©orporate Updates on 19.8.2019
Ø US, China seeking to revive trade talks: Trump's advisor
Ø Brexit minister signs order to end EU laws in Britain
Ø Credit demand subdued, economy needs stimulus: SBI
Ø Govt. to clarify on FDI policy on digital media
Ø Govt. increases oil, gas bidding round to 3 times a yr
Ø Scraps may help India's car makers beat the slump
Ø BOI hoping to recover around Rs 2,500 crore: Official
Ø More than 4 lakh unsold apartments in 9 cites, estimates brokerage firm
Ø Govt. plans debt waiver for small distressed borrowers under insolvency law
Ø Moglix to set up industrial distribution centres in 25 major hubs of India
Ø M&M lays off 1,500 temporary workers, seeks govt stimulus for industry
Ø Maruti seeks GST benefit for hybrid, CNG cars to promote green mobility
Ø Ministry keeps new CSR amendments on hold
Ø Economic ties between India and China will continue to grow, finds CII survey
Ø Coffee Day Enterprises debt at Rs 4,970 crore
Ø Cipla shareholders approve raising up to Rs 3,000 crore
Ø CBI raids Moser Baer office, directors’ premises
Ø Kharif sowing improves on widespread rain
Ø Traders body calls for boycott of Chinese goods, seeks up to 500% import duty
Ø ‘NBFCs will get recapitalized, banks will get more prudent with lending’
Ø SBI extends repayment period for stressed automobile dealers by 15-30 days
Ø Confident of coming out of RBI's PCA framework by March next year: UCO Bank CMD
Ø Power gencos' outstanding dues from discoms rise by 30% to ₹46k crore in June
Ø SBI expects 12-14% credit growth this fiscal, says Chairman Rajnish Kumar
Ø Tech Mahindra divests 73.38% stake in subsidiary to US-based Resolve Systems for $2 million
Ø Government sets up committee to rationalise additional taxes on Air Turbine Fuel
Ø India's holding of US govt securities jumps to USD 162.7 bln
Ø FPIs pull out Rs 8,319 cr in Aug amid persisting negative sentiment
Ø NCLAT spikes banks’ plea against MBL resolution
Ø Nine of top-10 firms lose Rs 84,354 cr in market valuation
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GST - Scope of Section 50 of the CGST Act, 2017 – liability to payment of interest for delay in filing Returns under CGST Act – HELD – Difference of Opinion - once the admitted interest liability is paid by the Bank, the Assessing Authority, without deciding the objections of the Assessee and re-computing the interest liability, has unnecessarily filed the present intra-court Appeals. The Assessing Authority was bound to decide the aforesaid objections of the Assessee, to determine the correct liability of interest to be paid by the Assessee and without doing so, the garnishee proceedings could not have been initiated – No merit in Writ Appeals filed by Revenue and the same are dismissed: V.K.,J. | When once admission is made that Returns have not been filed in time, the interest for the delay in filing the Returns automatically arises and there cannot be any explanation for the same: C.V.K., J. - The matter is referred to the Hon'ble the Chief Justice on the issue as to whether under Section 50 of the CGST Act, the interest on delayed filing of the Returns arises automatically or on assessment and after considering the explanation offered by the assessee and whether at all that explanation has to be considered by the Assessing Officer and then pass further orders
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GST – Power of arrest under Section 69 read with Section 132 of CGST Act, 2017 – HELD - the powers of arrest under Section 69 of the Act, 2017 are to be exercised with lot of care and circumspection. Prosecution should normally be launched only after the adjudication is completed - there must be in the first place a determination that a person is “liable to a penalty”. Till that point of time, the entire case proceeds on the basis that there must be an apprehended evasion of tax by the assessee - the safeguards as enshrined under the Constitution of India and in particular Article 22 which pertains to arrest and Article 21 which mandates that no person shall be deprived of his life and liberty for the authority of law - Let Notice be issued to the respondents returnable on 18th September, 2019 - In the meantime, no coercive steps of arrest shall be taken against the writ applicant
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Customs - Petitioner seeking to unconditionally release the goods which was detained and seized and no Show Cause Notice was issued despite six months have elapsed – effect of second proviso of Section 110(2) of the Act inserted by the Finance Act, 2018 with effect from 29th March, 2018 – HELD - the legislative intent was to ensure that the person whose goods are seized is not left in a state of uncertainty, with neither the goods being released nor an SCN being issued despite six months having elapsed since the date of seizure. The second proviso states that where any provisional release of the seized goods is ordered under Section 110A of the Act, then the specified period of six months, as indicated in Section 110 (2) of the Act, would not apply – in the instant case, a valuable right might have accrued to the Petitioner for unconditional release of the goods if no provisional release order had been passed before the expiry of six months from the date of seizure of the goods. In such event, the Petitioner could have argued that the valuable right accrued to the Petitioner cannot be taken away by passing a provisional release order beyond the period of six months from the seizure of the goods. The second proviso does contemplate a provisional release order being passed in respect of ‘seized goods’ i.e. goods that had already been seized even when the provision was amended on 29th March, 2018. In the present case, the period of six months had not expired. Therefore, no valuable right of the Petitioner had yet accrued for seeking unconditional release of the goods. In other words, the second proviso did not take away what was already available to the Petitioner. In that sense, the second proviso in the present case cannot be said to have applied retrospectively in order to deprive the Petitioner of a valuable right that had accrued to the Petitioner - the court is unable to accept the plea of the Petitioner for unconditional release of the goods in question. All other contentions regarding the legality of the seizure can be urged by the Petitioner in the adjudication proceedings pursuant to the SCN - The petition is dismissed
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Taxpayers should file their GST returns for 2017-18 by August 31 and failure to do so will attract very severe consequences, including hefty penalty, Chief Commissioner of Customs and CGST Visakhapatnam Zone, Naresh Penumaka, has said.
