Thursday, 7 June 2018

07 June 2018 Updates


Last day for filing Non Audit income tax returns (ITR) for FY 2017-18 is July 31, 2018.
Otherwise penalty will be levied on late filing. Filing returns is mandated by law and is an important proof of your tax compliance.

No change in date of filing GSTR-1 which is to be filed in 10 days from month end. File May GSTR-1 by 10 Jun. Pay GST & file GSTR-3B by 20 Jun.

ICAI proposes GST Audit Report and Statement of Particulars https://studycafe.in/2018/06/icai-proposes-gst-audit-report-and-statement-of-particulars.html

SEBI Slashed a Fine of Rs 1.5 Lac to Listed Company for Not Appointing Company Secretary. Click on the link to read the SEBI's take and down load the complete report http://ccurl.in/vj6uXD

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*👉🏻Govt clarifies GST applicability on financial services*
(GST applies to exit loads charged by mutual funds, additional interest charged for default in payment of loan instalments and late payment charges levied by credit card companies)
👇🏻 👇🏻 👇🏻
https://goo.gl/hyq8pp

*👉🏻Govt weighs merger of Bank of Baroda, IDBI Bank, Oriental Bank, Central Bank*
(The four banks that are being proposed to be merged are under pressure with combined losses of Rs.21,646.38 crore in the year ended 31 March)
👇🏻 👇🏻 👇🏻
https://goo.gl/PCgoMR

*👉🏻International passengers need not pay GST at airport Duty Free shops*
(International passengers buying goods at airport 'duty-free' shops will not be subject to GST and the revenue department will soon clarify on this exemption)
👇🏻 👇🏻 👇🏻
https://goo.gl/pR1GDQ

*Appointment of Concurrent Auditors for National Housing Bank*
(Request for Proposal: Appointment of Concurrent Auditors National Housing Bank.Last Date - 12/06/2018)
👇🏻 👇🏻 👇🏻
https://goo.gl/CAc4sZ

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ICSI to conduct Mega Placement Drive for Company Secretaries*

Read more at: http://www.taxscan.in/icsi-to-conduct-mega-placement-drive-for-company-secretaries/24183/
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File pending Forms AOC-4 (Financial Statements) and Form MGT-7 (Annual Return) on or before 30-06-2018 to avoid the hefty penalty*

With reference to the Companies (Registration Office and Fees) Second Amendment Rules, 2018 dated 07-05-2018, it is hereby noted that Additional Fees on the Form AOC-4 (Financial Statements) and Form MGT-7 (Annual Return) shall be levied Rs. 100/- per day on each form with effect from 01-07-2018 in addition to the additional fees payable up to 30-06-2018.
It is advisable to file all the pending Company’s Financial Statements and Annual Returns with the concerned ROC on or before 30-06-2018 to avoid the hefty penalty.

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*Interest can’t be Levied If Income is not actually subjected to TDS and No Liability to Pay Advance Tax: ITAT* [Read Order]

Read more at: http://www.taxscan.in/interest-levied-income-tds-liability-pay-advance-tax-itat/24195/
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Digital Copy of E-Way Bill sufficient for Transportation under GST: Allahabad HC* [Read Judgment]

Read more at: http://www.taxscan.in/digital-copy-e-way-bill-gst-allahabad-hc/24209/
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📺 *Updates*

▶1. Ind AS 113: Amount repayable on demand to partners in a LLP need not be discounted
https://accountsandaudit.taxmann.com/topstories/222330000000015653/ind-as-113-amount-repayable-on-demand-to-partners-in-a-llp-need-not-be-discounted.aspx

▶2. Exp. incurred on acquiring licenses to use software which didn't confer any enduring right was allowable exp.
Oriental Bank of Commerce
v. Additional Commissioner of Income-tax*

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Everything you need to know about the newly introduced “Profession Tax” or “Development Tax

*1.Who is liable to pay tax under this act?*

Every employee or person doing business or profession in Punjab is liable to development tax if after deduction of profession tax income is above maximum exemption limit i.e. Rs. 2,50,000/- at present as per Income Tax Act.

*2.Quantum of Tax to be paid by different categories?*

Persons assessable under head *Income from Salaries* – Rs. 200/- per month.

