# GST: Transitional Credit - period of limitation provided under the GST do not violate Article 14 or 19(1)(g) of the constitution in any manner – RSPL Ltd. Vs. UoI (2018 (10) TMI 1521 - Gujarat HC).
# IT: Failure to file ITR of company - Managing Director and Directors are equally responsible for ITR on behalf of the company – Rakshit Jain & Ors Vs ACIT (2018 (10) TMI 1508 - Delhi HC).
# IT: If CIT(A) is allowed to enhance the assessment on a new source of income not considered by AO, the Sections 147 & 263 would become redundant – B. Durga Prasad Vs ITO (2018 (10) TMI 1436 - ITAT Visakh).
# IT: Addition u/s 56(2)(vii)(c) - drawing up the balance sheet of GEPL as on that date for determining of FMV of shares is proper U/r 11U – Shri Harry Inder Dhaul Vs Addl.CIT (2018 (10) Tmi 1391 – ITAT Mum).
TMI:taxmanagementindia.com
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Services Received by CA Firm from their Associated Firm Abroad Taxable under RCM: CESTAT [Read Order]
Read more at: http://www.taxscan.in/services-received-ca-firm-associated-firm-abroad-taxable-rcm-cestat/30279/
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Indirect Tax Legal updates:
1. Service Tax- Payment of service tax dues in instalment due to financial hardship- Held, circular dt. 28.02.2015 recognizes facility for clearing dues in instalments in case of genuine hardships and is to be deposited by 5th of the month. In case of failure in depositing, at any stage, it would be open for authorities to carry out coercive recoveries.
2018-VIL-481-GUJ-ST
2. Business Auxiliary Service (BAS)- In the context of BAS, the rent and cost of manpower is not a reimbursable expense but a cost of service. Just by terms of the contract, an assessee cannot convert a cost into a reimbursable expense.The appellants are not entitled to exclude the rent and salaries from the assessable value.
2018-VIL-717-CESTAT-AHM-ST
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Profiteering Charges against Amway India dropped for want of Evidence [Read Order]
Read more at: http://www.taxscan.in/profiteering-charges-amway-india-dropped-evidence/30261/
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The Delhi High Court has recently approved initiating prosecution proceedings, under Section 276CC of the Income Tax Act 1961, against an individual taxpayer for not filing ITR and failing to respond to the tax notices sent to him.
CBIC has laid down detailed procedure for returning time-expired drugs or medicines under the GST regime. The same procedure can be used for other sectors too, where goods are returned under similar situations.
Extension of Annual Filing MCA Annual Returns Due Date till 31/12/2018. http://www.mca.gov.in/Ministry/pdf/NoticeAndCircularGC_30102018.pdf
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ICAI releases Technical Guide on the functioning of Audit Committee and its Review Checklist
Read more at: http://www.taxscan.in/icai-releases-technical-guide-functioning-audit-committee-review-checklist/30256/
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CESTAT deletes Penalty since Delay in Payment of Service Tax was due to Financial Crunch [Read Order]
Read more at: http://www.taxscan.in/cestat-deletes-penalty-delay-payment-service-tax-financial-crunch/30276/
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The Institute of Chartered Accountants of India ( ICAI ) has released a Technical Guide on the functioning of Audit Committee and its Review Checklist providing a checklist for review of the Audit Committee. The Technical Guide aims to provide guidance on Duties and Role of the Audit Committee for ensuring its effectiveness. Important Frequently Asked Questions from part of the Guide. A Specimen Checklist for Performance Evaluation of Audit Committee finds a place in the Publication. The Audit Committee is inter alia responsible for liaison with the management; internal and statutory auditors, reviewing the adequacy of internal controls and compliance with the significant policies, procedures and reporting to the Board on key issues. The idea of having independent directors on the Audit Committee originates from the concept of effective Corporate Governance. The Independent Directors bring objectivity to Board decisions, protect the common interest of the company and its stakeholders. The Companies Act 2013 requires certain classes of companies to constitute Audit Committee. “I am happy that the Corporate Laws & Corporate Governance Committee has taken this initiative of bringing out the publication titled- “Technical Guide on the functioning of Audit Committee and its Review Checklist” which is a comprehensive and self-contained reference document for the guidance of Audit committee on its functions, role, duties and ensuring effectiveness,
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Regulation on Auditors & Audit Firms: Experts Committee suggests to give more Powers to NFRA
