CBDT has extended the due date for filing income tax returns (ITR) for all income tax assessees in Kerala to September 15, 2018, as per an official release.
CBDT has decided, in super-session of Circulars issued, that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified.
CBDT told the Bombay High Court that 0.10% STT would be levied on physical delivery of shares in the equity derivatives segment. A division bench of justices B R Gavai and M S Karnik had last week sought clarity from the CBDT on the STT rate after the ANMI filed a petition.
Govt is planning to compare data filed by companies with different departments to detect discrepancies and check whether there’s been any leakage in tax collected, raising the prospect of even greater scrutiny, said people with knowledge of the matter.
Tax officials are working on a proposal to link electricity connection of some manufacturers with GSTIN to keep a tab on power consumption. This will act as an anti-evasion measure to dissuade taxpayers from underreporting sales.
RBI tightened norms for bad loan resolution by setting timelines for resolving large NPAs, failing which banks will have to mandatory refer them for insolvency proceedings. It also withdrew existing debt restructuring schemes such as SDR and S4A.
RBI has issued definitions of different resolution plans and an indicative list of financial difficultly, and directed lenders to share data on certain defaulted borrowers with the central bank’s database on large exposures on every Friday.
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Both ACIT and JCIT can sanction Notice for Re-Opening of Assessment: Allahabad HC* [Read Order]
Read more at: http://www.taxscan.in/acit-jcit-sanction-notice-re-opening-assessment-allahabad-hc/27604/
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Income from Sale of Plots under a Business Project is Business Income: ITAT [Read Order]
Read more at: http://www.taxscan.in/income-sale-plots-business-project-business-income-itat/27616/
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Delhi HC upholds Levy of Cost Recovery Charges: says such Charges covers Expense of Govt in deputing Customs Personnel to ICDs/CFSs/ACCs/EPZs* [Read Judgment]
Read more at: http://www.taxscan.in/delhi-hc-upholds-levy-cost-recovery-charges-charges-covers-expense-govt-deputing-customs-personnel/27624/
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Late Fee can’t be levied while processing TDS Statement: ITAT [Read Order]
Read more at: http://www.taxscan.in/late-fee-levied-processing-tds-statement-itat/27628/
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Input Tax Credit cannot be granted If Registration of Selling Dealer was cancelled: Kerala HC [Read Judgment]
Read more at: http://www.taxscan.in/input-tax-credit-granted-registration-selling-dealer-cancelled-kerala-hc/27632/
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Cost Accountants Body proposes Suggestions for Simplification of GST Return [Read Suggestions]
Read more at: http://www.taxscan.in/cost-accountants-body-proposes-suggestions-simplification-gst-return/27642/
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Input Tax Credit cannot be granted If Registration of Selling Dealer was cancelled: Kerala HC [Read Judgment]
Read more at: http://www.taxscan.in/input-tax-credit-granted-registration-selling-dealer-cancelled-kerala-hc/27632/
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# GSTIN has added a New facility for filing of refund application for multiple tax period, available for supplies made without payment of Tax for i). Export of Goods & Services; and ii) SEZ Unit / SEZ Developer.
# IBC : The presence of an arbitration clause in the SPA would not cause any impediment with regard to initiation of CIRP because u/s 7 of the Code the mentioning of an arbitration clause in the disputed agreement is no bar to the admission of the petition and initiation of CIRP unlike S 8 & 9 of the Code – Dinesh Chand Jain & Ors. Vs. Fantastic Buildcon Pvt. Ltd. & Ors (2018 (8) TMI 1541 - NCLT, New Delhi)
# IT: No penalty u/s.271D r.w.s. 269SS can be levied on an assessee where the loans have been accepted in an assessment u/s. 143(3) of the Act made by the AO as genuine – DCIT Vs. Akash InfraCom Project Pvt. Ltd. (2018 (8) TMI 1489 - ITAT Cuttack).
# IT: Bad debts – CIT (A) and Tribunal concurrently held that the respondent bank would also be a scheduled bank and consequently allowed the bad debts u/s 36(1)(viia)(a) of the Act. Such being the position, we find no error in the view – Pr. CIT Vs. Saurashtra Gramin Bank (2018 (8) TMI 1558 - Gujarat HC).
