CA Rohit Jaiswal: 03 August 2018 Updates

Companies (Amendment) Act, 2017 and Companies (Incorporation) Third Amendment Rules, 2018 By Joint Director, ICSI*

https://zurl.co/TwCu
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Imp. Income Tax Decision

*Revised return filed after issuance of scrutiny notice is valid: Mumbai ITAT*
July 30, 2018[2018] 95 taxmann.com 168 (Mumbai -6¹<(87) Trib.)

IT: There is no bar/restriction in provisions of section 139(5) that assessee cannot file a revised return after issuance of notice under section 143(2), AO could not reject assessee's claim for deduction under section 54 raised in revised return on ground that said return was filed after issuance of notice under section 143(2)

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GST: Draft format of the new GST Return put in the public domain for valuable feedback from the Tax officers & Taxpayers: http://www.cbic.gov.in/resources//htdocs-cbec/draft-circ/GST_Returns_3007.pdf;jsessionid=8CE335378AD19D049C09DD472D16719C

CBIC extends time limit for furnishing of return by an Input Service Distributor in FORM GSTR-6 for the months of July, 2017 to August, 2018 till the 30th day of September, 2018 vide Notification No. 30/2018 — Central Tax dated 30th July, 2018

ICAI has released an E-Handbook for guidance on HSN classification under GST - http://idtc-icai.s3.amazonaws.com/download/Classification_under_Goods_And_Services_Act_.pdf

E-publication on E-way bill under GST (July, 2018) - http://idtc-icai.s3.amazonaws.com/download/pdf18/E-publication-on-E-way-Bill-under-GST-Jul18.pdf

Due Date TODAY 31 July 2018: Quarterly statement of TDS deposited for the quarter ending June 30, 2018

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More than 15,000 Crores pending as unclaimed amount of policy holders of Life Insurers*

A List was presented in Lok Sabha of the unclaimed amount of the Life Insurers. Total unclaimed amount as on 31.03.2018 was Rs. 15,166.47 crores out of which Rs. 10,509.02 crores were alone held by LIC.

The major reason of this huge amount kept unclaimed is the family members being unaware of the life insurance policies of the deceased members.

This data presented in the parliament is an eye opener for each of us.

It makes us know the importance of sharing the financials with your dear ones.

Also the details of the financial advisors must be shared. So, sit with your spouse and adult kid and share such vital information to avoid any future contingencies.

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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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CBIC

The Central Government has amended Reverse Charge Applicability on the Direct Selling Agents (DSAs) and definition of Renting of Immovable Property. Services supplied by individual Direct Selling Agents (DSAs) other than body corporate, partnership or LLP to banks/ non-banking financial company (NBFCs) shall be taxed under reverse charge mechanism. Further, the definition of “Renting of Immovable Property” has been inserted to mean allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property. This notification shall come into force with effect from 27th of July, 2018.

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CBDT has directed the Income Tax Department to ensure filing all its petitions before the NCLT by next month to recover due taxes worth crores of rupees from a number of de-registered shell or dummy companies.

GST regime has seen a significant change in the assessee segmentation compared to the pre-GST era when VAT and Central excise were in place. As on July 25, a total of 63.7 lakh taxpayers migrated from the old system, while 49.53 lakh new taxpayers total number of taxpayers under GST 1.13 crore.

ICAI has released an E-Handbook for guidance on HSN classification under GST, to facilitate correct determination of applicable classification/ GST rate for respective goods and services, by considering relevant classification issues.

MCA data shows that Nearly 66% 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.

RBI may raise the benchmark reference rate by a quarter percentage point for the second time in two months, citing upside risks to inflation, an ET survey ahead of this week’s bi-monthly policy meeting on setting broader financing costs showed.

Parliament passed a bill aiming at allowing a court to try offences related to cheque bounce expeditiously and direct the drawee to pay a minimum of 20 per cent of the cheque amount as interim compensation.

