*International Taxation Update*
Ministry of Finance notifies revised DTAA between India and Kenya. The revised DTAA will apply in respect of income for FY 2018-19 and onwards. Key changes are as follows:-
a. Reduction in tax rates on dividends from 15% to 10%
b. Reduction in tax rates on interest from 15% to 10%
c. Reduction in tax rates on royalties from 20% to 10%
d. Reduction in tax rates on fees for technical services from 17.5% to 10%
e. Introduction of new article on Limitation of Benefits to prevent treaty abuse by third country residents and to allow application of domestic law to prevent tax avoidance/evasion
In case of any clarifications, get connected
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TOP 20 MAINTENANCE CASE LAWS IN FAVOUR OF HUSBANDS
1. Reduced interim maintenance. (SC), Hbl J. R. M. Lodha, order on 20-07-2010, Appeal No. 5660 of 2010, Arising SLP (C) No. 6736 of 2007, Neeta Rakesh Jain Vs Rakesh Jeetmal Jain. Citation No. AIR 2010 SC 3540; (2010) 12 SCC 242; 2010 (7) JT I 76 (SC).
2. Wife is not entitled to maintenance who deserted her husband. (Supreme Court), Bench Hbl JJ. S. Ahmed & D. Wadhwa, order on 02-03-200, AIR 2000 SC 952, 2000(2) ALD Cri 15, 2000Cr. LJ 1498, Rohtash Singh Vs Smt. Ramendrei & Ors. Citation No. (2000) 3 SCC 180; JT 2000 (2) SC 553.
3. Maintenance not granted as it is proved that wife wants to reside separately. No maintenance to deserting wife. (HC Chhattisgarh), Hbl J., L. C. Bhadoo, order on 15 -02-2004, Crl. Revision No. 544/2003, Shiv Kumar Yadav Vs Santoshi Yadav.
4. Husband can get PF details of wife. (CIC, Delhi), Decision No. 1816/ IC (A) 2008, F No. CIC/MA/A/2007/00583, Prof M.M. Ansari, order on 10 Jan 2008.
5. Wife guilty of contempt of court, maintenance denied with cost. (HC Delhi), Hbl J. S. N. Dhingra, order on 25-01-2010, Cont. Case (C) 482 of 2008, Gurbinder Singh Vs Manjit Kaur.
6. Children have to maintain their parents. (High Court Gujrat), Hbl J. Akhil Kureshi, order on 09-02-2011, CR RA/759 of 2009, 4/4, Hasmukhbhai Narayan Bhai Viramiya Vs State & Ors.
7. Conditions when maintenance to be paid. (High Court Delhi), Mr. Pradeep Nandrajog J., order reserved on 02-04-2007, order on 14-04-2007, CM (M) No. 367 of 2007, Alok Kumar Jain Vs Purnima Jain. Citation No. 2007 (96) DRJ 115.
8. All states amends in Sec 125 CrPC is invalid. (SC), Bench Hbl M. Katju, Gyan Sudha Mishra JJ., order on 11 Jan 2011, Crl Appeal No. 107 of 2011, SLP (Crl) No. 6568 of 2009, Manoj Yadav Vs Pushpa Yadav. Citation No. 2011 : 1 L.W. (Crl.) 520.
9. Wife should clear that she is unable to maintain her. No maintenance to enable wife who deserted her husband. (High Court Karnataka), Bench Hbl J. M. Patil, order on 13-02-1980, Haunsabai Vs Balkrishna Krishna Badigar. Citation Nos. 1981 Cri LJ 110; ILR 1980 KAR 612; 1980 (2) Kar LJ 158.
10. Maintenance on actual earning. (High Court Delhi), Hbl J. Shiv Narayan Dhingra, order reserved 25-07-2008, order on 18-09-2008, CM (M) No. 1790 of 2006 and CM No. 1435 of 2006, Ritu Raj Kant Vs Anita. Citation No. 154 (2008) DLT 505.
11. Maintenance denied for working wife. (High Court Madras), Hbl A. S. Venkatachalamoorthy J., order on 21-06-2002, Kumaresan Vs Aswathi. Citation No. (2002) 2 MLJ 760.
