# *ICAI* to host World Congress on International Federation of Accountants (IFAC) in 2022, the year India’s 75th year of Independence.
# *ICAI*: Message from Hon’ble PM of India to the CAs fraternity on the Occasion of CAs Day. Link at: https://www.icai.org/new_post.html?post_id=14875&c_id=240.
# *GST*: FM Jaitley hints at rationalizing GST Rates as Revenue Surge to almost 1 Lac Crore a month as India celebrates the 1st Anniversary of GST launch, on 1st July, 2018.
# *MCA*: With an intent to update the registry, MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC to be notified and deployed shortly on the MCA portal.
# *TDS*: Furnishing of PAN by the GTA – S.194C(6) & 194C(7) are independent of each other and cannot be read together to attract disallowance u/s.40(a)(ia) r.w.s.194C of the Act – ACIT Vs. Eagle Steel Ind. Pvt. Ltd. (2018 (6) TMI 1509 - ITAT Ahd.)
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CBDT launched the allotment of E-PAN. The facility will be available free of cost. This facility, open for a limited period of time, is available only for resident individuals holding a valid Aadhar. No physical document is required to be submitted and you simply need to fill your Aadhar and upload the signature.
Due date to link Aadhaar with PAN extended till 31.03.2019.
CBDT clarified that foreign companies that have their place of effective management (POEM) in India will be taxed at 40%, plus applicable surcharge and cess.
Income Tax Due Date for Payment of TDS for the month of June, 2018 is 7th July, 2018.
MCA notified that Every Director (including Disqualified Director) who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August, 2018.
RBI Enforcement action framework in respect of statutory auditors for the lapses in the statutory audit of commercial banks. - vide Press Release: 2017-2018/3425 - (29/06/2018)
RBI Due Date of filing of Return on Foreign Liabilities and Assets (FLA) is 15th July, 2018.
North Delhi Municipal Corporation has extended the last date for payment of property tax and availing the rebate of 15% from June 30 to July 15.
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Its my immense pleasure to share AV-Film Featured by Mr Boman Irani on glorious history of 70 years of ICAI and CA Fraternity at large.
*Proud to be CA*
https://m.youtube.com/watch?feature=share&v=M-ubz-wryWo
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GST:
1. *Maharashtra AAR-* *Purchases from overseas related party-* The goods sold on high sea sale basis are non-taxable and exempt supply under the CGST Act and the input tax credit to the extent of inputs, input services and common input services is required to be reversed by the applicant as per Section 17 of the CGST Act.
*2018-VIL-85-AAR*
2. *Advance Ruling Authority-* GST is applicable on the compensation for alternate accommodation received by the tenant. GST is also applicable on the compensation for delayed handover of possession of the new premises received by the tenant from the developer/owner.
*2018-VIL-86-AAR.*
*Central Excise:*
3. *SSI Exemption-* The parts of refrigerators and air conditioners produced by small scale units are squarely applicable to the products manufactured by them. The aggregate value of clearances of the appellants are held to be clubbed and benefit of exemption of Notification No.75/87 is allowed to be taken.
*2018-VIL-460-CESTAT-MUM-CE.*
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Aadhaar-Based Instant PAN Allotment System Launched by Income Tax Department Read in
Press Trust of India, 02 July 2018
Aadhaar-Based Instant PAN Allotment System Launched by Income Tax Department
The Income Tax department has launched an 'instant' Aadhaar-based PAN allotment service for individuals seeking to obtain the unique identity for the first time.
"This facility is free of cost and instant allotment of e-PAN is available only for a limited period on first-come-first-serve basis for valid Aadhaar holders," the department said in a recent advisory. A senior official said the new facility has been introduced in view of an increasing number of people applying to obtain the Permanent Account Number (PAN) for their financial and tax matters.
A fresh PAN will be allotted on the basis of a one-time password (OTP) sent over the "active mobile number" linked with the valid Aadhaar number of a person, the advisory said. The new PAN, obtained by this mechanism, will have the same name, date of birth, gender, mobile number and address that is present in the individual's Aadhaar, it said.
"The e-PAN facility is only for resident individuals and not for Hindu Undivided Family (HUF), firms, trusts and companies etc," it said.
Once the PAN is allotted to an applicant through his electronic Aadhaar-based verification system in a few seconds, the applicant will be sent the PAN card by post in sometime, the official said. "This is one more initiative that leverages the Aadhaar database to quickly disburse/allot a government service," he said. The process can be done at the official portal of the department.
The Central Board of Direct Taxes (CBDT), which makes policy for the Income Tax department, had yesterday extended the deadline for the PAN-Aadhaar linking to March 31 next year. This is the fifth time it has extended the deadline for individuals to link their PAN to their biometric ID (Aadhaar). According to Section 139 AA (2) of the Income Tax Act, every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities. While Aadhaar is issued by the Unique Identification Authority of India (UIDAI) to a resident of India, PAN is a 10-digit alphanumeric number allotted by the I-T department to a person, firm or entity.
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# *PAN*: Due date of linking Aadhaar with PAN has been extended till 31.03.2019.
# *NPAs*: FM Piyush Goyal has accepted a report submitted by a committee of bankers led by PNB chairman Sunil Mehta, the project *Shashakt*, a 5-point strategy to deal with NPAs - SME resolution, bank-led resolution, AMC/AIF led resolution, NCLT / IBC and asset-trading platform approach.
# *CBEC* has issued a circular to all its officers and Commissionerate for Non-Initiation / Delay in recovery Proceedings as per the Audit Reports of CAG of India.
# *GST*: Levy of IGST - High Seas Sale - Goods purchased from overseas related party situated abroad based on purchase order received from its customers and sold when in transit to its customers before the goods are entered for customs clearance in India - NO IGST - However, ITC is required to be reversed – AAR in BASF India Ltd. (2018 (7) TMI 53).
