Hello Readers,
Greetings of the Day !
-----------------------------------------
Today's Word of Wisdom -
Today's Word of Wisdom -
ख्वाहिश भले छोटी सी हो लेकिन उसे पूरा करने के लिए दिल जिद्दी होना चाहिए ।
God’s blessings go only to those who are honest.
-----------------------------------------
05 January 2018 Updates
KEY HIGHLIGHTS OF THE COMPANIES (AMENDMENT) BILL, 2017
(Forwarded as Received)
1.For incorporation of company declaration will be required instead of affidavits.
2.Name reservation in case of new company shall be valid for 20 days from date of approval instead of 60 days from the date of application.
3.Annual General Meeting of unlisted company can be held anywhere in India.
4.Every company shall have registered office within 30 days of incorporation instead of current requirement to have registered office with in 15 days.
5.Notice of every changes of situation of the registered office shall be given to ROC within 30 days instead of 15 days as currently provided.
6.Sweat equity shares can be issued at any time currently it can be issued after 1 year from commencement of business.
7.In addition to Directors & KMP, any employee of the company can also authenticate company documents as authorised.
8.Wholly owned subsidiary (WOS) of a company incorporated outside of India is now allowed to hold EGM outside India.
9.No central govt. approval required for payment of remuneration in excess of 11% of net profit.
10.Money received under the private placement shall not be utilised unless the return of allotment is filled with the ROC.
11.Central govt. Can provide any other number to be treated as DIN like Aadhar or Pan.
12.Where a director incur any of disqualification under section 164(2) due to default of filing of financial statement or annual return or repayment of deposit or pay interest or other mentioned in section, than he shall be vacate office of the director in all the companies other than the company which is in default.
13.Requirememt of filing of form DIR 11 (Filing of a copy of resignation to ROC by director itself) made optional.
14.Elegibilty for doing CSR to be determined based on preceding "Financial Year" instead of "three preceding Financial year";
15.The requirement related to annual ratification of appointment of auditor by members is omitted.
16.CG will prescribe an abridged Board Report for One Person Company and small company.
17.Disclosure which have been provided in the financial statement shall not be required to be reproduced in the Board Report again.
18.Disclosure by promotes and top ten shareholder with respect to 2% change in shareholding in a listed company is omitted.
19.In case delay in filing documents, fact or information required to be submitted under section 92 (Annual Return) or 137 (copy of financial statement), after expiry of prescribed period a flat additional fee of Rs.100 per day shall be paid instead of slab wise additiinal fee.
20.For calculation of net worth of the company debit or credit balance of profit and loss account shall be include.
.
================>
.
.
================>
.
Guidelines for New AICITSS (Advance Intregated Course on Information Technology and Soft Skill) COURSE for May,2018 Examinees!
a. Those students have registered for final course and undergoing Practical training shall be required to do AICITSS during the last 2 years of Practical training but to complete the same before being eligible to appear in the Final Examination.
b. If the student is in old course and continue to appear for Final exam under old course then such student can undergo AICITSS before applying for Membership of ICAI.
c. If the student is in old course and converts to new scheme but had already appeared in final examination under old scheme then such student can undergo AICITSS before applying for Membership of ICAI.
d. If the student is in old course and converts to new scheme but has not appeared in final examination under old scheme even once, then such student has to undergo AICITSS before Final Exams (New Course) for being eligible to sit for Final Exams under new course i.e. before May 2018 examination.
e. If the student has registered directly in the new scheme has to undergo AICITSS before Final Exams (New Course) for being eligible to sit for Final Exams under new course i.e. before May 2018 examinations.
Those Students who are facing difficulty in getting seats for above course and appearing in May,2018 Examination,Pl contact at 033 30211143.
.
================>
.
.
================>
.
ICAI releases Exposure Draft of Amendments to Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance [Read Draft]
Read more at: http://www.taxscan.in/icai-releases-exposure-draft-amendments-ind-20-accounting-government-grants-disclosure-government-assistance-read-draft/15813/#popup1
.
================>
.
.
================>
.
GST payable under RCM on Legal services provided to Business Entity: CBEC Clarifies Levy of Tax on Various Services [Read Circular]
Read more at: http://www.taxscan.in/gst-payable-rcm-legal-services-provided-business-entity-cbec-clarifies-levy-tax-various-services-read-circular/15805/
.
================>
.
.
================>
.