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Amount Paid to obtain Membership of Delhi Stock Exchange can’t be treated as Doubtful Advance since no Steps was taken to Recover: ITAT [Read Order]
Read more at: http://www.taxscan.in/amount-paid-obtain-membership-delhi-stock-exchange-doubtful-advance-itat/27637/
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No Disallowance of Expenditure merely on the basis of Surmises and Conjectures of AO: ITAT [Read Order]
Read more at: http://www.taxscan.in/no-disallowance-expenditure-surmises-conjectures-ao-itat/27659/
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Firm cannot be Assessed for Unexplained Cash Credit in respect of Capital introduced by Partner: ITAT [Read Order]
Read more at: http://www.taxscan.in/firm-unexplained-cash-credit-capital-partner-itat/27664/
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MCA releases report of ‘Committee to Review Offences under Companies Act, 2013* [Read Report]
Read more at: http://www.taxscan.in/mca-releases-report-committee-review-offences-companies-act-2013/27647/
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RBI may soon do away with MCLR
The Reserve Bank of India (RBI) has said that it would review guidelines on the marginal cost of funds based lending rate (MCLR), potentially preparing to do away with the system for lending rate calculation less than three years after it was introduced.
In its 2017-18 annual report, RBI said it would review the MCLR guidelines as well subsidiarisation of foreign banks “for the purpose of fostering competition and re-orienting the banking structure in India.” It did not give more detail.
Read more at:
//economictimes.indiatimes.com/articleshow/65601857.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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RBI panel to study feasibility of digital currency
The Reserve Bank of India has constituted an inter-departmental group to explore the feasibility of introducing a rupee-backed digital currency to battle the rising costs of managing paper currency. This is RBI’s first take on the possible use of digital currency.
“In India, an inter-departmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency,” said the Reserve Bank of India in its Annual Report 2017-18 on Wednesday.
It posited the need for a centrally backed digital asset saying, “(Globally) the rising costs of managing fiat paper/metallic money, have led central banks around the world to explore the option of introducing fiat digital currencies”. For the financial year 2018, the total cost of printing paper notes in India was Rs 636 crore, according to RTI response to India.
Read more at:
//economictimes.indiatimes.com/articleshow/65601646.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Financial fraud: Ministry of corporate affairs to crack down on firms
In a bid to check companies from doing financial frauds, the Ministry of Corporate Affairs will crack down on firms committing such wrongs. This could include arrests of directors of the company, approaching the National Company Law Tribunal to take over the company or even appointing government nominated directors in the company, a senior government official said.
The move comes in the wake of a series of resignations of auditors from listed companies. Auditors in over 200 listed companies have resigned so far since the start of the year. In the Mumbai region alone, the number is around 60.
Read more at:
https://www.financialexpress.com/industry/financial-fraud-ministry-of-corporate-affairs-to-crack-down-on-firms/1296961/
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DGFT
DGFT has issued a Public Notice regarding shifting of Capital Goods imported under the EPCG Scheme. EPCG authorisation holders are permitted to shift the capital goods imported during the entire export obligation period to their other units mentioned in the lEC and RCMC subject to conditions specified. The authorization holder shall be permitted to shift capital goods during the entire export obligation period to other units mentioned in the lEC and RCMC of the authorization holder subject to production of fresh installation certificate to the RA concerned within six months of the shifting."
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Government to vet GST, income tax and transfer pricing filings to find leakage
The government is planning to compare data filed by companies with different departments to detect discrepancies and check whether there’s been any leakage in tax collected, raising the prospect of even greater scrutiny, said people with knowledge of the matter. Goods and services tax (GST) returns, income tax filings and transfer pricing submissions will be analysed and synchronised in a manner that hasn’t been possible before, they said.
Read more at:
//economictimes.indiatimes.com/articleshow/65584614.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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MCA
The 10-member committee, which submitted its report, has made various recommendations as part of larger efforts to promote ease of doing business and better compliance levels. Suggesting strict measures, the panel has pitched for disqualification of directors in case they have directorships beyond permissible limits and capping an independent director's remuneration "in terms of percentage of income". This is to prevent any material pecuniary relationship which could impair his independence on the board of the company, an official release said about the panel's recommendations. Among other suggestions is de-registration of companies in case of non-maintenance of registered office. Existing rigour of the law should continue for serious offences, covering six categories, whereas, for lapses that are essentially technical or procedural in nature, mainly falling under two categories may be shifted to in-house adjudication process, the panel has recommended. Apart from the restructuring of corporate offences to relieve special courts from adjudicating routine offences, the panel has mooted "re-categorisation of 16 out of the 81 compoundable offences" under the Act. This would be done by shifting them from the jurisdiction of special courts to an "in-house E-adjudication framework wherein defaults would be subject to levy of penalty by the authorised adjudicating officer (Registrar of Companies).
