CBDT Chief Slams High-Pitched Assessment Committee For Inaction – Errant AOs To Be Subject To Transfer & Disciplinary Action
Hon’ble Sushil Chandra, the Chairman of the CBDT, has written an irate letter dated 4th July 2018 to the Principal Commissioners in which he has stated that the ‘High Pitched Scrutiny Assessments Committee’ which was set up amidst much pomp and show, has been a non-starter. The learned Chairman has directed the PCsITs to get their act in order and ensure that the Committee does its work as intended.
The learned Chairman has also directed that AOs who are found guilty of making high-pitched additions on frivolous grounds, non-observance of principles of natural justice, non-application of mind, gross negligence etc should be transferred without any delay and subjected to disciplinary action.
It is also stated that no coercive action should be taken for recovery of demand in such high-pitched assessments.
It may be recalled that the said ‘High Pitched Scrutiny Assessments Committee’ was set up pursuant to the solemn promise by Prime Minister Narendra Modi that AOs would no longer be allowed to run amok and hold taxpayers to ransom.
The CBDT has earlier issued an Office Memorandum setting out 12 steps that have to taken by the department to ensure a “non-adversarial tax regime”. Assessing Officers are prohibited from issuing “long and non-specific questionnaire” and making assessments without proper basis.
Letter of CBDT chief ⬇
.
=============>
.
CBDT clarified that Income Tax refunds worth over Rs 70,000 crore have been issued to the taxpayers and nearly all refund claims pending as on June-end has been processed.
CBDT has issued the Final Notification (applicable from AY 2017-18) for exception, modification and adaptation in respect of a foreign company said to be resident in India due to its place of effective management (POEM) being in India, under Section 115JH of the Income-tax Act, 1961 (the Act).
Income tax dept made record recoveries of Rs 1 trillion in 2017-18, contributing 10 per cent to the total direct tax collection last financial year. IT dept resorted to a slew of coercive measures like selling assets, which resulted in 33 per cent growth in arrears and tax recovery.
Income Tax department has issued various ITR forms for different kind of tax payers. Even for individuals, there are 4 ITR forms meant for different filings. July 31 is deadline for filing your income tax returns.
Union Cabinet has given its ex-post facto approval for the MOU signed in 2014 and approval for renewal of MOU between ICAI & Saudi Organization for Certified Public Accountants (SOCPA) to promote mutual co-operation framework in the areas of Corporate Governance, Technical Research & Advice, Quality Assurance, Forensic Accounting, issues for Small and Medium-Sized Practices (SMPs) etc.
China, UAE, Cyprus and significantly, Mauritius, along with 21 other countries have been tagged as “high-risk jurisdictions” by global banks acting as custodians for foreign funds which comprise the largest group of investors in the Indian stock market.
IBBI has notified revised norms for insolvency resolution process paving the way for home buyers to seek relief as financial creditors, putting in place clear timelines to be followed by resolution professionals and permitting withdrawal of insolvency applications subject to certain conditions.
.
=============>
.
CBIC directs Officials to Co-Operate with Govt Counsels in Petitions against GST* [Read Instructions]
Read more at: http://www.taxscan.in/cbic-directs-officials-co-operate-govt-counsels-petitions-gst/25495/
.
=============>
.
*Income Tax Dept cautions Government Servants to File Income Tax Returns within Due Date* [Read Circular]
Read more at: http://www.taxscan.in/income-tax-dept-cautions-government-servants-file-income-tax-returns-due-date/25509/
.
=============>
.
IT Rules permit Cash Purchase of Alcohol Liquor for Human Consumption from Authorized Distributor of State Govt: ITAT* [Read Order]
Read more at: http://www.taxscan.in/cash-purchase-alcohol-liquor-human-consumption-itat/25483/
.
=============>
.
Income received under Leave and License Agreement is Business Income: ITAT allows Administrative Expenses* [Read Order]
Read more at: http://www.taxscan.in/income-received-leave-license-agreement-business-income-itat-administrative-expenses/25470/
.
=============>
.
