The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved change in the basis of classifying Micro, Small and Medium enterprises from ‘investment in plant & machinery/equipment’ to ‘annual turnover’.
This will encourage ease of doing business, make the norms of classification growth oriented and align them to the new tax regime revolving around GST (Goods & Services Tax).
Section 7 of theMicro, Small and Medium Enterprises Development (MSMED) Act, 2006 will accordingly be amended to define units producing goods and rendering services in terms of annual turnover as follows:
A micro enterprise will be defined as a unit where the annual turnover does not exceed five crore rupees;
A small enterprise will be defined as a unit where the annual turnover is more than five crore rupees but does not exceed Rs 75 crore;
A medium enterprise will be defined as a unit where the annual turnover is more than seventy five crore rupees but does not exceed Rs 250 crore.
Additionally, the Central Government may, by notification, vary turnover limits, which shall not exceed thrice the limits specified in Section 7 of the MSMED Act.
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GSTR Due Dates*: 10-02-2018 - GST Filing of returns by registered person with aggregate turnover more than 1.50 crores. (GSTR-1) for December 2017.
*NIRC: Join Seminar on GST* (Issues and Implications- Industry wise) on 10 Feb, 9.30 AM at Hotel The Park, CP, Delhi, Register at www.nircseminars.org.
*Case Study:* Concealment of income & furnishing of inaccurate particulars are distinct and separate charge - Sachin Arora Vs. ITO (ITAT Agra)
*GST* Council recommends granting relief from GST on services provided by the Resident Welfare Associations (RWAs) to their Members Threshold Exemption Limit under GST for monthly contributions made by members for services provided by RWAs raised from Rs. 5,000 to Rs. 7,500 per month per person.
*CAG Empanelment:* Last date approaching for Online Applications from CA firms/LLPs from 1 January 2018 to 15 February 2018 for CAG empanelment for the purpose of appointment as auditors of Government Companies/Corporations for the year 2018-19
*CBDT* Chairman said that under the new scheme, the taxpayer will be handled by two officers which will put a full stop to the current system of handling by a single officer called AO.
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GST on Sale of Used Vehicle :
The Government vide Notification No. 8/2018 – Central Tax (Rate) dated January 25, 2018/ Notification No. 9/2018 – Integrated Tax (Rate) dated January 25, 2018, has prescribed that in case of old and used motor vehicles under HSN 8703, GST shall be applicable on the value that represents margin of the supplier, at following rates:
📍Description of goodsRate of GST *ConditionsOld and Used LPG or CNG driven motor vehicles of engine capacity of 1200 cc or more and of length of 4000 mm or more- 18%
Provided No ITC/Cenvat credit has been availed under the following:
▶GST under the CGST Act, 2017;
▶ CENVAT as defined in CENVAT Credit Rules, 2004;
▶ITC of Value Added Tax or any other taxes paid, on such goods
📍Old and used, dieseldriven motor vehicles of engine capacity of 1500 cc or more and of length of 4000 mm- 18%
📍Old and used motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles-18%.
All Old and used Vehicles other thanthose mentioned above12%
* The rates specified above is total rate of GST i.e. CGST+SGST/ IGST
📍No GST if consideration received is not more than depreciated value of old & used cars –
Explanation to the above Notifications specifies that Margin of the supplier shall be the difference between selling price and purchase price.
📍It is further provided that in case of registered person who has claimed depreciation under Income Tax Act, 1961, the value that represents the margin of the supplier shall be:
Consideration received for supply – Depreciated value of such goods on the date of supply. Where the margin of such supply is negative, it shall be ignored.
📍No Compensation Cess on Old & Used motor vehicles –
The Government Vide Notification No. 1/2018 – Compensation Cess (Rate) dated January 25, 2018, has amended Notification No. 1/2017 –
Compensation Cess (Rate) dated June 28, 2017, to insert entry 42A that prescribes NIL rate of Compensation Cess on all Old & Used motor vehicles.