National Textile Corporation Limited, New Delhi invites Application of CA Firms and Cost Accountant firms for the FY 2018-19 for Internal Auditor. send the details of your work experience before 16/08/2018 up till 3:00 P.M. on www.ntcltd.org

Regards

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When there is Ambiguity in Exemption Notification, it should be Interpreted in Favour of Revenue: SC* [Read Judgment]

Read more at: http://www.taxscan.in/ambiguity-exemption-notification-interpreted-favour-revenue-sc/26620/

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http://www.casansaar.com/

*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)
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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)
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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)
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https://goo.gl/HAk2JV

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# *GST*: Whether the amount paid to authorized dealers towards “rate difference” after effecting the supply of goods by the applicant to aforesaid dealers can be considered for the purpose of arriving at the 'transaction value' in terms of Section 15 of the CGST Act? - Held NO – AAR, Mah. in Ultratech Cement Ltd. (2018 (7) TMI 1761).

# *GST*: The CBIC has amended Reverse Charge Applicability on the Direct Selling Agents (DSAs) and definition of Renting of Immovable Property – N.N.15/2018-CT(R), dt.26.07.18.

# *CBDT* has instructed IT Officials to adhere to prescribed time limit for issue of certificate of no deduction or deduction of tax at lower rate u/s 197 and 195 of the Income Tax Act, 1961.

# *MCA* has notified the Companies (Incorporation) Third Amendment Rules, 2018 which has into force w.e.f. 27.07.18.

# *ICAI* in the run up of the election to the 24th Council and 23rd Regional Councils scheduled to be held in Dec’ 2018, request to members for updation of their mobile number and email-id to send bio-data of candidates, important election related announcements, etc. Link at: https://sdb.icai.org/member/updemX.aspx.

# *IT*: 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 - Supreme Court (Economics Times).

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ICAI announces Placement Assistance Programme for CA Students*

Read more at: http://www.taxscan.in/icai-placement-programme-ca-students/26633/

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ICAI takes Strong Action on Misleading Media Report on CAs*

Read more at: http://www.taxscan.in/icai-misleading-media-report-cas/26641/

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Report on Audit Quality Review (2017-18) of the Quality Review Board*

Government of India has, in exercise of the powers conferred under Section 28A of the Chartered Accountants Act, 1949, constituted a Quality Review Board (the ‘Board’) to perform the following functions u/s 28B of the Chartered Accountants Act, 1949:-

a) to make recommendations to the Council with regard to the quality of services provided by the members of the Institute;
b) to review the quality of services provided by the members of the Institute including audit services; and
c) to guide the members of the Institute to improve the quality of services and adherence to the various statutory and other regulatory requirements.

2. Government of India has also issued ‘Chartered Accountants (Procedures of Meetings of Quality Review Board, and Terms and Conditions of Service and Allowances of the Chairperson and Members of the Board) Rules, 2006’. In terms of its Rule 6, in the discharge of its functions, the Board may, inter alia, evaluate and review the quality of work and services provided by the members of the Institute in such manner as it may decide and also lay down the procedure of evaluation criteria to evaluate various services being provided by the members of the Institute and to select, in such manner and form as it may decide, the individuals and firms rendering such services for review. Pursuant to the Rule 6, the Board has issued ‘Procedure for Quality Review of Audit Services of Audit Firms’ (the ‘Procedure’) providing for various matters, adopting best practices, in laying down the necessary system for conducting reviews of Audit firms in India.

3. In terms of the aforesaid Procedure, the Quality Review Board has initiated a system of independent review of statutory audit services of the audit firms auditing accounts of top listed and other public interest entities in India pursuant to a process comprising selection of the Audit firms for review and engagement of Technical Reviewers.

4. The Board has issued a Report on Audit Quality Review (2017-18) providing key findings and analysis of observations made by the Technical Reviewers in review reports during the period which is available at the website of the Quality Review Board (http://www.qrbca.in/wp-content/uploads/2018/07/qrb40447.pdf). It is hoped the concerned stakeholders will find it useful.