CBDT
CBDT has decided, in super-session of Circulars issued, that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified. Amendment are made w.r.t the adverse judgments should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified or there is no tax effect. For this purpose, ‘tax effect’ means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed.
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SEBI
SEBI with an intent to streamline the existing process of issuance of debt securities has decided to reduce the time taken for listing after the closure of the issue to 6 working days as against the present requirement of 12 working days and to make the process of listing of NCRPS and SDI easier, simpler and cost effective for both issuers and investors under the SEBI ILDS, SEBI ILDM,SEBI NCRPS and SEBI SDI regulations respectively. The SCSBs, stock exchanges, depositories and intermediaries shall co-ordinate with one another to ensure completion of listing of debt securities, NCRPS, SDI and commencement of trading by T+6. This circular shall be applicable for all public issues of debt securities, NCRPS and SDI opening on or after October 01, 2018. Further, all the investors applying in a public issue shall use only Application Supported by Blocked Amount (ASBA) facility for making payment.
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Panel for internal e-adjudication system to take load Off NCLTs
The expert committee set up by the government to review penal provisions of the Companies Act, 2013, has favoured decentralisation of power to regional directors and setting up of an in-house e-adjudication mechanism to free up the overburdened National Company Law Tribunals (NCLTs) and Special Courts.
The panel suggested that 16 out of the 81 compoundable offences should be dealt through the in-house e-adjudication mechanism, instead of going to special courts.
Read more at:
//economictimes.indiatimes.com/articleshow/65568134.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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National Anti-profiteering Authority starts consumer helpline to file GST profiteering complaints
The National Anti-profiteering Authority (NAA) has started a helpline to encourage consumers to file complaints against the companies that are not passing GST rate cut benefits.
The helpline number 011-21400643 will guide the consumers to register their complaints, provide information and resolve queries related to profiteering under the Goods and Services Tax (GST) law.
Consumers can call the helpline number between 9:30 am-1 pm and 1:30pm - 6pm on all working days, as per the latest post on the NAA website.
Read more at:
//economictimes.indiatimes.com/articleshow/65562863.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Highlights of the report of Committee to review offences under The Companies Act, 2013
Big relief to special courts
One of the major recommendations by the committee is re-structuring of the offence which will help to provide fresh approach by special courts for adjudicating routine offences by shifting offence from the jurisdiction of special courts to an in-house E-adjudication framework.
Enlarging jurisdiction
The legislature has explicated the pecuniary limits for compounding of offences by the Regional Director, ROC, MCA and the Courts. So, it has suggested to enlarge jurisdiction with enhanced pecuniary limits for compounding of offences so that superior courts will get extra-time to take care of other cases.
Disclosures with respect to Public deposit
It has been proposed to refurbish the disclosures norms with respect to deposits in order to cover loopholes. This would surely, increase compliances for the companies and the directors.
Tackling the Shell companies
It also recommended the companies to declare commencement of business in order to curb shell companies.
Speedy disposal of offences
In order to have speedy disposal of offences, it has suggested to number prosecutions filed in the special courts.
Reduction in time limit for e-filing
The Committee has suggested to reduce the time-limit for filing documents related to creation, modification and satisfaction of charges.
Cap on Independent directors
There is dire need to have a cap on independent director who draws remuneration from companies in terms of percentage of income in order to prevent any material pecuniary relationship.
Online platform of E-adjudicating
The Committee has focused on introducing a transparent online platform for E-adjudication and E- publication of orders which will help in ease of doing business. Offences such as failure to attach mandatory documents, non-filing of resolution, and default in respect of DIN and so on would be looked after through E-adjudication platform.
E-notices
An online system of issuing e-notices should be created, wherein notices would be issued online and responses thereto would also be filed online on the same platforms. In case of no response within reasonable time frame, physical notices would be sent to the parties automatically.
