30 December 2017 Updates

Hello Readers,

Greetings of the Day ! 

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Today's Word of Wisdom -

All the problems are stuck between "Mind & Matter". If u don't "Mind", It doesn't "Matter”. 

The secret to a good career lies in learning from mistakes, building solid relationships and making use of every single opportunity to leave a mark of your hard work and excellence. 

Obstacle and reasons to avoid responsibility are always be there, But those who accept it, find a place in the hearts of the world and always to be remembered for good they do.

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30 December 2017 Updates  

Condonation of Delay Scheme Applicable from 1st Januray: MCA releases Format of Application Form [Read Circular]

Read more at: http://www.taxscan.in/condonation-delay-scheme-applicable-1st-januray-mca-releases-format-application-form/15575/
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IBBI

The Insolvency Bankruptcy Board of India grants recognition to two Registered Valuer Organisation's, in pursuance to the Companies (Registered Valuers and Valuation) Rules, 2017.

 The IBBI has recognized,

a) The Institution of Estate Managers and Appraisers in the Asset Class of Land and Building, and

b) The IOV Registered Valuers Foundation in the Asset Classes of Land and Building, Plant and Machinery, and Securities or Financial Assets.

In accordance with the Rules, these Registered Valuer Organisations shall conduct educational courses in valuation, grant membership and certificate of practice to individuals, conduct training for its members and lay down and enforce the Code of Conduct for the registered valuers, who are its members.

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Govt Keen on separate regulator for CAs*

The Parliament was today informed about the Governments interest on introducing a separate and independent regulator to monitor the Chartered accountants.

However, the Institute of Chartered Accountants (ICAI) the apex body regulating the accounting and auditing standards as well as the audit professionals opposing the Government’s decision. The institute is of the view that existing framework of the regulator to perform this function is “adequate”.

“The government, however, is of the view that, in addition to the self regulation mechanism existing within the ICAI framework, there is a need for an independent regulator to inter alia oversee compliance with accounting and auditing standards and for oversight of audit professionals,” minister of state for corporate affairs P.P. Chaudhary said in a written reply to the Lok Sabha.

Such independent regulators have been assigned these functions in over 50 countries. The steps are underway for establishing the National Financial Reporting Authority (NFRA), the minister said. The Companies Act provides for setting up of NFRA for recommending to government on formulation and laying down of accounting and auditing policies, adoption of standards, monitoring their compliance and overseeing quality of service of professionals associated with such compliance.

ICAI informed that till 20 December this year, a total of 1,583 cases are pending at different stages of disciplinary actions.
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CBEC has allowed Manual filing and processing of refund claims on account of inverted duty structure,deemed exports and excess balance in electronic cash ledger due to the non-availability of the refund module on the common portal. 

Extension of due date for filing of Form GSTR-1: For person having Aggregate Turnover more than 1.5 Crore: Period :July to November 2017 --> 10.01.2018 and for December: 10.02.21018 (No  72/2017-CT)

For person having Aggregate Turnover upto Rs 1.5 Crore Period July to September QTR 2017 10.01.2018 Period October to December QTR 2017: 15.02.2018 (No 71/2017-CT)

Transfer Pricing Adjustment can be applied to Overseas Subsidiary even without obtaining any Royalty: Delhi High Court. : http://www.taxscan.in/tp-adjustment-can-applied-overseas-subsidiary-even-without-obtaining-royalty-delhi-hc/15498/

Supreme court has held that the (a) notice under Sec. 8 of IBC can be given by a lawyer or any other authorised agent including PCS also (b) certificate under Sec.9 (3) (c) from bank is not mandatory but only directory and existence of debt could be proved by some other documents. Macquarie Bank Ltd Vs. Shilpi Cable Technology Ltd. MANU/SC/1609/2017.

Delhi High Court has held that if a moratorium under Section 14 of IBC code has been granted in favour of Corporate Debtor, the order under Section 14 shall not prohibit or bar continuation of proceedings u/s 34 for setting aside of Arbitrarion award in which Corporate Debtor is a party. Power Grid Corporation Ltd Vs.Jyoti Structure Ltd MANU/Delhi/5162/2017.
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#Economy:The Sensex gained 7,430.37 points, or 27.91%, this year. The 30-share key index touched its lifetime high of 34,137.97 on December 27. Led by the strong show in the stock market, the market capitalisation of BSE-listed companies soared to Rs 1,51,73,867 crore this year.

#Finance:The Govt has achieved nearly 67% of the direct tax collection target for the current financial year. As against the budget estimate of Rs 9.80 lakh crore, the Govt has collected nearly Rs 6.49 lakh crore as direct taxes till Dec 18.

#The composition scheme has yielded just Rs 215 crore in the first quarter since the GST was introduced. The number has accentuated the worries of falling GST tax collections that declined to the lowest in November, prompting tax officials to pin their hopes in the upcoming e-way bill that will track movement of goods.

#Nearly 50,000 enrolment operators have been suspended for violating the process guidelines for Aadhaar enrolment till date.

#The Govt is in favour of an independent regulator to oversee compliance with accounting and auditing standards as well as for oversight of audit professionals. Internationally, also independent regulators have been assigned these functions in over 50 countries. The minister said that steps are underway for establishing the National Financial Reporting Authority (NFRA).

