last date or time limit of two years will be calculated from 1.4.2018 which comes upto 31.3.2020.
We too follow the second school of thoughts as even in Excise regime also, the relevant date was meant simply for calculating the last date of filing the refund claim, it didn't prescribe the starting date of refund claim. The same language has been continued in GST regime too, therefore, the interpretation will also be carried forward. This interpretation is further strengthened by the fact that the government has already taken steps to admit the refund claims, particularly, the refund of unutilized credit and many of the exporters have already received the refund claim amount for the month of July, 2017; i.e. the first month of GST regime. If the interpretation taken by the first school of thoughts is accepted, no refund claim could have been filed before 1.4.2018. However, the government itself is allowing the same which proves that the definition of relevant date is merely for the purpose of calculated the time limit/ last date of filing the refund claim, it doesn't prescribe that it will be considered for the purpose of calculating the first date of filing the claim of refund.
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Carrying out of Charitable Activity at the Stage of Commencement of Institution is not relevant for Granting 12AA Registration: ITAT [Read Order]
Read more at: http://www.taxscan.in/carrying-charitable-activity-stage-commencement-institution-not-relevant-granting-12aa-registration-itat/15092/
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Govt has decided to issue Sovereign Gold Bonds 2017-18 – Series-III. Applications for the bond will be accepted from October 09, 2017 to December 27, 2017. The Bonds will be issued on the succeeding Monday after each subscription period.
Taking into consideration, the value of SBNs now reported to have been counted, approximately 98.96% of SBNs in value terms have come back to the RBI after demonetization. In other words, only an estimated Rs. 16000 crore worth of SBNs have not come back to the RBI so far.
Assessment orders not become nullity for mere non-issue of notice upon legal heirs. Case Name: Late Shri Atulkumar Mansukhlal Shah vs. ITO (ITAT Ahmedabad).
IBBI issues guidelines for technical standards for core services.
Regards,
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Notice for reopening U/s. 148 cannot be issued in absence of fresh material
An issue which had been examined in detail during original assessment itself, could not be re-examined in exercise of powers of reassessment, therefore, notice under section 148 was set aside.
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IT : Where assessee-society set up a college to impart education in a systematic manner in field of B.Sc (Nursing) and G.N.M. (General nursing and Midwifery), activities of society were covered within meaning of section 2(15) and it was eligible for section 12A registration as a 'Charitable Society'
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Ensure your Input credit under GST - Practical issues
GST system now became the part of our day to day finance function since last 5 months, there are various issues faced by the Government, dealers and all stakeholders under this system. Apart from the various issues like rate change, website problem, return issues etc. one more major problem which we are facing the input credit issues. Under previous indirect tax system there is no real-time integration between input tax claim by the purchaser and the relevant output tax shown and paid by the seller in their returns, incase seller not paid the tax to government or not filed the return we unable to check the same so many cases we came to know only during assessment with the department and finally the department will raise the demand notice to the purchaser even default by the seller. This is the common problem in either CENVAT or Local VAT system. But under current GST system the input problem real-time integration has been shorted out, now we can able to check that whether our seller updating our input tax details or not. This will ensure the correctness of input tax credit claimed in the return. But the GST system will not reflect the completeness of your input tax credit claim.
We should ensure the completeness of our input tax credit claim with proper internal control and check system because it will involve financial impact in the company. This article discussing some of the mandatory checklist we should maintain in our day to day system to ensure our input credit.
1. GST number in Tax invoice: Basic requirement to claim the input tax credit is tax invoice from the supplier. Only registered dealer under GST can issue the tax invoice, but only tax invoice is cannot ensure completeness of your input tax credit, seller has to mention your GST number in that invoice, this will only ensure your input credit eligibility. So before processing any invoice we need to ensure the same.
2. Check the status of Supplier: Before placing the order or confirming the purchase, please check the status of supplier under GST, whether they registered as regular or composite scheme. The composite dealer cannot issue the tax invoice and recover from the buyer.
3. Know about applicable tax: During the interstate transaction, please check and ensure the applicable tax such as SGST, CGST & IGST applicable. Generally, interstate transaction attracts IGST, but some of the transaction like immovable property attract only SGST and CGST even service receiver registered in the different state. So, check your eligibility of those input before finalizing such contracts.
