Dvat Circular No. 8
Dt. 5/2/19 regarding assessments of pending cases for FY 2014-15 of mismatch of Annex 2A/2B and CST Form 9. *Members are advised to submit details in CST Form 9 immediately to avoid unnecessary creation of demands*.-
Team STBA
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GST Dept to proceed against Interest Defaulters, Properties to be Attached [Read Order]
Read more at: http://www.taxscan.in/gst-interest-defaulters-properties/33351/
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Key Points about Charitable Trust Or NGO
1. Criteria for a charitable trust to be exempted from GST- (a) Must be registered under Section 12AA of the Income Tax Act, and (b) Services provided by the charitable trust or the NGO must be for a charitable cause.
2. Goods sold by a charitable trust is taxable. The charitable trust must pay the GST rate applicable while purchasing the supply.
3. Charitable trust is conducting training programs, yoga camps, or other programs that are not free for participants, it will be considered as a commercial activity and hence will be liable for GST. Even the donation received for such an activity will be liable for taxation under GST.
4. Services provided by way of training or coaching in recreational activities relating to arts and culture, or sports by a charitable entity will be exempt from GST.
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# Upcoming Due Dates
10-02-2019
- GSTR 8 for E-Commerce operators for the m/o Jan 2019
- Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o Jan 2019
11-02-2019
- GSTR -1 for the month of January 2019 for taxpayers with Annual Aggregate turnover More than 1.50 Crore
# MSME FORM I
- Every Specified companies within 30 days from the date of notification to be published in official Gazette of India i.e upto 21-02-2019 shall file the Form as Initial Return.
- Every Specified companies within 30 days from the last day of the half year shall file regularly half year return :
31st October - For the period from April to September
30th April - For the period from October to March
* No form is required to file :
- No outstanding payments to MSME
- Outstanding payments are not for more than 45 days.
* Specified Companies means Companies who get supplies of goods and services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services as per section 9 of the MSME Act, 2006
# CAG : Empanelment of Chartered Accountant Firms/LLPs for the year 2019-2020 - The online application along with detailed instructions in this regard will be available on C& AG website at www.cag.gov.in from 01 January 2019 to 15 February 2019
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Analysis on Supreme Court Judgement of Larsen and Toubro Limited Scomi Engineering BHD vs. Mumbai Metropolitan Region Development Authority
Since the Indian Company is the lead partner as constituted under the Consortium Agreement and the lead member is leading the arbitration proceedings, the control of the Consortium appears to be exercised in India and not in any foreign nation and thus be no “international commercial arbitration”.
Read full case analysis at : https://dasgovernance.com/2019/02/08/analysis-on-supreme-court-judgement-of-larsen-and-toubro-limited-scomi-engineering-bhd-vs-mumbai-metropolitan-region-development-authority/
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👉CBDT clarifies that the circular issued by the Board on July 2018 prescribing Monetary Limits for Tax Appeals would also apply to matters relating to Wealth Tax.
👉Imp: For a faster turnaround in the Resolution Process for Stressed Loans that are referred to the NCLT, RBI allows bidders to Raise Funds through External Commercial Borrowings (ECB) to repay the Rupee Loans of Domestic Banks. Under the existing regulations, ECB is not permitted to be utilised for repayment or for repayment of domestic rupee loans.
👉RBI slaps penalty of Rs 1 Crore on State Bank of India, in exercise of powers conferred under Section 47 A of the Banking Regulation Act, 1949 for not monitoring the end use of funds in respect of one of its borrowers
👉Monetary Policy: RBI eases its guidelines for Maintaining Risk Weights on bank lending to systemically important NBFCs in a manner that will allow more funds to flow to stronger NBFCs.
👉RBI decides to join the Govt in offering some relief to small and marginal farmers by raising the limit of Collateral-Free Agricultural Loans to Rs 1.6 lakh from Rs 1 lakh. The RBI also proposed to set up an Internal Working Group to review various issues plaguing farm credit, such as regional disparity, extent of coverage and limited capital formation from such credit.
👉NSE puts 21 Companies under Short-Term Additional Surveillance Measure. The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-earning ratio.
👉BSE decides to suspend 7 Suspected Shell Companies from Friday i.e. Today, after they failed to provide the Information Sought by Forensic Auditors in a Time-Bound Manner. The forensic audit was conducted by independent auditors appointed by the stock exchange on the direction of the SEBI.
