21 November 2018 News

21st December 2K18

Economic Times

Ø  Farmers get $9bn loan relief ahead of elections
Ø  Bank credit grows by 15.07%, deposits by 9.66%
Ø  PSBs recover $8.69 bn of bad loans in April-Sept
Ø  RBI limits total outstanding ECBs to 6.5% of GDP
Ø  IL&FS to sell stake in education, wealth mgmt arms
Ø  Govt to put draft ecomm policy up for consultation
Ø  PowerGrid gets shareholders' nod to raise FPI shareholding limit to 35%

Business Standard

Ø  ONGC board approves Rs 40 billion buyback at Rs 159 apiece; shares end flat
Ø  Govt wants Rs 100 bn interim dividend from RBI for fiscal deficit target
Ø  Defaults on credit cards, loan against properties on the rise, says CIBIL
Ø  Sterlite likely to restart Tamil Nadu's Thoothukudi unit in two months
Ø  NITI Aayog's recommendation on agri sector tough to implement: Experts

Business Line

Ø  NCLAT reserves order on Bhushan Power and Steel
Ø  ‘RBI must release a vision document for UCBs to thrive’
Ø  CBDT to tighten monitoring of donations to trusts
Ø  Steel companies staying off Karnataka’s ‘overpriced’ ore
Ø  Gold, jewellery exports to post up to 5% growth this year

Mint

Ø  Govt announces tax relief to startups
Ø  Airtel sets up special panel to explore fundraising options
Ø  RCom urges DoT to grant approval for spectrum deal
Ø  Swiggy raises $1 billion in largest funding round till date
Ø  Canara Bank to raise up to ₹3,000 crore via Basel-III compliant bonds

Financial Express

Ø  RBI Governor Shaktikanta Das to meet private sector lenders next week
Ø  India's crude steel output falls by 1.3 pct in November
Ø  Government taking steps to implement methanol economy
Ø  Tata Motors, Zoomcar join hands for self-drive EV rentals in Pune

Financial Chronicle

Ø  Rupee rallies 69 paise, settles below 70-mark
Ø  BSNL to raise Rs 12,000 crore from PSBs for network upkeep
Ø  Brokers question 100% penalty on ‘bogus’ dealings
Ø  Energy subsidies decline by 36% to Rs 1.51 lakh crore
Ø  3 banks’ merger unlikely before 1st quarter of FY20

20 December 2018 News

20th December 2K18

Economic Times
 
Ø  Govt to seek interim dividend from RBI: Subhash Garg
Ø  RIL seeks clarification on DoT rejection of Rcom deal
Ø  Maruti may stop producing BS-IV models by Dec 2019
Ø  Shell to acquire 49% stake in Cleantech Solar
Ø  Additional capital infusion likely in PSU banks: Garg
Ø  India, Iran find a way to get around US curbs
 
Business Standard

Ø  High cost of banking services hindering financial inclusion: NITI
Ø  IDFC First to hinge on branch expansion, 'retailization' and integration
Ø  Parliament panel questions approval for RIL's gas fields in KG-D6
Ø  Sliding oil prices, RBI's open market operations buy propel Rupee, bond
Ø  Madras HC stays I-T demand notices on Aircel, Dishnet Wireless

 Business Line

Ø  GST on financial inclusion services by BCs likely to come under review
Ø  Loan waiver won’t root out farm distress, says NITI Aayog chief
Ø  CBI arrests eight officials of PNB in fraudulent LoU case
Ø  Glenmark forays into branded dermatology segment in US
Ø  Vivriti Capital secures ₹200 cr from Creation Investments
Ø  Market slowdown prompts Maruti to trim sales forecast
 
Mint

Ø  RBI’s monetary policy committee cautious on inflation: Minutes
Ø  GSK to split after folding in Pfizer consumer unit
Ø  DGCA monitoring Jet Airways’ financial health, safety issues
Ø  Canara Bank to raise up to ₹3,000 crore via Basel-III compliant bonds
Ø  Oil prices near 15-month low on signs of surplus and economic concerns
 
Financial Express

Ø  India to become fifth-biggest economy in 2019, says study
Ø  Tata Motors liable to pay tax for possession of chassis, says SC
Ø  Vijay Mallya intends to appeal against UK court's extradition verdict
Ø  Increase India's share in international tourist arrivals to 3 pc by 2023: NITI Aayog
 
Financial Chronicle

Ø  British government to activate full 'no-deal' Brexit preparations
Ø  Srei to take the NCD route to raise Rs 300 crore
Ø  5.25% dip in rabi sowing worrisome: Crisil
Ø  Staggered payments can reduce fiscal stress of states waiving farm loan
Ø  Fivefold rise in public grievances in 2014-2017, says govt

22 December 2018 Updates

List of Goods and Services not Eligible for Input Tax Credit under GST

According to Section 17, the input tax credit is available only to the extent of the goods or services used for the business purpose or effecting taxable supplies including zero rated supplies as discussed earlier in Rule 42 & 43.

Apart from the above, there are goods and services which are not eligible for input tax credit, have been listed out under section 17 (5) as below:

1. Motor Vehicles and other conveyances Input tax credit on purchase, maintenance, insurance in respect of motor vehicles are not eligible.

Input tax credit is available only when they are used for providing the following taxable supplies:

a. Further supply of such vehicles or conveyances
b. Transportation of passengers
c. Imparting training on driving, flying, navigating such vehicles or conveyances
d. Transportation of goods

2. Supply of Goods or Services not eligible for Input Tax Credit:

The following goods or services are not eligible for input tax credit:

a. Food and beverages
b. Outdoor catering
c. Beauty treatment
d. Health services
e. Cosmetic and plastic surgery

Note: If the above goods or services are used to provide outward taxable supplies of the same category then, input tax credit is available.

a. Membership of a club, health and fitness centre

b. Rent-a-cab, life insurance and health insurance - input tax credit available only where the same is provided to the employees by the employer as a statutory obligatory under any law as notified by the Government or such services are used to provide outward taxable supplies of the same category

c. Travel benefits extended to employees on vacation such as leave or home travel concession

3. Works Contract Service

Works contract services are not eligible for input tax credit when supplied for construction of an immovable property other than plant and machinery except where it is used as input service for further supply of works contract service.

Example 1: If ABC, a manufacturing company who manufactures steel, gives contract to XYZ, a construction company to construct a building for its office, ABC cannot take input tax credit on the invoice issued by XYZ. While XYZ receives the service of painting of the office, from DEF, a service provider, XYZ can take input tax credit of the invoice issued by DEF as it is used as input service for providing works contact service of constructing the office to ABC.

4. Construction of Immovable Property by own account

When the goods or services received for construction of an immovable property other than plant and machinery by own account including when such goods or services or both are used in the course or furtherance of business.

Example 2: XYZ, a building contractor company, builds an office for its own use, it cannot take input tax credit.

Note: 'Construction' as mentioned in the point No.3 & 4, includes re-construction, renovation, additions or alterations or repairs to the extent of capitalisation to the said immovable property.

Example 3: ABC as in the Example 1, makes some repair work in its office building and treats the expenditure as revenue expenditure, then it can take input tax credit. If the expenses are capitalised in the books, then no ITC is available.

5. Composition Scheme

Composition dealers who pay tax under section 10, cannot take input tax credit on the goods or services or both received by them.

6. Non-Residents

Non-resident taxable person cannot take input tax credit on the goods or services or both received except on goods imported by him.

7. Personal Consumption

When the goods or services are used for personal consumption, input tax credit is not available.

8. Lost, Stolen, Destroyed, Free Samples, Gifts

Input tax credit is not available on the goods which are lost, stolen, destroyed, written off or disposed of by way of gift or free samples.

9. Fraud, Seizure and Confiscation

Input tax credit is not available on any tax paid under the circumstances of the following sections:

Section 74 - Input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts.
Section 129 - Input tax credit on the goods seized.
Section 130 - Input tax credit on the goods confiscated

Note: Plant and Machinery means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes the below:

• Land, building or any other civil structures
• Telecommunication towers
• Pipelines laid outside the factory premises.
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CA Start-Ups can apply for Incubation Centres in ICAI Mumbai

Read more at: http://www.taxscan.in/ca-start-ups-incubation-centres-icai/31831/
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HIGH COURT OF GUJARAT : In Gaurang Balvantlal Shah vs. Union of India

Section 164(2) of the Act of 2013, which had come into force from 1.1.2014 would have prospective and not retrospective effect and thus the respondents could not have deactivated the DINs allotted to the Directors under Section 154 of the said Act, except under the circumstances mentioned in Rule 11 of the said Rules of 2014.

Read full case law at : https://dasgovernance.com/2018/12/20/high-court-of-gujarat-in-gaurang-balvantlal-shah-vs-union-of-india/
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GST Evasion: Two Directors of Two Companies arrested for evading Rs 660 crore

Read more at: http://www.taxscan.in/gst-evasion-two-directors-arrested/31836/
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GSTN started sharing Data with Tax Authorities

Read more at: http://www.taxscan.in/gstn-sharing-data-tax-authorities/31869/
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C R Chaudhary enumerates Key Initiatives for Industrial Development Post-GST and Demonetisation

Read more at: http://www.taxscan.in/c-r-chaudhari-industrial-development-post-gst-demonetisation/31882/
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CBI Arrests Three Income Tax Officials in Separate Cases of Bribery

Read more at: http://www.taxscan.in/cbi-arrests-income-tax-officials-bribery/31891/
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👉Shiv Pratap Shukla, Minister of State for Finance in a written reply to a question in Rajya Sabha says that the GSTN is developing a new return filing system, further improving the user interface, and Business Intelligence and Analytics.