4. Check the form GSTR-2A: GSTR 2A is an auto-populated form which gets created when the goods or service provider files for GSTR 1. As we know that through GSTR 1, the dealer or business provides the details of invoices raised by him towards the buyer, the buyer gets an intimation of the same in the form of GSTR 2A. Frequently check your Form GSTR-2A and reconcile with your inwards, incase any correction and amendment required we should immediately intimate to the seller and also incase seller not updated or uploaded your purchases, you can demand your seller to update the same and ensure your input.
5. Preparing input tax register: As we maintained input tax register to claim excise and service tax credit, we should maintain the separate register along with the input tax credit documents in hard copies will ensure completeness of our input tax credit claim.
6. Ensure the payment to the supplier within prescribed time: Under GST, for claiming input tax credit, we should ensure the payment to the vendor within 180 days, if we failed to make the payment, we should reverse the relevant input credit along with applicable interest. So, we should keep the track that the payment for the vendor bills should not cross 180 days.
7. Proper check-in ERP systems: In case you are using ERP system to capture your input tax credits, you should carefully design the system from the Purchase order/Work order stage to till completion of transaction such as HSN code, tax rate match and eligibility of taking that input etc. If it not captures or captured wrongly then it will affect the input tax credit.
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👉🏻35% of businesses registered in GST pay no tax - FM.*
(Around 4 lakh people contribute 95% of GST collections, while 35% of those who have filed returns mostly paid no tax, finance minister Arun Jaitley said)
👇🏻 👇🏻 👇🏻
https://goo.gl/SsrCsy
*👉🏻IBBI issues guidelines for Technical Standards for Core Services.*
(Based on recommendations of the Technical Committee, the Insolvency and Bankruptcy Board of India (IBBI) has laid down the Technical Standards for the performance of Core Services.)
👇🏻 👇🏻 👇🏻
https://goo.gl/g8HKHW
*👉🏻Exposure Draft of the Guidance Note on Audit of Banks 2018 - ICAI.*
(Exposure Draft of the Guidance Note on Audit of Banks 2018 edition issued by the Auditing and Assurance Standards Board.)
👇🏻 👇🏻 👇🏻
https://goo.gl/8ypBxE
*👉🏻RPF for Appointment of Concurrent Auditors of National Housing Bank.*
(NHB proposes to invite Request for Proposal (RFP) to provide their services for conducting Concurrent Audit of the Bank as described under scope of work.The head office of NHB is located in New Delhi and a regional office located at Mumbai. It has representative offices located at Hyderabad, Chennai, Bengaluru, Kolkata, Ahmedabad and Bhopal.)
👇🏻 👇🏻 👇🏻
https://goo.gl/bEpzA8
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GST to tax NOT ready-to-move-in but only under-construction property
NEW DELHI, DEC 14, 2017: The CBEC today clarified the applicable rate of GST on under-construction as well as ready-to-move-in property. What will attract GST is the construction of a complex, building, civil structure or part thereof, intended for sale to a buyer, either wholly or in part, except where the entire consideration was received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever was earlier.
The CBEC clarification states that the sale of ready-to-move-in or completed property would not attract levy of GST. Hence, GST will be levied only on under-construction property.
Firstly, w.r.t. property on which completion certificate had been issued, the clarification states that no GST would be levied on ready-to-move-in or completed property, as per the Paragraph 5(b) of the Third Schedule to the CGST Act, 2017. Secondly, w.r.t. under-construction property, the clarification envisages two circumstances -
i) where the entire amount of consideration for the property was paid to the builder of such property before July 01, 2017, no GST would be leviable. This would be even though the construction was completed after July 01, 2017. However, such transaction would attract Service Tax @ 4.5%, considering that as per the Service Tax (Point of Taxation Rules), 2011 where the invoice was raised or payment was made prior to the appointed date under GST, the point of taxation would arise before the appointed day. Thus, such transaction would attract levy of service tax and not GST;
ii) where part amount of the consideration for the property was paid to the builder of such property, before July 01, 2017, Service Tax @ 4.5% would be leviable on the invoices raised or on consideration paid before July 01, 2017. However, any payment made by the property buyer to the builder on or after July 01, 2017 against invoices issued on or after July 01, 2017 would attract GST @ 12%.