CBDT releases Circular prescribing TDS from Salaries for the year 2017-18 [Read Circular]
Read more at: http://www.taxscan.in/cbdt-releases-circular-prescribing-tds-salaries-year-2017-18-read-circular/15809/
.
================>
.
.
================>
.
Re-Assessment Notice Issued without Application of Mind can’t be cured by invoking Sec 292B: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/re-assessment-notice-issued-without-application-mind-cant-cured-invoking-sec-292b-bombay-hc/15801/#popup1
.
================>
.
# *GST*: CBEC further amended notification No.8/2017-CT, dt.27.06.17 so as to prescribe effective rate of tax (0.50% each under CGST & SGST) under composition scheme for manufacturers and other suppliers – Noti.N0.1/2018-CT, dt.01.01.18.
.
================>
.
# *GST*: CBEC further amended notification No.8/2017-CT, dt.27.06.17 so as to prescribe effective rate of tax (0.50% each under CGST & SGST) under composition scheme for manufacturers and other suppliers – Noti.N0.1/2018-CT, dt.01.01.18.
# *GST*: CBEC extends the due dates for quarterly furnishing of Form GSTR-1 for taxpayers with aggregate turnover of upto Rs.1.5 crore to 10 JAN 2018 (Jul-Sep’17), 15 FEB 18 (Oct-Dec’17) & 30 APR 2018 (Jan-Mar’18) – Noti.N0.71/2017-CT, dt.29.12.17.
# *GST*: CBEC extends the due dates for monthly furnishing of Form GSTR-1 for taxpayers with aggregate turnover of more than Rs.1.5 crores to 10 Jan 18 (Jul-Nov’17), 10 Feb 18 (Dec’17), 10 Mar’18 (Jan’18), 10 Apr’18 (Feb’18) & 10 May’18 (Mar’18) – Noti.N0.72/2017-CT, dt.29.12.17.
# *GST*: CBEC on the recommendations of the Council waives late fee for failure to furnish the return in FORM GSTR-4 by the due date – Noti.N0.73/2017-CT, dt.29.12.17.
# *GST*: CBEC appoints and notifies 1st Day of February, 2018, the date from which E-Way Bill Rules shall come into force. – Noti.N0.74/2017-CT, dt.29.12.17.
# *GST*: CBEC amends Rule-17 (UID), Rule-19 (Registration), Rule-89 (ITC), Rule-95 & 96 (Refund), Rule-96 and amends Form-REG-10, REG-13, GSTR-11, GST-RFD-10 & GST-DRC-07 – Noti.N0.75/2017-CT, dt.29.12.17.
.
================>
.
CBDT issued circular dt 29th Dec 2017 to all Chief Comm Income Tax stating that the right of revenue to recover taxes is not affected if name of the company is restored.
.
================>
.
CBDT issued circular dt 29th Dec 2017 to all Chief Comm Income Tax stating that the right of revenue to recover taxes is not affected if name of the company is restored.
New tax payers (registered after 1st July 2017) can now apply for cancellation of registration online at GST portal.
CBEC on the recommendations of the Council, hereby waives the amount of late fee payable under section 47 of the said Act, by any registered person for failure to furnish the return in FORM GSTR-4 by the due date.
GST Late fee paid for the month of July to September has been credited to the cash ledger under SGST and CGST head.
A regular Taxapayer has to pay GST on a monthly basis while a Composition Supplier is required to file only one return and pay taxes on Quarterly basis. And a composition taxpayer is not required maintain detail.
SEBI has notified Securities and Exchange Board of India (Settlement of Administrative and Civil Proceedings) (Second Amendment) Regulations, 2017.
.
================>
.
.
================>
.
Your attention is drawn towards a GST provision that all bills of July, 2017 are to be paid within 180 days of invoice date othwrise the ITC claimed on such bills are liable to be reversed and the ITC would be added to output tax liability to be paid alongwith interest @ 18%*.
*GST - IMPORTANT ISSUE TO BE CONSIDERED FROM DECEMBER ONWARDS*
If you are availing input tax credit in GST the Government has fixed a credit period of 180 days. Kindly read the below mentioned steps and follow the same to be on the right side of the law.
*Detailed steps are as under*
*Step 1*
If you are availing input tax credit (ITC) then check whether payment (value plus tax) has been made (in full or part) to the supplier for the supply of Goods or Services or Both within 180 days from the date of invoice.
If payment is not made (in full or part) within 180 days from the date of invoice then go to Step 2.