Sd/-
Secretary, Quality Review Board

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HIGH COURT OF HYDERABAD : In Ramky Infrastructure Ltd. vs. Todi Minerals Pvt. Ltd.*

*_On July 17, 2018, the Honourable High Court ordered an interim suspension to NCLT order regarding initiating insolvency proceedings against the Corporate Debtor._*

*_Read full case law at :_* https://dasgovernance.com/2018/08/01/high-court-of-hyderabad-in-ramky-infrastructure-ltd-vs-todi-minerals-pvt-ltd/

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MCA

MCA has notified the Companies (Incorporation) Third Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette i.e 27-07-2018. For the purposes of these rule, the term “resident in India” means a person who has stayed in India for a period of not less than 182 days during the immediately preceding Financial Year replacing the word ‘Calendar Year. Further, while counting the number of days of stay of a director in India for the financial year 2018-2019, any period of stay between 01.01.2018 till the date of notification of this rule shall also be counted. The requirement of Affidavit from first directors and subscribers at the time of incorporation has been done away with and Declaration on a plan papers from Subscribers and First Directors shall suffice the purpose.

CBDT

CBDT has instructed Income Tax Officials to adhere to prescribed time limit for issue of certificate of no deduction or deduction of tax at lower rate u/s 197 and 195 of the Income Tax Act, 1961. As per instruction issued in this regard, attention has been drawn to the time-line of 30 days prescribed as per the Citizen’s Charter-2014 for issue of certificates for no deduction of tax or deduction of tax at lower rate under section 197 or 195 of the Act. The CBDT has reiterated that the 30 days time-line for issue of certificates u/s 197 or 195 of the Act must be adhered to scrupulously and disposal of applications beyond the said time limit must be for justifiable reasons to be recorded in writing and duly approved by CIT (TDS)/ CIT (Intl. Tax) concerned. It has been further stated that the Board shall view seriously, any delay without valid reasons and shall hold CIT (TDS)/ CIT (Intl. Tax) concerned responsible in this regard.

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COMPANIES (INCORPORATION) (THIRD AMENDMENT) RULES, 2018
G.S.R. 708(E)
dated 27th July 2018
issued by MCA

In exercise of the powers conferred by section 3, sub-section (1) of section 7 and sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Incorporation) Rules, 2014, namely: -

1.(1)These rules may be called the Companies (Incorporation)(Third Amendment) Rules, 2018.

(2)They shall come into force on the date of their publication in the official Gazette.

2. In the Companies (Incorporation) Rules, 2014._

(a) in rule 3, for Explanation to sub-rule (1), the following shall be substituted, namely:-

“Explanation I. - For the purposes of this rule, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding financial year.

Explanation II.- For the purposes of this rule, while counting the number of days of stay of a director in India for the financial year 2018-2019, any period of stay between 01.01.2018 till the date of notification of this rule shall also be counted”;

(b) for rule 15, the following shall be substituted, namely:-

“15. Declaration from Subscribers and First Directors.- For the purposes of clause (c) of sub-section (1) of section 7, the declaration shall be submitted by each of the subscribers to the memorandum and each of the first directors named in the articles in Form No.INC-9.” ;

(d) in Form No. INC-32, (SPICe), in the List of Attachments, in item number 3, for the words and brackets “Affidavit and declaration by first subscriber(s) and director(s)” the words and brackets “Declaration by first subscriber(s) and director(s)” shall be substituted.

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Amendment for Annual Filling 2018*

Companies (Accounts) Amendment Rules, 2018 notified by MCA

MCA has notified the Companies (Accounts) Amendment Rules, 2018 incorporating *additional disclosure requirements* for financial statements of the Companies, including status of maintenance of cost records, measures to prevent sexual harassment of women, certain disclosures by OPC/ Small companies in abridged Financial Statements, etc., as under:

Companies (Accounts) Amendment Rules, 2018: MCA Notification dt. 31 July 2018

G.S.R. (E).-In exercise of the powers conferred by section 134 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely:-

1. (1) These rules may be called the Companies (Accounts) Amendment Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Accounts) Rules, 2014, in rule 8,

(i) In sub-rule (5), after clause (viii) the following clauses shall be inserted, namely:-

“(ix) a disclosure, as to whether maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained,

(x) a statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 [14 of
2013]

(ii) after sub-rule (5), the following rule shall be inserted, namely:-

“(6) This rule shall not apply to One Person Company or Small Company”.