Persons assessable under head *Income from Business & Profession*– Rs. 200/- per month.

*3.Payment of Tax?*

*a.**By Employer:* Monthly payment within prescribed time(liable to deduct the same from employees)

*b.**Other enrolled person:* Annual payment within one month from end of month of enrollment

*4.What is the last date for enrollment under this act?*

*For existing persons:-* within 60 days from date of enactment of act i.e. 15th June, 2018

*New Entities (Existing Person who will become liable for Income tax in future):-* within 30 days from the date he become liable under this act.

_*Every person shall obtain a certificate from Designated officer and the officer will mention the amount of tax payable by each person and the date by which it should be paid.*_

*5.Who is required to register under this act?*

*a.*An Employer who is liable to pay salary to person(s) who are covered under this act.

*b.*Self-employed persons who are running any business and profession and they are liable for this tax.

*6.Persons not liable to Register?*

*a.*Employees are not liable to register because their employer is liable to register and deduct tax.
*b.*Exempt person(s).

*7.Exempt person?*

*a.*Senior Citizens

*b.*Persons exclusively engaged in Agricultural activity

*8.Return filing?*

*a.*Every registered person after making self assessment of tax file return for a period showing:
         i.Gross Income
        ii.Tax payable/paid by him
         Within period as may be prescribed.

*9.Penalty?*

*a.*Penalty for *failure to take registration* can be imposed at Rs. 50/- per day.

*b.*Penalty for giving *false information at the time of applying for registration* can be imposed amounting to Rs.   5,000/-.

*c.*Penalty for *failure to file returns* can be imposed at Rs. 50/- per day.

*d.*Penalty for *non-payment of tax within required time or date as specified* can be imposed at 50% of the tax amount.

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CBDT announced Information reward scheme under which a person can get reward up to Rs. 50 lakh for giving information to Investigation Directorates in Income Tax Department about substantial evasion of tax on income or assets in India.

Govt. announced Benami Transactions Informants Reward Scheme, 2018; a person can get reward up to Rs. One crore for giving specific information to Income Tax Dept about benami properties as well as proceeds from such properties.

GST: For refund in case of export of non-GST & exempted goods without payment of IGST, LUT/bond is not required. Circular 45/19/2018-GST of 30.5.18.

International passengers buying goods at airport ‘duty-free’ shops will not be subject to GST and the revenue department will soon clarify on this exemption. They will have to only collect a copy of the passport from the passenger to whom it sells the goods.

Govt. is considering merging at least four state-run banks, including Bank of Baroda, IDBI Bank Ltd, OBC and Central Bank of India.  If the plan goes through, the merged entity will become the second-largest bank in the country with combined assets of ₹16.58 trillion.

Insolvency and Bankruptcy Board of India (IBB) has issued Insolvency Professionals to act as Interim Resolution Professionals or Liquidators (Recommendation) Guidelines, 2018 to streamline the procedure for recommendation and appointment of Interim Resolution Professional (IRP) or liquidator.

Due date for Payment of TDS/ TCS of May 2018 is June 7, 2018.

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*👉🏻32 Auditors at listed firms have resigned in last 5 months*
(In the past one month, fifteen auditors have resigned prematurely, besides increasing audit qualifications. The total number of exits, so far, in this calendar year stands at a staggering 32)
👇🏻 👇🏻 👇🏻
https://goo.gl/sQ1JcM
 
*👉🏻SEBI provides relaxations for insolvent firms in delisting norms*
(SEBI has relaxed requirements to comply with delisting norms for companies facing insolvency proceedings provided the resolution plan lays down the procedure for delisting that particular entity from the exchanges)
👇🏻 👇🏻 👇🏻
https://goo.gl/NFgNna
 
*👉🏻GST likely to get centralised AAR for uniform rulings*
(India is looking at creating a centralised Authority for Advance Rulings (AAR) for the GST after divergent rulings on identical issues fuelled confusion over applicability and the rate of tax.)
👇🏻 👇🏻 👇🏻
https://goo.gl/TcW6EV