👉GST dept arrests two directors of two different firms for evasion of around Rs. 660 crores. The persons were allegedly indulged in availing input tax credit (ITC) fraudulently by using forged purchase and sale invoices.

👉Hon’ble Public Accounts Committee recommends  that the process of the Registration Process of Charitable Trusts / Institutions should be brought under the purview of internal audit.

👉CBI arrests 3 officers of the Income Tax dept, an Inspector, Income Tax, Ward No. 42 (3), New Delhi for demanding and accepting a bribe of Rs. 60,000/- from the complainant.

👉The Lok Sabha passes the Consumer Protection Bill 2018, which seeks to wholly replace the Consumer Protection Act 1986 & to establish a national level regulator -Central Consumer Protection Authority- to deal with consumer complaints on a proactive measure.

👉After a series of relaxations in the external commercial borrowings (ECB) norms, RBI announces a cap of 6.5 % of GDP at current market prices giving lot more headroom for raising money overseas.

👉DoT tells RCom and Reliance Jio that it can’t enforce the Supreme Court order for clearing their airwaves deal, as the buyer is unwilling to accept the responsibility for Anil Ambani-owned RCom’s arrears, thus violating a key clause in the spectrum-trading rules.

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NCLAT : In V. R. Hemantraj vs. Stanbic Bank Ghana Ltd. & Anr.

Adjudicating Authority has made prima facie case and expressed its final satisfaction about existence of debt and default, CIRP process could not be challenged as illegal and void raising untenable grounds.

Read full case law at : https://dasgovernance.com/2018/12/21/nclat-in-v-r-hemantraj-vs-stanbic-bank-ghana-ltd-anr/
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GST: Tax Lawyers approaches Delhi High Court to resolve GSTN Glitches [Read Order]

Read more at: http://www.taxscan.in/gst-tax-lawyers-delhi-high-court-gstn-glitches/31903/
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CBDT warns Cash Transactions above Permissible Limits

Read more at: http://www.taxscan.in/cbdt-cash-transactions-limits/31907/
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GST Council Meeting on 22nd December.discussion

1. Slimming of the 28% GST Slab-
a) Cement is expected to move down from 28% to 18%.
b) Computer Monitor.
c) Power Banks.
d) Third Party Vehicle Insurance.
e) Automobile Tyres.
2. Rate Cuts in the Housing Sector- GST rates for real estate to be brought down from 12% to 8%.
3. Further simplifying the Annual Returns i.e. Form GSTR 9.
4. Driving the completely online refunds process.
5. Decision to be taken on introducing Sugar Cess and Exigency / Disaster Cess based on the reports submitted by the sub-committees formed for analysing the same.
6. Deliberations on bringing Petrol and Diesel in the GST fold................🙏🌷

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Delhi HC: Upholds special audit initiation on Patanjali citing complexities in accounts

Delhi HC dismisses Patanjali Ayurveda’s writ, upholds initiation of special audit u/s 142(2A) for AY 2010-11 citing complexity in the accounts; Rejects assessee’s stand that once its accounts were audited, tax audit report was filed, all the necessary information was submitted in response to scrutiny notices, AO’s inability to exert himself to inquire diligently cannot result in a special audit; Though HC acknowledges that AO cannot fall back upon special audit in all routine cases, it observes that “AO has carefully outlined what were the salient aspects in the accounts and returns of the assessee that needed to be looked into and made the impugned order directing special audit.”; Opines that AO correctly ordered special audit having regard to - maintenance of large number of imprest accounts involving sizeable amount for which expenditure details not furnished, revision of returns whereby income offered was reduced substantially, assessee’s ‘first-time’ claim of deduction u/s. 80-IC needed inquiry; Further notes that AO had referred to the three segments or sources of revenue of the assessee and had held that it is required to identify the method and the relevant accounting standard applicable for recognition of income from these revenues and also to ascertain the correctness of the income recognized.:HC
The ruling was delivered by division bench comprising of Justice S. Ravindra Bhat and Justice Prateek Jalan.

Sr. Advocate Ajay Vohra alongwith Advocates Kavita Jha and Vaibhav Kulkarni argued on behalf of the assessee while Revenue was represented by Sr. Standing Counsel Asheesh Jain and Advocate Dushyant Sarna.

Note:

Sec. 142 (2A) provides that if, at any stage of the proceedings before him, the AO, having regard to the nature and complexity of the accounts of the assessee and the interests of the revenue, is of the opinion that it is necessary so to do, he may, with the previous approval of the Chief Commissioner or Commissioner, direct the assessee to get the accounts audited by a special auditor nominated in this regard.

[TS-709-HC-2018(DEL)]
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👉Senior Officer Pranab Kumar Das has been appointed as the new Chairman of the Central Board of Indirect Taxes and Customs (CBIC).

👉Income Tax Dept cannot probe Foreign Assets of assessee after Six Years as per Delhi High Court.

👉Central Govt notifies  the constitution of Special Courts in West Bengal under Section 280A(1) of the Income Tax Act, 1961 and Section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

👉The Advance Ruling Authority (AAR), Kerala holds that the quit rent or lease rent paid to the Govt for the use of land for agricultural purpose is exempted from GST.

👉The Kerala High Court holds that penalty cannot be levied under the GST on the ground of genuine human errors in the E-Way Bill.

👉Free Pharma Samples come under GST lens. The Pharma Companies are being prodded to reverse claims of input tax credit in respect of free samples supplied as part of their promotion efforts.

👉SEBI caps Mutual Funds' annual expense fees at 2.25 % of total expenses.

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👉🏻Supreme Court seeks role for operational creditors in IBC proceedings
(The Supreme Court suggested that operational creditors of bankrupt companies be given a voice in the resolution proceedings in proportion to their debt, including voting rights.)
👇🏻 👇🏻 👇🏻
https://goo.gl/j72JWr 

👉🏻Govt plans to amend norms pertaining to incorporation of Companies
(MCA, which is implementing the Companies Act, has sought comments from the public on the proposed changes to the rules)
👇🏻 👇🏻 👇🏻
https://goo.gl/EAXmZq 

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# ICAI ELECTION 2018* The polling for the Election of 24th CC and 23rd RCs have been concluded by 17 Dec 2018 (5PM), time reserved for postal ballot. The counting of votes will commence simultaneously for all regions on 19 DEC 2018 @ 10.00 AM at respective regional head-quarters, for Northern-Region it will be at ICAI Bhawan, Sector-62, Noida.

# MCA invites comments on amendments in the Companies (Incorporation) Rules, 2014 w.r.t. name availability by 31st Dec 2018 through email at reservation.name@mca.gov.in.

# GST: MEP activities (Mechanical, Electrical & Plumbing Works) undertaken by the applicant falls within the definition of composite supply of works contract as defined u/s 2(119) of CGST Act - AAR, Maharashtra in Eiffel Hills & Dales Developers Pvt. Ltd. (2018 (12) TMI 844).

# GST: Supply of beer per se is not taxable under GST. What is taxable in the subject case is the job work which is a service provided by PIL to the applicant, for which they are receiving consideration – AAR, Maharashtra in Crown Beers India Pvt. Ltd. (2018 (12) TMI 843).

# IT: Far from the case showing non-application of mind, the AO has carefully outlined what were the salient aspects in the accounts and returns of the assessee that needed to be looked into and made the impugned order directing special audit – Patanjali Ayurveda Ltd. Vs DCIT (2018 (12) TMI 831 - Delhi HC).

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CBDT issues Advisory on Bogus Donation Racket [Read Advisory]

Read more at: http://www.taxscan.in/cbdt-advisory-bogus-donation-racket/31769/
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You should claim your dividend on regular basis. If remain unclaimed for seven consecutive years, then the dividends along with its related shares transferred to Investor Education and Protection Fund (IEPF) Authority.

Investor Education and Protection Fund (IEPF) Authority of Ministry Of Corporate Affairs, Government Of India has given the procedure to claim unclaimed dividend after seven years.

Toll Free No.1800-114,Email: iepf@mca.gov.in, Website: www.iepf.gov.in.

Procedure to claim unclaimed Dividend

Download the form IEPF-5 from the website of IEPF (http://www.iepf.gov.in) for filing the claim for refund. Read the instructions provided on the website/instruction kit along with the e-form carefully before filling the form.

After filling the form save it on your computer and submit the duly filled form by following the instructions given in the upload link on the website. On successful uploading an acknowledgement will be generated indicating the SRN. Please note the SRN for future tracking of the form.

Take a printout of the duly filled IEPF-5 and the acknowledgement issued after uploading the form.

Submit indemnity bond in original, copy of acknowledgement and self-attested copy of e-form along with the other documents as mentioned in the Form IEPF-5 to Nodal Officer (IEPF) of the company at its registered office in an envelope marked "Claim for refund from IEPF Authority".

Claim forms completed in all aspects will be verified by the concerned company and on the basis of company's verification report, refund will be released by the IEPF Authority in favor of claimants' Aadhaar linked bank account through electronic transfer.

There is no fee charged for filing of the IEPF 5 form.

Don't get misled by any agents or middlemen.

