Tribunal Power to Rectify does not Include Power to Review: ITAT [Read Order]
Read more at: http://www.taxscan.in/tribunal-power-rectify-include-power-review-itat/30386/
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Inaccuracy or Mistake in Notice would make Assessment Invalid: Delhi HC [Read Judgment]
Read more at: http://www.taxscan.in/inaccuracy-mistake-notice-assessment-invalid-delhi-hc/30332/
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S. 68 Bogus share premium: The AO cannot assess the share premium as income on the ground that it is "excessive". The share premium worked out in the Valuation Certificate is the minimum amount that can be collected by the assessee under RBI regulations. DCIT vs. Varsity Education Management Pvt. Ltd (ITAT Mumbai).
US revoked duty-free concessions on import of at least 50 Indian products, mostly from handloom and agriculture sectors, reflecting the Trump administration's tough stand on trade-related issues with New Delhi.
SEBI recently invoked its power to issue back-to-back interim or ex-parte orders. In an order passed against NuTek India on October 26, SEBI said passing of more than one interim order is permissible, when circumstances exist and more than one ex-parte interim orders will also be permissible in conformity with the principles of natural justice.
Reserve Bank has relaxed norms for the fire audit of currency chests allowing banks to get it done from approved agencies in case of shortage of staff at district fire offices.
STAMP PAPERS DO NOT HAVE ANY EXPIRY PERIOD BEING USED FOR A DOCUMENT.
Supreme Court of India held that that the Indian Stamp Act, 1899 nowhere prescribes any expiry date for use of a stamp paper.
India climbed another 23 points in the World Bank’s ease of doing business ranking to 77th place, becoming the top ranked country in South Asia for the first time and third among the BRICS.
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SEBI Authorises Insolvency Professionals to Act as Administrators
Read more at: http://www.taxscan.in/sebi-insolvency-professionals/30341/
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Suppression of Facts can’t be alleged Merely because Audit Party found some Credit availed Inadmissible: CESTAT [Read Order]
Read more at: http://www.taxscan.in/suppression-facts-alleged-audit-party-credit-availed-inadmissible-cestat/30381/
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SEBI Authorises Insolvency Professionals to Act as Administrators
Read more at: http://www.taxscan.in/sebi-insolvency-professionals/30341/
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GST: Maharashtra hikes Compensation to Local Bodies
Read more at: http://www.taxscan.in/gst-maharashtra-compensation-local-bodies/30421/
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GST: Haryana to block Non- Genuine Input Tax Credit Claims
Read more at: http://www.taxscan.in/gst-haryana-input-tax-credit/30425/
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GSTN enables facility to upload Refund on account of Export of Services, with Statement
Read more at: http://www.taxscan.in/gstn-refund-export-services/30430/
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Ministry of Company Affairs
President gives assent to promulgation of the Companies Amendment (Ordinance), 2018
The recommendation of the Union Cabinet for promulgation of the Companies Amendment (Ordinance), 2018 has been assented to by the President of India. The Ordinance, which has been promulgated today is based on the recommendations of the Committee appointed by the Government to review offences under the Companies Act, 2013.
The twin objectives of the Ordinance are promotion of Ease of Doing Business along with better corporate compliance. The main amendments are as under;
i.Shifting of jurisdiction of 16 types of corporate offences from the special courts to in-house adjudication, which is expected to reduce the case load of Special Courts by over 60%,thereby enabling them to concentrate on serious corporate offences. With this amendment the scope of in-house adjudication has gone up from 18 Sections at present to 34 Sections of the Act.
ii.The penalty for small companies and one person companies has been reduced to half of that applicable to normal companies.
iii.Instituting a transparent and technology driven in-house adjudication mechanism on an online platform and publication of the orders on the website.
iv.Strengthening in-house adjudication mechanism by necessitating a concomitant order for making good the default at the time of levying penalty, to achieve the ultimate aim of achieving better compliance.
v.Declogging the NCLT by:
a.enlarging the pecuniary jurisdiction of Regional Director by enhancing the limit up to Rs. 25 Lakh as against earlier limit of Rs. 5Lakhunder Section 441 of the Act;
b.vesting in the Central Government the power to approve the alteration in the financial year of a company under section 2(41); and
c.vesting the Central Government the power to approve cases of conversion of public companies into private companies.
vi.Recommendations related to corporate compliance and corporate governance include re-introduction of declaration of commencement of business provision to better tackle the menace of ‘shell companies’; greater disclosures with respect to public deposits; greater accountability with respect to filing documents related to creation, modification and satisfaction of charges; non-maintenance of registered office to trigger de-registration process; and holding of directorships beyond permissible limits to trigger disqualification of such directors.
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MCA Update
*Presidential gives nod to Companies (Amendment) Ordinance, 2018
Key amendments (SECTION WISE) which are to come through the Ordinance:-
1.Decriminalization of over 80 offences.
