Updates from Judiciary -
Supreme Court has held that commercial contract is to be interpreted in accordance with the language used and context in which it is prepared.
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Supreme Court has dismissed a plea claiming that a key witness in the Kathua gang rape and murder case was allegedly tortured in custody by the Jammu and Kashmir Police in connection with a separate rape case.
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Supreme Court has held that at initial stage of filing of application for enforcement of foreign award, non-compliance of the production of documents mentioned in Section 47 of the Arbitration and Conciliation Act shall not entail in dismissal of the application for enforcement of an award.
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Uttarakhand High Court has observed that mere pleading by the wife in the divorce petition that husband was making an attempt to have an unnatural sexual relationship (sodomy) is sufficient to grant divorce on the ground of 'cruelty'.
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Supreme Court has passed an interim order and stayed penalty of Rs. 420 crore imposed on Hyundai Motors India Limited, by Competition Commission of India (CCI) for restricting the sale and supply of genuine spare parts of automobiles in open market.
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Delhi High Court has asked for details of gainful employment of spouses of officers of Delhi Higher Judicial Service and Delhi Judicial Service, which is to be maintained by the court.
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Delhi High Court has dismissed the plea of a former Border Security Force (BSF) jawan who was dismissed from service for allowing 15 cattle to be smuggled into the country from Bangladesh.
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Delhi High Court has upheld the powers of the Directorate General of Central Excise Intelligence (DGCEI) regarding the investigation of service tax cases.
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Calcutta High Court has directed authorities to appoint counsellors in about one lakh educational institutions in West Bengal to protect students from sexual abuse.
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Madhya Pradesh High Court has observed that it is the duty of Investigating Officer to investigate thoroughly in a sexual harassment complaint filed against public servants and reach to the motive for which the complaint has been filed.
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National Green Tribunal has rejected plea submitted by an environmental organisation against felling of nearly 3,000 eucalyptus trees at the proposed eco-park in Sector 91, Noida.
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# Back office administrative and accounting support services, pay-roll processing and maintenance of employee records, rendered by applicant to overseas client, a registered person incorporated in India, does not constitute an 'export of service' rather Intermediary Services : AAR Maharashtra.
# Delhi HC directs assessee to approach nodal officers for GST grievances on non-availing of Cenvat & VAT credit.
# Delay in-filing of TDS Returns due to Initial Glitches in Online Portal: ITAT Mumbai deletes Penalty, BCCI Vs. ACIT
# CBDT vide notification No. 82/2018 dt. 19.11.2018 November, 2018 amends Rule 14 of Income-tax Rules,1962 and PAN application Forms, i.e., 49A & 49AA. i.e, the Father’s name shall not be mandatory in PAN application forms where mother is single parent. Notification effective from 05.12.2018.
# Indian CAs to have Opportunities in Canada: ICAI signs pact with CPA Canada
https://www.icai.org/new_post.html?post_id=15236
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GST Cess post-Kerala Flood may be Delayed
Read more at: http://www.taxscan.in/gst-cess-kerala-flood-delayed/30796/
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In GSTR 9, there are 5 parts. Following are the details which the taxpayer needs to provide in GSTR 9 :
Part I - Basic Details such as GSTIN, Legal Name, Trade Name of the taxpayer that is auto-populated.
Part II - Details of outward and inward supplies declared in GSTR-4 filed during the financial year. This input consists of summary from all quarterly returns filed during the FY.
Part III - Details of tax paid as declared in returns filed during the financial year. Tax paid under different heads such as IGST, CGST, SGST, Cess, Interest, Late Fee, Penalty has to be mentioned here.
Part IV - Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return whichever is earlier. This section consists of summary of amendments or corrections relating to entries of previous FY. It may be additions or omissions.
Part V - Other Information such as the following:
Particulars of Demands and Refunds. Here, details of any demands for tax from the tax department, tax paid on the demand raised, any balance to be paid shall be mentioned. Also, details of Refund claimed, refund received out of the claim, pending refund shall be mentioned.
Details of credit reversed or availed – If a taxpayer switches from regular to composition scheme or vice versa, ITC shall be reversed or added respectively. Such details pertaining to ITC shall be entered here.
Late fee payable and paid – Late fee on account of late payment of tax or late filing of returns shall be mentioned in this section.
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, the total penalty is Rs 200 per day of default. There is no late fee on IGST.