If you are availing input tax credit (ITC) then check whether payment (value plus tax) has been made (in full or part) to the supplier for the supply of Goods or Services or Both within 180 days from the date of invoice.
If payment is not made (in full or part) within 180 days from the date of invoice then go to Step 2.
*Step 2*
Reverse that amount of ITC credit availed (either in full or in part) and add the same to the output tax liability ledger after the expiry of 180 days.
Proceed to Step 3.
Reverse that amount of ITC credit availed (either in full or in part) and add the same to the output tax liability ledger after the expiry of 180 days.
Proceed to Step 3.
*Step 3*
Interest at the rate of 18% per annum has to be paid on the value of ITC reversed as per Step 2.
Interest has to be calculated for the number of days commencing from the date of availing the ITC in the books of accounts till the date of adding the ITC to the output tax liability ledger.
Interest at the rate of 18% per annum has to be paid on the value of ITC reversed as per Step 2.
Interest has to be calculated for the number of days commencing from the date of availing the ITC in the books of accounts till the date of adding the ITC to the output tax liability ledger.
*Step 4*:
On the date the payment as discussed in Step 1 is made to the supplier the ITC so reversed can be availed as credit again. However, the Interest paid shall be cost.
.
================>
.
On the date the payment as discussed in Step 1 is made to the supplier the ITC so reversed can be availed as credit again. However, the Interest paid shall be cost.
.
================>
.
Semi-Finished Granules, Extracts and Oils Produced by Himalaya are not subject to Excise Duty as they are not Marketable: CESTAT [Read Order]
Read more at: http://www.taxscan.in/semi-finished-granules-extracts-oils-produced-himalaya-not-subject-excise-duty-not-marketable-cestat/15783/
.
================>
.
.
================>
.
Step by Step guide for filing Form GST TRAN 2 form*
*Prequisite:TRAN 2 can be filed only if TRAN-1 and GSTR 3B of the relevant tax period is filed*
*Step1.*Navigate to the TRAN 2 page of the desired tax period after logging in , Select the < Financial Year> and < Month>
*Step2*.Table 4 of TRAN 2 would be enabled if records were declared in Table-7(a) (7B) of TRAN 1 and Table 5 would be enabled if records were declared in Table-7(d) of TRAN 1.
*Step3*.Enter details of opening stock in Table 4 and Table 5 as declared in TRAN 1. Please ensure that all the HSN/goods are declared in TRAN 2, in the opening balance in the month of July, 2017, irrespective of the fact that these have been sold or not in the first i.e. July, 2017 tax period.
*Step4*.Declare the details of sold goods from such stock in the first tax period and the Central/State and integrated tax paid on those goods and compute the ITC allowed and state this value in the applicable tables. ITC allowed should be less than or equal to (=) 60% of Central Tax or 30% of Integrated Tax.
*Step5*.While filing Tran 2 of subsequent tax periods, the tax payer has to only declare the details of goods supplied/sold and the tax paid and ITC allowed. The opening stock gets auto-populated from the earlier tax period closing stock. And the closing sock is auto computed from the opening stock and the supplied quantity in the tax period.
*Step6*.Save after entering each record in tables of TRAN 2.
*Step7*.After entering all the records click “Preview” to download the pdf with draft summary values of TRAN 2. Verify the correctness of the entered data. If satisfied click “Submit” to freeze your declaration. Please verify thoroughly before submitting.
*Step8*.Download the summary of your submitted TRAN 2 for your record by clicking on “Preview” again.
*Step9*.Click on file with DSC or EVC and select the authorized signatory to file TRAN 2 for the tax period.
*Step10*.After successful filing the message and email with the ARN number will be sent to the taxpayer.
*Step11*.The claimed ITC of central and state tax would be reflected in the ITC ledger of the taxpayer after filing of TRAN 2.
*It has to be noted* that the ledger entries get posted after filing of TRAN 2 and not “Submit” (as is/was the case in TRAN 1)
.
================>
.
.
================>
.
Here is the flash
*Surrender of GST registration*
*Form *GST REG 16* is now available in the portal. New Taxpayers (registered on or after 1 July 2017) can now apply for *cancellation of registration*.
.
================>
.
.
================>
.
Financial Reporting of Cryptocurrencies under Ind AS*
1. A cryptocurrency is a digital or virtual currency. At present there are more than 1,000 cryptocurrencies. But the cryptocurrency which has captured most of the attention is Bitcoin. Bitcoin was launched in the year 2009 by a group whose pseudo name was Satoshi Nakamoto.
