11.11.18 Economic News
👉Finance Ministry issues GST Advisory to Foreign Diplomatic Missions & Embassies based in India and advised them to maintain consistency in reporting ‘place of supply’ in invoices and GST returns filed by them to claim refunds under the indirect tax regime.
👉RBI cancels registration of 31 NBFCs out of which a majority of 27 such NBFCs are from West Bengal
👉RBI-Government Spat: Finance Ministry Seeks Review of Central Bank Balance Sheet
👉SEBI reduces the maximum bid size of HNIs by half in the revised SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018. While the earlier regulations allowed each HNI to put in a bid equal to the issue size, the revised guidelines effectively cap such bids to 50% of the issue size.
👉Cabinet approves Strategic Disinvestment of 100% Govt. of India’s Equity in the Dredging Corporation of India Ltd. (DCIL)
👉Cabinet approves Laying down procedure and mechanism for sale of Enemy Shares
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GST Evasion: Two more arrested in Hyderabad
Read more at: http://www.taxscan.in/gst-evasion-arrested-hyderabad/30609/
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RESERVATION TO MSMEs:
Ministry of MSME has notified that CG and PSUs have to procure 25% of the total goods or services from MSMEs. Further, out of the above 25%, 3% shall be from MSMEs owned by Women.
A. SHIFTING OF POWERS UNDER COMPANIES ACT:
Application for opting financial year different from “ending 31st March” will now be made by foreign subsidiary to CG instead of NCLT.
Alteration of AOA for conversion of Public Company into Private Company will now require CG Approval instead of NCLT.
B. KEY PRACTICAL TAKEAWAYS:
1. Income Tax:
# TP Study is required to be prepared if aggregate of international transactions exceed INR 1 crore.
# Form 3CEB is required to be certified from a Chartered Accountant in case TP provisions apply.
2. Good and Services Tax (GST):
# In case of Sale of under construction property, GST is applicable if part of the consideration is received before EARLIER of Completion Certificate Date OR Possession Date.
# In case of Sale of Capital Goods, provisions of Section 18 will get triggered. The Tax payable shall be HIGHER OF Tax Charged on Sale OR ITC taken (minus) 5% allowance for per quarter or part quarter use.
# In case of Second Hand Business Vehicle Sale, Value will be taken as (Sale Price – WDV), Rate shall be taken @ 18% (in case of >=1200cc Vehicles) and @ 12% (Other Vehicles).
C. UPCOMING DUE DATES:
1. Income Tax:
# Due Date of furnishing of TDS Certificates (Form 16, 16A) for 2nd Quarter (FY 18-19) is 15th November, 2018.
# Due Date for furnishing of Tax Audit Report and Income tax Return in TP Audit cases, is November 30, 2018.
2. Goods and Services Tax (GST):
# Due Date of filing of GSTR 1 (Taxpayers with T/o > INR 1.50 crores) for the month of October 2018 is November 11, 2018 (Today - Sunday).
3. Corporate and Allied Laws:
# Due Date of deposit of ESI for the month of October, 2018 is 15th November, 2018.
# Due Date of deposit of PF for the month of October, 2018 is 15th November, 2018.
# Due Date of Filing of AOC-4 (Financial Statements) and MGT-7 (Annual Return) for F.Y. 2017-18 has been EXTENDED till 31.12.2018.
4.Linked Practical Point:
# AOC-4 is to be filed in XBRL in case of | Listed Companies and their Subsidiaries. ALL IND AS Compliant Companies. ALL Companies having Paid up Capital > = INR 5 crore OR Turnover > = INR 100 crores. NO XBRL for Insurance and Finance Sector entities.
D. RECENT UPDATES
1. Income tax:
# Income tax department has come up with a Draft Notification proposing ONLINE APPLICATION for Section 80G and Section 10(23C) registration. The Last date to give Public Comments is 12.11.2018 @ ustpl@nic.in.
2. Goods and Services Tax (GST):
# CBIC has clarified the application of Schedule I (Transactions without consideration) and Section 15 (Valuation) in case of Del-Credere Agent (DCA) vide Circular No. 73/47/2018 dated 05.11.2018. The main clarification is with regard to inclusion of Interest charged on Advance Payment by DCA to the supplier in the value of supply.