12. No maintenance for capable and working wife. (High Court Maharastra), Hbl J. C. Chitre J., order on 24-03-2000, Smt. Mamta Jaiswal Vs Rajesh Jaiswal. Citation No. 2000 (4) MPHT 457; II (2000) DMC 170.
13. No maintenance to earning wife, only to children. (High Court Karnataka), Hbl K. Manjunath J., order on 22-08-2005, AIR 2005 Kant 417, ILR 2005 KAR 4981, Dr. E. Shanthi Vs Dr. H K. Vasudev.
14. No Maintenance to working wife in 125 CrPC. (High Court Madras), Hbl P. Sathasivam J., order on 21-01-2003, Manokaran @ Ramamoorthy Vs M. Devaki. Citation Nos. AIR 2003 Mad 212; I (2003) DMC 799; (2003) I MLJ 752 (Mad), CMP No. 16264 of 2002.
15. No Maintenance to wife, but only to child. (HC Mumbai), Hbl J. B. L. Marlapalle, order on 18-7-2009, Appeal No. 20 of 2005 and 144 of 2005, Smt. Manju Kamal Mehra Vs Kamal Puskar Mehra. Citation Nos. 2010 AIR (Bom) 34; 2009 (5) AIIMR 798; Legal/ 360.in 114983; LS/Bom/2009/1374.
16. No maintenance U/s 125 CrPC when wife deserts hubby without cause and also she is earning. No Maintenance to capable wife, but only to child and no maintenance to wife living in adultery. (HC Uttaranchal), Hbl J. Alok Singh, order on 18-11-2009, Crl. Rev. No. 201 of 2006, Smt. Archana Gupta & ors Vs Rajeev Gupta.
17. Wife should clear that she is unable to maintain herself. (HC Allahabad), Hbl J. B. Katju, order on 25-03-1976, Manmohan Singh Vs Smt. Mahindra Kaur. Citation No. 1976 Cri LJ 1664.
18. No Maintenance if wife is working. (HC Uttaranchal), Hbl J. Dharamveer, order on 25-10-2010, Crl Rev. No. 88 of 2002, Vikas Jain Vs Deepali @ Ayushi. Citation No. LAWS (UTN) 2010-1-36.
19. Wife living separate troubled in family no maintenance. (HC Madras), Hbl J. P. R. Shiva Kumar, order on 22-02-2008, Crl. R. C. No. 1491 of 2005, Marimuthu Vs Janaki. Citation No. AIR 2003 Mad 212; I (2003) DMC 799; (2003) I MLJ 752.
20. All states amends in Sec 125 CrPC is invalid. (SC), Bench Hbl M. Katju, Gyan Sudha Mishra JJ., order on 11 Jan 2011, Crl Appeal No. 107 of 2011, SLP (Crl) No. 6568 of 2009, Manoj Yadav Vs Pushpa Yadav. Citation No. 2011 : 1 L.W. (Crl.) 520.
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*Appointment to Tribunals*: *SC* clarifies Its Interim Order would not affect in case of Appointments where Substantial Steps have been taken [Read Order]
Read more at: http://www.taxscan.in/appointment-tribunals-sc-clarifies-interim-order-not-affect-case-appointments-substantial-steps-taken/18184/
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*Supreme Court* suggests Govt to form Expert Committee to regulate *Multinational CA Firms*, Issues Directions [Read Judgment]
Read more at: http://www.taxscan.in/supreme-court-suggests-govt-to-form-expert-committee-to-regulate-multinational-ca-firms-issues-directions/18202/
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Notice served on Lawyer is Valid If Assessee was not available to receive the same on Several Occasions: SC [Read Judgment]
Read more at: http://www.taxscan.in/notice-served-lawyer-valid-assessee-not-available-receive-several-occasions-sc/18194/
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# *GSTIN* has come out with a simplified version of GSTR-3B, making it more user-friendly amidst indications that it may possible be used even beyond 31st March, 2018.
# *MCA* has issued the Companies (Removal of Difficulties) Order, 2018 which shall come into force from the date of its publication in the Official Gazette.