Though only 15 days of time was left, 80% of traders have not filed it so far. It involved a consolidated filing of the monthly returns filed by them and the date had been extended several times and would not be extended further, he said at a press conference here. They should approach the nearest Central Excise officials for hand-holding and filing the returns, he suggested.
Besides, not passing on the benefit of GST to customers or indulging in any fraud in input tax credit or any attempt to use it as working capital or not remitting GST collected from consumers might lead to imprisonment, he warned traders. Traders should also issue a bill collecting GST as per the reduction effected by the GST Council from time to time, he said. The Directorate General of Analytics and Risk Management was analysing bulk data to check GST fraud. The National Anti-Profiteering Authority would also investigate it.
He denied that cumbersome process was the reason for the delay in filing returns citing 90 % compliance at the national-level and some States reporting as high as 70%. “Some are deliberately delaying payment,” he said.
Also the Central Excise and Service Tax dues pending for the past two years also should be paid in two weeks, Mr. Naresh said warning of imprisonment of it was not complied with.
With the modifications in GST returns from October and January 2020 new returns should be filed and GSTR 3B would be done away with, Nr. Naresh revealed.
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M/s GURUDEV METAL INDUSTRIES: 15.07.2019 - GST – Kerala AAR - Classification of goods as 'part of fishing vessels' – HELD - Propeller, Shaft/SS road, Gun metal bush/bearing, Stuffing box, Brass Tube/SS Tube, Rudder Shaft and Blade, Sea Cork/Water Strainer, GM Gate Valve, MS Pipe, Propeller Nut/GM Nut, Coupling, SS Rods & Square, SS Flat, GM Gland and Ring and MS Plate used as parts of fishing / floating vessels come under the HSN Code 8902 and are taxable @ 5% GST under Serial No.252 of First Schedule of the Notification No.01/2017 Central Tax (Rate)
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GST – Maharashtra AAR - Whether membership fee collected by the applicant from its members amounts to or results in a supply, within the meaning of supply under CGST Act, 2017 - whether the applicant’s activity will be classified as supply of goods or services - Whether the applicant is Taxable Person under the provisions of the Act - principle of mutuality – HELD - any membership fee collected by the applicant from its members will definitely be understood as 'consideration' as the same has been paid for supply of services" - Applicant has fulfilled both the conditions prescribed by Section 7 of the CGST Act; firstly that such supply is made by them in lieu of consideration and secondly, such supply has been made in the course or furtherance of business since the term business includes provision by club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members - Thus, both the conditions stipulated for 'supply' under the GST Laws having been adequately fulfilled leads to the conclusion that transaction between the applicant & its members are nothing but supply, and accordingly will attract GST. Under the GST Law, the intent or objective of any club or association is immaterial in so far as the leviability of GST is concerned - the applicant’s activity would be classified as supply of services - the applicant is Taxable Person under the provisions of Section 22 of the Act - The applicant is liable to pay GST and not the office bearers - the collection of funds under common pool and spending back on the same said contributors, would entail 'supply' as defined in the GST law
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GST – Kerala AAR - In the "co-working space model" the petitioner offers dedicated distinct and identifiable space, tables and chairs to each clients working there – whether GST registrations are allowed for multiple companies from same address, provided they follow all GST rules related to "Principal place of business" and where no stock is maintained – HELD - There is no prohibition under GST law for obtaining GST registration to a shared office space or virtual office, if the land lord permits such sub leasing as per the agreement - Each "co-working space" is demarcated with different suit number or desk number. As the GST registration is based on PAN, identification of tax payer is not difficult - there is no hindrance for applying GST registration for co-working space as it has a separate identity
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M/s STRIDES EMERGING MARKETS LIMITED: 07.08.2019 - GST – Karnataka AAR - Nicotine Polacriliex Lozenge is classifiable under heading 38.24 - the product is covered under Serial number 97 of Schedule III to Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 and attracts GST at the rate of 18%
