Sinking Fund collected from Tenant for Maintenance and Repairs of Property not part of Rental Income: ITAT [Read Order]
Read more at: http://www.taxscan.in/sinking-fund-collected-tenant-maintenance-repairs-property-not-part-rental-income-itat-read-order/18440/
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*Cabinet approves Establishment of National Financial Reporting Authority*
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for establishment of National Financial Reporting Authority (NFRA) and creation of one post of Chairperson, three posts of full-time Members and one post of Secretary for NFRA.
The decision aims at establishment of NFRA as an independent regulator for the auditing profession which is one of the key changes brought in by the Companies Act, 2013. The inclusion of the provision in the Act was on the specific recommendations of the Standing Committee on Finance (in its 21st report).
*Impact:*
The decision is expected to result in improved foreign/domestic investments, enhancement of economic growth, supporting the globalisation of business by meeting international practices, and assist in further development of audit profession.
*Jurisdiction:*
The jurisdiction of NFRA for investigation of Chartered Accountants and their firms under section 132 of the Act would extend to listed companies and large unlisted public companies, the thresholds for which shall be prescribed in the Rules. The Central Government can also refer such other entities for investigation where public interest would be involved.
The inherent regulatory role of ICAI as provided for in the Chartered Accountants Act, 1949 shall continue in respect of its members in general and specifically with respect to audits pertaining to private limited companies, and public unlisted companies below the threshold limit to be notified in the rules.
The Quality Review Board (QRB) will also continue quality audit in respect of private limited companies, public unlisted companies below prescribed threshold and also with respect to audit of those companies that may be delegated to QRB by NFRA. Further, ICAI shall continue to play its advisory role with respect to accounting and auditing standards and policies by making its recommendations to NFRA.
*Background:*
The need for establishing NFRA has arisen on account of the need felt across various jurisdictions in the world, in the wake of accounting scams, to establish independent regulators, independent from those it regulates, for enforcement of auditing standards and ensuring the quality of audits to strengthen the independence of audit firms, quality of audits and, therefore, enhance investor and public confidence in financial disclosures of companies.
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# *GST*: E-way Bill for the inter-state movement of goods worth more than Rs.50,000 to be implemented from 1st April, 2018.
# *IBC*: IBBI has issued a Circular w.r.t Confidentiality of Information relating to Processes under the Insolvency and Bankruptcy Code, 2016.
# *NCLAT* has issued an Order to remove the difficulties being faced by the litigants in the absence of specific provisions in the Rules for lodging of Caveat.
# *NBFC*: RBI has issued a Notification to launch Ombudsman Scheme for NBFC, 2018, which come into effect and force from 23.02.2018.
# *IT*: AO is not correct in bringing to tax ALV in respect of those unsold flats under the head income from house property - Runwal Constructions & Omkar Esquare Vs. ACIT (2018 (2) TMI 1707 - ITAT Mum).
# *IT*: Consideration for issue of redeemable non-cumulative preference shares exceeding face value cannot be excluded from the ambit of Section 56(2)(viib) – Microfirm Capital Pvt. Ltd. Vs. DCIT (2018 (2) TMI 1693 - ITAT Kol).
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ICAI’s bold actions against Errant CAs continues: Delhi and Gujarat based Chartered Accountants removed for Professional Misconduct [Read Notification]
Read more at: http://www.taxscan.in/icais-bold-actions-against-errant-cas-continues-delhi-and-gujarat-based-cas-removed-for-professional-misconduct/18397/
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Income Tax Returns for FY 2015-16 and 2016-17 cannot be filed after 31.03.2018.
After 31.03.2018, ITR can be filed for FY 2017-18 with due date till 31.07.2018 only.
Delhi High Court in the case of DANISCO India Private Limited, has read down the provisions of section 206AA of the Income Tax Act, 1961 which mandates TDS @ 20% on payments to non-residents since the provision of DTAA would prevail over the said provision.
Online filing of Letter of Undertaking ( LUT ) enabled at GST Portal. GST RFD-11, to be filed in case of Exports without GST.
The collection of Goods and Services Tax (GST) slipped marginally to Rs 86,318 crore in January, from Rs 86,703 crore in December.
MCA announces that Condonation of Delay Scheme (CODS, 2018) e-form available for filing purposes. The e form will be auto populated. Fees will be Rs 30000/-.
EFPO Introduces UAN-Aadhaar linking facility through EPFO Link in Umang Mobile App. Press Release dated 27.02.2018.
EPFO has made it mandatory to file online claims for provident fund withdrawals above Rs 10 lakh, taking another step towards becoming a paperless organisation.