# *IT*: When there is a sufficient evidence seized material which corroborates the statement of the assessee recorded u/s 132(4) then the subsequent retraction of the statement by the assessee without any corroborating evidence cannot be accepted – Gopal S. Pandit Vs. CIT & DCIT, CC (2018 (7) TMI 51 - Karnataka HC).
# *IT*: Addition towards consideration recd. for sale of shares as unaccounted income - application of rules of ‘Suspicious Transaction’ - transactions were through d-mat format – Additions u/s 68 deleted – Prakash Chand Bhutoria Vs. ITO (2018 (7) TMI 46 - ITAT Kolkata).
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CBDT extended the deadline for the PAN-Aadhaar linking to March 31-2019. The policy-making body of the tax department issued an order, under Section 119 of the Income Tax Act, extending the deadline.
CBDT was not justified in rejecting application for condonation of delay in filling return where assessee had uploaded return sometime past 00:00 hours of the last date as extended as the assessee has encountered certain hardship in uploading his return. CBDT & Ors. vs. Regen Infrastructure & Services (P) Ltd. ( High Court – Madras)
GST implementation has resulted in an increase in direct tax collections with 44 per cent rise in advance tax collections in April-June quarter, despite challenges to the global economy, demonetization and anti-black money measures, direct tax collection has gone up 18 per cent and the impact of GST was not fully visible last year.
MCA crackdown on shell companies: As many as 1,313 “listed” entities that have failed to file their annual reports for two years face the prospect of being struck off the registrar of companies’ (RoC) database. The move is a continuation of the MCA efforts to weed out shell companies.
The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets on or before 15TH JULY, 2018.
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ICAI may lose powers if draft rules to set up NFRA are approved
NFRA will have power to review, inspect, probe, oversee the quality of service of professionals
Draft NFRA rules prepared by the ministry of corporate affairs propose sweeping powers for the new accounting regulator. Photo: Mint
Draft NFRA rules prepared by the ministry of corporate affairs propose sweeping powers for the new accounting regulator.
The draft rules for establishing a new body to oversee auditing and accounting standards under the National Financial Regulatory Authority (NFRA) will render the Institute of Chartered Accountants of India (ICAI) ineffective as the new watchdog will require auditors to register with it before taking up auditing work.
It has also prescribed a code of conduct and governing principles for auditors. The regulator will have powers to cancel registration of the auditor in case of a violation.
“Draft NFRA rules prepared by the ministry of corporate affairs propose sweeping powers for the new accounting regulator, likely to render ICAI toothless if passed in present form,” said a chartered accountant who did not want to be identified.
The proposed norms, a copy of which has been reviewed by Mint, include registering auditors, recommending accounting and auditing standards, a task which is currently being performed by the self-regulatory body, ICAI.
ICAI will be required to submit recommendations on the “new” accounting standards or for amending the existing standards. NFRA will consider those before presenting them to the corporate affairs ministry for implementation.
NFRA will have power to review, inspect, investigate, oversee the quality of service of professionals and will also cooperate with national and international organizations and regulators to ensure compliance with accounting standards, say the draft norms.
“The rules provide for a clear separation of the regulator from those regulated, since complaints are to be decided by the full-time chairman and members with no role for the ICAI. Therefore, the regulator’s independence will inspire public trust and confidence in its decisions,” said R. Narayanaswamy, professor of finance and accounting at Indian Institute of Management, Bangalore.
Auditors of listed companies, public sector banks, government entities will also come under the NFRA. “Those deemed as not “fit and proper” people will not be eligible for registration with NFRA, say the draft rules.
“It is good that NFRA will also regulate the auditors of public sector banks and other government entities. Bank auditors have outrageously failed to detect and report persistent understatement of bad loans and enormous frauds. In fact, NFRA should investigate bank audit quality on priority,” said Narayanaswamy.
Separately, on Friday, the Reserve Bank of India, or RBI, issued a circular on graded enforcement action framework for bank auditors for a transparent mechanism to examine accountability of statutory auditors in a consistent manner. In a departure from the earlier stance, Reserve Bank of India (RBI) will hold auditors responsible for asset classification and provisioning divergences observed during RBI inspection. The auditors would be questioned, examined and later penalized if lapses are found.
To instil accountability, NFRA can recommend penal action against auditors if they are found non-compliant or there are lapses in their duties. “If the Authority (NFRA) finds or has reason to believe that any law or professional or other standard has or may have been violated by an auditor, it may decide on the further course of investigation or enforcement action,” said the draft norms.
“These steps will compel corporate accountants to adopt responsible accounting and disclosure practices. From now on, auditors will have to assess the costs and risks of accepting large company audits. These include reputational damage,t financial penalties and a lifetime ban on auditing, besides criminal penalties,” said Narayanaswamy.
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No E-Way Bill in Maharashtra for Intra-State Supply of Goods worth below Rs. 1 lakh* [Read Notification]
Read more at: http://www.taxscan.in/e-way-bill-maharashtra-intra-state-supply-goods-rs-1-lakh/25286/
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No Service Tax Incentives to Car Dealer for Providing Space to Bank Representatives to process Loans: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/service-tax-incentives-car-dealer-providing-space-bank-representatives-loans-cestat/25262/
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*Assessee cannot change Option to pay Service Tax in the middle of a FY: CESTAT denies SSI Exemption to Chartered Accountant* [Read Order]
Read more at: http://www.taxscan.in/assessee-change-option-service-tax-cestat-denies-ssi-exemption-chartered-accountant/25257/
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*Demand under GTA Services can’t made in the absence of Consignment Notes: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/demand-gta-services-consignment-notes-cestat/25267/