(iii) after rule 8, the following rule shall be inserted, namely:-

“8A. Matters to be included in Board’s Report for One Person Company and Small Company.-

(1) The Board’s Report of One Person Company and Small Company shall be prepared based on the stand alone financial statement of the company, which shall be in abridged form and contain the following:-

(a) the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed;

(b) number of meetings of the Board;

(d) details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government;

(e) explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report;

(f) the state of the company’s affairs;

(g) the financial summary or highlights;

(h) material changes from the date of closure of the financial year in the nature of business and their effect on the financial position of the company;

(i) the details of directors who were appointed or have resigned during the year;

(j) the details or significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company’s operations in future.

(2) The Report of the Board shall contain the particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the Form AOC-2.”.

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Supreme Court constitution bench decided that 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. Experts said the ruling would completely alter precedents as also the principle of law where the assessee was given the benefit of doubt.

Govt released the draft of GST return forms as it looks to make the return filing process simpler for taxpayers. The new tax return forms are likely to be notified for use starting 1 January 2019, though there may be a trial period in December.

GST Council accepts ‘transaction value’ to tax hotel tariff. Now not be charged at higher tax rate for your hotel stay with the Goods and Services Tax Council finally accepting ‘transaction value’ for determination of leviable tax rate. Hotel industry had lobbied hard for this change since the GST roll out in July last year.

MCA has notified the Companies (Incorporation) Third Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette i.e 27-07-2018.

RBI for more than three weeks, been checking for stressed assets on banks’ books to ensure no “weak” account goes unnoticed in the current round of resolutions. According the exercise, while similar to the central bank’s annual inspection of accounts, is far more thorough.

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*The Syllabus for Limited Insolvency Examination wef 1st November, 2018*
(Board publishes the syllabus, format etc. of the Limited Insolvency Examination under regulation 3(3) of the IBBI (Insolvency Professionals) Regulations, 2016 for the examination to be conducted from 1st November, 2018)
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https://goo.gl/pJVbM7

*LS passes Insolvency and Bankruptcy Code amendment Bill*
( Lok Sabha on Tuesday passed the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018 that recognises homebuyers as financial creditors to real estate developers)
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https://goo.gl/t1S95o

*Opportunities for Professionals to act as Insolvency Professional & Registered Valuer*
(IBBI provides opportunities to the Professionals to act as Insolvency Professional & Registered Valuer. Members can act as IRP, RP, IP, Liquidators and Registered Valuers)
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https://goo.gl/EC13hj

*SEBI to empanel Auditors to conduct Forensic Audits of listed Cos*
(SEBI has invited applications from eligible CA firms "for empanelment to take up assignments relating to forensic audit of financial statements of listed Companies)
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https://goo.gl/69HyGi

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CBIC exempts GST on Ambulance Services provided to Govt by Private Service Providers under National Health Mission* [Read Circular]

Read more at: http://www.taxscan.in/cbic-exempts-gst-ambulance-services-govt-private-service-providers-national-health-mission/26636/

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CBIC withdraws Circular clarifying 5% GST on Catering Services to Hostel Mess and Railways* [Read Circular]

Read more at: http://www.taxscan.in/cbic-withdraws-circular-clarifying-5-gst-catering-services-hostel-mess-railways/26643/

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ICAI Election 2018: Candidates barred from sending Unsolicited SMSs, WhatsApp and E-mails* [Read Letter]

Read more at: http://www.taxscan.in/icai-election-2018-smss-whatsapp-mails/26677/

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Quarterly GST Returns for Small Traders: Govt issues Advisory*

Read more at: http://www.taxscan.in/quarterly-gst-returns-small-traders/26654/

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Salary Earned by Indian Employee stayed outside India for 182 days is Exempt from Income Tax even if TDS has been Deducted: ITAT* [Read Order]

Read more at: http://www.taxscan.in/salary-earned-indian-employee-stayed-outside-india-182-days-exempt-income-tax-tds-itat/26707/

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India can overtake UK to become 5th largest economy by 2019 (Arun Jaitley)*

According to World Bank data, India had a GDP of $2.59 trillion in 2017, higher than the France's $2.58 trillion. Britain's was just about $25 billion higher than India at $2.62 trillion.

