Sale Consideration once Taxed u/s 45 can’t again assessable as Unexplained: ITAT* [Read Order]
Read more at: http://www.taxscan.in/sale-consideration-taxed-unexplained-itat/24289/
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*Addition based on mere Statements during Survey is Invalid without Tangible Materials: ITAT* [Read Order]
Read more at: http://www.taxscan.in/addition-statements-survey-tangible-materials-itat/24267/
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Penalty paid to Stock Exchange is a regular Business Expenditure: ITAT allows Deduction http://www.taxscan.in/penalty-stock-exchange-business-expenditure-itat/24269/
The President of India gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 which will give relief to Home Buyers and SMSE.
RBI voted unanimously to hike repo rate by 25 basis points, in a first interest rate hike in a four-and-a-half year, citing a major upside risk to the baseline inflation on the back of high crude oil price. The central bank said that there was a 12% increase in the price of Indian crude basket, which was “sharper, earlier than expected and seems to be durable”
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)
Online Facility for members to update Email ID, Mobile & Address - 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.
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# *GST*: MoF clarifies GST rate to be applicable @ 12% on Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips – Cir.No.46/20/2018-GST, dt.06.06.2018.
# *MCA* asks auditors of listed companies to report reason for quitting the audit assignment.
# *IBC*: President of India promulgates IBC ordinance. Now the home buyers to be treated as FC and Non-Willful defaulter promoters of MSMEs does not disqualify from bidding for his enterprise undergoing CIRP.
# *IBC*: IBBI has issued Insolvency Professionals to act as Interim Resolution Professionals or Liquidators (Recommendation) Guidelines, 2018.
# *RBI* has tightened the rules for remitting money abroad under the Liberalised Remittance Scheme (LRS) and has made *PAN mandatory* for anyone using this scheme.
# *RBI* hikes Repo Rate & Reverse Repo Rate by 25 BPS (0.25%) to 6.25% & to 6.00% respectively, the first hike in 4 years (8.00% in Jan, 2014).
# *IT*: It is necessary that the AOs having concurrent jurisdiction ensure that only one of them proceeds and adjudicate. This is the purport and objective behind Section 124 (2) of the Act (transfer of case from one ward to another ward).
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*👉🏻RBI to take over J&K Bank Audit from CAG*
(RBI has informed the CAG that henceforth the central bank alone will audit the Jammu and Kashmir Bank. J&K Bank was the only one which the CAG was auditing)
👇🏻 👇🏻 👇🏻
https://goo.gl/3cwZrW
*👉🏻Govt to probe Auditor Resignations from listed Indian Companies*
(MCA to seek reasons for exit of auditors in the last few months from the companies with close to 15 cases coming under the scanner)
👇🏻 👇🏻 👇🏻
https://goo.gl/CvakyR
*👉🏻RBI gives big relief to MSME sector*
(In continuation of support and relief to MSMEs, NPA recognition for GST and non GST MSMEs now at 180 days for dues up to December 31, 2018)
👇🏻 👇🏻 👇🏻
https://goo.gl/ZSB11A
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*Construction Services by Individual Service Provider not Taxable prior to 01.05.2006: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/construction-services-individual-service-provider-cestat/24272/
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25% Depreciation allowable on Intangible Asset of Licence for running Container Trains on Indian Railways: ITAT* [Read Order]
Read more at: http://www.taxscan.in/depreciation-intangible-asset-licence-trains-indian-railways-itat/24320/
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Priority Sector Lending Certificates, Renewable Energy Certificates etc attract Nil GST: CBIC* [Read Circular]
Read more at: http://www.taxscan.in/priority-sector-lending-certificates-renewable-energy-gst-cbic/24323/
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GST: Govt introduces PAN-Based Refund Clearance for Exporters*
Read more at: http://www.taxscan.in/gst-pan-based-refund-clearance-exporters/24333/
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CBDT dedicates Fortnight for Disposal of Pending Appeals*
Read more at: http://www.taxscan.in/cbdt-dedicates-fortnight-disposal-pending-appeals/24338/
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# *IBC*: Other Major changes in IBC Ordinance:
• Withdrawal of CIRP permissible only with the approval of the Committee of Creditors with 90 percent of the voting share.