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GST Practitioners Exam: NACIN issues Guidelines [Read Gudelines]
Read more at: http://www.taxscan.in/gst-practitioners-exam-nacin-guidelines/30840/
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CBDT amends Form No. 36 (Form of appeal to the Appellate Tribunal) vide Notification No. 72/2018 Dt. 23/10/2018 amends Form No. 36- Form of appeal to the Appellate Tribunal.
ITAT Mumbai in the case of Sushmita Sen Vs. ACIT held that the Sum received by Sushmita Sen towards damages for being sexually harassed not taxable under section 2(24) or Section 28 of the Income Tax Act 1961.
CBDT has amended Rule 114 of Income tax in order to provide that EVERY Director, Partner, Karta, Trustee of any Company, Firm, HUF, Trust is required to apply for PAN till 31.05.2019 _IF Such Company, Firm, HUF, Trust has entered into any Financial transaction(s) exceeding INR 2.50 lakhs in F.Y 18-19.
SEBI asked listed companies to disclose detailed reasons for the delay in submission of financial results to the stock exchanges within one working day of the stipulated deadline.In case a company decides to delay the announcement of results prior to the due date, reasons have to be disclosed within one working day of taking such a decision, according to a circular.
Department of Industrial Policy and Promotion (DIPP) wants to amend the Public Procurement Order so that penal action can be taken against erring officials of procurement agencies of any government department if they include restrictive or discriminatory conditions against domestic suppliers in bid documents.
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Transfer Pricing Compliance Details for FY 2017-18
1. Accountant’s Report in Form 3CEB
– Due date is 30 November. To be filed even if there is single rupee international transaction with associated enterprise.
2. Transfer Pricing Documentation
-To be prepared and maintained as per Rule 10D by 30 November 2018. To be maintained if the value of international transaction during FY 2017-18 exceeds Rs. 1 Crore.
3. Country by Country Reporting (CbCR)
• Form 3CEAC (Notification)-
Every Indian constituent entity of a foreign IG to file the CbC report notification in India. Due date- Two months prior to the due date for filing the CbC report
• Form 3CEAD (CbCR)– To be filed by
(i) Indian headquartered IG
OR
(ii) Indian entity of foreign IG designated as alternate reporting entity
OR
(iii) Indian constituent entity of foreign IG required to submit CbC report in India under the specified circumstances.
Due date – 31March 2019. To be filed if the consolidated group revenue exceeds Rs. 5500 Crores in preceding year.
•3CEAE– Foreign IG required to file CbC report in India under specified circumstances and having multiple constituent entities resident in India. No timelines prescribed.
4. Master File– Form 3CEAA (Due date 30 November 2018)
• Part A of Form 3CEAA
– Every constituent entity of an IG having international transactions/specified domestic transactions. No threshold applies.
• Part B of Form No. 3CEAA
– Every constituent entity of an IG meeting the prescribed threshold limit. Threshold is as under:
(i) For the accounting year, consolidated group revenue > INR 500 Cores;
and
(ii) The aggregate value of international transactions, as per books of accounts, for the accounting year :
‒ exceeds INR 50 Cores ,
or
‒ In relation to intangibles exceeds INR 10 Crores
• Form 3CEAB–
Intimation of designated Indian constituent entity of International Group for filing master file. Due Date -30 November prior to due date of filing Master File.
All prescribed Forms (Form Nos 3CEAA, 3CEAB, 3CEAC, 3CEAD and 3CEAE) have to signed by the person competent to verify the return of income. Stringent penalties for non-compliance of above provisions. Feel free to raise any queries
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Compensation for Termination of Business resulting in Loss of Source of Income is Capital Receipt: ITAT [Read Order]
Read more at: http://www.taxscan.in/compensation-business-loss-capital-receipt-itat/30850/
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18% GST applicable to Whole Wheat Malabar Parota: AAR [Read Order]
Read more at: http://www.taxscan.in/gst-whole-wheat-malabar-parota-aar/30790/
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GST: Govt plans to integrate FASTag in E-Way Bills
Read more at: http://www.taxscan.in/gst-fastag-e-way-bills/30859/
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👉Father’s Name not Mandatory in PAN: CBDT amends the Rule 114 of the Income-tax Rules, 1962. At present, furnishing of father’s name is mandatory for the allotment of PAN. The amended rules provide that furnishing of father’s name shall not be mandatory for a person whose mother is the single parent.