However, there was a significant gap between the top four economies of the world, and India.

In 2017, theUS was the world's largest economy, with a size of $19.39 trillion, followed by China ($12.23 trillion)in second place. Japan ($4.87 trillion) and Germany ($3.67 trillion) are third and fourth, respectively. Jaitley said the livelihood of India becoming the fifth largest economy next year is in consonance with the rest of the narrative.

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MCA

MCA has notified much awaited exemptions for One Person Company or Small Companies by releasing the Companies (Accounts) Amendment Rules, 2018 which shall come into force on the date of their publication in the Official Gazette i.e 31-07-2018. The Board shall additionally disclose, as to whether maintenance of cost records as specified by the Central Government under section 148(1) of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained and a statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Further, the Rule 8(5) shall not apply to One Person Company or Small Company. New Rule 8A has been inserted to deal specifically to deal with the Matters to be included in Board’s Report for One Person Company and Small Company.

National Company Law Tribunal

The Hon'ble President of National Company Law Tribunal, in exercise of the powers conferred under Section 419 of the Companies Act, 2013, has constituted the National Company Law Tribunal Bench at Jaipur for the purpose of exercising and discharging the Tribunal's powers and functions. As per the Order, Bench at NCLT Jaipur shall sit on 02-08-2018 and 03-08-2018 from 10:30 AM onwards. Further, Shri R. Varadharajan, Member (Judicial) shall constitute the NCLT Bench at Jaipur and shall sit on every Thursday and Friday, till further orders.

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CBDT Warns AOs To Adhere To Time Limits For Issue Of TDS Certificates U/s 195 &197

The CBDT has issued an Office Memorandum dated 26th July 2018 in which it is stated that there are several instances where the time-limit of 30 days stipulated in the Citizens Charter for issue of TDS certificates have been breached and there is inordinate delay.

The CBDT has directed AOs that the aforesaid time-limit must be adhered to scrupulously. It is made clear that any delay without valid reasons will be viewed seriously and the CIT concerned will be held accountable.

F. No. 275/20/2018-IT(B)

Government of India,
Ministry of Finance,
Department of Revenue,
Central Board of Direct Taxes
New Delhi

26th, July, 2018

Office Memorandum

Subject: Adherence to prescribed time-line for issue of certificate of no deduction or deduction of tax at lower rate u/s 197 and 195 of the I.T. Act-1961.

The undersigned is directed to refer to the time-line of 30 days prescribed as per the Citizen’s Charter-2014 for issue of certificates for no deduction of tax or deduction of tax at lower rate under section 197 or 195 of the IT Act 1961. Several instances of inordinate delay in issue of such certificates and non-adherence to the said time-line have been brought to the notice of the Board, which have been viewed adversely.

2. In this regard, the undersigned is directed to reiterate that the aforesaid time-line for issue of certificates u/s 197 or 195 of the Act must be adhered to scrupulously. Disposal of applications beyond the said time limit of 30 days must be for justifiable reasons to be recorded in writing and duly approved by CIT (TDS)/ CIT (Intl. Tax) concerned.

3. Any delay without valid reasons will be viewed seriously and CIT (TDS)/ CIT (Intl. Tax) concerned will be held accountable.

This issues with the approval of the Chairman, CBDT.

(Md.. Tarique Kalim)

Director (Budget) CBDT

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Salient points on DIR-3-KYC

1) OTP will be valid for 15 minutes

2) Foreign citizens - passport is mandatory, and attachment also mandatory, permanent address should be abroad;

3) aadhar mandatory for Indian citizens,

4) Not required to attach PAN for Indian citizens

5) Personal Mobile no. and e-mail id should not be linked to any other director or certifying professional

6) personal e-mail id should not be official e-mail id - it should be personal like gmail, yahoo etc.

7) foreign citizens - mobile no. should be foreign

8) foreign citizens but resident in India - mobile no. can be Indian

9) Foreign DSCs not allowed, only Indian DSCs.

10) attestation of documents by practicing professional - mandatory

11) in case of change in address from the DIN records, first file form DIR-6 and then file form DIR-3-KYC

12) passport not mandatory for Indian citizens, but if you mention Yes to do you have your passport, then mandatory to give details and attach passport.