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GST leviable on Warehouse Services used for Packing and Storage of Tea: AAAR [Read Order]

Read more at: http://www.taxscan.in/gst-warehouse-services-packing-storage-aaar/31668/
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Rs. 200 Crores GST Evasion unearthed by Dept

Read more at: http://www.taxscan.in/rs-200-crores-gst-evasion-unearthed-by-dept/31802/
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Bank statements aren't books of account; sum credited thereon can’t be treated as unexplained cash credit

IT : Where certain credit entries were reflecting cash deposit in bank account of assessee, but assessee failed to substantiate her claim for source of such cash deposit and, therefore, same was treated as undisclosed income, bank statement not being considered as books of account, any sum found credited in bank passbook cannot be treated as an unexplained cash credit

■■■

[2018] 100 taxmann.com 325 (Ahmedabad - Trib.)

IN THE ITAT AHMEDABAD BENCH 'C'

Smt. Ramilaben B. Patel
v.
Income Tax Officer

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👉GST Dept unearths an evasion of Rs. 200 crores as a metal scrap business across Madhya Pradesh, Maharashtra and Gujarat availed input tax credit fraudulently.

👉GSTN starts sharing data with tax authorities on the following:
(a) Mis-match between figures reported in GSTR-1 & GSTR-3B.
(b) Mis-match between figures reported GSTR-3B & that computed by the system in GSTR-2A.
(c) Taxpayers who have generated e-way bill but not filed tax returns.

👉CBDT issues an advisory in connection with information regarding the Bogus Donation racket under Section 35(1)(ii) of Income Tax Act, 1961, as the field officers asked for a clarification on a Trust namely M/s Shri Arvindo Institute of Applied Scientific Research Trust at Mumbai.

👉Six new Debts Recovery Tribunals (DRTs) are established and the minimum pecuniary limit for filing of cases in DRTs has been revised in 2018 from Rs. 10 lakh to Rs. 20 lakh to enable focus on higher value cases in these fast-track tribunals.

👉Foreign Direct Invest #FDI has increases constantly from USD 45.15 billion in 2014-15 to USD 60.97 billion in 2017-18.

👉NSE secures permission from SEBI to launch weekly options on the Nifty index.  The launch of options contracts on the Nifty is likely to increase volumes in the option segment and provide a hedging tool to market participants.

👉SEBI imposes a penalty of Rs 2 lakh on Joseph Massey, former CEO of Multi Commodity Exchange (MCX), for failing to make disclosure about sale of shares in stipulated time.

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GSTN develops New Return Filing System, says Shiv Pratap Shukla

Read more at: http://www.taxscan.in/gstn-return-filing-system-shiv-pratap-shukla/31805/

19 December 2018 News

*December 19, 2018*

*Economic Times*

Ø LIC makes Open Offer to acquire 26% stake in IDBI Bank (Positive for IDBI Bank)

Ø RBI to infuse Rs 50,000 Crore in January, Bonds likely to Rally (Positive for the Banking Sector)

Ø NSE gets SEBI's nod to launch Weekly Options on Nifty 50 index (Positive for NSE, Neutral Framework for Hedging)

Ø IDFC, Capital First completes Merger Process to form IDFC First Bank
(Positive for IDFC, Capital First)

Ø India’s Sugar Production up 2.1% till December 15: ISMA (Positive for Sugar Industry)

Ø Motilal Oswal Private Equity and InvAscent buy 70% in Symbiotec for $100 Million
(Positive for Symbiotec)

Ø Almost 45% of Seller Base from Tier-II, III Cities: Flipkart
(Positive Sentiment)

Ø India Imports 42 Lakh Tonne of Urea till November for over USD 1 Billion (Neutral)

Ø Saudi Arabia, Reliance in talks for Refinery, Petrochemical Project: Saudi Oil Minister
(Positive for Reliance Industries)

*Business Standard*

Ø Premium Brands pitch easy finance and instalments over Superior Features (Neutral)

Ø Bank notes' Printing cost rose to Rs 80 Billion in FY17, says Govt.
(Neutral, Regulatory Aspects)

Ø BNP Paribas sets 2019 Sensex Target at 40,000, but stays wary on earnings (Positive Sentiment)

Ø *SEBI concerned as Rs 600 Bn worth of approved IPOs are yet to hit market*
(Neutral to Negative Sentiment)

Ø Will try to get 99% items in 18% slab or lower, says PM Narendra Modi (Positive Statement)

Ø New Angel Tax Notices spook Investors, start-ups; Trip fund-raising efforts
(Negative Sentiment)

Ø High Growth rate in Manufacturing a Do-able Challenge, says NITI Aayog CEO (Positive Sentiment)

*Financial Express*

Ø *CSR funds worth Rs 8,314 Cr remained unspent over Three Financial Years*

Ø Govt likely to sell 3-5% stake in NTPC via OFS (Neutral)

Ø IBC eliminates right to redemption of Essar Steel shareholders, says lenders
(Positive for Arcelor Mittal, Negative for Essar)

Ø Tata Starbucks to Open more than 25 Stores across Metros in 2019
(Positive for Tata Starbucks, Tata Global)

Ø Ashoka Buildcon plans to bid for Rs 400-crore City Gas Distribution Projects (Positive for Ashoka Buildcon)

Ø John Deere plans to boost Engine Capacity in India
(Positive for John Deere)

Ø Existing Tech inadequate to cater to data demand by 2025, says report (Neutral)

Ø Government permits Imports of PUF Panels/ Doors for Hospitals under EPCG Scheme
(Slight Negative for Domestic Polyurethane Foam Manufacturers)

*Mint*

Ø Ola to invest  $100  Million  in Scooter-sharing firm Vogo
(Positive for Vogo)

Ø Samana to raise Rs 4,000 Crore to invest in startups, listed Stocks

Ø Govt orders restructuring of Tax Department, with an aim to create a "Caring but Strict" Direct taxes regime in the country.(Positive Regulatory Aspects)

Ø Carlyle seeks to double holding in PNB Housing Finance (Positive for PNB Housing Finance)

Ø DHFL to exit Mutual Fund Business DHFL Pramerica
(Neutral to Slight Negative)

Ø Agri-Food Startups raised $1.6 Billion in 2013-17: Report (Positive Sentiment for Agri-Food Startups)

Ø Online Medicine Startups in funding frenzy as Sector consolidates (Neutral to Negative Sentiment)

18 December 2018 Updates

GST Law Relating To Educational Institution a Compilation

“Educational Institution” *means* an institution providing services by way of,-
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course;

Entry No. 66 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28.06.2017 Exempt Following Services From GST-
Services provided –
(a) by an Educational Institution to its students, faculty and staff;
(b) to an educational institution, by way of-
(i) transportation of students, faculty and
staff;
(ii) catering, including any mid-day meals
scheme sponsored by the Central Government, State Government or Union territory;
(iii) security or cleaning or housekeeping services performed in such educational institution;
(iv) services relating to admission to, or conduct of examination by, such institution; upto higher secondary:

Note:- Clause b Exemption Above is Not available to an institution providing services by way of pre-school education and education up to higher secondary school or equivalent

Crux
1. Services provided by an educational institution to its students, faculty and staff is exempt from tax
2. Key criterion for qualification of any service under the above exemption would be that education delivered results in a legally recognized qualification being granted to the student.

3. The essence of the above exemption is that the institution in question must qualify as an educational institution. Once this condition is fulfilled, the services provided by such institution to its students and faculty shall by default be eligible for the above exemption.

4. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification.

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NCLAT : In J.B. Tiwari vs. Biostadt India Limited & Anr.

When the Advocate sends the Notice, it is on instructions from the client and the same cannot be ignored by stating that the Advocate should also forward authority and Resolution of the Company. The Appellant in spite of having Notice and knowledge of the proceeding cannot sit on the hedge to take advantage of the technical requirement of Adjudicating Authority sending a Notice through its mechanism.

Read full case law at : https://dasgovernance.com/2018/12/15/nclat-in-j-b-tiwari-vs-biostadt-india-limited-anr/
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SUPREME COURT : In Competition Commission of India vs. Thomas Cook (India) Ltd. & Anr.

Non­-notification of the transaction, being a part of the combination, particularly, the consummation of market purchases amounts to violation of Section 6 and the penalty under Section 43A be imposed.

Read full case law at : https://dasgovernance.com/2018/12/16/supreme-court-in-competition-commission-of-india-vs-thomas-cook-india-ltd-anr/
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SUPREME COURT : In Chintalapati Srinivasa Raju vs.  Securities And Exchange Board of India

The expression “reasonably expected” cannot be a mere ipse dixit – there must be material to show that such person can reasonably be so expected to have access to Unpublished Price Sensitive Information.

Read full case law at : https://dasgovernance.com/2018/12/17/supreme-court-in-chintalapati-srinivasa-raju-vs-securities-and-exchange-board-of-india-2/
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ITAT condones Delay in filing Appeal since It was Due to Wrong Advice of Consultant [Read Order]

Read more at: http://www.taxscan.in/itat-condones-delay-advice-consultant/31619/
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Genuine Human Errors in E-Way Bill cannot result in Penalty: Kerala HC [Read Judgment]

Read more at: http://www.taxscan.in/human-errors-e-way-bill-penalty-kerala-hc/31710/
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Assessing Officer having reopened the assessment simply on the basis of vague information received from the Director of Income Tax (Inv.) without independently applying his own mind to form any belief, the reason recorded by the Assessing Officer do not justify the reopening of the assessment. Devansh Exports  vs.  ACIT (ITAT-Kolkata)

Credit on Capital goods not allowed when you claim ITC through RFD 01. Ideally we don’t understand this logic wherein law maker one case allow it if it is paid by way of IGST on export of goods however the same ITC on capital goods claim through RFD 01 then it is disallowed.

