📺 *Updates*
▶1. Surrendering income to avoid litigation won’t save sec. 271AAA penalty unless its earning manner is disclosed
Assistant Commissioner of Income-tax, Central Circle- 7, New Delhi v. SSA International Ltd.
▶2. Central Government cannot grant ninety days period to prefer an appeal u/s 61 of IBC, rules NCLAT.
Principal Director General of Income-tax (Admn. & TPS) v. Spartek Ceramics India Ltd.
▶3. ISD can now file GST return for months of July, 2017 to June, 2018 till 31/07/2018.
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*ICAI,* has recently revised its Background Material on GST Acts and Rules- May 2018 Edition (Two Volumes: Vol-1 : Act & its analysis along with Rules, Vol-02: Notifications, Circulars & Orders) The above publication can be downloaded free from link on http://idtc.icai.org/publications.php.
*GST:* Last date of *GSTR-1* (outward supply summary) for the month of *May, 2018* is *10th June, 2018*.
*ICAI* Committee has recently drafted GST Audit cum Reconciliation Statement format, which has been submitted to the Government for its consideration, which can be viewed at http://idtc.icai.org/budget-memorandum.html.
*ICAI:* Information System Audit – Assessment Test (ISA – AT), Exam Date 23rd June 2018 – Exam form Last Date 5th June, 2018.
*RBI:* Withdrawal of Exemptions Granted to Government Owned NBFCs - RBI/2017-18/181 DNBR (PD) CC.No.092/03.10.001/2017-18 - (31/05/2018)
*Case Study:* Processing fees paid to bank for increase in working capital overdraft facilities is revenue expense - DCIT Vs M/s. QRG Central Hospital & Research Centre Limited (ITAT Delhi)
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*CBDT launches Two Schemes:*
1. New Benami Transactions Informants Reward Scheme, 2018; and
2. Income Tax Informants Rewards Scheme, 2018*
This reward scheme is aimed at encouraging people to give information about benami transactions and properties as well as income earned on such properties by such hidden investors and beneficial owners.
Foreigners will also be eligible for such reward.
For Full Scheme, Pls visit www.Incometaxindia.gov.in
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Success in Life Depends upon 2 Things: VISION of Seeing the Invisible Opportunities & MISSION of Solving the Impossible Things.
Destiny depends on the strength of your desires. If you cry at trouble, it grows double and if you laugh at trouble, it disappears like a bubble.
CBDT issued official notification for reward schemes for Income Tax Informants https://studycafe.in/2018/05/cbdt-issues-reward-schemes-for-income-tax-informants.html
For GST Refund GSTR-1 & 3B not must for all. Composition taxpayer to file GSTR-4, ISD-GSTR-6 & non-resident-GSTR-5. Circular 45/19/2018-GST of 30.5.18.
The Central Board of Indirect Taxes and Customs (CBIC) have asked its field offices to levy GST on goods in customs warehouse only at the time of final clearance.
CBEC issued procedure for sanction of pending IGST refund claims where records have not been transmitted from GSTN to DG systems. CIRCULAR NO.12/2018-CUSTOMS [F.NO.450/119/2017-CUSIV], DATED 29-5-2018
Eight state governments on Thursday announced their plans to roll out the electronic way bill (e-way bill) mechanism for transport of goods within their territories by June 3, a move that would lead to pan-India implementation of the crucial ant-evasion system under the goods and services tax (GST)
Delhi High Court has sought a formal explanation from the MCA for its twin circulars of September 2017 that deregistered over 1 lakh companies for failure to file annual returns for three years and disqualified their directors.
RBI has ended the special dispensations granted earlier for NBFCs owned by the government. Instead, it has specified a roadmap, stretching till 2021-22, for these lenders to meet the norms on capital adequacy, provisioning and corporate governance.
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Old Savings of House Wife taken for Household Expenses can’t be treated as Unaccounted Cash*: ITAT [Read Order]
Read more at: http://www.taxscan.in/old-savings-house-wife-unaccounted-itat/24128/
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*Chartered Accountants can now Apply and Join for Phd Programme*
Read more at: http://www.taxscan.in/chartered-accountants-phd-programme/24061/
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AAR Reply on- Whether credit will be available in GST of office fixtures & furniture, A.C. plant & sanitary fittings on newly constructed building on its own account for furtherance of business and accounting entry is capitalized in books of account.. Read More : https://goo.gl/HDNXLk
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*Complete The Audit And Disclose, Don’t Resign*
BloombergQuintOpinion
June 02 2018, 11:52AM June 02 2018, 11:52AM
Auditors resigning from any company before their term ends is a very serious issue. There may be a need to distinguish between auditors who are resigning in their first year of appointment and those who are resigning after having been the auditor for multiple years and giving a clean report in those years.
In most cases, auditors are resigning invariably due to concerns over the integrity of the management. While it may absolve them of responsibility, this weapon of resignation is like capital punishment. It should be applied only in the rarest of rare cases. It leaves the entire shareholding community guessing and leads to considerable uncertainty among the investors. It also leaves the future of the company uncertain. Consequently, interests of employees and other stakeholders are adversely affected.
What are the probable solutions to this? Stakeholders understand that the auditors must be in an extreme situation to take such an extreme step.
Therefore, every resignation must place the burden of proof on auditors.
The Alternatives
1. The general confidentiality clause between the client and the auditor should not apply at this time. Therefore, they should be asked to make a full disclosure of the facts and circumstances leading to the resignation.