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*SUPREME COURT : In Inox Wind Ltd. vs. Thermocables Ltd.*
*_Though general reference to an earlier contract is not sufficient for incorporation of an arbitration clause in the later contract, a general reference to a standard form would be enough for incorporation of the arbitration clause._*
*_Read full case law at :_* https://dasgovernance.com/2018/03/01/supreme-court-in-inox-wind-ltd-vs-thermocables-ltd/
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📺 *Updates*
➡1. Goods can't be detained merely because of infraction of procedural rules under GST
Indus Towers Ltd. v. Assistant State Tax Officer
➡2. AO couldn't levy penalty u/s 221 for non-payment of self-assessment tax by assessee: Mumbai ITAT
Heddle Knowledge (P.) Ltd. v. Income Tax Officer, Ward- 8 (1) (4), Mumbai*
➡3. Ind AS 32: Value of Compound financial instruments to be segregated between liability and equity.
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👉🏻CBDT notifies new communication scheme for e-assessment*
(CBDT has notified a new centralised communication scheme for serving e-notices to income tax-payers as part of the government’s ambitious plan to usher in a countrywide paperless system of interface between the taxman and the assessee)
👇🏻 👇🏻 👇🏻
https://goo.gl/tac8nU
*👉🏻Govt moves to set up new regulator for CAs*
(The cabinet will discuss a proposal from the ministry of corporate affairs to allow for creation of posts, paving the way for setting up NFRA with a chairman and up to 15 members.)
👇🏻 👇🏻 👇🏻
https://goo.gl/i1Y9hm
*👉🏻RBI increases exposure limits for residents, foreign investors*
(RBI has increased the exposure limits for residents and FPIs in the exchange traded currency derivatives (ETCD) market.)
👇🏻 👇🏻 👇🏻
https://goo.gl/aPv1Q7
*👉🏻Govt asks PSU Banks to scan all bad debts of above Rs 50 Cr*
(Govt asked state-run banks to fix operational gaps within 15 days and said lenders must check all bad loan accounts over Rs 50 crore for possible fraud)
👇🏻 👇🏻 👇🏻
https://goo.gl/3eGSas
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MCA Updates*
*_MCA announces availability of CODS, 2018 e-form for filing purposes_*
MCA announces that Condonation of Delay Scheme (CODS, 2018) e-form available for filing purposes.
1. *The e form will be auto populated*
2. *Fees will be Rs 30000/-*
You have to Mention the CIN and Prefill to go on .
3. *Details of documents for CODD*
A. *NUMBER OF SRN*
Enter SRN of the documents for scheme. Maximum 20 SRN can be entered.
B. *ALLOWED SRN*
The SRN should belong to AOC4 , AOC4 CPS, AOC4-XBRL, 23AC, 23ACA , 23ACXBRL, 23ACAXBRL, 20B ,21A, MGT-7, ADT-1, 23B, 66
3. *SIGNATURE*
The form shall be digitally signed by Director/ Manager duly authorised by the Board
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CBDT- Centralised Communication Scheme, 2018 for e assessment notified shall come into force on the date of its publication in the Official Gazette.
Income Tax Sec. 153A proceedings not restricted to those materials which were already available with dept. before search - Kerala High Court - DR. A. V. Sreekumar vs. CIT
GSTR-3B, Reverse ITC for Bills older than 180 days. For Feb 2018 Return, Reverse ITC for bills dated 31.08.2017 or before. Pay interest @ 24% p.a.
GSTR-1 GST must be exactly equal to Taxable Value X GST Rate rounded off to 2 decimals ( for each invoice line item). Otherwise rounding off gives the error.
Form E-CODS in terms of Condonation of Delay Scheme, 2018 is now available on MCA portal.
RBI issued Revised guidelines relating to participation of a person resident in India and Foreign Portfolio Investor (FPI) in the Exchange Traded Currency Derivatives (ETCD) Market. RBI/2017-18/134 - A. P. (DIR Series) Circular No. 18 - Dated : February 26, 2018.
Supreme Court suggests Govt to form Expert Committee to regulate Multinational CA / Accounting Firms, Issues Directions since they are violating laws.