In recent times, Bitcoin has created a huge hype in the global as well as Indian financial markets. Till now, none of the cryptocurrency has been recognised as legal medium of payment, i.e. Currency.
Since bitcoins exist and are being bought a question arises regarding accounting and financial reporting of sale & purchase of cryptocurrencies and their taxability.
The accounting and financial reporting of sale & purchase of cryptocurrencies depends upon various parameters detailed below:-
Classification
2. Cryptocurrencies can be classified as:
(i) Inventory; or(ii) Intangible Assets; or(iii) Cash or Cash equivalents.
Inventories
2.1 There are some entities, like ZebPay, Buy Coin and Koinex, etc., who deal in cryptocurrencies as business operations. They do numerous transactions of sales & purchases of cryptocurrencies. Such entities may treat cryptocurrencies as inventories (under Ind AS 2 and under AS 2)as it can be said that these entities holds cryptocurrencies for sale in the ordinary course of their businesses. Consequently, all the requirements of Ind AS 2 and AS 2 regarding recognition and measurement of inventories shall be applied.
Intangible Assets
2.2 Ind AS 38, Intangible Assets, define an intangible asset as an identifiable non-monetary asset without physical substance. An asset is said to be identifiable if it is capable of being sold, transferred or exchanged separately from the entity or arises from the contractual or other legal rights. Cryptocurrencies may satisfy these conditions. So, entities which purchase cryptocurrencies occasionally may treat them as intangible assets in accordance with the definition under Ind AS 38.
Cash and Cash equivalents
Contrary to the above classification, some of industry experts (especially in theUS) believe that cryptocurrencies can be recognised as Cash or cash equivalents. But in India this classification is not feasible in accordance with definition given under Ind AS 7, Cash Flow Statements. Ind AS 7 defines Cash equivalents as short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cryptocurrencies are subject to significant risks of changes in value and, hence, may not meet the definition of cash equivalents.
Status of Cryptocurrencies on Purchase
3. From accounting standpoint, classification of cryptocurrencies affects their recognition and measurement.
If the entity has classified cryptocurrency(s) as inventories then Ind AS 2 principles shall be applied, whereas if the cryptocurrency was classified as an intangible asset then Ind AS 38 principles shall be applied.
As per Ind AS 2, upon purchase, cryptocurrencies should be recognised and measured at cost of purchase. Any directly attributable fees and commission paid upon purchases by the buyer to trade exchanges (say Bittrex, etc.) or platform (say zebpay, unocoin, etc.) should be added to the cost. Any other fees or commission which are not directly attributable to purchase are recognised as expenses in the statement of profit & loss. Subsequently, cryptocurrencies are to be valued at lower of cost or net realisable value.
When cryptocurrencies are classified as intangible assets, then initially they should be measured at cost. The cost should include any directly attributable fees and commission paid on purchase (i.e., commission or fees paid to Bittrex or zebpay). Subsequently, amortisation will be provided on such cryptocurrencies, to be valued either at cost or revalued amount and should be checked for impairment at the end of each reporting period. Here it is preferable to use revaluation model as the value of cryptocurrencies keep on fluctuating.
Wallet Expenses
3.1 Some dealers of cryptocurrencies charge a certain fees for transferring the amount from buyer's account to their wallet. Such type of fees is a kind of expense and, hence, recognised in the statement of profit & loss.Such expenses should not form part of cost of inventories or intangible assets.
Incidental income
4. Some dealers of new cryptocurrencies may offer referral income or mining bonus income etc., to the buyers. Such incomes are incidental incomes. Such type of incomes should be recognised as income in the statement of profit or loss. Another accounting viewpoint also exists which says that such income should reduce the cost of inventory/ intangible asset.
Conversion from one cryptocurrency to another
5. One cryptocurrency can be converted into another cryptocurrency upon payment of certain commission or fees to trade exchanges. For instance, bitcoin may be converted into Ripple, Dashcoin, Ethereum, etc.,with help of trade exchanges. In such cases, the classification of cryptocurrency does not change. Further, any commission or fees paid to trade exchanges shall be treated as part of the cost of such converted inventory or intangible asset.
*6. Sale or utilisation of cryptocurrencies*
*6.1 Sale*
On sale of cryptocurrencies which have been treated as inventories, the sale proceeds are recognised as revenue and the carrying amount of those cryptocurrencies shall be recognised as an expense. Any fees or commission paid on sale should be treated as an expense or should be deducted from sale proceeds.