# *IBC*: CIRP - Corporate Debtor - the principal debtor cannot be regarded in default in accordance with law and therefore, no liability of guarantor / surety would arise at this stage – EXIM Bank of India Vs. CHL Ltd. (2018 (2) TMI 1354 – NCLT, ND).
# *IBC*: CIRP - eligible debt - Corporate person - Applicant-respondent can’t successfully claim that having accepted deposits he has become financial service provider. Code has not excluded NBFC as a class but has preferred to go by the test of financial service provider – Jindal Sexena Financial Services Pvt. Ltd. Vs. Mayfair Capital Pvt. Ltd. (2018 (2) TMI 1353 - NCLT, ND).
# *IT*: TDS u/s 194H - advertisement agencies - what is liable for TDS is commission of brokerage and not the incentives given on the basis of principal to principal relations – Pr.CIT Vs. Shailendra Garg (2018 (2) TMI 1373 - Rajasthan HC).
# *ST*: Service tax on Works Contract @33% - Cost of FOC material cannot be included for exemption u/s 93 since not authorized vide Sec-67 – CST Vs. Bhayana Builders Pvt. Ltd. (2018 (2) TMI 1325 - SC).
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Delhi HC Quashes Assessment against Nokia since Proceedings were Completed against a Non-Existing Entity* [Read Order]
Read more at: http://www.taxscan.in/delhi-hc-quashes-assessment-against-nokia-proceedings-completed-non-existing-entity/18171/
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PNB Scam*: *ICAI* sends *Notice* to *Auditors* of Punjab National Bank
Read more at: http://www.taxscan.in/pnb-scam-icai-sends-notice-auditors-punjab-national-bank/18167/
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👉🏻ICAI plans to review accounts of all companies with over Rs 2K Cr loans*
(ICAI said that it has written to Reserve Bank of India seeking a list of corporate borrowers of public sector banks with over Rs 2,000 crore loan outstanding so that their accounts can be examined by Financial Reporting Review Board)
👇🏻 👇🏻 👇🏻
https://goo.gl/Bq71GT
*👉🏻SEBI gives additional avenues for minimum public shareholding*
(SEBI rovided two additional measures to listed companies to ensure such entities comply with 25 percent minimum public shareholding norms)
👇🏻 👇🏻 👇🏻
https://goo.gl/adT5zX
*👉🏻Government wants Auditors to be Audited*
(Finance Ministry is planning to create a National Financial Reporting Authority, which will work as a regulatory body for accountants (CAs) and audit firms with a power to penalise them for their misconduct. )
👇🏻 👇🏻 👇🏻
https://goo.gl/YVuYeb
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📺 *Updates*
➡1. CBDT notifies revised DTAA between India-Kenya
https://www.taxmann.com/topstories/222330000000014470/cbdt-notifies-revised-dtaa-between-india-kenya.aspx
➡2. NCLT holds transfer of shares invalid due to non-cancellation of adhesive stamp on instrument
Arvind Parasramka v. Minwool Rock Fibres Ltd.
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🌷Knowledge Capsules🌷
👉 EPFO reduced interest rate on EPF to 8.55%
👉Govt. extends tenure of G.D. Agrawal, President of ITAT, by another 6 months
👉Deadline for linking Aadhaar with saving schemes extended
The government has extended the deadline for linking Aadhaar to small savings schemes like post office deposits, KisanVikasPatra March31.
👉MCA has issued the Companies (Removal of Difficulties) Order, 2018 to provide the clarity on removal of re-appointed independent director in a company by way of special resolution. Previously, it was Ordinary Resolution.
👉Scrutiny notice served on authorised representative is deemed as service of notice to assessee: SC
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*Assessing Officer can disallow Society’s claim for Exemption, No Power to Withdraw the Registration: ITAT* [Read Order]
Read more at: http://www.taxscan.in/assessing-officer-disallow-societys-claim-exemption-power-withdraw-registration-itat/18118/
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CBDT has notified ‘Maharashtra Electricity Regulatory Commission’ as statutory body exempted for the purpose of section 10(46) of the Income-tax Act, 1961.
GSTN has added a field in Table 6A of GSTR-1 to enter Cess paid on exports.