Sebi relaxed guidelines pertaining to setting up cyber security operations centre for small market intermediaries as they lack knowledge in cyber security.

Public sector banks have filed more than 2,500 FIRs against wilful defaulters till September-end and have started the recovery process, Finance Minister Arun Jaitley informed Parliament.

Govt may impose anti-dumping duty for five years on a Chinese chemical 'Meta Phenylene Diamine' used in dye and photography industry in order to guard domestic players from cheap imports from the neighbouring country.

Cost Audit Report for the financial year ended 31.03.2018 on account of various factors , it has been decided to relax the additional fees payable by companies on CRA-4 (Cost Audit Report in XBRL format)  upto 31.12.2018, wherever additional fee is applicable.

ICAI is organising program to Show your achievements to world. Apply for 12th ICAIs Leader & Business Excellence Awards under various categories.Visit https://awards.icai.org/

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Supply of Goods from Mumbai to Delhi to execute Works Contract not Inter-State Sales: Delhi HC [Read Judgment]

Read more at: http://www.taxscan.in/supply-execute-works-contract-inter-state-sales-delhi-high-court/31683/
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Genuine Human Errors in E-Way Bill cannot result in Penalty: Kerala HC [Read Judgment]

Read more at: http://www.taxscan.in/human-errors-e-way-bill-penalty-kerala-hc/31710/
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MCA extends deadline of Filing of Form NFRA-1 [Read Circular]

Read more at: http://www.taxscan.in/mca-extends-deadline-filing-form-nfra/31734/
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👉ITAT Mumbai bench states that no tax relief under Section 54 can be granted to the assessee for the sale of an old property if the new property was purchased in the name of his wife and daughter.

👉India defers imposing higher duties worth $235 million on 29 American goods to January 31, 2019. The retaliatory tariffs were scheduled to come into effect on December 17 and have been postponed for the fourth time.

👉India Trade Promotion Organisation (ITPO) invites bids to build and operate a five-star luxury hotel property in the capital’s Pragati Maidan, where an integrated exhibition-cum-convention centre is being built.

👉Tata Power plans to invest around Rs 700 million to set up nearly 1,000 Charging Points in the National Capital Region (NCR) region, for Electric Vehicles (EVs).

👉The brand names of the 3 public sector banks (PSBs) - Bank of Baroda, Dena Bank and Vijaya Bank that are set to be merged may be kept intact as the govt draws closer to frame an amalgamation scheme.

👉India's telecom export council flags Huawei over national security concerns. It wants Ajit Doval to restrict use of Huawei's equipment in 5G networks.

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Supply of Goods from Mumbai to Delhi to execute Works Contract not Inter-State Sales: Delhi HC [Read Judgment]

Read more at: http://www.taxscan.in/supply-execute-works-contract-inter-state-sales-delhi-high-court/31683/
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Companies (Incorporation) Rules, 2014 –Amendment in Rules

Amendments in the Companies (Incorporation) Rules, 2014 – reg. name availability

NOTICE INVITING COMMENTS

Draft amendment to rule 8 of the Companies (Incorporation) Rules, 2014 is attached as an Annexure-A to this notice.

This amendment intends to bring more clarity to the rules related to name availability by:

(i) inclusion of illustrations in the rules;
(ii) providing a clear test to determine as to whether the applied name resembles too nearly with the name of an existing company; and
(iii) bringing more clarity in the rule related to “general names”/descriptive names and trademark applicability;

Suggestion/Comments on the proposed amendments along with justification in brief may be sent latest by 31st December, 2018 through email at

It is requested that the name, contact number, email address and postal address of the sender may be indicated clearly at the time of sending suggestions/comments in the following format:-
Format for sending suggestions/comments

1. Name, contact number, email address and postal address of stakeholder
2. Suggestions/comments as under:-

Serial Number Clause/Sub-
Clause Suggestion/comments Justification

ANNEXURE-A

In the Companies (Incorporation) Rules, 2014, for rule 8, the following rules shall be substituted namely:-

8. Names which resemble too nearly with the name of an existing company

(1) A name applied for shall be deemed to resemble too nearly with the name of an existing company, if, and only if, after comparing the name applied for with the name of an existing company by disregarding the matters set out in sub-rule (2), the names are same.
(2) The following matters are to be disregarded

(a) the words like Private, Pvt, Pvt., (P), OPC Pvt. Ltd., IFSC Limited, IFSC Pvt. Limited, Producer Limited, Limited, Unlimited, Ltd, Ltd., LLP, Limited Liability Partnership, company, and company, & co, & co., co., co, corporation, corp, corpn, corp, group;

(b) whether a word is in the plural or singular number in one or both names;

Illustrations

(i) Green Technology Ltd. is same as Greens Technology Ltd. and Greens Technologies Ltd.

(ii) Pratap Technology Ltd. is the same as Prataps Technology Ltd. and Prataps Technologies Ltd.

(c) type and case of letters, spacing between letters, punctuation marks and special characters used in one or both names;

Illustrations
(i) ABC Ltd. is same as A.B.C. Ltd. and A B C Ltd.
(i) TeamWork Ltd. is same as Team@Work Ltd. and Team-Work Ltd.

(d) use of different tenses in the names;

Illustration
Ascend Solutions Ltd. is same as Ascended Solutions Ltd. and Ascending Solutions Ltd.

(e) using different phonetic spellings including use of misspelled words of an expression;

Illustrations
(i) Chemtech Ltd. is same as Chemtec Ltd., Chemtek Ltd., Cemtech Ltd., Cemtek Ltd., Kemtech Ltd., and Kemtek Ltd.

(ii) Bee Kay Ltd is same as BK Ltd, Be Kay Ltd., B Kay Ltd., Bee K Ltd., B.K. Ltd. and Beee Kay Ltd.

(f) whether one or both names includes a host name such as ‘www’ or a domain extension such as ‘net’, ‘org’, ‘dot’ or ‘com’;

(g) the addition of commonly used prefixes including salutations, before an existing name such as New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, Hari, Mr., Mrs., Ms., Dr., Prof. or any other such commonly used prefixes;

Illustrations
(i) Vijay Corporation Ltd is same as Shree Vijay Corporation Ltd, Modern Vijay Corporation Ltd and Dr. Vijay Corporation Ltd.

(ii) Manjushree Industries limited is not the same as Manju Industries limited.

(iii) Vijay Corporation Ltd is not the same as Deep Vijay Corporation Limited.

(h) the order of words in the names

Illustrations
(i) Ravi Builders and Contractors Ltd. is same as Ravi Contractors and Builders Ltd.
(ii) Ravi Builders and Contractors Limited is not the same as Ravi Shankar
Builders and Contractors limited

(i) the use of the definite or indefinite article in the names;

Illustration
Congenial Tours Ltd. is same as A Congenial Tours Ltd. and The Congenial Tours Ltd.

(j) a slight variation in the spelling of the two names*
including a grammatical variation thereof;

Illustration
Color Technologies Ltd. is same as Colour Technologies Ltd as there is a slight variation in the spelling.

(k) complete translation or transliteration and not part thereof, of an existing name, in Hindi or in English

Illustrations
(i) National Electricity Corporation Ltd. is same as Rashtriya Vidyut Nigam Ltd.
(ii) Hike Construction Ltd. is not the same as Hike Nirman Ltd.

(l) *Addition of the name of a place to an existing name* which did not contain the name of any place

Illustrations
(i) If Salvage Technologies Ltd. is an existing name, it is same as Salvage Technologies Delhi Ltd and Salvage Delhi Technologies Ltd.
(ii) Retro Pharmaceuticals Ranchi Ltd. is not the same as Retro Pharmaceuticals Chennai Ltd.

(m) addition or deletion of words like global, international or any other word which symbolizes the geographical reach of the company, in an existing name;

Illustration
(i) If Hardnut Finance Ltd is an existing name, it is the same as Hardnut Finance Pan-India Ltd or Hardnut Finance International Ltd.
(ii) If Glory Construction International Ltd. is an existing name, it is the same as Glory Construction Ltd. but not the same as Glory Construction Global Ltd.

(n) addition or deletion of numerals in an existing name

Illustration
(i) If Thunder Services Ltd is an existing name, it is same as Thunder11 Services Ltd.
(ii) If Style Garments11 Ltd. is an existing name, it is same as Style Garments Ltd.

Provided that clauses (f) to (h) and clauses (k) to (n) shall *not be disregarded while comparing the names* if a no objection by way of a Board resolution has been provided by an existing company.