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States not in favor of Petrol, Diesel inclusion into GST: FM
Read more at: http://www.taxscan.in/states-not-in-favour-of-petrol-diesel-inclusion-into-gst-fm/17480/
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Govt Amends IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 [Read Regulations]
Read more at: http://www.taxscan.in/govt-amends-ibbi-insolvency-resolution-process-for-corporate-persons-regulations-2016/17495/
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RBI grants Relief to MSME Borrowers registered under GST [Read Notification]
Read more at: http://www.taxscan.in/rbi-grants-relief-to-msme-borrowers-registered-under-gst/17488/
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ITAT deletes Addition for Cash Deposits in Bank since Assessee had sufficient Cash in hand, says No Need to Tally Notes Withdrawn & Deposited [Read Order]
Read more at: http://www.taxscan.in/itat-deletes-addition-for-cash-deposits-in-bank-since-assessee-had-sufficient-cash-in-hand-says-no-need-to-tally-notes-withdrawn-deposited/17500/
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One Lakh Notices Sent to Crypto Currency Investors so far, says CBDT Chairman
Read more at: http://www.taxscan.in/one-lakh-notices-sent-to-crypto-currency-investors-so-far-says-cbdt-chairman/17484/
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MCA Update
The provisions of *Accounting Standard 22* or *Indian Accounting Standard 12* relating to deferred tax asset or deferred tax liability shall not apply, for seven years with effect from the 1st April, 2017, to a Government company which:—
(a) is a PFI under section 2(72)(iv) of the Companies Act, 2013;
(b) is a NBFC registered with the Reserve Bank of India under section 45-IA of the Reserve bank of India Act, 1934; and
(c) is engaged in the business of infrastructure finance leasing with not less than 75% of its total revenue being generated from such business with Government companies or other entities owned or controlled by Government
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*NCLAT : In Kapil Gupta and Anr. vs. Indiabulls Housing Finance Ltd. and Anr.*
*_Where Adjudicating Authority has committed no infirmity in admitting a petition, no interference is called for by the Appellate Tribunal. Where settlement between the parties has been reached subsequently, Appellate Tribunal has no jurisdiction to accept the settlement._*
*_Read full case law at :_* https://dasgovernance.com/2018/02/07/nclat-in-kapil-gupta-and-anr-vs-indiabulls-housing-finance-ltd-and-anr/
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Payment received on providing Corporate IT Services to Group Entities is Taxable as Royalty/Fee for Included Services under Indo-US DTAA: ITAT [Read Order]
Read more at: http://www.taxscan.in/payment-received-providing-corporate-it-services-taxable-royalty-fee-itat/17465/
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No Action against ‘Start Up’s if its Valuation Report of Unquoted Shares is rejected: CBDT [Read Circular]
Read more at: http://www.taxscan.in/no-action-against-start-ups-if-its-valuation-report-of-unquoted-shares-is-rejected-cbdt/17474/
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Dealer cannot avail Benefit of Compounding If the same was not opted before Commencement of AY: Madras HC [Read Judgment]
Read more at: http://www.taxscan.in/dealer-avail-benefit-compounding-opted-commencement-ay-madras-hc/17459/
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CBDT issues Press Release & FAQs on Taxation of Long Term Capital Gains @ 10% on Equity Shares etc. without Indexation, proposed u/s 112A from AY 2019-20.
GST: To check Status of Last 5 Returns filed by taxpayer, enter GSTIN in Search Taxpayer option on www.gst.gov.in without logging into account.
Startups incorporated before 2016 that have got up to Rs. 10 crore in angel funding won’t face the so-called angel tax, once changes in the regime are finalised by DIPP, which will soon notify the amendment.
The DGFT has issued a public notice to notify the amendment in the procedure of seeking modification in Import Export Code (IEC).
SEBI decision to abolish the extra commission for mutual fund distributors in 15 more cities and towns — from Guwahati in Assam to Raipur in Chhattisgarh — has been received well by India’s Rs 22-trillion mutual fund industry.
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📺 *Updates*
➡1. Operational creditor could file insolvency plea regarding debt of other person if debt was assigned to him.