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GST – Kerala AAR - Whether the goods sold in packages to institutional customers, without bearing the brand name, is eligible for exemption of NIL rate under Notification No.2/2017 Central Tax (Rate) – HELD - The scrutiny of surrounding circumstances clearly shows that the package of frozen seafood, even though without affixing a registered brand on them, will be considered as bearing the brand. Therefore, visible manifestation of brand name is not compulsory on the package. Even an ordinary name is sufficient - The supply to institutional customers are made by the applicant in packet which contain name of company and contact details for customers, which is a statutory requirement as per Legal Metrology Act and Food Safety and Standards Act. The presence of company name is sufficient to ensure that the product procured belongs to 'brand guardian' - The food packets bearing name and address of supplier, as per the statutory requirement, cannot be considered as not bearing a brand name - The presence of company name is sufficient to ensure that the product procured belongs to the 'brand guardian' and it cannot be considered as not bearing a brand name - Supply of goods in packages by a brand name holder is not eligible for exemption
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The SC in a recent decision Pioneer Urban Land and Infrastructure Ltd ( dismissing all writ petition of builders) MANU/SC/1071/2019 has held that on an application made by a allottee of flat/premises under Section 7 of IB Code, prima facie default is shown by the allottee on the part of Developer Burden shifts upon builders to show (1) allottee himself is defaulted (2) insolvency process invoked fraudulently (3) allottee is speculative investment and not genuine purchaser (4) allottee does not go ahead with an obligation to take possession of the unit.
in the even builder fails to establish any of the above mentioned points, NCLT shall admit the petition filed by the allottee under Section 7 of IB Code as a home buyer.
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Taxpayers should file their GST returns for 2017-18 by August 31 and failure to do so will attract very severe consequences, including hefty penalty, Chief Commissioner of Customs and CGST Visakhapatnam Zone, Naresh Penumaka, has said.
Though only 15 days of time was left, 80% of traders have not filed it so far. It involved a consolidated filing of the monthly returns filed by them and the date had been extended several times and would not be extended further, he said at a press conference here. They should approach the nearest Central Excise officials for hand-holding and filing the returns, he suggested.
Besides, not passing on the benefit of GST to customers or indulging in any fraud in input tax credit or any attempt to use it as working capital or not remitting GST collected from consumers might lead to imprisonment, he warned traders. Traders should also issue a bill collecting GST as per the reduction effected by the GST Council from time to time, he said. The Directorate General of Analytics and Risk Management was analysing bulk data to check GST fraud. The National Anti-Profiteering Authority would also investigate it.
He denied that cumbersome process was the reason for the delay in filing returns citing 90 % compliance at the national-level and some States reporting as high as 70%. “Some are deliberately delaying payment,” he said.
Also, the Central Excise and Service Tax dues pending for the past two years also should be paid in two weeks, Mr. Naresh said warning of imprisonment of it was not complied with.
With the modifications in GST returns from October and January 2020 new returns should be filed and GSTR 3B would be done away with, Nr. Naresh revealed.
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# CBDT issued Verification Checklist for Cash Deposit for assistance to AO's in assessment.
# Clarification on amendment in Section 44AE of Income Tax Act, 1961 vide F.No. 225/233/2019/ITA-II - (14/08/2019)
# MCA notifies certain Sections of the Companies (Amendment) Act, 2019 The Companies (Amendment) Act, 2019 dated 14th August 2019
# Upcoming Due Date 20-08-2019 - GSTR-3B for the m/o July 2019
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Maruti seeks GST benefit for hybrid, CNG cars to promote green mobility:
READ MORE- https://www.gststation.in/maruti-seeks-gst-benefit-for-hybrid-cng-cars-to-promote-green-mobility/
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Tax evasion may derail India’s fiscal deficit goal as demand wanes:
READ MORE- https://www.gststation.in/tax-evasion-may-derail-indias-fiscal-deficit-goal-as-demand-wanes/
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Itax update-
The Supreme Court of India in the case of Commissioner of Income-tax v. Laxman Das Khandelwal held that Provisions of Sec. 292BB won’t cure defect of non-issuance of notice under sec. 143(2). Issuance of Notice for completion of regular assessment is a statutory requirement as per provisions of Act.
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GST: Govt forms committee to rationalise additional taxes on Aviation Turbine Fuel:
READ MORE- https://www.gststation.in/gst-govt-forms-committee-to-rationalise-additional-taxes-on-aviation-turbine-fuel/
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Jammu traders demand extension of deadline for filing IT, GST returns:
READ MORE- https://www.gststation.in/jammu-traders-demand-extension-of-deadline-for-filing-it-gst-returns/
