CAG Empanelment of Chartered Accountant Firms/LLPs for the year 2019-2020 - (21-12-2018)
The online application along with detailed instructions in this regard will be available on our website www.cag.gov.in from 01 January 2019 to 15 February 2019.
The firms/ LLPs can apply/update the data showing the status of their firm as on 01 January 2019. After filling/updating the data, the Firms/LLPs will be required to generate online acknowledgement letter for the year.
The Firms/LLPs will be required to submit a print out of the acknowledgement letter generated online and also hard copies of the documents in support of their online application by 28 February 2019.
https://icai.org/new_post.html?post_id=15311&c_id=240
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ICAIates Rs. One Lakh for Treatment of CA Student
Read more at: http://www.taxscan.in/icai-donates-treatment-ca-student/32019/
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GST Practitioners Exam Result Announced
Read more at: http://www.taxscan.in/gst-practitioners-exam-result-announced/32024/
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CBDT issued instruction no F.No.173/14/2018-ITA-I dated 24.12.2018 that No Coercive measure to recover demand in case of addition u/s 56(2) (viib) under IT Act 1961 in case of start up
Bogus Purchases: The fact that the vendors are not available at the given address is not sufficient to treat the purchases as bogus if the assessee has discharged primary onus and substantiated the purchases through documentary evidence and payment is made through banking channels. ACIT vs. Karam Chand Rubber Industries (ITAT Delhi)
The 31st GST Council meeting has waived the late fee for some returns such as FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the periods July 2017 to September 2018.
Union government plans to create a backstop facility for states to receive compensation for three additional years to implement the nationwide GST after the expiry of the first five years as mandated by the Constitution.
Group of state finance ministers might recommend raising the turnover threshold for the GST from the current Rs 20 lakh to Rs 75 lakh, in a move that would give lakhs of micro and small enterprises the option to be outside the ambit of GST: Sushil Kumar Modi, deputy chief minister of Bihar
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👉The CBDT issues “Explanatory Notes to the Provisions of Finance Act, 2018 in the matter of income tax (i.e. section-wise substance of the amended provisions applicable for AY 2019-20, at a glance)” vide Circular No. 8/2018.
Download it: https://bit.ly/2rU6i8T
👉The 31st GST Council meeting waives the late fee for some returns such as FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the periods July 2017 to September 2018.
👉Central Council of ICAI has decided to mandate UDIN w.e.f 1st Feb., 2019 as against the earlier announced date of 1st Jan., 2019 in a phased manner.
👉NACIN Conducted examination for GST Practitioner which was held on 17.12.2018 at 22 centers across India, the result of the said examination is released by NACIN.
👉The new FDI guidelines likely to shakeup the e-commerce biz in India, as new rule inserted in the policy bars any entity related to ecommerce platforms from selling on that site and imposes a limit on how much one vendor can sell on a particular portal.
👉SEBI imposes a fine totalling Rs 40 lakh on five entities for engaging in fraudulent trade in the shares of Pressman Advertising Ltd.
👉RBI forms an expert committee under former governor Bimal Jalan to decide the appropriate level of reserves that the regulator should hold.
👉HDFC group overtakes Tatas to become India’s number 1 conglomerate in market value, crossing Rs 5 lakh crore market value mark and becomes third Indian company to achieve this feat.
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ICAI defers Mandatory Use of UDIN to February
Read more at: http://www.taxscan.in/icai-mandatory-use-udin-february/32047/
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Indirect Tax Legal updates:
1. GST- Export of goods and services- The petitioner is supplying goods to Duty Free Shops (DFS) situated at airport and as per Section 2(5) of IGST Act, 2017 export of goods takes place only when goods cross territorial waters of India and the goods cannot be called to be exported merely on crossing customs frontier of India. As the supply to a DFS by an Indian supplier is not to 'a place outside India', therefore, such supplies do not qualify as 'export of goods' under GST and petitioner is liable to pay GST on supply of indigenous goods to DFS.
2018-VIL-577-MP
2. Service Tax- Refund claim- A tax wrongly realized or paid on in excess of what is permissible in law, is a realization made outside the provisions of the Act. Such amount cannot be retained by Revenue, being in conflict with Article 265 of the Constitution.
2018-VIL-834-CESTAT-DEL-ST
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SUPREME COURT : In Transmission Corporation of Andhra Pradesh Ltd. vs. Equipment Conductors and Cables Ltd.
The Adjudicating Authority is to see that whether there is a plausible contention which requires further investigation and that the “dispute” is not a patently feeble legal argument or an assertion of fact unsupported by evidence. However, in doing so, the Court does not need to be satisfied that the defence is likely to succeed. The Court does not at this stage examine the merits of the dispute except to the extent indicated above. So long as a dispute truly exists in fact and is not spurious, hypothetical or illusory, the adjudicating authority has to reject the application.
Read full case law at : https://dasgovernance.com/2018/12/26/supreme-court-in-transmission-corporation-of-andhra-pradesh-ltd-vs-equipment-conductors-and-cables-ltd/
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👉NCLT helped resolve insolvency and bankruptcy proceedings involving more than Rs 80,000 crore in the year passing-by and the kitty is expected to swell beyond Rs 1 lakh crore in 2019 with several big-ticket default cases pending.
👉The Department of Industrial Policy and Promotion (DIPP) is working on a cabinet note to revive limits on royalty payments by subsidiaries of foreign companies, after a gap of more than eight years.