IBBI
The Insolvency and Bankruptcy Board of India (IBBI) has notified, the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018 which shall come into force on the date of their publication in the Official Gazette and shall apply to corporate insolvency resolution processes commencing on or after the said date. The regulations provide for a model timeline of the corporate insolvency resolution process assuming that the interim resolution professional is appointed on the date of commencement of the process and the time available is 180 days. The salient amendments to the regulations includes, constitution of the panel of insolvency professionals to act as the authorised representative of creditors in each class, if the corporate debtor has classes of creditors having at least ten creditors in the class; An application for withdrawal of an application admitted under Section 7, 9 or 10 of the Code (for closure of corporate insolvency resolution process) may be submitted, if the application is approved by the CoC with 90% voting share; Where the appointment of resolution professional is delayed, the interim resolution professional shall perform the functions of the resolution professional from the fortieth day of the insolvency commencement date till a resolution professional is appointed. Further, a meeting of the CoC shall be called by giving not less than five days’ notice in writing to every participant. The CoC may, however, reduce the notice period from five days to such other period of not less than forty-eight hours where there is any authorised representative and to twenty-four hours in all other cases.
CBDT
The CBDT has issued the Final Notification (applicable from AY 2017-18) for exception, modification and adaptation in respect of a foreign company said to be resident in India due to its place of effective management (POEM) being in India, under Section 115JH of the Income-tax Act, 1961 (the Act). The Finance Act, 2016, inter alia, introduced special provisions in respect of foreign company said to be resident in India on account of Place of Effective Management (PoEM) by way of insertion of a new Chapter XII-BC consisting of Section 115JH in the Income-tax Act, 1961 (the Act) with effect from 1st April, 2017. The foreign company is said to be resident in India on account of its Place of Effective Management (PoEM) being in India in any previous year, then, notwithstanding anything contained in the Act, the provisions of the Act relating to the computation of total income, treatment of unabsorbed depreciation, set off or carry forward and set off of losses, collection and recovery and special provisions relating to avoidance of tax shall apply to the foreign company for the said previous year with exceptions, modifications and adaptations as provided in the notification.
.
=============>
.
CBIC Amends Anti-profiteering Rules* [Read Notification]
Read more at: http://www.taxscan.in/cbic-anti-profiteering-rules/25544/
.
=============>
.
Are CAs and Advocates’ eligible to become GST Tribunal Members?: Delhi HC issues Notice on Petition challenging GST Provisions ?
CA's & Advocate's are not eligible to become GST Tribunal Members- Provisions* Challenged in writ petition
Delhi High Court issued notices to State/ Centre/ GST Council in petition challenging the constitutional validity of the provisions of CGST Act 2017 and corresponding DGST provisions relating to the constitution of GST Tribunal and qualification of their members.
In the court of:
Hon'ble Justice Sanjiv Khanna
Hon'ble Justice Chander Shekhar
In the matter of:
Bhartiya Vitta Salahkar Samiti
Vs
Union of India & Ors
{W.P. (C) 6900/2018}
Writ petition under article 226 and 227 has been filed challenging section 109 and 110 of the CGST act and corresponding DGST act as voilative of article 14 and 19(1)(g) of the constitution.
That the following major grounds has been taken in the writ petition filed-
1. The number of technical members on the bench are always higher than the number of judicial members, which is voilative of supreme court directives.
2. Appointment of officers of Indian Legal Services as judicial members would affect the very purpose of the Tribunal and voilative of supreme court directives.
3. There is no provision for Advocates to become GSTAT Judicial members and also no provision for CA's to become Technical members, which is voilative of supreme court directives and impact on the functioning of final fact finding authority GSTAT.
4. Qualification for becoming technical member is less than the qualification required in case of first appellate authority, which is grossly voilative of rule of law.
5. Provisions providing selection committee, appointment, re‑appointment, transfer, term and removal of members for technical and judicial members, are in violation of the doctrine of separation of powers as there is complete control and discretion of the government in the said sphere.
.
=============>
.
Brief about Changes made by MCA:
1. Every DIN holder obtained DIN in a financial year, is required to file eForm DIR KYC before 30th April every year at no fees, if not filed then fees of Rs. 5000 will be levied. Also, for current financial year, same can be filed till 31st August, 2018 at no fees, if not filed till 31st August 2018, then fees of Rs. 5000 will be incurred, otherwise DIN shall be deactivated.
2. Deposit related changes commenced penalty rationalised DPT 1 certificate introduced.
3. CHG 4 within 300 days instead of 30 days.
.
=============>
.
From 10th July KYC Drive through the e-form DIR-3KYC be operational*.
MCA is conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC
✔ Every Director who has been allotted DIN on or before 31st march, 2018 and whose DIN status is ‘Approved’.
✔ Due date of filing of DIR-3KYC is on or before 31st August, 2018.
✔ Mandatory Information DIR-3 - Unique Personal Mobile Number
Personal Email ID.