• Furthermore, such withdrawal will only be permissible before publication of notice of EOI
• The voting threshold has been brought down to 66 percent from 75 percent for all major decisions
• Further, in order to facilitate the corporate debtor to continue as a going concern during the CIRP, the voting threshold for routine decisions has been reduced to 51%.
• The Resolution Applicant shall submit an affidavit certifying its eligibility to bid. This places the primary onus on the resolution applicant to certify its eligibility.
• Minimum one-year grace period for the successful resolution applicant to fulfill various statutory obligations.
• Non -applicability of moratorium period to enforcement of guarantee
• Special resolution for corporate debtors to themselves trigger insolvency.
# *IT*: Addition u/s 68 is not called for as such because it is a case where one asset gets replaced by another asset and not of cash credit – ITO Vs. Shikha Khandelwal (2018 (6) TMI 294 - ITAT Delhi).
# *IT*: Disallowance of brokerage u/s 48 - burden was on the assessee to demonstrate that the expenses had been incurred - brokerage commission is paid by way of a cheque - deduction allowed – Pr. CIT Vs. Sarita Arora (2018 (6) TMI 297 - Calcutta HC).
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Advisory in relation to GST before finalising the Books of Accounts for Income Tax purpose
Financial Year 2017-18 has ended on 31.03.2018 and we are all on the verge of finalising Books of Accounts for that period. Before finalisation of Books of Accounts for the purpose of Income Tax, Companies Act following things are to be taken care of in relation to GST. You all are advised to look upon these details before finalising the Books of Accounts:-
1. A complete reconciliation to Sale declared under GSTR-1 and GSTR-3B vis-à-vis books of accounts is to be made. If there is any difference between GSTR-1 and GSTR-3B, then the either of the 2 should be rectified in the current period. Differences in relation to previous periods could be adjusted by amending GSTR-1 during filing for current period (month).
2. Mistakes, if any in GSTR-3B should be adjusted in subsequent periods GSTR-3B. If any sales are reducing/increasing then the same must be adjusted in the current tax periods and tax should also be adjusted accordingly.
3. All the purchases and corresponding credits are to be checked and verified with GSTR-3B. Balance of books and Online Electronic Credit Ledger should be matched in entirety. Any difference should be adjusted in books or GSTR-3B accordingly.
4. *Reversal of Credits*: - If there are any exempted supplies, then the credits are to be reversed as advised under Rule 42 and 43. In case of Non business use also the credits are to be reversed to the extent of 5% in case of capital goods.
5. *Reversal of credits where Higher Duty Draw Back and ROSL have been claimed*:- During the period in which higher duty Draw back and ROSL were availed (i.e. July – September, 2017), No credit availed in relation to material exported during that period could be taken in the Books of Accounts. Such credits need to be reversed in GSTR-3B and books of accounts as well. If such credits are not reversed, then the Higher Duty Draw back claim may be in jeopardy and you may face customs notices for refund back of such duty draw back.
6. *Refund if already taken*:- If a refund GST of period July-September, 2017 has already been taken from GST department, then the same should be immediately refunded back to the department so that there is no case of refund of higher duty draw back and ROSL to the customs department.
7. *Reversal of Credit where Payment is not made within 180 Days*:- All the payments to vendors are to be made within 180 days of his Invoice. If payment is not made to the vendor within 180 of his Invoice then the credit in relation to that Invoice needs to be reversed alongwith an interest @ 24% p.a. from the date of taking such credit till the date of final reversal.
*It is worth to note here that as soon as the payment is made against such Invoice, such reversed credit can be taken again.*
8. *RCM Payment is to be made*:- Reverse Charge Mechanism was applicable on goods or services taken from transporters, Advocates and all the unregistered persons. W.e.f. 13.10.2017, such Reverse charge in relation to unregistered persons was withdrawn. However reverse charge in relation to transporters and Advocates (and some other services) is still continuing. Thus it is pertinent to note the following :-
a. Reverse Charge in relation to all the unregistered persons were paid upto 13.10.2017
b. Reverse Charge in relation transporters and advocates etc are paid till date continuously.