In GSTR-1 & GSTR-5, on addition of records (Invoices/Debit Notes/Credit Notes, an option has been provided to taxpayer to select a lower tax rate for motor vehicle leasing businesses, as per Notification No 37/2017-Central Tax (Rate), dated 13-10-2017.
Tax payers have been provided with facility to give details of supplies made to merchant exports @ 0.1%, in all returns.
Issue of notice is mandatory for the Adjudicatory Authority before admitting application ex parte. GEO Metal Resources (P.) LTD. Vs ABW Infrastructure LTD. [2018] 142 CLA 195 (NCLT) New Delhi (Special Bench)CP No. (IB)-359(ND)/2017.
Employees’ Provident Fund Organisation has reduced interest rate on deposits to 8.55% for 2017-18. It was 8.65% for 2016-17 and 8.8% in 2015-16.
Extension of the last date for submission of examination application forms in respect of Special Examination for members of foreign accounting bodies held under MRA/MOU entered into by ICAI with the foreign accounting bodies.
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Govt notifies *Electoral Bearer Bond Scheme* : Sale at Authorised Branches of SBI from March 1st
Read more at: http://www.taxscan.in/govt-notifies-electoral-bearer-bond-scheme-sale-at-authorised-branches-of-sbi-from-march-1st/18156/
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Society consists of *Urologist Doctors* eligible for 12A Registration: Chhattisgarh HC [Read Judgment]
Read more at: http://www.taxscan.in/society-consists-urologist-doctors-eligible-12a-registration-chhattisgarh-hc/18096/
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ICAI Extends Last date for Submission of Examination Application Forms of Special Examination for members of Foreign Accounting Bodies*
Read more at: http://www.taxscan.in/icai-extends-submission-forms-special-examination-members-foreign-accounting-bodies/18103/
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Delhi HC rejects *Cellular Operators Association’s plea to allow Credit of Unutilized Education and Higher Education Cess* [Read Judgment]
Read more at: http://www.taxscan.in/delhi-hc-rejects-cellular-operators-associations-allow-credit-unutilized-education-cess/18113/
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ICAI Notifies *Removal of CA* who taken Delivery of Clients’ Shares on the Strength of Fake Letter *[Read Notification]*
Read more at: http://www.taxscan.in/icai-notifies-removal-ca-taken-delivery-clients-shares-strength-fake-letter/18067/
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TDS u/s 194H not applicable to Cash Discounts given to Customers for purchasing Goods in Bulk: ITAT [Read Order]
Read more at: http://www.taxscan.in/tds-u-s-194h-not-applicable-cash-discounts-given-customers-purchasing-goods-bulk-itat/18139/
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CBDT releases Explanatory Note to the Provisions of the Finance Act, 2017 [Read Circular]
Read more at: http://www.taxscan.in/cbdt-releases-explanatory-note-provisions-finance-act-2017/18144/
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Removal of Re-appointed Independent Director requires Special Resolution [Read Order]
Read more at: http://www.taxscan.in/removal-re-appointed-independent-director-requires-special-resolution/18135/
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👉🏻GST Network simplifies returns filing process*
(GSTN, the firm that processes tax returns in the indirect tax regime, has simplified the monthly return of sales summary that businesses and traders have to file.)
👇🏻 👇🏻 👇🏻
https://goo.gl/7bBmbz
*👉🏻RBI forms committee to measure effectiveness of bank audit in fraud mitigation*
(RBI as part of its ongoing efforts for strengthening of the supervisory framework in the country, has been issuing necessary instructions to banks from time to time on a variety of issues of prudential supervisory concern, including the management of operational risks inherent in the functioning of banks)
*👉🏻OBC warns Concurrent Auditors to duly Verify all Outward SWIFT messages*
( In this connection, detailed guidelines on scope & coverage of activities have already been communicated at the time of assignment of concurrent audit. Also, Risk Based Concurrent Audit (RBCA) Policy (circulated vide Circular No. HO/I&C/50/2016-17 dated 30.12.2016) which is presently in vogue, contains detailed guidelines/instructions to be followed-up while conducing Concurrent Audit)
👇🏻 👇🏻 👇🏻
https://goo.gl/YfJtW6
*👉🏻CAs cannot get away just by citing red flags - Govt*
( Auditors may not be able to get away by citing “red flags” raised by them in fraud-hit companies as the government is set to crack down on errant entities, including those associated with Nirav Modi, Mehul Choksi and PNB)
👇🏻 👇🏻 👇🏻
https://goo.gl/M1DKU5
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Delhi HC Quashes ITAT Order Invalidating *Gift Tax* Proceedings since Taxability of Transaction was not considered [Read Judgment]
Read more at: http://www.taxscan.in/delhi-hc-quashes-itat-order-invalidating-gift-tax-proceedings-since-taxability-transaction-not-considered/18091/
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Filing GSTR-3B is now made more User friendly -EVC facility starts for pvt ltd*