OTP on Email ID and Mobile No.
✔ Certification of DIR-3 KYC-
DSC of Director
DSC of practicing professional (CA/CS/CMA
✔ Filing of DIR-3 KYC would be mandatory for Disqualified Directors
✔ If director fails to file DIR-3 KYC the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’
✔ There will be following Consequences of filing of DIR-3 KYC after due date, After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.
✔MCA has notified 5 July 2018 and 15 Aug. 2018 as the Effective Date for Various Sections of the Companies (Amendment) Act, 2017, i.e. the date on which provisions of such sections shall come into force/ effect.
✔MCA notifies 'Nil Fee' and 'Delayed Fee of Rs. 5,000' for Filing e-Form DIR-3 KYC under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, applicable w.e.f. 10 July 2018
✔MCA notifies format of e-form DIR-3 KYC under new Rule 12A (Directors KYC) along with procedure for restoration of deactivated DINs of Directors, applicable w.e.f. 10 July, 2018
.
=============>
.
ICAI - Educational Material on Ind AS 27, Separate Financial Statements and Ind AS 28, Investments in Associates and Joint Ventures - (03-07-2018) - https://www.icai.org/new_post.html?post_id=14878&c_id=240
.
=============>
.
MCA has notified 5 July 2018 and 15 Aug. 2018 as the Effective Date for Various Sections of the Companies (Amendment) Act, 2017, i.e. the date on which provisions of such sections shall come into force/ effect*
*MCA notifies 'Nil Fee' and 'Delayed Fee of Rs. 5,000' for Filing e-Form DIR-3 KYC under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, applicable w.e.f. 10 July 2018*
*MCA notifies format of e-form DIR-3 KYC under new Rule 12A (Directors KYC) along with procedure for restoration of deactivated DINs of Directors, applicable w.e.f. 10 July, 2018*
.
=============>
.
CBIC has developed a mobile app 'GST Verify' to protect interest of consumers. It is an android app to verify if the person collecting GST from the consumer is eligible to collect it or not. It also provides the details of the person collecting GST.
Electricity bills can have GST component at times. Non-tariff charges, which include application fee for releasing connection, rentals charged against metering equipment and labour charges for shifting of meters and service lines, are liable to taxed at 18% under the GST.
MCA system will be intermittently unavailable from Saturday, 7th July 2018 08.00 am to Saturday, 7th July 2018 6.00 pm IST due to maintenance activity.
RBI has decided to put in place a graded enforcement action framework to enable appropriate action in respect of statutory auditors for any lapses observed in conducting a bank’s statutory audit. The framework would cover, instances of divergence identified in asset classification and provisioning during the RBI inspection vis-à-vis the audited financial statements of banks above the threshold specified etc.
SEBI reviewed the mechanism of dividend adjustment for stock options and allowed alteration in strike price. According to the regulator, adjustment in strike price will be carried out in case dividend declared by a company is above 5 per cent of the underlying stocks.
.
=============>
.
# *GST*: CBIT notifies CGST (7th Amend.) Rules, 2018 and amended R-125, 129, 130, 131, 132 & 133 effective from 12.06.2018-N.N.29/2018-CT, dt.06.07.2018.
# *CBDT* has issued Final Notification (applicable from AY 2017-18) for exception, modification and adaptation in respect of a foreign company said to be resident in India due to its place of effective management (POEM) being in India, u/s 115JH of IT Act.
# *IBBI* has notified, the IBBI (IRP for Corporate Persons) (Third Amendment) Reg., 2018.
# *DGFT* has Notified the office address of DGFT and its Regional Authorities and their Jurisdiction and Private SEZs under the Foreign Trade Policy, 2015-20.
# *GST*: Alternate accommodation to the tenant of the old building by the developer / owner - compensation for alternate accommodation / damages for delayed handover of possession of the new premises - Levy of GST confirmed – AAR, Maha. in Zaver Shankarlal Bhanushali (2018 (7) TMI 227).
# *IT*: When the revenue has accepted the amount as loan in the hands of other party, it cannot take up a contrary stand and treat the same loan in the hands of the assessee as a gift or a sum received w/o consideration taxable u/s-56(2)(vii)(a) - ITO Vs. Paramveer Abhay Sancheti (2018 (7) TMI 215 - ITAT Nagpur).
.
=============>
.