Read more at: http://www.taxscan.in/auditors-audit-firms-experts-committee-nfra/30307/
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India Improves Rank by 23 Positions in Ease of Doing Business
India has recorded a jump of 23 positions against its rank of 100 in 2017 to be placed now at 77th rank among 190 countries assessed by the World Bank. India's leap of23 ranks in the Ease of Doing Business ranking is significant considering that last year India had improved its rank by 30 places, a rare feat for any large and diverse country of the size of India. As a result of continued efforts by the Government, India has improved its rank by 53 positions in last two years and 65 positions in last four years. The Doing Business assessment provides objective measures of business regulations and their enforcement across 190 economies on ten parameters affecting a business through its life cycle. The DBR ranks countries on the basis of Distance to Frontier (DTF), a score that shows the gap of aneconomy to the global best practice. This year, India’s DTF score improved to 67.23 from 60.76 in the previous year.
India has improved its rank in 6 out of 10 indicators and has moved closer to international best practices (Distance to Frontier score) on 7 out of the 10 indicators. But, the most dramatic improvements have been registered in the indicators related to 'Construction Permits' and 'Trading across Borders'. In grant of construction permits, India's rank improved from 181 in 2017 to 52in 2018, an improvement of 129 ranks in a single year. In 'Trading across Borders', India's rank improved by 66 positions moving from 146 in 2017 to 80 in 2018.
The important features of India's performance this year are:
• The World Bank has recognized India as one of the top improvers for the year.
• This is the second consecutive year for which India has been recognized as one of the top improvers.
• India is the first BRICS and South Asian country to be recognized as top improvers in consecutive years.
• India has recorded the highest improvement in two years by any large country since 2011 in the Doing business assessment by improving its rank by 53 positions.
• As a result of continued performance, India is now placed at first position among South Asian countries as against 6th in 2014.
Indicator wise highlights of India’s performance are:
Construction Permits –
• Procedures reduced from 37 to 20 in Mumbai and from 24 to 16 in Delhi
• Time reduced from 128.5 to 99 days in Mumbai and from 157.5 to 91 days in Delhi
• Building quality control index improved from 12 to 14 in Mumbai and 11 to 14 in Delhi
• Cost of obtaining construction permits reduced from 23.2 percent to 5.4 percent
• DTF score improved from 38.80 to 73.81
Trading Across Borders–
• Robust Risk Management System has reduced inspections significantly
• e-Sanchit allows traders to file all documents electronically
• Time and cost to export reduced through the introduction of electronic self-sealing of container at the factory
Starting a Business-
• Procedures reduced from 11 to 10 in Delhi and 12 to 10 in Mumbai
• Time reduced from 30 to 16 days in Delhi and 29.5 to 17 days in Mumbai
• PAN, TAN, DIN now merged with SPICe making it a single form for company incorporation
• No requirement of inspection for registration under Shops & Establishment in Mumbai
• Distance to Frontier improved from 75.40 to 80.96
Access to Credit
• Rank improved from 29 to 22
• DTF improved from 75 to 80
• Strength of legal rights index improved from 8 to 9
• Secured creditors will now be repaid first during business liquidation hence given priority over other claims
Access to Electricity
• Procedures reduced from 5 to 3 in Delhi and 5 to 4 in Mumbai
• DTF improved from 85.21 to 89.15
Improvement have taken place due to the commitment of the Government to carry out comprehensive and complex reforms supported by the bureaucracy which has changed its mindset from a regulator to a facilitator. The Government has undertaken an extensive exercise of stakeholder consultations to understand challenges of the industry, government process re-engineering to provide simplified and streamlined processes to create a more conducive business environment in the country. As a result of continued efforts, India's rank has improved as follows:
Overall rank
• 142 in 2014
• 130 in 2016
• 100 in 2017
• 77 in 2018
DTF
• 53.97 in 2014
• 56.05 in 2016
• 60.76 in 2017
• 67.23 in 2018
Implementation of reforms required coordination within various Ministries and government agencies:
• DIPP prepared reform action plan based on global best practices, with support of World Bank’s expert team
• Identification of nodal Departments and constitution of Task Force for each indicator. DIPP sensitizing Departments and worked with them for reform implementation
• Development of a Communication Plan for Dissemination of reforms to users and other stakeholders, to generate awareness and receive feedback.