1. Fill either CGST or SGST/UGST amount, other tax will get auto filled.
2. You can now save the Form on confirming details filled in the Table.
3. You can fill balance
details later.Preview Form or download it for cross verifying saved details in any table(s) anytime.
4. No more Submit requirement to freeze details and know the liability.
5. Changes in any table can be made before making payment towards liabilities.
6. Once you proceed to payment, you can also see details of existing balances in cash and
credit ledgers (Table 6.1 - Payments Table).
7. Wow! System suggested Tax Credit (ITC) is already filled for discharging liability.
8. Beaware, it is only suggestion. You can edit the same before finalizing the Return.
9. Once you confirm ITC and cash utilization for payment of tax liability in Payments Table,system does automatic calculation for shortfall in cash ledger.
10. Once you are Ok with shortfall, System will generate pre-filled challan for shortfall andnavigate to payments option
11. Once you make online payment, system will navigate back to Payments Table.
12. Satisfied with the details filled, click "Proceed to file", select authorized signatory,
13. Submit with EVC or DSC.
14. Your Return is filed!
15. You can Track Return status as well as download the Return from through Track Return Status
functionality available at your dashboard
Refer User Manual for detailed steps for filing
*Still following issues surfaced yesterday which require resolution at the earliest*
1. It failed to addressed the problem of old inter account deposits .
2. It require to be resolved as their refund ( for excess payments or intra account transfer ) procedure is not working. Not a single person has got his money back after filing refund on line.
3. Today we had an instance where, in the payment window of GSTR-3B, the ITC was auto populated and the balance figure were posted in the cash column. However IGST was not auto populated for set off with CGST liability. That had to be done manually. So although it's mostly automated, some glitches still exists.
4. Unfortunately return which were submitted yesterday are not getting filed. Getting error 'save the form after page loads' Moreover removing the facility to edit to those 3B forms submitted yesterday is not understandable.
5. Now portal pop up *error as "NET ITC Provided is not equal to ITC Available - ITC Reversed. If error persists quote Error Number RET3B91404 when you contact customer care for quick resolution".*
This error gets generated due to the system error and is not because of any wrong input on the users part. So kindly contact helpdesk.
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TDS @ 20% For Non PAN Foreign Assessees . Delhi High Court Reads Down Stating Treaty Supremacy.
No Service Tax on Value of Materials Supplied Free of Cost by Service Recipient during Construction: Supreme Court.
Filing GSTR-3B is now made more User friendly -EVC facility starts for pvt ltd. Fill either CGST or SGST/UGST amount, other tax will get auto filled.
SEBI Circular dated 15thFebruary, 2018 which provides for compensation to retail individual investors in IPO where they have failed to get allotment due to bank’s fault.
No change in Bank Auditors appointment Policy for March 2018. Auditors of the subsidiaries of State Bank of India shall be shifted to SBI for their residual period.
Where there is an existing dispute between the parties relating to invoices sent for the services rendered, that would disentitle the petitioner to an order of admission. NR Switch N Radio Services (P.) LTD. Vs ZTE Telecom INDIA (P.) LTD. (NCLT) Chandigarh Bench. 11th October 2017.
Emanelment of CA Firms for conducting Audit of Delhi Cooperative Societies. The panel has to be prepared for a period of 3 years i.e. for the financial year 2018-19 to 2020-2021. Last Date - 28/02/2018.