👉Delisting: SEBI allows promoters to make counter offers to shareholders of companies that are planning to delist from stock exchanges, a move aimed at plugging loopholes in the current method.
👉SEBI forms Committee to carry out a Comprehensive Review of rules for Proxy Advisory Firms — Companies that provide recommendations to Institutional Investors on whether to vote for a corporate action or not
👉ICAI has signed the Memorandum of Understanding (MoU) with the Chartered Professional Accountants of Canada (CPA Canada) on November 17, 2018 in Toronto, Canada. Signing of the MoU between ICAI & CPA Canada would facilitate mutual recognition of each other’s qualification and admit the members in good standing by prescribing a bridging mechanism between the two Institutes.
👉Taking forward its trade dispute with America in the World Trade Organization (WTO), India asks WTO to set up panel against USA for imposing High Import Duties on Certain Steel and Aluminium Products
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CAs can appear through Video Conferencing during Disciplinary Proceedings: MCA amends Rules [Read Notification]
Read more at: http://www.taxscan.in/cas-appear-video-conferencing-disciplinary-proceedings-mca-amends-rules/30806/
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110 Legal phrases used in Laws that every lawyer / CA /CS should know.
1 Suo moto: own motion
2 Deeming fiction cannot be stretched beyonyd the purpose for which it is created
3 The words used in Law are not used for nothing
4 To invoke Provision : To make use of particular provision
5 Ipso Facto: By this fact alone or because of this matter alone
6 ‘MAY’ may be treated as ‘SHALL’ but ‘SHALL’ shall not be treated as ‘MAY’
7 Tenable: Acceptable in law
8 Redundant Provision : Out of Force or Outdated Provision
9 Quasi : Almost Similar to
10 Quasi Criminal: Almost equal to criminal
11 Jurisprudence: Law relating to particular matter
12 Mensrea: Guilty Mind
13 Ibid: As printed earlier
14 Suo Moto: On its own
15 Prima Facie: On its face
16 Non est: What is not in existence / Non existing thing
17 Call in question: To challenge
18 De Nova: Completely New
19 Sine quo non: Most essential thing
20 Purposes of this Act: Proceeding must be pending
21 Reason to believe Vs Reason to suspect: Refer various caselaws
22 Derived from & attributable to: Derived from refers to direct connection with a particular matter whereas attributable to refers to an indirect connection
23 Mutatis Mutandis: After making necessary changes as may be required
24 Discovery Vs Detection: Discovery is made by the assessee whereas detection is done by the Assessing Officer
25 To Quash: The process of cancelling the proceeding of Assessing Authorities by Judicial Authorities
26 So far as may be: To the extent possible
27 Travisity of Justice : A ridiculous interpretation of a very serious statement, making a mockery of a very serious matter
28 To impugne : To challenge
29 Save as otherwise provided : Except to the extent as oppositely provided
30 If one section is overriding the other section : Use Words “Not withstanding anything contained in ……”
31 If one section is superceded by the other section : Use words “Save as otherwise provided………..”
32 Other provisions apply in General way: Use words “Without prejudice to the provisions ……………..”
33 Reckoned : Recognised, Counted, Calculated
34 Doctrine of Merger: When an order passed by the lower authority is superceded by the higher authority
35 Doctrine : Principle or saying in general acceptance
36 In Pari Material Pavi Causa: Same material, same content {Eg. Sec. 24B of IT Act, 1922 is Pari Material with Sec. 159 of IT Act, 1961. In such a case a judgement given in respect of section 24B would be valid in respect of sec. 159}
37 Per se : By itself
38 Cy Press : As near as possible
39 Tax is always charged, Interest is levied and Penalty is imposed
40 Deductions are admissible, Relief is granted.
41 Return is always furnished, Assessment order is made / passed.
42 De hors : Independent of
43 Order of Injunction of HC : Stay order.
44 Several Liability means separate liability. [Refer sections 168(3), 171(7), 179(1) 178(5) & 188A.]
45 Legatee is a person for whose benefit there exists an asset of a deceased
46 Locus Standi : Directly involved in relation or deal.
47 Garnishee Proceeding : The proceeding which gives Govt. the right to attach (i.e. forcibly take over) any asset from a person who is defaulter.