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Recent changes in GST portal - Notifications and Circulars:
• 6 Central Tax and One Central Tax(rate); 3 Integrated tax and one Integrated tax(rate); 1 UTGST and 1 UTGST(rate) Notifications issued
• One CBIC circular issued
• Consequent to the GST Amendment Acts coming into force w.e.f 1st February, 2019, corresponding changes in CGST Rules, 2017, earlier circulars and notifications made
Coming into force of the GST (Amendment) Act of 2018:
• The provisions of the CGST (Amendment) Act, 2018, except section 8(b), section 17, section 18, section 20(a), section 28(b)(i) and 28(c)(i) shall come into force- w.e.f 1st February, 2019
• Section 8(b), section 17, section 18, section 20(a) pertain to New Returns
• Section 28(b)(i) and 28(c)(i)… pertain to Transition Credit ( Section 140 of the CGST Act, 2017)
• All provisions of IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2017 and GST (Compensation to State) Amendment Act, 2018 come into force w.e.f 1st February, 2019
Multiple Registrations:
• Separate registration requirement for SEZ unit or developer incorporated in the Act itself in section 25
• Earlier reference to requirement of separates business verticals for separate registration removed; Definition of Business Vertical in section 2(18) has been omitted
• Corresponding Changes made in the CGST Rules
• Conditions for separate registration specified in Rule 11 of the CGST Rules, 2017
• Rule 11 of the CGST Rules, 2017: Any person having multiple places of business within a State or a Union territory, requiring a separate registration for any such place of business to be granted separate registration
• Such person shall not pay tax under section 10 for any of his places of business if he is paying tax under section 9 for any other place of business
• Any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other registered places of business of the said person shall become ineligible to pay tax under the said section
• Rule 41A inserted in CGST Rules, 2017
• A registered person who has obtained separate registration for multiple places of business in accordance with the provisions of rule 11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in his electronic credit ledger to any or all of the newly registered place of business
• Input tax credit can be transferred to the newly registered entities in the ratio of the value of assets held by them at the time of registration
• Transferor needs to submit details in FORM GST ITC-02A with in 30 days of obtaining registration and the transferee has to accept the same
Suspension of registration:
• Section 29- During pendency of the proceedings relating to cancellation of registration, the registration may be suspended for such period and in such manner as may be prescribed.
• Rule 21A inserted in CGST Rules, 2017
• Where a registered person applies for cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion of proceedings for cancellation of registration
• In case of proceeding for cancellation initiated by dept, the proper officer, may, after giving hearing, suspend the registration w.e.f date to be determined by him
• No supply can be made during suspension period; No returns required to be filed
• The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation
• Accordingly, the field formations may not issue notices for non- filing of return for taxpayers who have already filed an application for cancellation of registration under section 29 of the CGST Act. Further, the requirement of filing a final return, as under section 45 of the CGST Act, remains unchanged.
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The Mumbai bench of the National Company Law Tribunal (NCLT) on February 6 barred Mukesh Choksi from being appointed as an auditor of any company for a period of five years, holding him guilty of signing off on a company’s books without inspection and colluding with its promoters in a fraudulent manner.
This is the first time the NCLT has passed an order barring an auditor in such a fashion.
The NCLT passed the order in connection with a case by the Western Regional Director of the Ministry of Corporate Affairs against the auditor Mukesh Choksi, and the company he audited, Zen Shaving.
Zen Shaving is accused of issuing an IPO in 1996, proposing to list its shares on the Pune Stock Exchange but failing to do so, and siphoning off funds raised through the issue.
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Ind AS Update
Ind AS are derived from IFRS Standards issued by the IFRS Foundation. In view of this, it is useful and appropriate to read Ind AS along with the following background material of IFRS Standards:
IFRS Part B (Accompanying Guidance)
https://icai.org/post.html?post_id=15386
IFRS Part C (Bases for Conclusions)
https://icai.org/post.html?post_id=15391
However, for the avoidance of doubt, it is clarified that the Ind AS differ from the IFRS Standards as they contain certain carve outs and carve ins for making them contextually relevant to the Indian economic and legal environment.
Therefore, above IFRS material has to be read in the context of differences between Ind AS and IFRS Standards.
Please refer the link:
*Major Differences between Ind AS and IFRS and reasons for the differences*
https://resource.cdn.icai.org/53919asbicai-diffindasifrs.pdf
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ICAI Cares for You^_^💡
ICAI under agies of CABF has made an arrangements with LIC facilitating a special group Insurance scheme for the members and their spouse
https://www.icai.org/new_post.html?post_id=2965&c_id=248
Scheme is effective from 11.02.2019
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🖋 ITAT benchmarked LIBOR and EURIBOR to determineALP of interest charged on sum advanced to AE
🖋 Transmission of shares of deceased to his widow without considering other legal heirs was illegal: NCLAT
🖋 High Court quashes MCA notification on ‘Disqualification of Directors’