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📺 *Updates*
➡1. Recovery proceedings can't be started before expiry of limitation period to file appeal before ITAT : HC
Rapid Care Transcription (P.) Ltd. v. Income Tax Officer, Corporate Ward 5(4), Chennai
➡2. Ind AS 16: Capitalisation of cost to be incurred on restoration of land taken on lease
➡3. Dep. not to be denied in hands of amalgated co. even if assets transferred in amalgamation were non-functional
Hindustan Engineering & Industries Ltd. v. Deputy Commissioner of Income-tax, Central Circle-1(4), Kolkata.
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GST: Govt sets Up *Grievance Redressal* System for Taxpayers
Read more at: http://www.taxscan.in/gst-govt-sets-grievance-redressal-tax-payers/18047/
[2/23, 11:25 PM] CA Rohit Jaiswal: Bombay HC Stays Income Tax Notice against *UBER* India [Read Order]
Read more at: http://www.taxscan.in/bombay-hc-stays-income-tax-notice-uber-india/18058/
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There is no provision in *Customs Act* allowing freezing a *Bank Account*: Delhi High Court [Read Judgment]
Read more at: http://www.taxscan.in/no-provision-customs-act-freezing-bank-account-delhi-hc/18057/
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Mere Voluntary Surrender of Income without Disclosing Its’ Source would not avoid Penalty: Delhi HC* [Read Order]
Read more at: http://www.taxscan.in/mere-voluntary-surrender-income-without-disclosing-source-avoid-penalty-delhi-hc/18076/
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*Re-Assessment passed after 4 years without Approval of Chief Commissioner or Commissioner of Income Tax is Invalid: Delhi HC* [Read Judgment]
Read more at: http://www.taxscan.in/re-assessment-passed-4-years-without-approval-chief-commissioner-commissioner-income-tax-invalid-delhi-hc/18044/
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Essential Components of Boiler classifiable as ‘Boilers other than parts’, Taxable at 10%: Supreme Court [Read Judgment]
Read more at: http://www.taxscan.in/essential-components-boiler-classifiable-boilers-parts-taxable-rate-10-sc/18034/
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Notices for *Prosecution u/s 276CC of Income Tax Act for AY 2015-16* have started coming for late filing of IT Return (filed after assessment year) where tax due after advance tax & TDS exceeded Rs. 3000/-.
Supreme Court in the case of Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd vs. CIT held that The CIT has no power to cancel/withdraw/recall the registration certificate granted u/s 12A until express power to do so was granted by s. 12AA(3).
A petition has been filed before the Bombay High Court against the central Government seeking a direction from the Court to file a criminal complaint about tampering of the status of Petitioner’s GST TRAN-1 Form online against GSTN.
GST/VAT- Workover operations in oil wells not liable to VAT in absence of transfer of right to use workover rigs: Delhi High Court- Deep Industries Ltd. v. State of Gujarat.
Form DIR-3, SPICe , DPT-3, MGT-6, MGT-15, MGT-14, ADT-1, ADT-2, SH-7 and URC-1 are revised on MCA21 Company Forms w.e.f 17th FEB -2018.
Bankruptcy provisions for individuals and proprietorship firms, among others, under the Insolvency and Bankruptcy Code (IBC), are unlikely to be put into effect anytime soon due to a heavy workload on DRT.
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🌷Knowledge Capsules🌷
👉Cabinet nods to new bill to ban unregulated deposit schemes and Chit Funds
👉Provisions of DTAA override sec. 206AA if outward remittances made to NR: Delhi HC
👉No protective additions in hands of shareholder if similar addition was made in hands of co. on substantive basis
👉marraige gift -need to prove creditworthiness of donor
👉Claim of ITC couldn't be denied merely on ground that sale invoices did not pertain to same tax period: HC
👉State authorities have power to assess transaction liable to tax under Central Sales Tax Act: HC
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MCA Amends Companies ( Audit and Auditors ) Rules, 2014 to substitute Forms for Removal and Appointment of Auditors [Read Notification]
Read more at: http://www.taxscan.in/mca-amends-companies-audit-auditors-rules-forms-removal-appointment-auditors/17990/
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Cabinet approves New Bill to ban Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018
Read more at: http://www.taxscan.in/cabinet-approves-new-bill-ban-unregulated-deposit-schemes-chit-funds-amendment-bill-2018/17997/
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Amount paid to National Stock Exchange as Non-Adjustable Deposit for Acquisition of Membership is Capital Expenditure: Delhi HC [Read Judgment]
Read more at: http://www.taxscan.in/amount-paid-national-stock-exchange-acquisition-membership-capital-expenditure-delhi-hc/18000/
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🌷Knowledge Capsules🌷
👉Exception can not be denied just because school earned surplus which was invested in expansion of its building.