*👉🏻2nd Successful NPA resolution under IBC - Vedanta to buyout Electrosteel at Rs 5300 Cr*
(Second successful NPA resolution: Vedanta has finally forayed into the steel industry by offering a cheque of Rs 5,300 crore to buy out bankrupt Electrosteel Steels under the newly-adopted Insolvency and Bankruptcy Code)
👇🏻 👇🏻 👇🏻
https://goo.gl/ZqMz7A

With Warm Regards,

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ICAI Signs MRA with South African Institute of Chartered Accountants*

Read more at: http://www.taxscan.in/icai-mra-south-african-institute-chartered-accountants/24214/
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Delhi HC Asks Govt to file Status Report on Mismatch b/w GSTR-1 and GSTR-3B* [Read Order]

Read more at: http://www.taxscan.in/delhi-hc-status-report-mismatch-gstr-1-gstr-3b/24217/
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GST: Govt to bring Centralized Authority for Advance Rulings*

Read more at: http://www.taxscan.in/gst-authority-advance-rulings/24244/
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Govt Notifies GST Settlement of Funds (Second Amendment) Rules* [Read Notification]

Read more at: http://www.taxscan.in/govt-gst-settlement-funds-rules/24252/
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*Pre-Deposit Paid for First Appeal Adjustable on Filing Second appeal before CESTAT: Delhi HC* [Read Judgment]

Read more at: http://www.taxscan.in/pre-deposit-first-appeal-adjustable-second-delhi-hc/24219/
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GST Council may bring natural gas, aviation turbine fuel under its purview at next meeting
Under the existing structure, the fuels attract the Centres excise duty and a states value added tax
http://www.moneycontrol.com/news/business/economy/gst-council-may-bring-natural-gas-aviation-turbine-fuel-under-its-purview-at-next-meeting-2582811.html
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Delhi HC Asks Govt to file Status Report on Mismatch b/w GSTR-1 and GSTR-3B* [Read Order]

Read more at: http://www.taxscan.in/delhi-hc-status-report-mismatch-gstr-1-gstr-3b/24217/
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*Jewellery received after Partition can’t be Treated as Unexplained: ITAT* [Read Order]

Read more at: http://www.taxscan.in/jewellery-received-partition-treated-unexplained-itat/24206/
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GST: For refund in case of export of non-GST & exempted goods without payment of IGST, LUT/bond is not required vide Circular 45/19/2018-GST of 30.05.18

Case Study: Streedhan in the form of jewellery received during span of 20-25 yeas cannot be said to be unexplained investment U/s. 69A - Suneela Soni Vs DCIT (ITAT Delhi)

Case Study: Writ in Delhi High Court on Several Issues related to GST - Sales Tax Bar Association (Regd), & Anr. Vs Union of India & ORS. (Delhi High Court)

Due date for Payment of TDS/ TCS of May 2018 is June 7, 2018. 

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.

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Actual Service rendered by each Individual need not be Established for allowing Commission in Land Transactions: Karnataka HC* [Read Judgment]

Read more at: http://www.taxscan.in/actual-service-commission-land-transactions-karnataka-hc/24239/
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CBDT directs to pay Advance Tax Installments within Due Date*

Read more at: http://www.taxscan.in/cbdt-advance-tax-installments-due-date/24262/
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TO ALL MEMBERS HOLDING CERTIFICATE OF PRACTICE OF THE INSTITUTE

Sub.:  Furnishing of Information to the Group constituted by the Council to examine the issues arising out of the Judgement dated 23.02.2018 of the Hon'ble Supreme Court in S. Sukumar Vs. Union of India and CPIL Vs. Union of India.

 

The Hon'ble Supreme Court of India vide its Judgement dated 23rd February, 2018 in Civil Appeal No. 2422/2018, S. Sukumar Vs. ICAI and W.P. (Civil) No. 991/2013, CPIL vs. UOI & Ors. has issued certain directions to ICAI with regard to Operations of Multinational Accounting Firms in India 

 

The Council has constituted a Group to examine all the related issues in the light of the aforesaid judgement of Supreme Court and to submit a Report to the Council.

 

The Group has decided to obtain information from all the Members holding Certificate of Practice as on 01.04.2018 who presently have or at any time in the past seven financial years had networking relationship or affiliation by whatever name called with any entity. The above information is required as on 01.04.2018

 

The information shall be submitted online, to be signed by all partners/sole proprietor of firm(s). One partner /managing/designated/authorised partner may submit the requisite information, if so authorized by all the partners, clearly indicating that he has been so authorized. 

