CBDT clarified that income tax department would scrutinise only 0.35% of returns filed for the last fiscal, down from 1% earlier. While the department would repose faith in taxpayers, the enforcement action would be severe on tax evaders.
Karnataka Authority for Advance Rulings has held that deposit of goods to a custodian with obligation to return on submission of electronic receipts would not be liable for GST.
MCA through RoC, Delhi and Haryana strikes off names of 24,280 registered Companies under Section 248 of Companies Act, 2013 for non-compliances of Company law effective 8th August, 2018.
SEBI panel recommends seeking powers to tap phone calls to aid investigations and also grant immunity to whistle-blowers blowing the lid off frauds and other violations.
SEBI has constituted a Committee on Fair Market Conduct in August, 2017 has invited Comments from public are invited on the recommendations given by the Committee on Fair Market Conduct, in the prescribed format, latest by August 24, 2018.
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Whether a statutory auditor can do tax audit u/s 44AB of IT Act, 1961?
Recently, the Supreme Court of India in S. Sukumar v. Secretary, ICAI [2018] 90 taxmann.com 380 (SC) delved on the subject of exercise of power under Section 21 of the Chartered Accountants Act, 1949 ('CA Act') to initiate investigation against Multi-National Accounting Firms (MAFs) and Indian Chartered Accountancy Firms (ICAFs) having arrangement with such MAFs for breach of Code of Professional Conduct under the CA Act and also to take penal action by way of cancellation of permission granted to them by the Institute of Chartered Accountants of India (ICAI
The Supreme Court stated that there is a direct conflict of interest of statutory auditor with the tax auditor when two are one and the same person or entity. In this situation what is of key to hold is whether a tax audit report attested by the statutory auditor, who certifies current year's tax expense, will be acceptable, given the judgement of the Supreme Court bringing clearly a note on conflict of interest of auditors!
The Supreme Court has in particular directed the ICAI to examine all the related issues at appropriate levels as far as possible within three months and to take such further steps as may be considered necessary. It is now for the ICAI to take view on whether an assessee can have one person or one entity as a statutory auditor under the provisions of the Companies Act 2013 and tax auditor under the provisions of section 44AB of the Income tax Act, 1961?
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Important GST Portal Update
Now GSTR 2A can be downloaded in excel online directly.
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COMPANY LAW UPDATES
1. High Court dismissed the petition and held that the respondent RD/CLB was within its rights in registering charge u/s 141 of Companies Act,1956. The issue raised by appellant in instant appeal cannot be challenged as it does'nt come within the purview of Section 141 of the Companies Act,1956. Thus, The petitioner is open to raise this issue relating to such charge in appropriate forum available in law.
*Pearl engineering polymers ltd.* *MANU/MH/0405/2018*
2.High court held that a Company is liable to wound up if a default is made in holding statutory meetings and if the number of members is reduced below two in case of private company.
*Gautam Ramanbhai patel*
*MANU/MH/1946/2018*
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Valuer can be sue for Tort or Negligence
*_The position in law seems to be that a valuer cannot claim immunity any more if he acts negligently in making his determination and can be sued for tort or negligence but action against the valuer for damages cannot come in the way when the court is considering the validity of the valuation itself._*
*_Read full case law at :_* https://dasgovernance.com/2018/08/12/valuer-can-be-sue-for-tort-or-negligence-2/
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ITR filing: Did you get a defective income tax return notice? Here’s what you need to do
Revise the defective ITR within 15 days of notice addressing the defects
By: FE Bureau August 10, 2018
Income Tax Return filing: The assessing officer can also allow extended period on the application.
If you make any mistake in filing income tax return (ITR), then you will get a defective return notice as per Section 139(9) of Income Tax Act to rectify defects within 15 days from the date of receiving such intimation. The assessing officer can also allow extended period on the application. If you do not rectify the defects within this period then it would be deemed that you have not filled any return of income.
Reasons for notice
An intimation from the Income Tax Department is sent to a taxpayer when the assessing officer has found error in the tax return filed.
(a) When return is not submitted in the prescribed form with all annexures and statements duly filled.
(b) ITR should be accompanied by proof of tax, if any claimed to have been deducted or collected at source and the advance tax and self assessment tax, if any claimed.
(c) In case the entity is maintaining regular books of accounts, ensure that copies of trading, profit & loss account, income and expenditure account, personal account of the partners (partnership firms), personal accounts (proprietary concern) and balance sheet are submitted.
(d) All the entities who are required to get their books of accounts audited should ensure that audited profit & loss account along with balance sheet are submitted;
(e) Cost audit report as per Section 233B.
Response to notice
Return should be revised within the stipulated time period addressing the defects. In case the assessee does not rectify the defect within the said period but does it before the completion of assessment then the assessing officer may condone the delay and treat the return as valid return.
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NCLAT : Re. Interpretation of Section 29A(d) of the I&B Code
*_The Resolution Applicants viz. Vedanta as well as Tata Steel were held not ineligible in terms of Section 29A (d) as the offence punishable with imprisonment of two years or more as prescribed under Section 29A (d) was found to be more severe in nature than the offence under which the two companies were fined by foreign courts._*
*_Read full case law at :_* https://dasgovernance.com/2018/08/13/nclat-re-interpretation-of-section-29ad-of-the-ib-code/
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Relief to Traders: Discounts not mentioned in Invoice are allowable as Expenditure, says ITAT* [Read Order]
Read more at: http://www.taxscan.in/relief-traders-discounts-mentioned-invoice-allowable-expenditure-itat/27175/
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GST Audit: As per section 16(4) of the GST Act a registered person shall not be eligible to take adjustment of any input tax credit in respect of any invoice pertaining to FY 2017-18 after the due date of filing GSTR3B for the month of Sept 2018 i.e. 20.10.2018.
Reverse Charge Mechanism on purchases from unregistered persons u/s 9(4) deferred till 30.09.19. Notification 22/2018-CT (Rate) of 6.8.18.
CBIC has modified the due date for filing of final GST sales returns by businesses with turnover exceeding Rs 1.5 crore to the 11th day of the succeeding month. Currently, such businesses are required to file GSTR-1 or final sales return of a particular month by the 10th day of the succeeding month.
Lok Sabha approved GST Cess surplus: changes to the relevant law to allow both to dip into the surplus in the GST Compensation Fund at any time during a financial year. The law has hitherto allowed division of the surplus only after a five-year “transition period” (till June 2022), during which states are constitutionally guaranteed a GST revenue growth (over the base year, 2015-16) of 14% per year.
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Tenants can be evicted for not Paying Municipal Taxes: Supreme Court* [Read Judgment]
Read more at: http://www.taxscan.in/tenants-evicted-paying-municipal-taxes-supreme-court/27192/
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No Input Tax Credit on Goods not Resold within a Period of 6 Months: Bombay HC* [Read Judgment]
Read more at: http://www.taxscan.in/input-tax-credit-goods-resold-period-6-months-bombay-hc/27220/
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*Benefit of Deduction can’t be given to an Industry If has No Control over Manufacturing Process: Bombay HC* [Read Judgment]
Read more at: http://www.taxscan.in/deduction-industry-control-manufacturing-process-bombay-hc/27198/