👉MCA amends rules to revise various e-forms.
👉Independent Directors may be Held More Accountable.
👉Govt withdraws plea to take over control of Unitech
👉CBEC decides not to file review appeals in 63 cases where courts judgements are against it.
👉 SC approves sale of sahara'a Aamby Valley in parcels.
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👉🏻Govt may review norms for statutory auditor appointment in PSBs*
(Govt is looking at tightening the norms for appointment of statutory auditors at public sector banks (PSBs) to help detect any irregularities early and take corrective actions)
👇🏻 👇🏻 👇🏻
https://goo.gl/6VvmGM
*👉🏻SEBI may give fresh push to loan default disclosure by listed firms*
(SEBI may give a fresh push to its "on-hold" proposal to mandate listed firms to disclose all loan defaults within a day)
👇🏻 👇🏻 👇🏻
https://goo.gl/hbp2Tq
*👉🏻Companies (Audit and Auditors) Amendment Rules, 2018*
(In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the companies Act, 2013 (18 of 2013), the central Government hereby makes the following rules further to amend the Companies (Audit and Auditors) Rules, 2014)
👇🏻 👇🏻 👇🏻
https://goo.gl/Xhg1gc
*👉🏻Govt mulls dissolving Banks Board Bureau headed by Vinod Rai*
(Govt will take many strong reformative steps, even if it means dismantling institutions which had not kept checks and balances,” the official said hinting that the role of BBB had been disappointing)
👇🏻 👇🏻 👇🏻
https://goo.gl/L3LrXu
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Amount received as Non-Competent Fee is Capital receipt: Delhi HC [Read Judgment]
Read more at: http://www.taxscan.in/amount-received-non-competent-fee-capital-receipt-delhi-hc/17966/
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Audit under GST Act 2017
Under GST Audit would be done in Two Ways:
Section 65 (compulsory audit by tax authorities)
Section 66 (special audit by chartered accountant or cost accountant)
What is an Audit?
As per Section 2(13) of CGST Act, 2017'audit' means the examination of records and other documents maintained or furnished by the registered person under this Act or rules made there under or under any other law for the time being in force to
verify the correctness of turnover declared,
taxes paid,
refund claimed and
input tax credit availed and
to assess his compliance with the provisions of this Act or the rules made there under.
Compulsorily Audit [Section 35(5) of the CGST Act, 2017 read with rule 80(3) of the CGST Rules, 2017]
Section 35(5) of CGST Act 2017: Every registered person whose turnover during a financial year exceeds the prescribed limit (2 crore) shall get his accounts audited by a Chartered Accountant or a Cost Accountant and shall submit
a copy of the audited annual accounts,
the reconciliation statement under sub-section (2) of section 44 and
such other documents in such form and manner as may be prescribed.
Reconciliation statement reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement and such other particulars as may be prescribed.
As per Rule 80(3) of the CGST Rules, 2017,every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.
GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs 2 crores during the financial year.
Section 65 of CGST Act 2017 Audit by Tax Authorities:
The commissioner or any officer authorized by him by way of a general or specific order, may undertake audit of any registered person for such period at such frequency and in such manner as may be prescribed.
The officers referred to in sub-section (1) may conduct audit at the place of business of the registered person or in their office.
The registered person shall be informed by way of a notice not less than fifteen working (15) days prior to the conduct of audit in such manner as may be prescribed.
The audit under sub-section (1) shall be completed within a period of three months (3) from the date of commencement of the audit.
Provided that where the Commissioner is satisfied that audit in respect of such registered person cannot be completed within three months, he may, for the reasons to be recorded in writing, extend the period by a further period not exceeding six (6) months.