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*GST updates by notifications dated 29-12-2017*
source http://www.cbec.gov.in/htdocs-cbec/gst/central-tax-notfns-2017

*Notification No. 71/2017*: The council extends time limit for *quarterly* furnishing *FORM GSTR-1* (turnover upto 1.5 crore)

#July-September, 2017 -10th January, 2018

#Oct-December, 2017 - 15th February, 2018

#January-March, 2018 - 30th April, 2018

*Notification No. 72/2017*: The council extends time limit for *monthly* furnishing *FORM GSTR-1* (turnover more than 1.5 crore)

#July-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

*Notification No. 73/2017*: Waives the late fee payable for failure to furnish the return in FORM GSTR-4 by the due date

*Notification No. 74/2017*: the Central Govt. hereby appoints 01.02.2018 from which E-way Bill Rules shall come into force.
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SEBI

SEBI has notified the Securities and Exchange Board of India (Issue and Listing of Debt Securities) (Second Amendment) Regulations, 2017 which shall come into force on the date of their publication in the Official Gazette. The definition of "debt securities” shall be substituted with the new definition which means non-convertible debt securities which create or acknowledge indebtedness and includes debentures, bonds and such other securities of a body corporate or a Trust registered with the Board as a Real Estate  investment Trust or an Infrastructure Investment Trust, or any statutory body constituted by virtue of a legislation, whether constituting a charge on the assets of the body corporate or not, but excludes bonds issued by Government or such other bodies as may be specified by the Board, security receipts and securitized debt instruments. The amendment is carried out to include the debt securities issued by the Trust which are registered with the Board as a Real Estate Investment Trust or an Infrastructure Investment Trust.
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Govt Clarifies Availability of Input Tax Credit on Return of Expired/ Damaged Medicines [Read Clarification* ]

While clarifying the impact of Goods and Services Tax (GST) on pharmaceutical products, the GST Policy wing working under the Finance Ministry has clarified that return of damaged or expired medicnes would be treated as return of goods and not as supply. It was further clarified that in such cases, input tax can be adjusted if the credit note was issued within the time prescribed under the Act.

While considering a representation made by the assessee, Shri D.G. Shah, Secretary General, Indian Pharmaceutical Alliance, the Joint Commissioner, GST, clarified that “Return on expired/damaged goods from distributor to the manufacturer will be treated as return of goods and not as supply. A credit note may be issued at the time of return of expired/damaged goods. Further, under section 34 of CGST Act, 2017 there is no time limit for issuance of credit note. However, the tax liability can be adjusted if the details of the same are declared by September following the end of the financial year. Thus, in case the credit note is issued after the specified time period, the tax liability would not be adjusted and the burden would have to be borne by the supplier.”

“With respect to whether industry would be required to reverse input tax credit on the medicines so destroyed as per Section 17(5)(h) of the CGST Act, ITC taken on such expired/damaged medicines will have to be reversed,” the Joint Commissioner said.
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Govt waives Late Fee for Delay in furnishing GSTR-4 [Read Notification]

Read more at: http://www.taxscan.in/govt-waives-late-fee-delay-furnishing-gstr-4/15552/
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✳Attention: GSTN has added some validations in the registration data now, which did not exist earlier, due to which some taxpayers are encountering "system error" when submitting amendments etc.

To avoid this, please ensure that:

1. All mobile numbers are 10 digits

2. All telephone numbers along with STD code must be between 11 – 16 digits. User should enter STD code and phone numbers in diff text boxes.

3. No special characters (-,/)  while adding new Service Tax No./Central Excise No./VAT/TIN  on the Business details Tab.

4.  No duplicate entries of Central Excise No./VAT/TIN/ST etc. in the Business details Tab

5.  No duplicate e-mail/Phone Nos. used in promoter/partner or Authorized Signatory Tab.

6.  If HSN/Service Accounting code (SAC) was not provided earlier, this should be given now as it is made mandatory (4 digit).

7. STD code may not be entered in the Telephone no. on Promoter/Partner, Authorized signatory tab. This is to be rectified.

8. Bank account "Type" may have been left blank in bank account tab.

All the above issues to be fixed to ensure no "system error".
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Divisible Contract is Taxable under the Bombay Sales Tax Act since the predominant intention was Sale of Equipment: Bombay HC [Read Judgment]

Read more at: http://www.taxscan.in/divisible-contract-taxable-bombay-sales-tax-act-since-predominant-intention-sale-equipment-bombay-hc/15505/
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Direct Tax collections up to November, 2017 show that net collections are at Rs. 4.8 lakh crore which is 14.4% higher than the net

collections for the corresponding period of last year. 

Lok Sabha approved a bill to hike cess on luxury vehicles from 15 per cent to 25 per cent with a view to enhance funds to compensate states for revenue loss following the rollout of GST.

GST: Functionality to add up to 10,000 records at once in Table 7A of Form TRAN 1 is now available on the GST Portal.

GST: Functionality to track the Return Status (submitted/filed) or refund status on the GST Portal is now available for taxpayers post login.

GST: Both regular and those who opted for composition scheme now have the option to file their quarterly / monthly returns on GST portal.

The Insolvency Bankruptcy Board of India grants recognition to two Registered Valuer Organisation's, in pursuance to the Companies (Registered Valuers and Valuation) Rules, 2017. 

The last date for compliance with CPE HOURS for the calender year 2017 is extended till 28th feb 2018.
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 *Updates*

➡1. Delhi ITAT granted stay of penalty proceeding against ‘Oracle’ during pendency of appeal.
Oracle India (P.) Ltd. v. Additional Commissioner of Income-tax, Range 13, New Delhi*

➡2. Charges towards security services provided for mortgaged property to be paid by auction purchaser: SC

➡3. Assigning negligible profit sharing in firm against high capital contribution is a sham transaction: HC
Commissioner of Income-tax, LUCKNOW v. Carlton Hotel (P.) Ltd.*

        Thank you
         Have a nice day