8A. Undesirable names

(1) The name shall be considered undesirable, if-

(a) it attracts the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950);

(b) subject to section 35 of the Trade Marks Act, 1999 (47 of 1999), if the name includes a trade mark registered under the Trade Marks Act, 1999 (47 of 1999) and the rules framed thereunder in the same class of goods or services in which the activity of the company is being carried out or is proposed to be carried out, unless the consent of the owner or applicant for registration, of the trade mark, as the case may be, has been obtained and produced by the promoters;
(c) it includes any word or words which are offensive to any section of the people;
(d) the proposed name is identical with or too nearly resembles the name of a limited liability partnership:

Provided that the provisions of rule 8 shall apply mutatis mutandis while determining whether a proposed name is too nearly resembling the name of a limited liability partnership;

(e) the proposed name is identical with or too nearly resembles with a name which is for the time being reserved in accordance with rule 9:

Provided that the provisions of rule 8 shall apply mutatis mutandis while determining whether a proposed name is too nearly resembling with a reserved name;

(f) the company’s main business is financing, leasing, chit fund, investments, securities or combination thereof, but the proposed name is not indicative of such related financial activities, viz., Chit Fund or Investment or Loan, etc.;
(g) the company’s name is indicative of activities financing, leasing, chit fund, investments, securities or combination thereof, but the company’s main business is not related to such activities;
(h) it resembles closely the popular or abbreviated description of an existing company or limited liability partnership;
(i) the proposed name is identical with or too nearly resembles the name of a company or limited liability partnership incorporated outside India and reserved by such company or limited liability partnership with the Registrar:

Provided that if a foreign company is incorporating its subsidiary company in India, then the original name of the holding company as it is may be allowed with the addition of word India or name of any Indian state or city, if otherwise available;

Provided further that provisions of rule 8 shall apply mutatis mutandis while determining whether a proposed name is too nearly resembling the name of a company or limited liability partnership incorporated outside India;
(j) any part of the proposed name includes the words indicative of a separate type of business constitution or legal person or any connotation thereof e.g. co- operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc.;

Explanation - For the purposes of this sub-clause, it is hereby clarified that the name including phrase ‘Electoral Trust’ may be allowed for Registration of companies to be formed under section 8 of the Act, in accordance with the

Electoral Trusts Scheme, 2013 notified by the Central Board of Direct Taxes (CBDT):

Provided that name application is accompanied with an affidavit to the effect that the name to be obtained shall be only for the purpose of registration of companies under Electoral Trust Scheme as notified by the Central Board of Direct Taxes;
(k) the proposed name contains the words ‘British India’;
(l) the proposed name implies association or connection with an embassy or consulate or a foreign government;
(m) the proposed name includes or implies association or connection with or patronage of a national hero or any person held in high esteem or important personages who occupied or are occupying important positions in Government;
(n) the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding and a period of two years have not elapsed from the date of such dissolution:

Provided that if the proposed name is identical with the name of a company which is struck off in pursuance of action under section 248 of the Act or under section 560 of the Companies Act, 1956(1 of 1956) then the same shall not be allowed before the expiry of twenty years from the publication in the Official Gazette being so struck off;

(o) it is identical with or too nearly resembles the name of a limited liability partnership in liquidation or the name of a limited liability partnership which is struck off up to a period of five years;
(p) the proposed name include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual fund’ etc., unless a declaration is submitted by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant;
(q) the proposed name includes the word "State", in case the company is not a government company;
(r) the proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited;
(s) Use of descriptive names, where the name merely consists of commonly used words to describe an activity.

Explanation 1 The term “commonly used words” refers to use of generic
expressions which may be used by any other company to describe its trade.

Explanation 2 While determining whether a name is descriptive or not, the objects of the proposed company or the order of words appearing in a name shall not be relevant.

Illustrations
(i) The names Silk Manufacturers Private Limited and Manufacturers Silk Ltd. are descriptive names as they merely describe an activity which may also be carried out by any other company and the order of the words is not relevant while determining a descriptive name.

(ii) The names Technical Vista Ltd or Vista Technical are not descriptive as the names do not merely consist of commonly used words and the order of the words is not relevant while determining whether a name is descriptive.

(iii) The name Drinking Water Plant Ltd. is a descriptive name, even if the object of the company is not related to making drinking water plant as it consists of commonly used words and objects of the proposed company is not relevant while determining whether a name is descriptive.

(t) the proposed name includes name of any foreign country or any city in a foreign country, the same shall be allowed if the applicant produces any proof of significance of business relations with such foreign country like Memorandum Of Understanding with a company of such country:

Provided that the name combining the name of a foreign country with the use of India like India Japan or Japan India shall be allowed if, there is a government to government participation or patronage and no company shall be incorporated using the name of an enemy country.

Explanation- For the purposes of this clause, enemy country means so declared by the Central Government from time to time.

(u) the proposed name of a section 8 company under the Act does not include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc.
(v) the proposed name of a Nidhi company under the Act does not have the last
words “Nidhi Limited” as a part of its name.
(w) the proposed name has been released from the register of companies upon change of name of a company and three years have not elapsed since the date of change unless a specific direction has been received from the competent authority in the course of compromise, arrangement and amalgamation.
(2) The applicant shall declare in affirmative or negative (to affirm or deny) whether they are using or have been using in the last five years , the name applied for incorporation of company or LLP in any other business constitution like Sole proprietor or Partnership or any other incorporated or unincorporated entity and if, yes details thereof and No Objection Certificate from other partners and associates for use of such name by the proposed Company or LLP, as the case may be, and also a declaration as to whether such other business shall be taken over by the proposed company or LLP or not.

8B. Word or expression which can be used only after obtaining previous approval of the Central Government.

In terms clause (b) to sub-section (3) of section 4, the following words and combinations thereof shall not be used in the name of a company in English or any of the languages depicting the same meaning unless the previous approval of the Central Government has been obtained for the use of any such word or expression-
(a) Board
(b) Commission;
(c) Authority;
(d) Undertaking;
(e) National;
(f) Union;
(g) Central;
(h) Federal;
(i) Republic;
(j) President;
(k) Rashtrapati;
(l) Small Scale Industries;
(m) Khadi and Village Industries Corporation;
(n) Financial, Corporation and the like;
(o) Municipal;
(p) Panchayat
(q) Development Authority;
(r) Prime Minister or Chief Minister;
(s) Minister;
(t) Nation;
(u) Forest corporation;
(v) Development Scheme;
(w) Statute or Statutory;
(x) Court or Judiciary;
(y) Governor;
(z) the use of word Scheme with the name of Government (s) , State , India, Bharat or any government authority or in any manner resembling with the schemes launched by Central, state or local Governments and authorities; and
(za) Bureau.”
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Income Tax Dept cannot probe Foreign Assets of Assessee after Six Years: Delhi High Court [Read Judgment]

Read more at: http://www.taxscan.in/income-tax-dept-foreign-assets-six-years-delhi-high-court/31742/
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Pranab Kumar Das appointed as CBIC Chairman

Read more at: http://www.taxscan.in/pranab-kumar-das-cbic-chairman/31761/
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Transfer of Patent Rights assessable under CST Act: Kerala HC [Read Judgment]

Read more at: http://www.taxscan.in/transfer-patent-rights-assessable-cst-act-kerala-hc/31716/
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👉Senior Officer Pranab Kumar Das has been appointed as the new Chairman of the Central Board of Indirect Taxes and Customs (CBIC).

👉Income Tax Dept cannot probe Foreign Assets of assessee after Six Years as per Delhi High Court.

👉Central Govt notifies  the constitution of Special Courts in West Bengal under Section 280A(1) of the Income Tax Act, 1961 and Section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

👉The Advance Ruling Authority (AAR), Kerala holds that the quit rent or lease rent paid to the Govt for the use of land for agricultural purpose is exempted from GST.

👉The Kerala High Court holds that penalty cannot be levied under the GST on the ground of genuine human errors in the E-Way Bill.

👉Free Pharma Samples come under GST lens. The Pharma Companies are being prodded to reverse claims of input tax credit in respect of free samples supplied as part of their promotion efforts.

👉SEBI caps Mutual Funds' annual expense fees at 2.25 % of total expenses.

17 December 2018 News

17-December-2018

Economic Times

Ø  India Postpones levying Retaliatory Tariffs on US Goods,  to January 31, 2019. (Positive Trade Sentiment)

Ø  Naresh Goyal's 'Turnaround' man, Nikos Kardassis leaves Jet Airways (Negative for Jet Airways)

Ø  Niti Aayog Pushes for Methanol as Cooking Fuel (Positive for Gujarat Narmada Valley Fertilizers & Chemicals, RCF, Assam Petrochemicals)

Ø  Infused Rs 4000 Cr in Fortis last Month: IHH (Slight Positive Sentiment for Fortis)

Ø  Pricing Policy of Indian Airlines is a Problem: IATA Chief (Negative Sentiment for Indian Airlines)
Ø  BREXIT Pressure rises, but UK Govt says NO to Second vote (Neutral, Regulatory Aspects)

Ø  'Hot money' evaporates from Indian Capital Markets in 2018 (Negative Sentiment for Indian Capital Markets)

*Business Standard*

Ø  RBI waves ED threat to keep exporters in line, foil hedging against Rupee (Neutral, Regulatory Aspects)

Ø  Volume, and not Price, is the lever of Growth for FMCGs, study shows (Neutral)

Ø  Govt identifies Cities, Highways for Electric Vehicle charging Infra (Positive Sentiment for EV Industry, Infrastructure Firms)

Ø  Delhi HC dismisses Vodafone plea for Tax refund of over Rs 47.59 Billion (Negative for Vodafone)

Ø  ABB nears sale of Power Grids units to Hitachi in $11 Billion deal (Positive for ABB)

*Business Line*

Ø  Govt to launch Bharat-22 ETF follow-on offer in Feb, to raise Rs 10,000 Cr  (Neutral, Regulatory Aspects)

Ø  NGT seeks clarity on nod for Waterway Projects (Neutral, Regulatory Aspects)

Ø  67% of 5151 Smart City Projects stuck on Paper (Negative Sentiment)

Ø  ‘Cutting Gold Import Duty can mitigate illegal activities’
(Positive for Gold, Regulatory Aspects)

Ø  NTPC acquires 720-MW Barauni Thermal Power Station (Positive for NTPC)

*Mint*

Ø  BEML Pitches for indigenisation of Six Bullet Train rakes (Positive for BEML, if accepted)
Ø  Anti-Dumping duty on Chinese Chemical used in making Detergents for 5 years (Positive for Indian Detergent Industry)