Commencement of Audit means the date on which the records and other documents called by the tax authorities are made available by the registered person or the actual institution of audit at the place of business, whichever is later.
During audit, the authorized officer may require the registered person:-
to afford him the necessary facility to verify the books of account or other documents as he may require
to furnish such information as he may require and render assistance for timely completion of the audit.
On conclusion of audit, the proper officer shall, within 30 days inform the registered person whose records are audited about the findings his rights and obligations and the reasons for such findings.
Where the audit conducted under sub section 1 results in deduction of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized the proper officer may initiate action under section 73 or section 74.
Section 73 of CGST Act 2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppression of facts.
Section 74 of CGST Act 2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts.
Section 66 of CGST Act 2017 Audit of Special Audit:
If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner.
The chartered accountant or cost accountant so nominated shall, within the period of ninety (90) days, submit a report of such audit duly signed and certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified.
Provided that the Assistant Commissioner may, on an application made to him in this behalf by the registered person or the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by a further period of ninety (90) days.
The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the registered person have been audited under any other provisions of this Act or any other law for the time being in force.
The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit under sub-section (1) which is proposed to be used in any proceedings against him under this Act or the rules made there under.
The expenses of the examination and audit of records under sub-section (1), including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner and such determination shall be final.
Where the special audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilized, the proper officer may initiate action under section 73 or section 74.
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Interest on Sticky Loans / NPA’s has to be Taxed on Receipt basis: ITAT [Read Order]
Read more at: http://www.taxscan.in/interest-sticky-loans-npas-taxed-receipt-basis-itat/17946/
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🌷Knowledge Capsules🌷
👉CIT can cancel registration of trust granted u/s 12A only w.e.f. 01-10-2004; SC rules.
👉No reassessment on SRK if shares of KKR were valued as per Rule 11UA: Bombay HC.
👉Debt-laden Aircel to Hang Up Soon, File for Bankruptcy in NCLT.
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Only E-assessment for pending Scrutiny cases (other than Search). If assessee objects to e-assessment, case to be kept on hold. CBDT Instruction 1 of 12.2.18.
CBEC has issued Circular No. 1063/2/2018-CX dated 16.02.2018 on the subject “Orders of Supreme Court, High Courts and CESTAT accepted by the Department and on which no review petitions, SLPs have been filed”, in relation to Indirect Taxes.
SECURITIES AND EXCHANGE BOARD OF INDIA (Issue of capital and disclosure requirements) (Amendment) Regulation, 2018. No. SEBI/LAD-NRO/GN/2018/01 dated 12th February 2018.
Global index provider MSCI has slammed Indian exchanges´ decision to terminate licensing and data eed agreements with their global counterparts. It said the concerted announcement by the three domestic exchanges was “anticompletive” and would restrict access to the Indian market.
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CIT can cancel registration of trust granted u/s 12A only w.e.f. 01-10-2004; SC rules
IT: Order of the CIT passed under Section 12A is quasi judicial in nature. Second, there was no express provision in the Act vesting the CIT with power of cancellation of registration till 1-10-2004; and lastly, section 21 of the General Clauses Act has no application to the order passed by the CIT under section 12A because the order is quasi judicial in nature and it is for all these reasons the CIT had no jurisdiction to cancel the registration certificate once granted by him under Section 12A till the power was expressly conferred on the CIT by Section 12AA(3) of the Act w.e.f. 1-10-2004.
[2018] 90 taxmann.com 281 (SC)
SUPREME COURT OF INDIA
Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd.
v.
Commissioner of Income-tax, Gwalior
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📺 *Updates*
➡1. Supreme Court has upheld constitutional validity of Section 21A of the Banking Regulation Act
➡2. CIT isn’t empowered to cancel sec. 12AA registration retrospectively: HC
Assistant Commissioner of Income-tax-I v. Agra Development Authority
➡3. Shares valued on basis of discounted cash flow method didn't require interference; No Sec. 56 additions
A. Commissioner of Income-tax, Circle-2, Alwar v. Safe Decore (P.) Ltd.*
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