2.Tightening Disclosure of Benificial Interest.
3. Simplying penalties for minor offences (moving towards adjudication from prosecution). System of e-adjudication wherein ROC shall send online show cause notice, if not replied by company /director physical shall automatically be sent to the company, submission of reply online and posting of order online by ROC. Appeals to lie with RD.
Section 2(41) - Change in Financial Year to be done by CG (to be delegated to RD).
Section 11 - Re-introducing the Requirements of Obtaining Certificate of Commencement of Business. Non-obtaining of the same to be a ground of Striking Off.
Section 12 - Non - Maintenance of Registered Office to be a ground for striking off of the Company.
Section 14 - Conversion of Public Co to Private to be with Central Govt who can delegate it to ROC/RD & in case of bigger companies to NCLT.
Section 73 to 76 & Deposit Rules- An e-form to be introduced for reporting transactions which are exempted deposits.
Section 77, 78 & 87 - Maximum time period for registration/modification of charges to be 30 days + additional 30 days. _Further condonation to be done in 60 days._ After total of 120 days Charge Cannot be Registered.
Section 149 -Stricter norms for IDs & capping of their sitting fee & remuneration.
Section 164, 165 & 167 - Breach in Maximum no of Directorships to be a Ground for Disqualification.
Section 248- Non-obtaining of Certificate of Cimmencment of Business and Non maintenance of Registered Office to be a Ground for Striking off by ROC.
Section 441 - Compounding
Compounding Threshold for going to NCLT to be revised to 25 lakhs from 5 lakh.
Prior permission of Special Court not required for Compounding of offences punishable with imprisonment or fine or with both by NCLT.
Minimum Compounding fee shall be as minimum fine mentioned in the section.
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GST Practitioners National Action Committee appeals for Due Date Extension for Returns
Read more at: http://www.taxscan.in/gst-practitioners-national-action-committee-appeals-for-due-date-extension-for-returns/30440/
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GST Evasion using Dummy Firms unearthed in Hyderabad
Read more at: http://www.taxscan.in/gst-evasion-dummy-firms-hyderabad/30442/
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GSTN enables facility to upload Refund on account of Export of Services, with Statement
Read more at: http://www.taxscan.in/gstn-refund-export-services/30430/
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President gives assent to promulgation of the Companies Amendment (Ordinance), 2018
The twin objectives of the Ordinance are promotion of Ease of Doing Business along with better corporate compliance.
The main amendments are as under;
- Shifting of jurisdiction of 16 types of corporate offences from the special courts to in-house adjudication, which is expected to reduce the case load of Special Courts by over 60%, thereby enabling them to concentrate on serious corporate offences. With this amendment the scope of in-house adjudication has gone up from 18 Sections at present to 34 Sections of the Act.
- The penalty for small companies and one person companies has been reduced to half of that applicable to normal companies.
- Instituting a transparent and technology driven in-house adjudication mechanism on an online platform and publication of the orders on the website.
- Strengthening in-house adjudication mechanism by necessitating a concomitant order for making good the default at the time of levying penalty, to achieve the ultimate aim of achieving better compliance.
Declogging the NCLT by:
= enlarging the pecuniary jurisdiction of Regional Director by enhancing the limit up to Rs. 25 Lakh as against earlier limit of Rs. 5Lakh under Section 441 of the Act;
vesting in the Central Government the power to approve the alteration in the financial year of a company under section 2(41); and
= Vesting the Central Government the power to approve cases of conversion of public companies into private companies.
Recommendations related to corporate compliance and corporate governance include re-introduction of declaration of commencement of business provision to better tackle the menace of ‘shell companies’; greater disclosures with respect to public deposits; greater accountability with respect to filing documents related to creation, modification and satisfaction of charges; non-maintenance of registered office to trigger de-registration process; and holding of directorships beyond permissible limits to trigger disqualification of such directors.
DSM/RM
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Petition filed before Rajasthan HC challenging Rule relating to Refund on Account of Inverted Duty Structure
Read more at: http://www.taxscan.in/petition-filed-rajasthan-hc-challenging-rule-relating-refund-account-inverted-duty-structure/30432/
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GST Practitioners National Action Committee appeals for Due Date Extension for Returns
Read more at: http://www.taxscan.in/gst-practitioners-national-action-committee-appeals-for-due-date-extension-for-returns/30440/
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GST Evasion using Dummy Firms unearthed in Hyderabad
Read more at: http://www.taxscan.in/gst-evasion-dummy-firms-hyderabad/30442/
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ICAI speeds up Pending Disciplinary Matters
Read more at: http://www.taxscan.in/icai-disciplinary-matters/30449/
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Banquet hall services under GST
The HSN 997212 as per such notes is for renting or leasing services concerning industrial, commercial or other non- residential building such as theatres, conventions etc, the said HSN could be applicable only in cases where leasing service are provided but in banquet hall service both leasing and catering services are involved.