13) attestation rules to be followed as specified in the companies (incorporation) rules

14) Driving licence and EC Id - not mandatory, but if you specify the details, then you have to attach the documents.

15) Foreigner documents should be apostille

16) Certificate from each Director for engaging the professional to certify the form.

17) All documents should be self attested by the Director

18) Disqualified Director is also required to file form if DIN status is approve

19) Proof of Identity & Proof of Residence should be as per Rule 16 of Companies (Incorporation) Rules, 2014

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Cabinet approves Amendment to GST Laws

Read more at: http://www.taxscan.in/cabinet-amendment-gst/26713/

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Multipurpose Empanelment Form for the year 2018-19

Dear Professional Colleague,

We are pleased to welcome you for filling *Multipurpose Empanelment Form (MEF)* Application for the year 2018-19 with the following *key highlights*:

 Acceptance of digitally signed or uploading the declaration duly signed by all continuing Partner (s) / Proprietor of the firm or Member practicing in individual name.

 Introduction of Grey Fields in front of pre-filled fields (in Green) to facilitate the applicant to fill the data in case he differs with the prefilled details instead of submitting Memorandum of Changes (MOCs). The same will be accepted by ICAI after due verification.

 Shortlisted applicants would upload the Financial Documents on the MEF application itself.

 Registration in MEF only after verification through *One Time Password (OTP).* System generated SMS and Emails at the time of registration, submission of MEF and other important communication from PDC.

 *The last date of submission of MEF Form 2018-19 is 21st August, 2018.*

 For any other query/clarification, please lodge your complaint online. If the same is not resolved in 3 working days, *please contact PDC Secretariat* at mefpdc@icai.in or 011-30110444 /440 between 3 pm to 5 pm.

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In Haryana Telecom Ltd. vs. Sterlite Industries (India) Ltd.

*_The question regarding the winding up of a Company cannot be referred to an Arbitration, even if the agreement covers arbitration clause._*

*_Read full case law at :_* https://dasgovernance.com/2018/08/02/supreme-court-in-haryana-telecom-ltd-vs-sterlite-industries-india-ltd/

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CBIC exempts GST on Ambulance Services provided to Govt by Private Service Providers under National Health Mission* [Read Circular]

Read more at: http://www.taxscan.in/cbic-exempts-gst-ambulance-services-govt-private-service-providers-national-health-mission/26636/

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Salary Earned by Indian Employee stayed outside India for 182 days is Exempt from Income Tax even if TDS has been Deducted: ITAT* [Read Order]

Read more at: http://www.taxscan.in/salary-earned-indian-employee-stayed-outside-india-182-days-exempt-income-tax-tds-itat/26707/

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*Government Collects Rs 96483 Crore GST For June*
(Total Gross GST Revenue collected in the month of July 2018 is Rs. 96,483 Cr of which CGST is Rs. 15,877 Cr, SGST is Rs. 22,293 Cr, IGST is Rs. 49,951 Cr and Cess is Rs. 8,362 Cr)
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https://goo.gl/r96ECj

*Income Tax dept can’t attach property being liquidated under IBC*
(Govt agencies don’t have rights on the encumbered property of a company facing liquidation under the Insolvency and Bankruptcy Code, Hyderabad High Court has ruled)
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https://goo.gl/GnV9G5

*Invitation for empanelment as Examiners for Chartered Accountants Examinations*
(Applications are invited from eligible members of the Institute and other professionals including academicians of reputed educational institutions, tax and legal practitioners)
  
https://goo.gl/N9ko2y

*Multipurpose Empanelment Form (MEF) for Bank Audits for the year 2018-19 is available*
(Online Multipurpose Empanelment Form (MEF) for the year 2018-19 is live at www.meficai.org. The last date of submission of MEF Form 2018-19 is 21st August, 2018)
  
https://goo.gl/fHGe3K

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FIVE Golden Rules of Investments !!!

*Rule#1* Use Banks for financial transactions, short term cash management and credit management.

*Rule #2* Use Insurance to cover the risks.

*Rule #3* Use Gold to hedge your currency (i.e. Rupee).