👉Nine bank unions & close to 1 million employees of various banks, including private lenders, have called for a one-day strike on December 26 to protest against the proposed amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda.
👉After notices in FDI situations, companies are starting to get tax demands on ‘high’ premiums in FDI, M&A & share allotment deals.
👉The MSME Ministry proposes to establish a governing council to ensure efficient delivery of all export-related interventions as part of its action plan to boost shipments from MSMEs.
👉RBI announces an open market operations (OMO) bond purchase of Rs 15,000 crore on December 27 which will be conducted through multi-security auction using the multiple price method.
👉More than a dozen tech start-ups thinks to go public in fiscal 2020, thanks to SEBI relaxing norms to help them tap the capital market.
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Important changes in income tax rules:
Higher interest income exemption for senior citizens, the government increased interest income exemption limit on bank and post office deposits to Rs 50,000, from Rs 10,000 earlier. In addition, for senior citizens, tax deduction at source (TDS) will not be triggered if interest income is up to Rs 50,000.
Dividend distribution tax on dividends from equity mutual funds which were earlier tax-free, attracted tax at the rate of 10%. Remember that dividends from equity mutual funds are tax-free in the hands of investors. But dividends from equity mutual funds are paid after deducting a dividend distribution tax (DDT) of 11.648% (including cess), which reduces the in-hand return for investors.
Long- term capital gains tax on equities: From 1 April 2018, a new long term capital gains (LTCG) regime on equity instruments – listed shares or equity – oriented mutual funds – came into effect. Earlier such gains on equity were exempt from tax. Now investors have to pay 10% tax on gains exceeding Rs 1 lakh a year. Equity holding beyond a year is considered long term. However, to soften the blow, the government introduced a grandfathering provision, which means that if listed shares or equity funds were acquired before February 1, there would be no levy of long- term capital gains tax.
Rs 40,000 standard deduction, one need not provide any documents and proof. A salaried individual or pensioner can claim standard deduction up to Rs 40,000 from his/her income.
Higher cess, the government raised the cess on income tax to 4% from 3% for individual taxpayers on the amount of income tax payable.
Tax exemption on NPS for the self-employed: Employees contributing to the National Pension System (NPS) were allowed to withdraw up to 40% of the total corpus without any tax at the time of maturity or closure of the account. The same benefit has now been extended to self-employed subscribers.
Lock-in period of 54EC bonds increased: Long-term profits from real estate sales are tax-free if invested in specific bonds under section 54EC. Till last year, you had to stay invested in the 54EC bonds for at least three years to enjoy the tax break, but from his year, your money will be locked in for five years.
Higher deduction on health insurance premiums: Senior citizens now can avail deduction of upto Rs 50,000 for health insurance premium under section 80D. Earlier the limit was Rs 30,000. Also, the deduction available for payment towards medical treatment of specified disease has been hiked to Rs 1 lakh for senior citizens.
Govt brings NPS on a par with PF.makes it tax-free; The Union Cabinet recently approved many changes in the NPS to make it more attractive for investors.NPS will be made fully tax-free on withdrawal.Subscribers will get full tax exemption on the 60% of the corpus that an investor is allowed to withdraw on maturity.This will help bring the NPS on a par with other tax –savings instruments like the PPF where withdrawals are fully tax-free This is likely to be effective from April 1 next year. Read: NPS rule changes explained in 10 points.
More tax benefits on single premium health insurance policies: In cases where premium for health insurance for multiple years has been paid in one years, the deduction shall be allowed on proportionate basis for the number for years for which the benefit of health insurance is provided.
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Updates from Judiciary 💡
Supreme Court has directed Centre as well as States to disclose information pertaining to shortlisted candidates and the criteria being following for appointments to the Central Information Commission as well as the State Information Commissions, on their respective websites.
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Supreme Court has held that the Adjudicating Authority is to see that whether there is a plausible contention which requires further investigation and that the “dispute” is not a patently feeble legal argument or an assertion of fact unsupported by evidence. However, in doing so, the Court does not need to be satisfied that the defence is likely to succeed. The Court does not at this stage examine the merits of the dispute except to the extent indicated above. So long as a dispute truly exists in fact and is not spurious, hypothetical or illusory, the adjudicating authority has to reject the application.
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NCLAT has held that It is a settled position of law that the liabilities of guarantors is co-extensive with the borrower and it was not the intention of the legislature to benefit the ‘Personal Guarantors’ by excluding exercise of legal remedies available in law by the creditors, to recover legitimate dues by enforcing the personal guarantees, which are independent contracts.
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Delhi High Court has affirmed the application of Section 354A of the Indian Penal Code, 1860 to transgender victims of sexual harassment.
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Bombay High Court has overturned a 1997 trial court order acquitting a 41-year-old man in a rape case of 11 year old girl in 1996 and sentenced him to seven years in jail.
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Delhi High Court has ordered Associated Journals (AJL), the publisher of National Herald to vacate its premises within 2 weeks.
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National Green Tribunal (NGT) has directed that all mining activities in the eco-sensitive zone (ESZ) of the Sariska Tiger Reserve (STR) to be stopped immediately till mining leases are cleared by the standing committee of the National Board of Wildlife.
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Delhi High Court has held that real estate tycoon and 1997 Uphaar fire tragedy case convict Sushil Ansal had misled the Court that he has not been convicted in any criminal proceedings by any Court when he availed the benefit of passport under the tatkaal scheme in the year 2013.
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