The HSN 996331 as per such notes is for the supply of food at places like restaurant, cafe, and other similar eating joints. Generally ‘eating joints’ would mean a place where food is served. This is also evident from the other places mentioned in the HSN entry i.e. restaurant or cafe. Hence, HSN 996331 would not be applicable for banquet services, as it is not in the nature of eating joints, but it is the place where events are conducted
Further, the banquet service and restaurant services are two different services and cannot be considered as same for the following reasons:
In respect of the banquet service, apart from serving of food, beverages (which are part of restaurant service) the customer also gets the premises and other ancillary services such as decoration, lighting, music etc.
In the banquet hall service, equal importance is given to the renting of premises and supply of food. There can be a case where the hall is taken on lease for the event, etc and there is no supply of food e.g for conducting a seminar, but there can never be a case where there is a supply of food without the renting of premises for any event, etc. Thus the banquet service cannot be considered to be purely a food supply service.
Banquet Hall Sevices under GST
A similar view was held in Tamil Nadu Kalyana Mandapan Association v. Union of India 2004 (167) E.L.T.3 (S.C.), wherein para 55 a comparison was made between the outdoor catering service and restaurant service and held that these 2 are different. It was held by** the Supreme Court in such case “ in as much as, in the case of outdoor catering service, the food/eatables/drinks are the choice of the person who the service rendered by outdoor caterers is clearly distinguishable from the service rendered in a restaurant or hotel provided therein which result in providing the function to be solemnized with the required effect and ambiance. Similarly, say a star hotel, not merely for the food that they will provide but for the entire variety of servicesThe services provided by a Mandap keeper are professional services which he alone by virtue of his experience has the wherewithal to provide. A customer goes to a *Mandap keeper, par takes the services. He is free to choose the kind, quantum and the manner in which the food is to be served. But in the case of a restaurant,* the customer’s choice of food is limited to the menu card. Again, in the case of outdoor catering, the customer is at liberty to choose the time and place where the food is to be served. In the case of an outdoor caterer, the customer negotiates each element of catering service, including the price to be paid to the caterer. Outdoor catering has an element of personalized service provided to the customer. Clearly, the service element is more weighty, visible and predominant in the case of outdoor catering. It cannot be considered as a case of sale of food and drink as in the restaurant.**
The above case law distinguishes the service of restaurants and mandap keeping service. In the case of the banquet hall (being of the genre of mandap keeper services), the customer is free to choose the kind, quantum, place (to some extent) and the manner in which the food is to be served. But in the case of restaurant services, the customer’s choice is restricted to the menu card.* Further, in the case of outdoor catering, the customer has the liberty to choose the time and the type of food to be served. It also has an element of personalized service provided to the customer.
**
Hence, the service element is more weighty, visible and predominant in the case of outdoor catering. It cannot be considered as a case of sale of food and drink as in the restaurant. Hence, restaurant service and banquet hall service are of different nature and cannot be classified under same HSN of 996331
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CBIC notifies exchange rates for conversion!
Central Board of Indirect Taxes and Custom notifies the exchange rates for conversion. Have a look at the notification:
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
Notification No.90/2018 – Customs (N.T.)
New Delhi, dated the 1st November, 2018
10 Kartika 1940 (SAKA)
In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Indirect Taxes and Customs No.87/2018-CUSTOMS (N.T.), dated 18th October, 2018 except as respects things done or omitted to be done before such supersession, the Central Board of Indirect Taxes and Customs hereby determines that the rate of exchange of conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 2nd November, 2018, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.
SCHEDULE-I
Sl.No.Foreign CurrencyRate of exchange of one unit of foreign currency equivalent to Indian rupees
(1)(2)(3)
(a)(b)
(For Imported
Goods)
(For Exported
Goods)
1.Australian Dollar53.8051.45
2.Bahraini Dinar202.20189.80
3.Canadian Dollar57.2555.20
4.Chinese Yuan10.7510.45
5.Danish Kroner11.4511.05
6.EURO85.3582.30
7.Hong Kong Dollar9.609.25
8.Kuwaiti Dinar251.05235.30
9.New Zealand Dollar49.8547.45
10.Norwegian Kroner8.958.60
11.Pound Sterling96.5593.25
12.Qatari Riyal20.9519.65
13.Saudi Arabian Riyal20.3019.10
14.Singapore Dollar54.3552.50
15.South African Rand5. 204.85
16.Swedish Kroner8.207.95
17.Swiss Franc74.7071.90
18.UAE Dirham20.7519.50
19.US Dollar74.7073.00
SCHEDULE-II
Sl.No.Foreign CurrencyRate of exchange of 100 units of foreign
currency equivalent to Indian rupees
(1)(2)(3)
(a)(b)
(For Imported
Goods)
(For Exported
Goods)
1.Japanese Yen66.6564.25