 

Members/partners/firms who at present or any time in the past seven financial years had no networking arrangements or affiliation by whatever name called need not submit the information.

 

Please note that non-furnishing of information by those who are required to furnish the same would render such members liable for disciplinary action under clause (2) of  Part III of First Schedule to the Chartered Accountants Act, 1949.

[ICAI may call for additional information and documents from the members and/or firms if there is a need felt later on.

Please submit the aforesaid information online by using the following link https://www.icai.org/icaicop/  latest by 15th June, 2018.

Printed copy of the declaration duly signed may please be sent  to the Institute by Registered/speed post at the following address so as to reach us latest by 22nd June, 2018.

"The Joint Secretary ( M & SS )

The Institute of Chartered Accountants of India

ICAI Bhawan, A-29, Sector-62

NOIDA ( Uttar Pradessh) 201301”
CA Gajesh
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GST: A transaction once reported as B2C cannot be amended later to add GSTIN & convert transaction as B2B. CBIC FAQ 7 (Jun 2018) on Financial Services.

GST: The location of a supplier will be the state in which the person holds a bank account even if bank branches of other locations are used for rendering services to customers under the GST the government clarified.

CBIC has launched a tax refund drive in the first fortnight of June and issued instructions to swiftly settle refund claims of exporters that are held up because of mismatches in the returns filed by them.

NBFC Companies are planning to meet the RBI on the issue of implementation of Ind AS. RBI has deferred the implementation of Ind AS for banks by a year, while it is applicable for NBFCs from April 1, 2018.

SEBI has issued Master Circular for Stock Brokers which is a compilation of relevant circulars issued by SEBI which are operational as on date of this circular.

ICAI has signed the Mutual Recognition Agreement (MRA) with the South African Institute of Chartered Accountants (SAICA) on June 4, 2018, at SAICA HO, Johannesburg, South Africa. Read more at: http://www.icai.org

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*👉🏻last date for online claim of Unstructured CPE hours extended to 30th June - ICAI*
(Last date for submitting Self Declaration form for claiming CPE Hours under Unstructured Learning Activities for the Calendar Year 2017 – has been extended from 31st May, 2018 to 30th June, 2018)
👇🏻 👇🏻 👇🏻
https://goo.gl/H8fxZZ

*👉🏻ICAI, SAICA sign pact to facilitate professionals movement*
(ICAI  has signed a pact with its South African counterpart to establish a framework for making recognition of their members easier and promote mobility of professionals between the countries)
👇🏻 👇🏻 👇🏻
https://goo.gl/A6Z28v

*👉🏻Online Facility for members to update Email ID, Mobile & Address - ICAI*
(ICAI has launched an Online Form for Members by which they can update their Mobile number and e-mail ids which are currently available in ICAI records)
👇🏻 👇🏻 👇🏻
https://goo.gl/T41Ai1

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IBBI lays down Guidelines for Appointment of Insolvency Professionals as Interim Resolution Professionals or Liquidators* [Read Guidelines]

Read more at: http://www.taxscan.in/ibbi-guidelines-appointment-insolvency-professionals-resolution-professionals-liquidators/24275/
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Penalty paid to Stock Exchange is a regular Business Expenditure: ITAT allows Deduction* [Read Order]

Read more at: http://www.taxscan.in/penalty-stock-exchange-business-expenditure-itat/24269/
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*Insurance Company eligible for Credit of Service Tax paid on Repairs and Maintenance of Insured Vehicles by Authorized Service Stations: CESTAT* [Read Order]

Read more at: http://www.taxscan.in/insurance-company-credit-service-tax-vehicles-cestat/24283/
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*President approves Promulgation of Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018* [Read Ordinance]

Read more at: http://www.taxscan.in/president-promulgation-insolvency-bankruptcy-code-amendment-ordinance-2018/24298/
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GST Gyan-Note change in date of filing GSTR-1 which is to be filed in 10 days from monthend. File May GSTR-1 by 10 June. Pay GST & file GSTR-3B by 20 June.