Lastly, the clarification also makes it clear that in case of purchase of under-construction residential or commercial property, from a builder, involving transfer of interest in land or individual share of land to the buyer, the effective rate of GST for such purchase would be 12%, with full Input Tax Credit. It is also clarified that GST would be levied @18% on 2/3rd of the amount of the property, whereas 1/3rd of the amount was deemed to be value of land or undivided share of land supplied to the buyer. It is further clarified that consideration amount which did not constitute transfer in land or undivided share of land as part of the consideration, for instance, construction services provided by a sub-contractor to a builder, would attract levy of GST @ 18%, with full Input Tax Credit.
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NIRC Seminar on Impact Analysis of GST on Various Sectors on Saturday 16th December, 2017 at Hotel The Park, Parliament Street, New Delhi register at http://www.nircseminars.org/
DISA: The Question/answer Database for DISA/CISA Exam (Covering 992 Question & Answer) download from here http://www.casango.org/isa-question-bank/
Case Study: Whether POA Holder Can File Application Under IBC, 2016 - Shriram EPC Limited Vs. Rio Glass Solar SA (National Company Law Appellate Tribunal, New Delhi)
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HC: Admits Builder's challenge on vires of stamp duty value based taxation u/s. 43CA
Dec 12,2017
Delhi HC admits Ansal Housing & Construction Ltd.’s (‘assessee’) writ challenging vires of Sec. 43CA (which deems stamp duty valuation as sales consideration for land and building held as stock in trade) and amendment to Sec. 56(2)(vii)(b); Assessee argues that these provisions attempt to tax notional income and result in double taxation; HC lists the matter for hearing on January 16, 2018. The appeal was admitted by a division bench comprising of Justice Ravindra Bhat and Justice Sanjeev Sachdeva. Senior Advocate Arvind Datar, assisted by Advocates Kavita Jha and Bhuwan Dhoopar, are representing the taxpayer before the HC. The information contained in the alert is source based. Assessee, Ansal Housing & Construction Ltd., filed a writ petition before Delhi HC challenging the insertion of section 43CA and amendment to Section 56(2)(vii)(b) of the Income Tax Act, 1961 by the Finance Act, 2013 on the following grounds:i.The effect of application of sections 43CA and 56(2)(vii)(b) is that in cases where the consideration involved in a transaction of purchase or sale of land or building is less than the stamp duty value, then, the excess of such value over the actual consideration would be treated as income both in the hands of the transferor as per section 43CA as well as the transferee as per section 56(2)(vii)(b)(ii). Thus, these provisions result in double taxation and attempt to tax notional income. ii. There is discrimination in application of sections 43CA and 56(2)(vii)(b)(ii) of the Act as it is a known fact that levy of stamp duty is a state subject. Each state in the Country provides for such a levy where the determination of value on which the levy is imposed is based on different principle methods and basis. There is no uniform method applied on a universal basis in the whole Country. Computation of Income in relation to transfer or receipt of land or building based on the stamp duty value de hors the differences in manner, method and basis of such levy in different States discloses a discriminatory treatment. iii. Further universal presumption that stamp duty value would be regarded as the full value of consideration without looking into the factual aspects tantamount to discrimination. iv.Further circle rate is not always the true indicator of the market value of the property as the market value keeps on fluctuating at different times. Further there could be various factors when market value can be less than the stamp duty value like location of the property, decrease in the prices, vastu compliant and auction sale etc. Delhi HC has issued notice in the matter and has listed the case on January 16, 2018. Page 1 of 1
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📺 *Updates*
➡1. Voluntary disclosure of income in subsequent year won’t absolve assessee from liability to pay penalty.
Shanti Ramanand Sagar v. Commissioner of Income-tax. Mum.
➡2. Karnataka HC upheld rejection of application filed before CIT seeking waiver of sec. 234A/B/C interest
Gaonkar Mines v. Additional Commissioner of Income-tax, Udupi*
➡3. No reassessment just because transactions entered into with AE weren’t referred to TPO for computing ALP: HC
Dolphin Drilling Ltd. v. Assistant Director of Income-tax.
🙏�Thank you🙏�
Have a nice day