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📺 *Updates*
➡1. Film projector couldn't be treated as computer; not eligible for higher rate of depreciation: ITAT
Cinetech Entertainment India (P.) Ltd. v. Income Tax Officer, Ward- 16 (1) (1), Mumbai*
➡2. Interest earned on inter-corporate deposit taxable as 'other income' if business operations of co. discontinued
Sai Fragrance & Flavours (P.) Ltd. v. Assistant Commissioner of Income-tax, Cir. 9 (3), Mumbai*
➡3. Interest accrued to bank on NPA couldn't be brought to tax on notional basis; SC rules
Commissioner of Income-tax v. Vasisth Chay Vyapar Ltd.*
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Delhi HC Reads down Provision mandating Deduction of 20% TDS on payments to Non-Residents: Says Provisions of DTAA prevails* [Read Judgment]
Read more at: http://www.taxscan.in/delhi-hc-reads-provision-mandating-deduction-20-tds-payments-non-residents-says-provisions-dtaa-prevails/18358/
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GSTN comes within the ambit of RTI Act: CIC [Read Order]
Read more at: http://www.taxscan.in/gstn-comes-within-ambit-rti-act-cic/18295/
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Borrower or Third Party need not be Informed While Adjudicating Application preferred by the *Secured Creditor under SARFAESI Act*: Rajasthan HC [Read Judgment]
Read more at: http://www.taxscan.in/borrower-third-party-adjudicating-application-secured-creditor-sarfaesi-act-rajasthan-hc/18316/
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Provisions for *NPAs* are Liable to be added back while *Computing Book Profit* under Section 115JA: *Delhi High Court* [Read Judgment]
Read more at: http://www.taxscan.in/provisions-npas-liable-added-back-computing-book-profit-section-115ja-delhi-high-court/18299/
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CBDT set higher target for zones which are performing well. It said We are looking at better advance tax collection for January-March quarter. we will be able to achieve the landmark Rs 10 lakh crore target.
CBEC has introduced an alternative mechanism enabling the exporters to rectify the mistakes in cases where IGST refund is stuck due to invoice mismatch.
Online filing enabled at GST Portal, of Letter of Undertaking (LUT) GST RFD-11, to be filed in case of Exports without GST.
CBEC has sanctioned Rs 4,000 cr worth refunds to exporters since October. Still 10,000 crore worth claims are stuck due to discrepancies in the information furnished by exporters to GST Network (GSTN) in filing GSTR 1 or Table 6A or GSTR 3B and shipping bill filed with Customs.
Govt. issues directions on non-utilisation of disputed credit & non-transition of blocked credit- Circular No. 33/07/2018-GST, 23rd Feb., 2018.
EPFO raises minimum life insurance for EPF-covered employees to Rs 2.5 lakh w.e.f. Feb 15, 2018. EFPO Notification dated 15.02.2018.
Commerce and industry ministry has appointed four institutes, including IIFT and ICAI, to interact with stakeholders and suggest measures to push India’s ranking in World Bank’s ease of doing business index.
The Insolvency and Bankruptcy Board of India has issued a circular to designates the website www.ibbi.gov.in and details of the manner of publishing such Forms on the designated website.
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📺 *Updates*
➡1. Sec. 153A proceedings not restricted to those materials which were already available with dept. before search
DR. A. V. Sreekumar v. Commissioner of Income Tax, Kochi
➡2. Though section 80JJAA is an incentive provision, yet it has some inherent disincentives
https://www.taxmann.com/fileopennew.aspx?id=105010000000015223&mode=home&page=
➡3. Govt. exempts Ind AS companies engaged in defence production from segment reporting
https://corporatelaws.taxmann.com/topstories/222330000000014507/govt-exempts-ind-as-companies-engaged-in-defence-production-from-segment-reporting.aspx
➡4. CBDT notifies ‘Centralised Communication Scheme, 2018’ for issuance of e-Notice
https://www.taxmann.com/topstories/222330000000014505/cbdt-notifies-%E2%80%98centralised-communication-scheme-2018-for-issuance-of-e-notice.aspx
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Discounts and Rebates would not form part of ‘Sale Price’: Supreme Court In the case of M/s. Universal Cylinders Limited v. Commercial Tax Officer.
ITAT (Mumbai) which allowed deduction u/s 80IC for A. Y. 2008-09 where the assessee company made the claim in a revised return of income filed u/s 139(5), filed tax audit report and the prescribed Form 10CCB in support of the claim.
In GSTR-3B, reverse ITC for bills older than 180 days. For Feb return, reverse ITC for bills dt 31.8.17 or before. Pay interest @ 24% p.a.
In GSTR-1 GST must be exactly equal to Taxable Value X GST Rate rounded off to 2 decimals (for each invoice line item). Other rounding gives error.
GSTN has enabled online filing of letter of Undertaking LOU. Go to User Services and Select the Tab “Furnishing Letter of Undertaking.
UIDAI instructs Govt. departments & states not to refuse essential services like medical, school admission, ration through PDS etc for want of Aadhaar.
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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. Be aware, 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 and navigate 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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📺 *Updates*
➡1. Sum paid for acquiring licence of copyrighted technology was allowable as revenue exp.: HC
Principal Commissioner of Income-tax-2, Chandigarh v. Mobisoft Tele Solutions (P.) Ltd.
➡2. Discrepancies in calculation of default amount maintainable before committee of creditors
State Bank of India v. Bhushan Steel Ltd.
➡3. Complete Insight of Budget proposals related to Land, Building with section 54EC
https://www.taxmann.com/fileopennew.aspx?id=105010000000015213&mode=home&page=
🙏�Thank you🙏�
Have a nice day