RCM applicable for Service by Individual Direct Selling Agents (DSAs) to Banks / NBFCs* [Read Notification]
Read more at: http://www.taxscan.in/rcm-applicable-service-individual-direct-selling-agents-banks-nbfcs/26506/
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Govt notifies GST Exemption to certain Services* [Read Notification]
Read more at: http://www.taxscan.in/gst-exemption-certain-services/26512/
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# *GST*: MoF on 26.07.2018 issued 9 Notifications # N.N.13/2018- CT(R) to 21/2018-CT(R) to give effect of the change of Rate of Tax, Exemptions to Goods as proposed by the GST Council on 21.07.2018. *Most of the changes have been made effective from TODAY (27.07.2018)*.
# *CBDT* EXTENDS the due date for filing of ITRs for AY 2018-19, for all categories of taxpayers whose filing was due on or before 31 JUL 2018, to *31 AUG 2018*.
# *CBDT* has amended Form-3CD. It shall come into force from 20 AUG 2018 – Noti. # G.S.R. 666(E), dt.20.07.2018..
# *IBC*: The IBC (Second Amendment) Bill 2018 has been placed in Lok Sabha recently and shall replace the IBC (Amendment) Ordinance, 2018.
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Catering Services to Canteen, Mess, Offce etc attract 5% GST [Read Notification]
Read more at: http://www.taxscan.in/catering-services-canteen-mess-offce-attract-5-gst/26517/
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Fuel Cell Motor Vehicles exempted GST Cess from 27th July 2018* [Read Notification]
Read more at: http://www.taxscan.in/fuel-cell-motor-vehicles-exempted-gst-cess/26523/
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ITax Update- Employees eligible for section 10(10C) exemption Even if VRS was not in conformity with Rule 2BA Where Madras High Court held in case of *A. Kumarappan vs. CIT* that the rules cannot override the provisions.
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ICAI: 1st Overseas Campus Placement for CAs on 24th to 26th August, 2018 at Chennai, Mumbai & Delhi. The entire Placement Programme is available online at https://cpabiplacements.icai.org.
GST Latest Notifications issued dated 26/07/2018
Concessional CGST rate on specified handicraft items WEF 27.07.2018
Notification No. 21/2018-Central Tax (Rate)
CBIC allows Refund of GST credit to fabric manufacturers
Notification No. 20/2018-Central Tax (Rate)
Changes in List of goods exempt from CGST wef 27.07.2018
Notification No. 19/2018-Central Tax (Rate)
Revised CGST rates on various Goods WEF 27th July, 2018
Notification No. 18/2018-Central Tax (Rate)
Composite supply of works contract to Govt- Term ‘Business’ clarified
Notification No. 17/2018-Central Tax (Rate)
CGST on Services in relation to a function entrusted to a municipality
Notification No. 16/2018-Central Tax (Rate)
CGST: RCM on services by individual DSAs to banks/ NBFCs wef 27.07.2018
Notification No. 15/2018-Central Tax (Rate)
CBIC notifies CGST exemption on certain services from 27th July, 2018
Notification No. 14/2018-Central Tax (Rate)
Revised CGST rates on various services WEF 27th of July, 2018
Notification No. 13/2018-Central Tax (Rate)
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The Securities Appellate Tribunal (SAT) on Thursday asked the income tax department to provide clarity on applicability of securities transaction tax (STT) on physically-settled derivative contracts.
Central Government has now given effect to the recommendations of GST Council vide various notifications dated July 26, 2018 and all such notifications, unless specifically mentioned, shall be effective from July 27, 2018.
The Goods and Service Tax Council would exclusively consider issues related to micro, small and medium enterprises taxpayers at its 29th meeting scheduled for August 4, a finance ministry official said.
GST Tribunal (GSTAT) will come into effect soon, providing a higher judicial forum for businesses to redress disputes under the new tax framework.The GST Council approved creation of the tribunal with a national bench in Delhi and three regional benches in Chennai, Kolkata and Mumbai.
CBIC has notified that the services supplied by individual Direct Selling Agents (DSAs) to banks/ non-banking financial company (NBFCs) are taxable under Reverse Charge Mechanism (RCM). Notification No. 15/2018.
SEBI proposed measures to provide promoters a say in the price offered to shareholders of companies that are planning to delist from stock exchanges. The proposal is aimed at plugging loopholes in the current delisting method for companies. Issuing a draft paper, SEBI has suggested for a price discovery as per reverse book building (RRB) method, along with considering counter offer of promoter .
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Cheque bounce law passed in lok sabha on 23.07.18. 20 % immediately to pay to party, 20 % to deposit in court, 100 % to pay with interest if found guilty within two month. Penalty will be charged 20% to 100% for guilty by court.