Suresh Narayan Singh v. Tayo Rolls Ltd.
➡2. Transfer of shares was void when new share certificate was issued: NCLT
S. Ramesh v. South Travancore Hindu College Association
➡3. MCA exempts LIC & NBFCs from application of AS 22 for 7 years w.e.f. 1st April, 2017
➡4. AO has no jurisdiction to refer matter to DVO in course of block assessment proceedings: Gujarat HC
Principal Commissioner of Income Tax. Rajkot v. Rajni Developers (P.) Ltd.
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# *CBDT* has issued FAQs on taxation of LTCG proposed in Finance Bill, 2018. Link at: http://www.incometaxindia.gov.in/news/faq-on-ltcg.pdf
# *IEC*: The DGFT has issued a public notice to notify the amendment in the procedure of seeking modification in Import Export Code (IEC). Link at: http://dgft.gov.in/Exim/2000/PN/PN17/P.N.%2058(e).pdf
# *SEBI* has issued a Circular w.r.t Total Expense Ratio – change and disclosure which shall be applicable on All Mutual Funds / Asset Management Companies (AMCs) / Trustee Companies / Boards of Trustees of Mutual Funds.
# *IT*: Levy of fee u/s 234E - the related TDS statement was filed on 14.10.2014, such a levy could only have been made at best within 15.10.2015. That time has already elapsed and the defect is thus not curable even at this stage - Dr. Mehar Chand Garg Vs JCIT (TDS) (2018 (2) TMI 264 - ITAT Delhi).
# *IT*: Interest income on KVP, NSC & SB A/c to be taxed on accrual basis in the hands of salaried employee as no method of accounting is followed – Sri Sudipta Ghosh Vs. DCIT (2018 (2) TMI 262 - ITAT Kolkata).
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Values of Clearance of Goods manufactured from Single Common Factory premises by two Firms can be Clubbed for SSI Exemption: CESTAT [Read Order]
Read more at: http://www.taxscan.in/values-of-clearance-of-goods-manufactured-from-single-common-factory-premises-by-two-firms-can-be-clubbed-for-ssi-exemption-cestat/17425/
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Registration cannot be denied to a Charitable Society for Non-submission of Form 10B: ITAT [Read Order]
Read more at: http://www.taxscan.in/registration-cannot-be-denied-to-a-charitable-society-for-non-submission-of-form-10b-itat/17432/
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DGFT - IEC
The DGFT has issued a public notice to notify the amendment in the procedure of seeking modification in Import Export Code (IEC).When an IEC holder seeks modification / change of Head Office / Registered Office address in its IEC and which involves a shift in its jurisdictional RA, a request to that effect will have to be made to the new RA, to whose jurisdiction the applicant is shifting its office. The new RA shall make appropriate amendments, based on documents submitted to it by the applicant. the new RA will also separately inform the RA, who had initially issued the IEC, of the changes made in the concerned IEC. Thereafter, the new RA shall allow the applicant to carry out necessary functions and also apply for eligible benefits as per FTP through its office.
SEBI
SEBI has issued circular w.r.t Total Expense Ratio – change and disclosure which shall be applicable on All Mutual Funds / Asset Management Companies (AMCs) / Trustee Companies / Boards of Trustees of Mutual Funds. In order to bring uniformity in disclosure of actual TER charged to mutual fund schemes and to enable the investor to take informed decision, it has been decided that AMCs shall prominently disclose on a daily basis, the TER of all schemes under a separate head –“Total Expense Ratio of Mutual Fund Schemes” on their website. Any change in the base TER (i.e. TER excluding additional expenses provided in Regulation 52(6A)(b) and 52(6A)(c) of SEBI (Mutual Funds) Regulations, 1996) in comparison to previous base TER charged to any scheme shall be communicated to investors of the scheme through notice via email or SMS at least three working days prior to effecting such change.