Brief about Changes made by MCA:
1. Every DIN holder is required to file eForm DIR KYC before 30th April every year if not filed then fees of Rs. 5000. Also, for current financial year, same can be filed till 31st August, 2018 at no fees, if not filed till 31st August 2018, then fees of Rs. 5000 will be incurred, otherwise DIN shall be deactivated.
2. Deposit related changes commenced penalty rationalised DPT 1 certificate introduced.
3. CHG 4 within 300 days instead of 30 days.
.
=============>
.
ICAI to conduct One-Month Residential Programmes for CAs from Nov to Dec*
Read more at: http://www.taxscan.in/icai-residential-programmes-cas-nov-dec/25564/
.
=============>
.
Legal Updates
1.NCLAT held that where no document or resolution fixes responsiblities on a particular person for filling returns or complying with specific provisions, then in case of default, every officer shall be liable for consequences.
*SANCHAR TELE SYSTEMS LTD. AND OTHERS V. REGISTRAR OF COMPANIES* *MANU/NL/0074/2018*
2.High court held that where a company secretary has not any proper authorisation to file petition of winding up,he shall not be considered as a competent person for filling such petition.hence petition is liable to be dismissed.
*Adarsh kanch udyog pvt ltd. V. Arya filaments pvt. Ltd.* *MANU/MP/0711/2017*
3.NCLAT held that where the application has been filled under section 7 or 9 of IBC, and the applicant suggest the name of resolution professional in terms of regulation 33, the applicant is liable to incur the expenses of such resolution professional and get the amount ratified and reimbursed by Commitee of creditors.
*STATE BANK OF INDIA V. SKC RETAILS LTD.*
*MANU/NL/0033/2018*
.
=============>
.
Key-takeaways from MCA notifications
With an objective of ease of doing businesses, The Ministry of Corporate Affairs has issued numerous notifications related to satisfaction of charges, deposit rules, KYC of directors and penalty in case of failure to do so.
Key takeaways from notifications are:
I.Extra-time to Companies: Now, the Companies are brimming with relief as the MCA has extended the time period of filing the particulars of satisfaction of charge from 30 days to 300 days.vinay
II.Additional Compliance: On the flip side of coin, there is an additional burden on the directors of company. They need to file their KYC with MCA in e-form - DIR-3-KYC during every financial year.
III.De-Activation of DIN: The legislature has admonished the individuals who fail to file their particulars with registrar, the MCA will be de-activating their Director Identification Number and they would no longer be able to file any form with MCA unless and until they file their KYC with MCA
IV.Penalty of Rs. 5,000: The deactivated DIN shall be activated if e-KYC has been filed by payment of a fee of Rs. 5000.
V.Due-Date of e-KYC: Every Director who has allotted DIN as on 31st March shall file an e-form DIR 3 KYC on or before 30th April of the next financial year. However, the last date for the FY 2017-18 is 31st August 2018.
VI.Certificate from Auditor in Deposit rule: a certificate of the statutory auditor of the company shall be attached in Form DPT-1 (Circular or Circulars in the form of Advertisement inviting deposit), stating that the company has not committed default in the repayment of deposit or in the payment of interest on such deposits accepted either before or after commencement of the Companies Act, 2013.mittal
VII.Date Notifications: MCA has enforced certain provisions of the Companies Amendment Act, 2017 related to deposit on August 15, 2018 and satisfaction of charge on July 05, 2018.
VIII.New definition: New definitions for society, trust, register of firms and register of trusts have been introduced under the Companies (Authorized to Register) Rules, 2014.
Click here to read following notifications
i.300 days instead of 30 days for intimation related to satisfaction of Charge
ii.MCA imposes penalty of Rs. 5000 on director if they fail to file their e-KYC
iii.MCA amends Deposit Rules; Certificate from auditor to be attached in DPT-1
iv.MCA enforces provision related to deposit and satisfaction of Charge
v.MCA amends Companies (Authorized to Register) Rules, 2014
Also, MCA has amended various rules:
1. *The Companies (Acceptance of Deposits) Amendment Rules, 2018* -effective from 15th Aug, 2018*
2. *Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018*-Effective from: 10th July, 2018
3. *Companies (Authorised to Register) Second Amendment Rules, 2018*-Effective from: 15th August, 2018
4. *Companies (Registration of Charges) Amendment Rules, 2018*-They shall come into force from the date of their publication in the Official Gazette
5. *Companies (Registration Offices and Fees) Third Amendment Rules, 2018*-Save as otherwise provided in these rules, they shall come into force with effect from 10.07.2018