# No TDS under GST is required to be deducted if one PSU procures goods or services from another PSU.
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CESTAT upholds Order imposing Severe Penalty on CHA Company & Director for not following KYC Norms [Read Order]
Read more at: http://www.taxscan.in/cestat-penalty-cha-company-kyc-norms/30612/
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Refund couldn't be rejected on ground that it was adjusted against tax arears in absence of sec. 156 notice
[2018] 98 taxmann.com 454 (Bombay)
HIGH COURT OF BOMBAY
Nu-Tech Corporate Services Ltd.
v.
Income Tax Officer
Section 156, read with section 237, of the Income-tax Act, 1961 - Notice of demand (Service of notice) - Assessee claimed refund of tax along with interest pertaining to assessment years 1993-94, 1995-96 and 2002-03 - Revenue authorities rejected assessee's claim on ground that amount of refund had been adjusted against tax demand relating to subsequent assessment years 2003-04 and 2009-10 - Assessee filed instant petition contending that no demand was ever raised in relation to aforesaid assessment years - It was noted that although revenue placed reliance upon copy of notice of demand found in official records, yet there was no evidence on record that such a notice under section 156 had been served on assessee - Thus, there was nothing in records which could attribute knowledge of tax demand to assessee - Whether in view of negligent approach adopted by revenue authorities, impugned order passed by them was to be set aside and a direction was to be issued to grant refund to assessee along with applicable rate of interest - Held, yes [Paras 5,6 and 16] [In favour of assessee]
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All About GSTR-9
All the registered taxable persons under GST as regular taxpayers filing GSTR 1, GSTR 2, GSTR 3 are required to file GSTR-9.
However, the following persons are not required to file GSTR 9:
1. Casual Taxable Person
2.Input service distributors
3.Non-resident taxable persons
4. Persons paying TDS under section 51 of GST Act.
Due date of GSTR-9
GSTR-9 shall be filed on or before 31st December of the subsequent financial year. For instance, for FY 2017-18, the due date for filing GSTR 9 is 31st December 2018.
Penalty for the late filing of GSTR-9 return
Late fees for not filing the GSTR 9 within the due date is Rs. 100 per day per act up to a maximum of an amount calculated at a quarter percent of the taxpayer turnover in the state or union territory. Thus it is Rs 100 under CGST & 100 under SGST, total penalty is Rs 200 per day of default. There is no late fee on IGST.
Online Filing Process Of Annual Return GSTR-9
🐌Based on GSTR-1 and GSTR-3B filed during the year, facility to download system computed GSTR-9 as PDF format will be available.
🐌Based on GSTR-1 filed, consolidated summary of GSTR-1 will be made available as PDF download.
🐌Based on GSTR-3B filed, consolidated summary of GSTR-3B will be made available as PDF download.
🐌 In each table of GSTR-9, values will be auto-populated to the extent possible based on GSTR-3B and GSTR-1 of the year. All the values will be editable with some exceptions (table 6A, 8A and tax payment entries in table 9).
'🐌 NIL ' return can be filed through single click.
Offline
🐌 Offline tool to be downloaded from the portal.
🐌 Auto-populated GSTR-9 (System computed json) to be downloaded from the portal before filling up values.
🐌 Table 6A and table 8A will be non-editable.Other values will be editable barring tax payment entries in table 9.
🐌 After filling up the values, json file to be generated and saved.
After logging on the portal, the json file to be uploaded.
🐌 File will be processed and error if any will be shown.
🐌 Error file to be downloaded from the portal and opened in the Excel tool.
🐌 After making corrections, file will again be uploaded on the portal.
🐌 Cirrections can be made online also except table 17 & 18 if the number of records exceeds 500 in each table.
🐌 After filing, return can be downloaded as PDF and/or Excel.
🐌 Revision facility is not there, therefore, return should be filed after reconciling the information provided in the return and in the books.
Payment while filing GSTR-9:
i. Except late fee, if any, no payment is to be made with annual return.
ii. Payment can be made on voluntary basis through GST DRC-03, if required.