*If such Reverse Charges are not paid then they should be given in current periods GSTR-3B and recorded in the books of accounts accordingly.*
9. *Checking Input Tax Credit in relation to denied supplies*:- Items as per attached list are denied for the purpose of taking credit. Such credits should not be taken. If any of such credits have been taken, then they should be removed from the books of accounts and GSTR-3B.
10. *Checking for any pending ITC*:- Any ITC which was related to the year 2017-18 and which could not be taken due to non-receipt of Invoices or non-receipt of material, then such credit should be taken before the month of September-2018. After that period such credit could not be taken in anyway.
11. *Checking for any pending liabilities*:- If any liability is pending which could not be declared in the return then the same is also to be deposited in time before finalisation of books of accounts.
12. *Pending Credit/Debit notes*:- Any pending debit/credit notes should also be finalised before finalisation of books of accounts and should be declared in the return before the month of September, 2018.
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CBDT dedicates Fortnight for Disposal of Pending Appeals. Read more at: http://www.taxscan.in/cbdt-dedicates-fortnight-disposal-pending-appeals/24338/
Central Govt has decided to make PAN mandatory for remitting money abroad as the RBI has decided to stringent norms for Liberalized Remittance Scheme (LRS) as per which, anyone who is utilizing the scheme will now have to share PAN details – something that was not applicable earlier with regards to CA transactions up to $25,000.
RBI extended loan repayments deadline to 180 days from the due date without being classified as a non-performing asset. This latest announcement comes after the regulator’s April diktat which had allowed GST registered MSME borrowers with a turnover of up to Rs. 25 crore to delay loan repayments by 180 days.
Sebi extended the date for submission of Aadhaar details by those investing in capital markets till a final judgment by the Supreme Court on proposed mandatory linking of 12-digit unique ID for all financial dealings.
MCA has sought details from some auditor companies, which resigned their assignment after the companies concerned had reportedly refused to give them adequate information. Officials said explanations had been sought from auditors in 15-odd cases.
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Re-Opening of Assessment without Application of Mind is Invalid: ITAT [Read Order]
Read more at: http://www.taxscan.in/re-opening-assessment-application-mind-invalid-itat/24341/
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Filing of Return before Due Date u/s 80AC is Mandatory, not Directory: ITAT* [Read Order]
Read more at: http://www.taxscan.in/filing-return-due-date-mandatory-itat/24348/
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Shell Companies: Around 2,25,910 Companies identified for being Struck-off this Year, Says Finance Ministry*
Read more at: http://www.taxscan.in/shell-companies-companies-struck-off-finance-ministry/24401/
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*Services of Transportation, In-transit Insurance & Loading/unloading, being ancillary to Principal Supply of Goods subject to GST*: AAR [Read Order]
Read more at: http://www.taxscan.in/transportation-transit-insurance-supply-goods-gst-aar/24394/
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12% GST applicable on “Printing of Photographs from Media”: AAR* [Read Order]
Read more at: http://www.taxscan.in/gst-printing-photographs-media-aar/24384/
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*Generation of E-Way Bill Depend On Interstate-Movement of Goods, Not Supply: CBIC* [Read Circular]
Read more at: http://www.taxscan.in/e-way-bill-interstate-movement-goods-supply-cbic/24407/
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No TDS since Commission Income of Foreign Agent not Taxable in India: ITAT* [Read Order]
Read more at: http://www.taxscan.in/tds-commission-income-foreign-agent-taxable-itat/24365/
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ITAT Allows Remuneration to Lady Directors though they are not involved in Pure Managerial or work of Company* [Read Order]
Read more at: http://www.taxscan.in/itat-remuneration-lady-directors-company/24412/
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*Contract of Erection and Commissioning of the Boiler are Not Excisable: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/contract-erection-commissioning-boiler-excisable-cestat/24377/
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*Income Tax E-Filing Issues: Taxation Bar Association, Ludhiana writes to CBDT* [Read Memorandum]
Read more at: http://www.taxscan.in/income-tax-e-filing-taxation-bar-association-ludhiana-writes-cbdt/24418/
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No Addition where ‘Volume’ used as the Allocation Key for Expenses directly Proportional to the Volume of Shipments Handled: ITAT* [Read Order]
Read more at: http://www.taxscan.in/addition-volume-allocation-key-expenses-shipments-handled-itat/24423/
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When appoint please make a call.