The Companies Act, 2013 already provides for the resigning auditor to file reasons with the Registrar of Companies while filing his resignation.
This will virtually be like a charge sheet on the company, without any ambiguity. The law could further be amended to protect the resigning auditors from any legal actions by the company and its management.
2. Can the mere want of information be sufficient ground for the auditors to resign? It could be that they are aware of a very large issue coming up, and in order to avoid disclosure, are taking such a step.
If the auditors are not in their first year of audit and have given clean reports in the past, it is ideal that they pursue and provide a report with suitable qualifications/disclaimer as the case may be rather than step down, making it convenient for the management and leaving other stakeholders in the lurch.
3. Should not the auditors continue with the engagement and give a report explaining the irregularities/impropriety which can then be measured for depth and materiality?
Is it not better to have an audit conclusion rather than an audit anticipation? Would that not help the investors to come to a conclusion?
When the auditors who have vetted financial statements of the same company in the past, resign suddenly, they put everybody in difficulty.
While several standards may provide for withdrawing from the engagement, the withdrawal at the time of final accounts is serious. And if they have been the auditors for more than a year, it is only fair to expect them to continue the audit and provide a qualified opinion or disclaimer of an opinion, so that the shareholders get a clear verdict.
4. If it is the same auditor who had been engaged in the audit in the past, his role in the past quarters and past years have to be examined. Has he brought this issue or any other issue involving integrity of the management to the attention of the audit committee/members? If they have given a clean report, the company cannot, all of a sudden, come to a situation where the auditors have to take an extreme step.
*Safeguards*
The auditor should be required to continue the audit and give an appropriate report. They should be asked to make a full disclosure including the management letters they have given to the company with the Securities and Exchange Board of India, and SEBI should then decide to relieve the auditor or direct them to proceed with the audit with the available information and give a report.
If SEBI agrees with the resignation of the auditor, it should appoint the new auditor. That should not be left to the management.
This will protect the interest of all stakeholders, including the regulator, and ensure the independence of auditors. SEBI should call for an investigation if the subsequent report is clean as this endangers the investors and other stakeholders. Going after such auditors who accept such engagements would bring clarity on issues which have been raised by the outgoing auditors and whether these have been appropriately addressed by the incoming auditor fairly.
The responsibility of company management and the audit committee is absolute and they should ensure that all information sought is provided. The board should be seriously concerned about this. There cannot be a situation where the board is right and the auditor is wrong or vice versa. With reference to the investors, the board should clearly take a stand and explain the circumstances with full facts and figures.
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*Interest on Outstanding Credit Card balances subject to GST: CBIC clarifies applicability of Tax on Banking, Insurance and Stock Brokers Sector* [Read FAQs]
Read more at: http://www.taxscan.in/credit-card-gst-banking-insurance/24136/
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GST And Goods Transport Agency*
(Source - Taxguru .com)
Goods transport agency or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. A consignment note is an essential condition to be considered as a GTA.
*Goods transport agency:*
Goods transport agency or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. A consignment note is an essential condition to be considered as a GTA.
*Consignment note:*
A consignment note is a document issued by a goods transportation agency against the receipt of goods for the purpose of transporting the goods by road in a goods carriage.
*Registration requirements for Goods Transport Agency under GST:*
IF Transports,
a) Exclusivey goods on which RCM applicable (even turnover more than Rs. 20/10 Lacs limit) – *NO REGISTRATION*
b) Turnover less than Rs. 20/10 Lacs Limit (including RCM based and service to unregistered) – *NO REGISTRATION*
c) All other cases – *REGISTER*
Rate of Tax: Options available to GTA – 12% with ITC or 5% without ITC AND 5% with ITC by Consignor/consignee at RCM Basis.
*Exemptions to Goods Transport Agency under GST:*
The following services provided by GTA by way of transport in a goods carriage are exempt from payment of tax:
(a) agricultural produce
(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1,500
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750
(d) milk, salt, and food grain including flour, pulses, and rice
(e) organic manure
(f) newspaper or magazines registered with the Registrar of Newspapers
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents, or mishaps
(h) defence or military equipment etc
*Reverse Charge Mechanism: A person paying to GTA will pay GST under RCM. (Consignor / Consignee)*
The categories on which RCM applicable, include:
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948)
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India
(c) any co-operative society established by or under any law
(d) any person registered under the CGST Act, the Integrated GST (IGST) Act, the State GST (SGST) Act, or the Union Territory GST (UTGST) Act
(e) anybody corporate established, by or under any law
(f) any partnership firm whether registered or not under any law including association of persons
(g) any casual taxable person
*Input Tax Credit:*
– A person (consignor/consignee) paying GST under RCM will pay GST at the rate of 5% and will take ITC on the same.
– A GTA paying GST at the rate of 5%. No one will get the ITC. OR A GTA paying GST at the rate of 12%, GTA will get the ITC. (Option to opt in beginning of the Financial Year)
*CGST/SGST/IGST Aplicability:*
The place of supply of services by way of transportation of goods, including by mail or courier to –
(a) a registered person, shall be the location of such person
(b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.
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GST Gyan - For Refund GSTR-1 & 3B not must for all. Composition taxpayer to file GSTR-4 , ISD-GSTR-6 & non-resident-GSTR-5. Circular 45/19/2018-GST of 30.05.2018