On sale of cryptocurrencies which have been treated as inventories, the sale proceeds are recognised as revenue and the carrying amount of those cryptocurrencies shall be recognised as an expense. Any fees or commission paid on sale should be treated as an expense or should be deducted from sale proceeds.
On sale of cryptocurrencies which have been treated as intangible assets, any profit or loss arising on sale should be recognised in the statement of profit or loss.
*Utilisation*
Cryptocurrencies can be utilised for purchases (say cryptocurrency utilised for purchase of any commodity, TV or mobile recharges, purchase of car, etc.)Exchange of cryptocurrency (whether treated as inventories or intangibles assets) with any goods or services should be dealt with by derecognising cryptocurrencies from the books and recognising such purchases. The cost of acquired goods or services so purchased is recognised at the carrying amount of cryptocurrencies surrendered.
Cryptocurrencies can be utilised for purchases (say cryptocurrency utilised for purchase of any commodity, TV or mobile recharges, purchase of car, etc.)Exchange of cryptocurrency (whether treated as inventories or intangibles assets) with any goods or services should be dealt with by derecognising cryptocurrencies from the books and recognising such purchases. The cost of acquired goods or services so purchased is recognised at the carrying amount of cryptocurrencies surrendered.
*Taxability of Cryptocurrencies*
7. In view of Section 2(14) of the Income-tax, Act 1961, a capital asset means a property of any kind held by a person, whether or not connected with his business or profession. The term 'property', though has no statutory meaning, yet it signifies every possible interest which a person can acquire, hold or enjoy.
7. In view of Section 2(14) of the Income-tax, Act 1961, a capital asset means a property of any kind held by a person, whether or not connected with his business or profession. The term 'property', though has no statutory meaning, yet it signifies every possible interest which a person can acquire, hold or enjoy.
Therefore, cryptocurrencies can be deemed as capital assets if they are purchased for the purpose of investments by the taxpayers. Therefore, any gain arising on transfer of cryptocurrencies shall be taxable as capital gain.
However, if the transactions in cryptocurrencies are substantial and frequent, it could be held that the taxpayer is trading in cryptocurrencies. In this case income from sale of cryptocurrencies would be taxable as business income.
*Conclusion*
8. Whether the cryptocurrencies are treated as inventories or else as intangible assets, they have by now left an indelible mark on the financial markets and in a near future elaborate & expert guidance is expected to be provided on crypto currencies.
.
================>
.
8. Whether the cryptocurrencies are treated as inventories or else as intangible assets, they have by now left an indelible mark on the financial markets and in a near future elaborate & expert guidance is expected to be provided on crypto currencies.
.
================>
.
SEBI
SEBI has notified Securities and Exchange Board of India (Settlement of Administrative and Civil Proceedings) (Second Amendment) Regulations, 2017. Through this amendment Summary Settlement Procedure have been introduced by insertion of Chapter VI-A. Before initiating any specified proceeding the Board may issue a notice of settlement in the format as specified in Schedule III, calling upon the noticee to file a settlement application in respect of the specified proceeding(s) to be initiated, upon payment of the settlement amount and/or furnishing an undertaking in respect of other non-monetary terms or compliance with other non-monetary terms, as may be specified in the settlement notice in respect of the alleged defaults. Further, the specified proceeding(s) shall not be settled under this Chapter, if in the opinion of the Board, the applicant has failed to make a full and true disclosure of facts or failed to co-operate to the satisfaction of the Board.
.
================>
.
Breaking: Govt Notifies Electoral Bond Scheme allowing Political Donor to Purchase Bonds from Authorized Banks [Read Notification]
.
================>
.
Breaking: Govt Notifies Electoral Bond Scheme allowing Political Donor to Purchase Bonds from Authorized Banks [Read Notification]
Read more at: http://www.taxscan.in/breaking-govt-notifies-electoral-bond-scheme-allowing-political-donor-purchase-bonds-authorized-banks/15746/
.
================>
.
Franchise Fee paid by Kolkata Knight Riders to BCCI is Revenue Expenditure: ITAT Allows Deduction [Read Order]
.
================>
.
Franchise Fee paid by Kolkata Knight Riders to BCCI is Revenue Expenditure: ITAT Allows Deduction [Read Order]
Read more at: http://www.taxscan.in/franchise-fee-paid-kolkata-knight-riders-bcci-revenue-expenditure-itat-allows-deduction/15754/
Thanks for Reading