Ø  Telcos for Independent Audit to prove Stress (Neutral, Regulatory Aspects)

Ø  Motherson Sumi in merger talks with Germany’s Leoni (Positive for Motherson Sumi)

Ø  RBI’s solution for MSME loan woes: Public Credit Registry (Neutral, Regulatory Aspects)

*Financial Express*

Ø  Germany to tighten rules on Foreign takeovers, says report (Negative for Chinese Investments in Germany)

Ø  Qatar to invest USD 20 Billion in US Energy Sector, says Minister (Positive for Qatar Petroleum, ExxonMobil and ConocoPhillips)

Ø  NFSA Procurement: Government gets into Debt trap for FCI (Negative Sentiment for FCI)

Ø  PFC may approach Foreign Banks to fund REC Stake Buy (Positive for PFC, REC)

Ø  Spectrum Reserve Price: TRAI refuses to share its calculation model with DoT (Negative, Regulatory Aspects)

*Financial Chronicle*

Ø  Buoyed by the NGT order allowing the reopening of its Tuticorin plant, Sterlite to approach TN Govt for consent to operate Tuticorin Plant (Positive for Sterlite, Vedanta, if approved by TN Govt)

Ø  US Economic Data key to Global Risk Sentiment (Neutral)

Ø  Israeli firm, Netafim,  introduces Digital Irrigation Solution in India (Positive for Netafim)

Ø  EY to advise on Merger of 3 PSU General Insurers, National Insurance Company, Oriental Insurance Company and United India Insurance Company.

17 December 2018 Updates

Bogus donation racket under section 35(1)(ii)- CBDT Advisory

F.No. 225/351/2018-ITA (II)
Government of India
Ministry of Finance Department of Revenue Central Board of Direct Taxes ****
Room N0. 245A, North Block
New Delhi, the 14th December, 2018
To
All Principal Chief Commissioners of Income Tax All Director Generals of Income Tax (Investigation)
Sir/Madam
Subject: Information regarding bogus donation racket under section 35(1)(ii) of Income-tax Act, 1961-reg.-

Kindly refer to the subject mentioned above.

2. In this connection, I am directed to state that Section 35(1)(ii) of the Income-tax Act,1961 (‘Act’) prescribes a weighted deduction @ 150% (175% before 01.04.2018) to a donor for any sum paid to an approved ‘research association having as its sole object the undertaking of scientific research or to a ‘university, college or other institution’ for carrying out scientific research. Very recently, Board has received several references from the field authorities for clarifying whether a Trust namely M/s Shri Arvindo Institute of Applied Scientific Research Trust (PAN:AAFTS7349D) (Hereinafter ‘the Trust’) having offices at Mumbai & Puducherry is an entity specified by the Central Government through a Notification for purposes of section 35(l)(ii} of the Act or not. Presently, the trust is assessed with CIT(Exemption), Mumbai.

3. In this regard, upon perusal of records,it emerges that the above Trust was earlier approved under section 35(1}(ii} of the Act which expired on 31.03.2006.

Thereafter ,this entity, being not recognized for purpose of section 35(1)(ii) of the Act, is not eligible to raise donations for undertaking scientific research however, the Trust has raised substantial donations over the last six years on the basis of a forged certificate while the donors have irregularly claimed weighted deduction u/s. 35(1)(ii) of the Act on donations made to the Trust.
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4. In view of above, I am directed to state that the pending scrutiny assessment cases of donors who have claimed irregular weighted deduction u/s 35(1)(ii) should be handled in light of above facts. In case of donors whose cases are presently not under scrutiny,the Board desires that a list of donors who had provided funds to the Trust u/s 35(1}(ii) of the Act should be drawn by CIT (Exemption}, Mumbai for the period from A.Y 2012-13 to 2018- 19 and circulated to the concerned field authorities expeditiously.
5. I am further directed to state that while handling investigations/ enquiries in these cases, the concerned Assessing Officer should examine the specific transactions related to the sum donated and cash trail should be clearly identified. Also, various provisions pertaining to enquiry and investigation under the Act should be effectively used and assessment orders should be passed under the monitoring of supervisory authorities.
6. This issues with approval of Member (IT&C), CBDT. Yours faithfully ,
(Rajarajeswari R.) Under Secretary (ITA.II)
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Capital Gain of Minor rightly Clubbed with Income of Mother: ITAT [Read Order]

Read more at: http://www.taxscan.in/capital-gain-minor-clubbed-mother-itat/31583/
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Wife eligible for Tax Benefit for Investment made in the Joint name of Husband: ITAT [Read Order]

Read more at: http://www.taxscan.in/wife-tax-investment-joint-husband-itat/31590/
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Delhi High Court asks Patanjali to Co-operate with Special Audit [Read Judgment]

Read more at: http://www.taxscan.in/delhi-high-court-patanjali-special-audit/31680/
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🏦 Capital Market Updates🏦

👍🏻 Keep a watch on Ircon International as it has big orders from the Railways. Buy it for long terms gains.

👍🏻 HCL Technologies is set to acquire select IBM software products for$1.8 billion (over Rs. 12,700 crore) in an all-cash deal. A big positive.

👍🏻 There are rumours that Uday Kotak will sell a part of his equity stake in Kotak Mahindra Bank to Warren Buffet’s Berkshire Hathaway. A big positive for the stock. Buy.

👍🏻 Jubiliant Life Sciences which has a very strong presence in the specialty pharma business is ramping up the production of Rubyfill and readying to launch other generic medicines. Buy.

👍🏻 Gujarat Gas, which controls 38% of market share in city gas distribution, is expected to deliver vastly improved results on the back of increase in CNG and PNG demand. A good long-term buy.

👍🏻 Minda Industries, a leading auto components maker, is ramping up the production of its premium products. Its alloy steel plant will also be operational in a few quarters and fuel growth. Buy.

👍🏻 L&T Finance Holdings is doing extremely well in the retail and housing sectors. A good buy in times of turmoil.

👍🏻 As the Union Budget nears, railway stocks will become attractive again. Buy Texmaco Rail Engineering, which is witnessing heavy volumes.

👍🏻 JSW Steel is in talks with foreign lenders to raise Rs.3500 crore to fund Bhushan Power & Steel. Accumulate.

👍🏻 The recent Supreme Court directive to state governments to modify the Power Purchase Agreement will benefit Tata Power and cut losses from its Mundra plant. Buy.

👍🏻 Kaya Ltd, the demerged entity of Marico, is reportedly doing well. New facilities and new products are likely to propel its growth in the next few quarters. A good buy.

👍🏻 Shiva Global Agro Industries has reported higher profits and guided for better times in the next few quarters. Investors willing to take a small risk may enter.

👍🏻 The tumbling market had prompted Indian Oil Corporation to plan a buy back. This high dividend-paying company is available below its book value and the impending buyback will also lift its price. Buy.

👍🏻 Oil & Natural Gas Corporation is available at record low valuations. Investors looking to create wealth and willing to wait for 2 years must buy.

👍🏻 Engineering and farm equipment maker, Escorts has formed a JV with Kubota of Japan to manufacture high-end technology tractors for domestic and export markets. An attractive buy.

👍🏻 Vedanta is witnessing growing volumes in its zinc and oil business. Its 1.2 MMTPA zinc expansion on the back of rising prices augurs well for the future. Buy.

👍🏻 Punjab National Bank has renewed its plan to sell its stake in PNB Housing and use the funds to augment its working capital. The stock may be bought with a horizon of three years.

👍🏻 Natco Pharma which has a strong line-up of products for the US market expects a continued rise in revenue. Its planned capex of Rs.500 crore in the next few years makes this stock an attractive buy.

👍🏻 After amassing 25.2 crore subscribers, Reliance Jio now intends to hive off its fibre and tower assets business into separate entities. Like in the past, shareholders may get shares of these new entities free of cost resulting in wealth creation. Buy Reliance Industries.

👍🏻 Power Grid Corporation of India has signed a loan pact with Sumitomo Mitsui Banking Corporation (Japan) for 22 billion yen (about Rs.1397 crore) to fund its expansion. A good buy at the current rate.

👍🏻 Cadila Healthcare through its subsidiary has received approval from the US health regulator to market Ranitidine injection, used in the treatment of stomach and intestine ailments. A positive for the company.

👍🏻 Vivimed Labs is trading at a trailing P/E multiple of less than 5x. Its JV with Strides Pharma has received several USFDA drug approvals recently. The stock is a steal at the current level.

👍🏻 Albert David has corrected more than 50% from its 52-week high of Rs.854. Its market cap of Rs.220 crore against its turnover of Rs.300 crore and cash in books of around Rs.100 crore makes it a potential takeover candidate. Buy for good returns.

👍🏻 State Trading Corporation of India has received Rs.2200 crore of dues, which were written-off from its book,thanks to the Supreme Court of India. Its market cap stands at Rs.692 crore. The stock can easily appreciate by 50%.

👍🏻 Thirumalia Chemicals is being accumulated by HNIs after its US plant commenced operations, which isexpected to benefit the company significantly.

👍🏻 Take Solutions posted 61% higher PAT for Q2FY19 and is likely to notch an EPS of Rs.16 for FY19. Buy for over 30% returns in the medium term.

👍🏻 Rico Auto Industries is weaving a strong three-pronged future growth strategy to achieve a turnover ofRs.2000 crore by 2020. It is expected to notch an EPS of Rs.6.5 in FY19 and Rs.9 in FY20. The stock is poised to
cross Rs.100.