48 Vitiate Proceedings : To make proceedings null, void.
49 Inter alia : Among other things.
50 Audit Altream partem : It is a principle of natural justice. According to this principle, which is the principle in every civilized jurisprudence, a person against whom any action is sought to be taken or a person whose rights or interests are to be affected should be given a reasonable opportunity to defend himself.
51 Resjudicata : [Once the decision of HC comes then on that same point again appeal cannot be made.] The issue of Law which has been already decided shall not be pleaded for review.
52 In Limine : At the outset (i.e. at the beginning)
53 Suspended animus : An order under Appeal is not subject to any action by any authority till the order disposing of the appeal is available.
54 Subjudice : Under an appeal to a court, decision awaited.
55 Adjudicate : Consider for judgement. A court adjudicates means gives its decision on a particular matter.
56 Akin : Similar to; of the same type Coterminus : Similar to; of the same type
57 Impediment : Obstacles or Hindrance.
58 Sine Di: For indefinite period.
59 To deduce : Logically come to the conclusion.
60 Purview : Scope
61 Bounty : Additional Advantage
62 Ad Hoc : Without any particular rate, percentage, proportion.
63 Ad infinitum : Without any Time limit.
64 Ad interim : In the Mean Time
65 Bonafide : Genuine
66 Surmises : Presumptions, own assumptions
67 Defacto : Infact
68 Defjure : In Law, irrespective of whatever the facts.
69 Ejusdem Generis : Of the same kind
70 Ex-gratia : As a matter of grace ir favour
71 Ignorantia Legis known excusat : Ignorance of law is not excused
72 Mesne Profit : Profit earned by somebody by wrongful possession of property.
73 Modus Operandi : Mode of Operation / Manner of working
74 Nexus : Close connection link.
75 Onus probandi : Onus of proof / The burden of Proof.
76 Non obnstante clause : That provision has superceding effect on any other provision
77 Raison D’etre : Reason or justification for existence.
78 Ratio Decidendi : Reason for deciding / Grounds for decision
79 Suijuris : of his own right.
80 Assessee engaged in ……………. : The activity should have started
81 Option Vs Discretion : Whenever choices is available to the assessee in respect of any matter. Law uses the word at his option – for eg:
1. Sec 11(11) – Explanation to Sec. 11 (11)
2. Sec. 23(4)
82 amicus curiae : Friend of court; one who voluntarily or on invitation of the court, and not on instructions of any party, helps the court in any judicial proceedings
83 audi alteram : hear the other side. Both sides should be heard before a decision is arrived at
84 caveat emptor : let the purchaser beware. implying that the buyer must be cautious, as the risk is his and not that of the seller.
85 cestui que trust : a beneficiary under a trust, the person for whose benefit the trust is created
86 ex officio : by virtue of an office.
87 ex parte : exkpression used to signify something done or said by one person not in the
presence of his opponent.
88 fait accompli : An accomplished act.
89 obiter diccum : an opinion of law not necessary to the decision. An exspression of opinion (formed) by a judge on a question immaterial to the ratio decidendi, and unnecessary for the decision of the particular case. It is no way binding on any court, but may receive attention as being an opinion of the high authority.
90 pendente lite : during litigation.
91 per incuriam : through carelessness, through inadvertence. A decision of the court is not binding precedent if given peer incuriam, that is, without the court’s attention having been drawn to the relevant authorities, or statutes.
92 pro tanto : to that extent, for so much, for as much as may be.
93 quid pro quo : the giving of one thing of value for another thing of value; one for the other; thing given as compensation.
94 Ratio Decidendi : Reason for deciding/Grounds for decision
95 res integra : an untouched matter; a point without a precedent; a case of novel impression.
96 rule njsi : a rule to show cause why a party should not do a certain act, or why the object of the rule should not be enforced.
97 in personam : against the person; an act or preceeding done or directed with reference to no specific person or with reference to all whom it might concern.
98 in rem : an act / proceeding done or directed with reference to no specific person or with refernce to all whom it might concern.
99 inter vivos : between living persons.
100 intestate : a person is deemed to die intestate in respect of property of which he or she
has not made a testamentary disposition (“will”) capable of taking effect.
101 intra vires : within the powers; within the authority given by law.
102 ipse dixit : he himself said it; there is no other authority.