*Alternative to IAS? Modi govt opens lateral entry for professionals as Joint Secretaries; details here*
In a bid to rope in the expertise of private sector professions, PM Narendra Modi-led Union government has notified 10 positions of joint secretaries through 'lateral scheme.' Vinay Mittal
By: Rajeev Kumar
New Delhi: Prime Minister Narendra Modi being presented a plant as Union Minister for Environment, Forest and Climate Change, Harsh Vardhan, look on during the Plenary Session of World Environment Day, in New Delhi on Tuesday, June 05, 2018. (Atul Yadav/PTI Photo)
In a bid to rope in the expertise of private sector professions, PM Narendra Modi-led Union government has notified 10 positions of joint secretaries through ‘lateral scheme.’ Generally, senior bureaucrats are appointed as joint secretaries in several government departments. Any private sector professional with 15 years of work experience in any of the 10 fields like civil aviation, commerce, economic affairs can apply for the posts. The age of the candidate should not be less than 40 years.
In a notification, the Department of Personnel and Training, Government of India, said the lateral entry scheme for appointing joint secretaries has been started to “invite talented and motivated Indian nationals willing to contribute towards nation building to join the Government.”
“The proposal of lateral entry is aimed at bringing in fresh ideas and new approaches to governance and also to augment manpower,” it added.
Expertise required: Candidates with expertise in specific areas like Revenue, Financial Services, Economic Affairs, Agriculture, Road Transport & Highways, Shipping, Environment & Forests, New & Renewable Energy, Civil Aviation and Commerce can apply.
*About Joint Secretary:*
As per DoPT: “A Joint Secretary is the head of the wing under the charge of Secretary of the Ministry/ Department and he/she reports to Additional Secretary/ Secretary. Joint Secretaries are at a crucial level of senior management in the Government of India. They lead policymaking as well as the implementation of various programmes and schemes of the Department.”
The Lateral Entry is applicable for both private sector professions and those from state governments, Union Territories, PSUs, Autonomous bodies etc.
According to DoPT: The candidates from State Governments/Union Territories Administration, Central/State PSUs/Autonomous Bodies etc. set up or controlled by Central/State Governments shall be appointed on deputation (Including Short Term Contract) with lien in the parent department. The candidates from Private Sector Organisations, International/Multinational Organisations etc., shall be appointed on contract basis.”
*Criteria:*
Age: Minimum of 40 years as on July 1, 2018
Qualifications: Graduate from a recognized University/Institute. Higher qualifications would be an added advantage
*Who can apply:*
a. Officers of any State/UT Government who are already working at equivalent level or are eligible for appointment to equivalent level in their cadre, with relevant experience.
b. Individuals working at comparable levels in Public, Sector Undertakings (PSUs), Autonomous Bodies, Statutory Organisations, Universities, Recognized Research Institutes with a minimum of 15 years experience.
c. Individuals working at comparable levels in Private Sector Companies, Consultancy Organisations, International/Multinational Organisations with a minimum of 15 years experience.
*Duration of contract:* Three years from the date of commencement, extendable up to 5 years on the basis of performance.
*Salary/Compensation:* Rs.144200-218200 per month (Level 14 of Pay Matrix) and allowances, facilities applicable to an equivalent level in Government of India.
*Selection Process*: Shortlisted candidates will be called for a personal interaction with the Selection Committee.
*Deadline:* July 30, 2018 till 05:00 PM IST. All applications may be submitted online at https://Lateral.nic.in from 15th June, 2018 to 30th July, 2018 till 05:00 PM IST. No extension of time will be given under any circumstances.
Apply online only at https://Lateral.nic.in. No physical application will be accepted.
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Indian Valuation Standards of ICAI effective for Valuation Reports issued on or after 1st July, 2018*
Read more at: http://www.taxscan.in/indian-valuation-standards-icai-effective-reports-july/24434/