👍🏻 Jindal Poly Films is the cheapest packaging stock trading a forward P/E of just 6x on FY19E EPS of Rs.45. Areasonable P/E of 10x will take its share price to Rs.450.

👍🏻 Talwalkars Lifestyles is expected to post an EPS of Rs.27 in FY19 based on its half yearly results. The share has the potential to rise by over 50%.

👍🏻 Meghmani Organics is expected to notch an EPS of Rs.10 in FY19 and Rs.12-14 in FY20 post expansion. Areasonable P/E of 10x against the industry P/E of 33x will take its share price to Rs.100 in the medium term and Rs.120 thereafter.

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GST Evasion: Steel Company Director arrested for Rs. 333 Crores

Read more at: http://www.taxscan.in/gst-evasion-director-arrested/31628/
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Sweet Shop Cum Restaurant

In the case of Sweet Shop cum restaurant, the services from the restaurant is a principle supply which provides a bundled supply of preparation & sale of food and serving the same and therefore it constitutes a composite supply. In the instant case the nature of restaurant services is such that lt may be treated as the main supply and the other supplies Combined with such main supply are in the nature of incidental or services.

Thus restaurant services get the character of predominant supply over other supplies. Therefore in the present case the supply shall be treated as supply of service and the sweet shop shall be extension of the restaurant. Thus supply of pure food, namkeen, cold drink and other edible items from a sweet Shop which also runs a restaurant is a transaction of supply of service.
This will fall under the HSN 9963 and a Rate Of 5% Shall be Applicable without any Input Credit.

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👉The Ministry of Finance releases the State-wise details of detection of GST Evasion cases where the State of Maharashtra is leading the list with Rs. 3898.72 crores of evasion in 418 cases followed by UP and Karnataka with Rs. 998.62 crores and Rs. 844.17 crores resp.

👉SEBI relaxesd guidelines pertaining to setting up cyber security operations centre for small market intermediaries as they lack knowledge in cyber security.

👉Public sector banks (PSBs) files more than 2,500 FIRs against wilful defaulters till September-end and have started the recovery process.

👉The Madras High Court dismisses petitions filed by AMMK leader TTV Dinakaran challenging the reassessment of his income tax for 1995-96 and 1996-97 by the ITD. Justice S M Subramaniam held that the petitions were devoid of merit and dismissed them based on searches made by the ED.

👉The Enforcement Directorate (ED) attaches properties worth Rs 73.26 crore of REI Agro Ltd and the beneficiary owners, in connection with bank fraud case to the tune of Rs 3,871.71 crore.

👉Modi government is set to ink a deal with France-based European Information Technology corporation Atos on Saturday to procure supercomputers worth Rs 4,500 crore for academic and research institutions across India.

👉The country's largest bank SBI orders a forensic audit of the Naresh Goyal promoted Jet Airways  from April 1, 2014 to March 31, 2018 & EY has been appointed by SBI for the same  and the forensic audit for these 4 FYs is already underway.

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Karnataka GST Amendment Bill passed: CM Hints at Low Revenue from Cess

Read more at: http://www.taxscan.in/karnataka-gst-amendment-bill-cess/31638/
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FM said the Council had been looking at the 28% tax slab and constantly rationalising items in it in lesser tax slabs. GST Council has decided to slash tax slabs for 178 items from 28 per cent to 18 per cent. It will be applicable from 15th of this month.

Sebi relaxed its norms for clubbing of investment limits by well regulated foreign investors. Currently, the foreign portfolio investors (FPIs) are treated as part of the same investor group and the investment limits of all such entities.

Shri Shaktikanta Das, IAS Retd., former Secretary, Department of Revenue and Department of Economic Affairs assumed charge as the 25th Governor of the Reserve Bank of India effective December 12, 2018.

MCA vide its notifications dated 13 December, 2018 has Extended the last date of filing of Form NFRA-1 to 30 days from the date of deployment of this form on the website of Ministry/ NFRA.

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Himachal Pradesh passes GST Amendment Bill

Read more at: http://www.taxscan.in/himachal-pradesh-gst-amendment-bill/31636/
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Supreme Court Upholds Tax Levy on Manufacturers for Possession of Chassis of Vehicles under Bihar Motor Vehicles Taxation Act [Read Judgment]

Read more at: http://www.taxscan.in/supreme-court-tax-manufacturers-possession-chasis/31652/
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Punjab Unanimously passes GST Amendment Bill

Read more at: http://www.taxscan.in/punjab-gst-amendment-bill/31656/
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California to introduce Texting Tax – A Tax on Text Messages

Read more at: http://www.taxscan.in/california-texting-tax-text-messages/31659/
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No Tax Relief for Sale of Old House If New One purchased in Wife & Daughters’ Name: ITAT [Read Order]

Read more at: http://www.taxscan.in/tax-relief-house-wife-daughters-itat/31663/
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GST Commissionerate, Coimbatore goes stringent against Tax Evasion

Read more at: http://www.taxscan.in/gst-coimbatore-tax-evasion/31678/
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💡Updates from Judiciary

Supreme Court has issued a notice in a writ petition challenging certain amendments made by state governments to the Right to fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and connected Rules.
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Supreme Court has said that there was “absolutely nothing” in the medical examination report to suggest that Brajesh Thakur, prime accused in the Muzaffarpur shelter home sexual abuse case, was physically or mentally tortured in Patiala jail.
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NCLAT has held that the pendency of the case under Section 138/441 of the Negotiable Instruments Act, 1881, even if accepted as recovery proceeding, it cannot be held to be a dispute pending before a court of law.
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Supreme Court has asked for a compilation of corruption allegations against Justice Ram Krishna Gautam, who was appointed judge of the Allahabad High Court.
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Supreme Court has held that for setting aside an arbitral award will not ordinarily require anything beyond the record that was before the Arbitrator and if there are matters not contained in such record, and are relevant to the determination of issues arising under Section 34(2)(a), they may be brought to the notice of the Court by way of affidavits filed by both parties.
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Supreme Court has said it would be unworkable and unachievable to seek unanimity in the multi-member high-powered selection committee tasked with choosing Lokpal, CBI director, central vigilance commissioner and chief information commissioner.
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Supreme Court has refused to entertain a petition challenging Jammu & Kashmir Governor Satyapal Malik’s recent decision to dissolve state assembly that was in suspended state since June when former Chief Minister Mehbooba Mufti resigned after the BJP withdrew support.
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Supreme Court has admitted for hearing a Maharashtra Government appeal challenging a Bombay High Court order commuting death sentence of Mirza Himayat Baig, convict in 2010 Pune German Bakery blast, which had claimed over a dozen lives.
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Rajasthan High Court has given a green signal to shifting of tigers from Ranthambore national park to Mukundra Hills tiger reserve by dismissing a petition filed by activist Ajay Shankar Dubey in this regard.
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15 December 2018 Updates (2)

GST Update

GST is applicable on Paying Guests Services.
Paying Guest Services not to be confused with Exemption under Clause 12 , Notification No. 12/2017 (Central) Services by way of renting of residential dwelling for use as  residence.
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NCLAT : In Rajesh Arora vs. Sanjay Kumar Jaiswal

Adjudicating Authority passed exparte order without notice to the ‘Corporate Debtor’ is in violation of rules of Natural Justice.

Read full case law at : https://dasgovernance.com/2018/12/14/nclat-in-rajesh-arora-vs-sanjay-kumar-jaiswal/
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AAR, Maharashtra ruling in Lions Club of Poona Kothrud (2018 (12) TMI 590). when the Fee collected from the Members of Lions Club is not ‘supply’.

Writ petition admitted in High Court challenging the press release dated 18.10.2018 pointing out that according to sec 16(4) of CGST Act, a registered person is not entitled to take ITC in respect of invoice or debit note after the due date of furnishing September month return u/s 39 of CGST Act following the end of the FY to which such invoice or debit note pertains or furnishing of annual return whichever is earlier.

Taxmen may soon come knocking at the premises of companies that have registered for the goods and services tax and vanished, not having filed returns or paid their taxes. The authorities are considering putting in place an extensive plan to hunt for these missing GST taxpayers, which includes visiting their premises.

Sebi eased norms for startup listings and allowed mutual funds to segregate distressed assets to safeguard investment returns. Sebi board also approved a proposal to expand the offer-for-sale mechanism for reduction of a stake in listed companies and relaxed clubbing of investment limit norms for well-regulated foreign investors.

Final Bank Branch Auditors’ Panel of Chartered Accountants/firms for the year 2018-19 is hosted at www.meficai.org till 14th December, 2018, thereafter the same will be sent to RBI.

Elections commission will propose amendments to the Representation of the People Act, 1951, that will require citizens to link their Electoral Photo ID Card (EPIC) with the 12-digit Aadhaar, while ensuring privacy protection, said people with knowledge of the matter.