• DIPP engaged expert agencies to receive regular industry feedback on reforms
• Consulted stakeholders frequently to understand the gaps in reform implementation
• Created WhatsApp groups to share reforms and address concerns of users
• Conducted focused group discussions and one-to-one meetings with users
• Ran twitter Polls and conducted live Twitter chat sessions to gauge user perception
• Identified corrective measures based on feedback received
• Regular review of reforms and removing bottlenecks in implementation
• Indian delegation visited World Bank multiple times to explain the reforms implemented and understand areas for improvement
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Karnataka High Court imposes One Lakh Cost on Commissioner (Appeals) for Breach of Judicial Discipline [Read Order]
Read more at: http://www.taxscan.in/karnataka-high-court-imposes-one-lakh-cost-on-commissioner-appeals-for-breach-of-judicial-discipline/30316/
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Absence of Vehicle Number in E-Way Bill: Kerala HC directs release of Goods by furnishing BG and Bond [Read Order]
Read more at: http://www.taxscan.in/absence-vehicle-number-e-way-bill-kerala-hc-directs-release-goods-furnishing-bg-bond/30313/
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Income Tax and GST Return filing, No Extension and Site Shutdown: CAs are under Pressure
Read more at: http://www.taxscan.in/income-tax-and-gst-return-filing-no-extension-and-site-shutdown-cas-are-under-pressure/30326/
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ITC on Diwali gifts
DIWALI GIFTS: IS ITC AVAILABLE?
Diwali is the time to gift to your friends, family, employees, customers and clients. Let us have a look whether ITC is available for purchase of diwali gifts for vendors, customers or consultants.
Section 16: Taxpayer is entitled to take ITC on tax charged on supply of goods or services which are used in the course of furtherance of business.
In the course of furtherance of business: an act of advancement or promotion of business for it’s sustained growth and profitability.
Diwali gifts are given to person related to business for good business relations for the advancement of business.
It should be noted that diwali gift shall be treated as supply of goods for the vendor who have sold such gifts and tax should be charged by the supplier. Therefore, diwali gifts fulfils the condition of Section 16 and ITC can be claimed.
ITC available on sweets and beverages purchased for distribution to employees on Diwali?
ITC on food and beverages comes under blocked credit as per section 17(5). Hence ITC is not available on foods and beverages purchased for employees and workers.
Gifts to employee
Salary payable to employees shall not attract GST as it is not treated as Supply.
Gifts given by employer exceeding the value of Rs. 50,000 shall be liable to GST. High value gifts given such as car, home, gold etc exceeding Rs. 50,000 is liable to GST.
ITC is NOT available such products gifted to employees.
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Karnataka High Court imposes One Lakh Cost on Commissioner (Appeals) for Breach of Judicial Discipline [Read Order]
Read more at: http://www.taxscan.in/karnataka-high-court-imposes-one-lakh-cost-on-commissioner-appeals-for-breach-of-judicial-discipline/30316/