103 ipso jure : by the law itself ; by the mere operation of law.
104 lis pe ndens : a pending suit.
105 rule absolute : when, having heard counsels, court directs the performance of that act forthwith.
106 sine die : without delay.
107 stare decisis : to stand by things decided; to abide by precedents where the same points come again in litigation.
108 status quo : existing condition.
109 sub judice : before a judge or court; pending decision of a competent court.
110 ultra vires : beyond one’s power.
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Taxes deptt continues drive against GST defaulters
Continuing its drive to tighten the noose around GST-3B return non-filers, enforcement team of the state taxes department conducted inspection in various areas of Jammu District.
During the inspection, GSTR3-B return filing position of some of the dealers was scrutinised and notices issued with a view to ensure deposition of the tax collected by them.
The erring dealers were directed to clear their tax liability within seven days failing which action under Section 67 of the SGST Act shall be initiated against them.
The same will be done in Karnataka also there is information those who have not filed returns from April 2018 onwards registration will be cancelled
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Tax Evasion of Rs 29,088 crores detected during this FY
Read more at: http://www.taxscan.in/tax-evasion-29088-crores-detected/30864/
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Company Secretary penalized for committing Mistakes in Compliance Certificate [Read Order]
Read more at: http://www.taxscan.in/company-secretary-mistakes-compliance-certificate/30867/
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In a bid to check GST evasion and also facilitate the faster movements of goods, the Union government's Revenue department is now planning to integrate the e-way bill with NHAI's FASTag mechanism, DMICDC's Logistics Data Bank (LDB).
This plan comes as the government has become alert against those trying to evade GST in the name of e-way bill.
As per media reports, the government may introduce an OTP-based system along with the e-way bill. This will ensure that a trader cannot evade GST on the goods being transported for delivery. According to a report by Hindi daily Hindustan, the government will bring OTP and FASTag mechanism. The registration of traders first caught evading tax will be suspended. On second offence, the trader may lose the registration.
Earlier, news agency PTI had reported officials as saying that the current proposal will help improve operational efficiencies across the country's logistic landscape. At present, the lack of harmonisation under the 'track and trace' mechanism in terms of sharing information among different agencies is affecting the ease of doing business in the country. Besides, it is also impacting the logistic costs of the companies.
An official told the news agency that the proposal will also help in preventing goods and services tax (GST) evasion by unscrupulous traders who take advantage of the loopholes in the supply chain.
Billed as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15.
As per the rules, transporters of goods worth over Rs 50,000 are required to present e-way bill during transit to a GST inspector, if asked."The integration of the e-way bill system with FASTag and LDB is expected to help boost tax collections by clamping down on trade that currently happens on cash basis," the official was quoted as saying.
What is FASTag?
FASTag system has been implemented by the National Highways Authority of India (NHAI) for collection of toll electronically on national highways. FASTag also offers non-stop movement of vehicles through toll plazas.
How the current plan, which is being worked out by the revenue department, help?
- Integrating e-way bill with FASTag will help revenue authorities track the movement of vehicles and ensure that they are travelling to the same destination as the transporter or the trader had specified while generating the e-way bill.
The integration will also help the suppliers locate the goods through the e-way bill system. Transporters, too, would be able to track their vehicles through SMS alerts that would be generated at each toll plaza.
The government also plans to integrate the Delhi-Mumbai Industrial Corridor's (DMIC's) container tracking services, also called LDB programme, with the e-way bill.
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GST Evasion of Rs. 100 crores detected in Saurashtra
Read more at: http://www.taxscan.in/gst-evasion-100-crores-saurashtra/30862/
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Update on MCA
The MCA has issued a new e-Form CFI (CSR) w.e.f. 20 NOV 2018 to submit the reply towards the CSR Notice. The same is available on MCA21 Forms Download Page.
Purpose of the eForm: Notice for Call for Information on CSR is sent to the companies who are non-compliant with respect to filing of CSR (Corporate Social Responsibility). Such companies have to *file their response through ‘Reply to Call for information on CSR’ Form*
Fee Rules: N/A
Processing Type: The form will be processed in STP Mode.
Digital Signature: The Form shall be filed with the Digital Signature of Director / Company Secretary / CFO / CEO / Manager).
Email Ack: When an eForm is approved /rejected by the authority concerned, an acknowledgement of the same is sent to the user in the form of an email.