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Company Registered under Registration of Companies Act Sikkim is ‘AoP’ for Income Tax Purpose: ITAT* [Read Order]
Read more at: http://www.taxscan.in/company-registered-registration-companies-act-sikkim-aop-income-tax-purpose-itat/26553/
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SECURITIES CONTRACTS (REGULATION)(AMENDMENT) RULES, 2018
G.S.R. 675(E)
dated 24th July 2018
issued by Ministry of Finance
In exercise of the powers conferred by section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Central Government hereby makes the following rules further to amend the Securities Contracts (Regulation) Rules, 1957, namely:—
1. Short title and commencement.—(1) These rules may be called as the Securities Contracts (Regulation) (Amendment) Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Securities Contracts (Regulation) Rules, 1957, in rule 19A, after sub-rule (4), the following sub-rule shall be inserted, namely:–
“(5) Where the public shareholding in a listed company falls below twenty-five per cent, as a result of implementation of the resolution plan approved under section 31 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), such company shall bring the public shareholding to twenty-five per cent within a maximum period of three years from the date of such fall, in the manner specified by the Securities and Exchange Board of India:
Provided that, if the public shareholding falls below ten per cent, the same shall be increased to at least ten per cent, within a maximum period of eighteen months from the date of such fall, in the manner specified by the Securities and Exchange Board of India.”
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ITAT Kolkata-no addition in respect of penny stock on the basis of human behaviour in the case of Navneet Agarwal vs. ITO (ITAT Kolkata)
Bogus Capital Gains From Penny Stocks: In order to treat the capital gains from penny stocks as bogus, the Dept has to show that there is a scam and that the assessee is part of the scam. The chain of events and the live link of the assesee's action giving her involvement in the scam should be established. The Dept cannot rely on alleged modus operandi & human behavior and disregard the evidence produced by the assessee. All imp judgements referred
The issue for consideration before us is whether, in such cases, the legal evidence produced by the assessee has to guide our decision in the matter or the general observations based on statements, probabilities, human behavior and discovery of the modus operandi adopted in earning alleged bogus LTCG and STCG, that have surfaced during investigations, should guide the authorities in arriving at a conclusion as to whether the claim in genuine or not. An alleged scam might have taken place on LTCG etc. But it has to be established in each case, by the party alleging so, that this assessee in question was part of this scam. The chain of events and the live link of the assesee’s action giving her involvement in the scam should be established.
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HIGHLIGHTS OF REGISTERED COMPANIES AS ON 30 June 2018
The total number of companies registered in the country as on 30th June, 2018 stood at 17,79,761. Of them 5,43,467 companies were closed. 1,390 companies were assigned dormant status as per the Companies Act, 2013; 6,117 were under liquidation; 38,858 companies were in the process of being struck-off. After being struck off previously 103 companies were in the process of being re- activated. Taking the above into account there were 11,89,826 active companies as on 30 June 2018.
Out of the 11,89,826 active companics, 11,81,877 were limited by shares; 7,518 were limited by guarantee and 431 were unlimited companies Out of limited by shares, 71,506 of the companies were public, 11,10,371 were private including 18,153 one person companies. Among the public limited companies, 7,213 were listed.
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MCA NEWS & IMPORTANT UPDATE
Companies (Significant Beneficial Ownership) Rules, 2018:
Every Individual holding 10% or more beneficial interest in the share capital of the company shall file a declaration in Form No. BEN-1 to the company within 90 days from commencement such rules and within 30 days in case of any change in his significant beneficial ownership. Therefore the due date of filing form BEN-1 is on or before 12th Sep 2018.
Thereafter, the company shall file a return in Form No. BEN-2 with the ROC, within 30 days from the date of receipt of BEN-1. Therefore the due date of filing form BEN-2 is on or before 11th Oct 2018.
Meaning of Significant Beneficial Owner
‘Significant Beneficial Ownership’ in case of member of the Company is not an individual or natural person:
(i) where the member is a company, the significant beneficial owner is the natural person, who holds not less than 10%. share capital of the company or who exercises significant influence or control in the company through other means;
(ii) where the member is a partnership firm, the significant beneficial owner is the natural person, who holds not less than 10% of capital or has entitlement of not less than ten per cent. of profits of the partnership;
(iii) where no natural person is identified under (i) or (ii), the significant beneficial owner is the relevant natural person who holds the position of senior managing official;
(iv) where the member is a trust (through trustee), the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with not less than 10% interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.
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Income tax authorities to issue certificate u/s 195 or 197 within 30 days, a good step to help the charitable trust and societies to avoid harsh TDS provisions.
Central Government has now given effect to the recommendations of GST Council vide various notifications dated July 26, 2018 and all such notifications, unless specifically mentioned, shall be effective from July 27, 2018.
Union Finance minister said that the 28% category of goods in under GST is being phased out and the bracket currently covers mostly luxury items or sin goods. The tax on other items as cement, air-conditioners, large screen televisions and a handful of others could also be reduced as revenues rise.
One of the significant changes proposed by the GST Council in its recently concluded 28th meeting on July 21, 2018 is inclusion of following transactions in Schedule III to the CGST Act, 2017 :Retrospective Application of Merchant Trading, In-bond sales and High sea sales covered in Schedule III.
SEBI barred more than 30 entities from the securities market for at least ten years for alleged fraudulent transactions in the shares of SMS Techsoft.