*Rule#4* Use Real Estate for consumption (Residence) or regular income (rent).

*Rule#5* Use Capital market to create long term wealth.

Unfortunately, it happens otherwise.
People tend to use Banks and Insurances for investments,

Gold for consumption (Jeweleries),

Real Estate for long term wealth creation and

Capital Markets for speculation and short term gain. 

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IT - Application filed by charitable trust u/s 12A merits deemed registration, once Revenue Authority has not acted upon such application within six months of its receipt: HC*

THE ISSUE BEFORE THE DIVISION BENCH IS - Whether application filed by charitable trust u/s 12A merits deemed registration, once Revenue Authority has not acted upon such application within six months of its receipt. YES IS THE VERDICT.

Facts of the case:

The assessee is a charitable trust established for purpose of setting up of an educational institution. During the relevant A.Y, the application filed by assessee seeking registration u/s 12A was rejected on grounds of being delayed. This was done because there was considerable delay in filing such application and there were not sufficient reasons stated for condoning such delay. However, the ITAT on appeal, deemed the application as being condoned and directed the CIT to condone delay and to grant registration to the assessee u/s 12A.

High Court held that,

++ it cannot but be noticed that Section 12AA(2) specifically provides that on an application, an order granting or refusing registration shall be passed before the expiry of the six months of the date on which the application was received. It is seen from the files that the application was filed on Oct 10, 2006, and a report was called for from the ITO which was submitted only after almost nine months. The communication of the CIT based on which such report was made also is seen to be dated Jan 12 2006 referred to in the report of ITO, who has recommended the registration u/s 12AA(2). However an adverse report is seen authored by the Joint CIT addressed to the CIT. There has been some adjournments later and eventually the order impugned before the Tribunal was passed. This Court cannot but notice that there was unreasonable delay insofar as complying with the mandatory provision u/s 12AA(2);

++ the CBDT issued an Instruction No.16/2015 stating that, while processing the application u/s 12AA, the time limit of six months has to be adhered to by the CIT ( Exemptions). The CBDT has thought it fit, obviously from experience of dealing with delayed applications, that the mandatory provision has to be complied with in letter and spirit. The officers of the Department are necessarily bound by the directions so issued by the CBDT; which in the present case is a reiteration of the mandate statutorily prescribed. In the present case, there is failure to comply with the mandatory provision as provided u/s 12AA(2). The instruction by CBDT gives a clear picture of how the Board expected the Officers to treat the mandatory provision u/s 12AA(2) as being scrupulously relevant insofar as a consideration of an application filed u/s 12AA within the time stipulated in sub-section (2);

++ in the present case, the CIT, Kanpur had filed an appeal from the deemed registration granted u/s 12A for reason solely of an application u/s 12AA having not been acted upon for six months. Now, the supreme Court in 2017(11) SCC 480, clarified that the registration of the application u/s 12AA would only take effect from the date of expiry of six months from the date of application. In such circumstance, respectfully following the decision of Supreme Court, the question is answered in favour of assessee. The registration however is applicable only from the date of expiry of the six months from the date of application.

(See 2018-TIOL-1497-HC-KERALA-IT)

GST Refund Fortnight: Rs 54,378 crore cleared during Special Drive*

Read more at: http://www.taxscan.in/gst-refund-fortnight/26728/

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Reforms in Appointment of Statutory Auditors on the Cards: ICAI develops Software*

Read more at: http://www.taxscan.in/reformsappointment-statutory-auditors-icai-software/26738/

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Cash Purchase of Land would not violate S. 40A(3) in the Absence of Claim for Business Expenditure: ITAT* [Read Order]

Read more at: http://www.taxscan.in/cash-purchase-land-violate-claim-business-expenditure-itat/26750/

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CSR norms: Corporate Affairs Ministry puts in place centralised scrutiny mechanism*

The Corporate Affairs Ministry has put in place a centralised scrutiny and prosecution mechanism to keep a tab on enforcement of CSR provisions under the companies law, according to Union Minister P P Chaudhary.

Under the Companies Act, 2013, certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.

CA Rohit Jaiswal

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Friday, 3 August 2018

03 August 2018 Updates