[08/02, 10:09 AM] CA Rohit Jaiswal: E-Assessment of Tax Payer to be dealt by Two Officers, says CBDT Chief
Read more at: http://www.taxscan.in/e-assessment-of-tax-payer-to-be-dealt-by-two-officers-says-cbdt-chief/17439/
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Fatty Acids, Wax and Gum emerged during manufacture of Refined Vegetable Oil are not subject to Excise Duty: CESTAT [Read Order]
Read more at: http://www.taxscan.in/fatty-acids-wax-gum-refined-vegetable-oil-excise-duty-cestat/17423/
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👉🏻ICAI concerned over individuals falsely claiming to be CAs.*
( ICAI said there are fraudulent cases being reported wherein individuals are falsely claiming to be chartered accountants. ICAI said it found that the particular (person) who claimed to be a chartered accountant was not a member of the institute.)
👇🏻 👇🏻 👇🏻
https://goo.gl/Y6mkwA
*👉🏻24 FAQs on Taxation of Long Term Capital Gain on Shares.*
(The income tax department has issued a set of frequently asked questions (FAQs) to clear doubts about the long-term capital gains tax levied on shares in the budget, clearly providing that the tax will be levied on shares sold after April 1, 2018)
👇🏻 👇🏻 👇🏻
https://goo.gl/mb9yhU
*👉🏻Bloodbath In Stock Markets, Sensex Tanks Over 1,200 Points.*
(India’s benchmark Sensex index slumped nearly 1250.38 points to 33,506.78 points, while Nifty declined 350 points to 10,343 tracking global selloff amid strong US jobs data. Indian markets are already under pressure after imposed a long-term capital gains tax on equities)
👇🏻 👇🏻 👇🏻
https://goo.gl/rL3Rt3
*👉🏻Empanelment of PCS/Firm of PCS for secretarial audit of REC.*
(Empanelment of PCS/Firm of PCS for carrying out secretarial audit of REC for three years from FY 2017-18 onwards. Last Date - 19/02/2018)
👇🏻 👇🏻 👇🏻
https://goo.gl/yXtWdx
*
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Wef AY 18-19 if ITR filed late, Deduction u/s 80C, 80D, 80G etc ALLOWED but DISALLOWED for ALL Incomes in Part C of Chapter VI-A.(80JJAA, 80P, 80TTA, 80U etc.)
Govt releases New Set of FAQs on E-Way Bill. Amidst ambiguities over the rollout date of E-Way Bill under the new Goods and Services Tax regime, the Central Board of Excise and Customs (CBEC) issued Frequently Asked Questions (FAQs) on Electronic Way Bill.
RBI issued Consolidated list of returns prescribed by RBI for banks; Master Direction – Reporting under Foreign Exchange Management Act, 1999 (Updated as on February 02, 2018); Master Direction – Import of Goods and Services (Updated as on February 02, 2018).
SEBI Introduced a Digital Platform For Online Filings Related To Depositories vide its circular SEBI/HO/MRD/DSA/CIR/P/2018/13 dated January 29, 2018.
Filing of Online Unified Annual Return under 8 Labour Laws is open from 01 Feb 18 for the year 2017. File immediately to avoid last minute rush.
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*NCLAT : In Unigreen Global (P.) Ltd. vs. Punjab National Bank and Ors.*
*_Non-disclosure of facts can be no ground to dismiss application for initiation of Corporate Insolvency Resolution Process._*
*_Read full case law at :_* https://dasgovernance.com/2018/02/06/nclat-in-unigreen-global-p-ltd-vs-punjab-national-bank-and-ors/
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📺 *Updates*
➡1. MCA amends filing fees payable on registration
https://corporatelaws.taxmann.com/fileopennew.aspx?id=105010000000015145&mode=home&page=
➡2. Assessee wasn’t liable to pay advance tax till matter was pending before AAR: Madras HC
Van Oord ACZ v. Chief Commissioner of Income-tax-I Chennai.
➡3. CBDT releases FAQs on taxation of LTCGs as proposed in Finance Bill, 2018
https://www.taxmann.com/topstories/222330000000014259/cbdt-releases-faqs-on-taxation-of-ltcgs-as-proposed-in-finance-bill-2018.aspx
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