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# *GST*: EPC Contract - standalone contract for transportation of Equipment for which separate consideration is received - same is liable to tax as a works contract as per provisions of section 2(119) of the GST Act – AAR, Maharashtra in Dinesh Kumar Agrawal (2018 (7) TMI 1691).
# *MCA*: Nearly 5.90 Lac (34%) of the 17.90 Lac Companies registered in India are in-active.
# *MCA* has revised the version of the eForm DIR - 6 (Intimation of change in particulars of Director to be given to the Central Government).
# *IT*: Violation of principles of the natural justice by the lower authority - reliance on the statement of employees - the statement is stated to have been recorded at the time of inspection and one can easily perceive the mood in which the employee would have been – DXN Herbal Mfg. (India) Pvt. Ltd. Vs. ITO (2018 (7) TMI 1733 - Madras HC).
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Post- Sale Discounts cannot be Deducted from Transaction Value under GST: AAR* [Read Order]
Read more at: http://www.taxscan.in/post-sale-discounts-deducted-transaction-value-gst-aar/26566/
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*👉🏻CAG reports 65 of 74 Bihar state PSUs have arrears in accounts from 1977-78 onwards*
(Only 18 of 74 state PSUs in Bihar have finalised their accounts in the last three years and 65 of them have arrears in accounts from 1977-78 onwards, according to the CAG report)
👇🏻 👇🏻 👇🏻
https://goo.gl/i1Savb
*👉🏻Only 66 per cent of registered companies are active - MCA*
(Nearly 66 per cent of 17.79 lakh companies registered in the country were active at the end of June, official data showed amid the government continuing its clampdown on shell entities)
👇🏻 👇🏻 👇🏻
https://goo.gl/3wEPdR
*👉🏻Auditors should not quit audit work of firms halfway - T V Mohandas Pai*
(An auditor should give a disclaimer saying that it cannot express an opinion if accounts of the company are incorrect, instead of leaving the audit work halfway, IT veteran T V Mohandas Pai said)
👇🏻 👇🏻 👇🏻
https://goo.gl/KowgSq
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GST on Free Tickets: Madhya Pradesh HC dismisses PIL based on News Reports* [Read Order]
Read more at: http://www.taxscan.in/gst-free-tickets-madhya-pradesh-hc-dismisses-pil-news-reports/26601/
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CBIC releases draft on New Simplified GST Returns* [Read Draft]
Read more at: http://www.taxscan.in/cbic-releases-draft-new-simplified-gst-returns/26611/
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Govt. extends Due Date for filing GSTR-6 by Input Service Distributors* [Read Notification]
Read more at: http://www.taxscan.in/govt-extends-due-date-filing-gstr-6-input-service-distributors/26615/
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*Companies (Amendment) Act, 2017 and Companies (Incorporation) Third Amendment Rules, 2018 By Joint Director, ICSI*
https://zurl.co/TwCu
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SEBI
SEBI has released the Discussion Paper on Delisting of Equity Shares Review of “Reverse Book Building Process". SEBI came out with SEBI (Delisting of Equity Shares) Amendments Regulations, 2015, thereby amending Delisting Regulations, 2009. Currently, in voluntary delisting an issuer/promoter has to first take the approval of shareholders of that class, then an in-principal approval of the stock exchange followed by RBB Process to discover the price. Delisting is regarded as successful if promoter shareholding reaches 90% pursuant to RBB at the discovered price which is acceptable to the promoter. Several concerns have been raised by the stakeholders regarding implementation of the reverse book building process. Currently, if the price discovered through RBB is not attractive to the promoter, he may unilaterally reject the price and the whole exercise becomes futile. Instead, the promoter may be allowed to make counter offer to the shareholders of that class. Further, it is also suggested that in case promoter(s) give a counter offer, then the counter offer price should not be less than the book value and the counter offer should be accepted by such number of public shareholders where the promoter shareholding reaches 90%. comments may please be e-mailed or sent by post latest by August 16, 2018.
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*👉🏻Assessee has to prove tax exemption - Supreme Court*
(The onus of proving a tax exemption where the guidelines aren’t clear would be on the assessee, and he cannot claim the benefit of any such ambiguity in provisions - SC)
👇🏻 👇🏻 👇🏻
https://goo.gl/8qAKVR
*👉🏻NCLT allows merger of LLP, Private Companies*
(Chennai National Company Law Tribunal has given the green signal to merger of a Limited Liability Partnership with a Private Company)
👇🏻 👇🏻 👇🏻
https://goo.gl/v9fijw
*👉🏻Draft format of the New GST Return*
(Draft format of the new GST Return put in the public domain for valuable feedback from the Tax officers & Taxpayers)
👇🏻 👇🏻 👇🏻
https://goo.gl/HAk2JV
*👉🏻Empanelment of CAs for special audit in Income Tax Deptt Mumbai Region*
(Income-tax Deptt, Mumbai invites applications from CA Firms for empanelment as Special Auditors for the F.Y. 2018-19 and 2019-20, to carry out audit in accordance with the provisions of Sec.142(2A) of the I.T. Act, 1961)
👇🏻 👇🏻 👇🏻
https://goo.gl/pHC454