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Income Tax Dept asks Taxpayers to Beware of Phishing and Fake Refund Messages

Read more at: http://www.taxscan.in/income-tax-phishing-fake-refund/31574/
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Commissioner (Appeals) can’t condone Delay beyond Statutory Period: Madras High Court condones Delay [Read Order]

Read more at: http://www.taxscan.in/delay-statutory-period-madras-high-court/31577/
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Capital Gain of Minor rightly Clubbed with Income of Mother: ITAT [Read Order]

Read more at: http://www.taxscan.in/capital-gain-minor-clubbed-mother-itat/31583/
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GST Evasion: Govt releases State-Wise details of Cases, Maharashtra Tops the List

Read more at: http://www.taxscan.in/gst-evasion-govt-releases-state-wise-details-of-cases-maharashtra-tops-the-list/31606/

14 December 2018 News

14th December 2K18

Economic Times
 
Ø  Yes Bank to submit name for MD & CEO to RBI in Jan
Ø  Liquidity constraints to tighten credit supply: Moody's
Ø  Govt mulls extra Rs 30k cr capital infusion in PSU banks
Ø  Das told to ease PCA, default norms by PSB heads
Ø  Farm loan waivers worst solution for rural crisis: SBI
Ø  GST Council may look to rationalise 28% slab
Ø  Not expecting immediate Brexit breakthrough: May 

Business Standard

Ø  Jaitley admits to 2-3 areas of differences between Centre and RBI
Ø  IOC to buy back shares for Rs 44 bn as govt looks to meet budget deficit
Ø  Govt plans to increase share of natural gas to 15% in India's fuel basket
Ø  Centre drops plan to install 12 Gw solar capacity through NTPC
Ø  RCom stares at insolvency as SC rejects plea for more time on Ericsson dues

Business Line
 
Ø  Brokers to be placed in risk reduction mode from next week: NSE
Ø  No proposal to change existing FDI policy in multi-brand retail trade: DIPP Secy
Ø  Adani Enterprises acquires Alpha Design for ₹400 cr
Ø  Vegoil imports dip 9% in November ahead of duty cut
Ø  Tata Motors hikes PV prices by up to Rs 40,000 from Jan 1
Ø  PSBs petition new RBI chief to relax NPA resolution norms
 
Mint

Ø  Bureaucracy a major concern for investors in India: WEF chief
Ø  Sebi moves against 3 rating agencies over IL&FS crisis
Ø  TRAI makes number porting faster, suggests fine for errant operators
Ø  Interpol issues Red Corner Notice against Mehul Choksi: CBI
Ø  Max India to sell entire Max Bupa stake to True North
Ø  TVS rolls out 50,000th BMW G 310 bike from Hosur plant

Financial Express
 
Ø  ICICI Bank tops list of most employees caught in fraud
Ø  Wilful defaults: 2,571 FIRs registered, 9,363 recovery suits filed by PSU banks
Ø  Housing sales may rise 16% in 2018; new supply up 32%: Anarock
Ø  India’s merchandise exports to rise by 7% to $82 billion in Q3: Exim Bank
 
Financial Chronicle

Ø  TDSAT strikes down Trai’s predatory pricing order
Ø  Liquidity constraints to tighten credit supply, growth: Moody's
Ø  New governor to steer RBI board meet today
Ø  Bharti AXA General breaks even, posts maiden net profit in H1

15 December 2018 Updates

CBDT issues directions on filing of Appeal on merit on 7 Issues

It has been unambiguously and expressly provided that adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:
F. No .  279/Misc/M-93/2018-ITJ
Government of India
Ministry of Finance
Department of Revenue
Central Board Direct Taxes
Judicial Section

New Delhi,  11th December 2018

To

All Pr. Chief Commissioners of Income tax Madam/Sir,

Sub:-  Clarification w.r.t para 10 of Circular 3 of 2018 -Reg.
Instructions were issued vide CBDT Circular No. 3 of 2018 dated 11.07.2018, to the effect that SLPs/appeals should not be filed in cases where the tax effect does not exceed the monetary limits specified under para 3 of the said Circular. It was also clarified therein that appeal should not merely be filed because the tax effect in the case exceeds the monetary limits prescribed in the said Circular.

2. In para 10 of the said Circular read with Board’s letter issued vide No. 279 /Misc.142/2007 -ITJ(Pt) dated 20.08.2018, it has been unambiguously and expressly provided that adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:

(a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge,  or

(b) Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or

(c) Where Revenue Audit objection in the case has been accepted by the Department, or

(d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets) / undisclosed foreign bank account.

(e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO / Directorate General of GST Intelligence (DGGI).

(f) Cases where prosecution has been filed by the Department and is pending  in the Court.”

3. The direction that appeals be ‘contested on merits’ in itself implies that there should not be any mechanical filing of appeals in these cases. It is therefore reiterated that the import and intent of para 10 of Circular 3 of 2018 is that even on issues mentioned in the said para, appeals against the adverse judgements should only be filed on merits.

4. The above may be brought to the notice of ll concerned. This issues with the approval of Member (A&J)

(Abhishek Gautam)
DCIT OSD (ITJ-1) , CBDT
Tel:  011-23741832

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Updates

1) MEF: Final Bank Branch Auditors’ Panel has been hostedat www.meficai.org till 14th December, 2018, thereafter the same will be sent to RBI.

2) Utility for filing GST Annual Return (GSTR 9 & GSTR 9C) likely to be made operational by 31.01.2019 as per order dated  11th Dec, 2018 by Ministry of Finance: http://www.cbic.gov.in/htdocs-cbec/gst/cgst-order-idx-2017

3) Shares in demat form: Sebi extends deadline to April 1 - https://timesofindia.indiatimes.com/business/india-business/shares-in-demat-form-sebi-extends-deadline-to-april-1/articleshow/66923013.cms

4) GST: Due date of GST Annual Return/Audit extended to 31st March, 2019 vide order no. 1/2018- Central Tax dated 11-12-2018

5) CBDT issues directions on filing of Appeal on merit on 7 Issues i.e Clarification w.r.t para 10 of Circular 3 of 2018 vide F. No . 279/Misc/M-93/2018-ITJ dt. 11-12- 2018.
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👉GST Authorities may soon come knocking at the premises of Companies that have registered for the GST and vanished, not having filed returns or paid their taxes.

👉CBIC to notify the Korean Won (WON) and Turkish Lira (TRY) in the list of Currencies for Exchange Rate, for the purpose of conversion of foreign exchange to Indian Rupees (INR) and vice versa for assessment of Imports & Exports.

👉CBIC detects GST evasion worth Rs 12,000 crore in 8 months till November 2018

👉SEBI will also soon come out with a Consultation Paper on Uniform Valuation Methodology for Pricing of Corporate Bonds. Fund houses will be required to follow this uniformly across all the mutual funds.

👉SEBI relaxes norms for Clubbing of Investment Limits by Foreign Portfolio Investors (FPIs). SEBI also approved use of Offer For Sale (OFS) Route for companies with M-Cap of Rs 1,000 Crore.

👉RBI slaps Rs 1 Crore Fine on Indian Bank for Violating Cyber Security Norms

👉India's Overall Exports including Merchandise and Services have increased a positive growth of 17.01% during April-September of 2018-19 as compared to the corresponding period of previous year

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👉🏻GST evasion worth Rs 12,000 crore detected between April-Nov
(We started anti-evasion measures from April onwards, and from April-November we have detected Rs 12,000 crore of GST evasion)
👇🏻 👇🏻 👇🏻
https://goo.gl/M6tDQD

👉🏻ICAI and IIM Ahmedabad sign MoU for training of Chartered Accountants
(The MoU is likely to benefit the Chartered Accountants in acquiring number of skills required in todays digitized and fast changing business environment.)
https://goo.gl/Lju9R8

👉🏻Multipurpose Empanelment Form (MEF) for Bank Audit for the Year 2018-19
(Final Bank Branch Auditors Panel of Chartered Accountants/Firms for the year 2018-19 has been hosted at www.meficai.org till 14-12-2018)
👇🏻 👇🏻 👇🏻
https://goo.gl/2Bmnnn 

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# APPEAL to ICAI & CC Members: On 12.12.2018, I shared AAR, Maharashtra ruling in Lions Club of Poona Kothrud (2018 (12) TMI 590). A number of calls / messages recd from the Members, when the Fee collected from the Members of Lions Club is not ‘supply’, why can’t Membership Fee from ICAI Members be out of definition of SUPPLY. Need your immediate deliberation on the issue.

# MEF: Final Bank Branch Auditors Panel of Chartered Accountants /Firms for the Year 2018-19 has been hosted at www.meficai.org till 14 DEC 2018, thereafter the same will be sent to RBI.

# IT: 15 DEC 2018 is the DUE DATE for depositing 3rd instalment of Advance Tax for FY2018-19 (AY2019-20).

# GST: CBIC passes Removal of difficulty order for EXTENSION of DUE DATE for filing of Annual Return (in FORMs GSTR-9, GSTR-9A and GSTR-9C) for FY 2017-18 till 31 MARCH 2019 - Order No.1/2018- Central Tax, dt.11.12.2018.

# IT: MAT Credit admissible in terms of Section 115JAA has to be set off against the tax payable (assessed tax) before calculating interest under Sections 234A, 234B and 234C - CIT Vs Bannari Amman Spinning Mills Ltd. (2018 (12) TMI 603 - Madras High Court).

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Jharkhand High Court grants Bail to Accused of Rs. 30 Cr GST Evasion [Read Order]

Read more at: http://www.taxscan.in/jharkhand-high-court-bail-gst-evasion/31535/
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Tax Benefit not claimed in Return can be claimed during Assessment: ITAT directs AO re-consider Claim [Read Order]

Read more at: http://www.taxscan.in/tax-return-assessment-itat/31459/
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NCLAT : In Sudhi Sachdev vs. APPL Industries Ltd.

Pendency of the case under Section 138 / 441 of the Negotiable Instruments Act, 1881, even if accepted as recovery proceeding, it cannot be held to be a dispute pending before a court of law.

Read full case law at : https://dasgovernance.com/2018/12/13/nclat-in-sudhi-sachdev-vs-appl-industries-ltd/
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GST Advance Ruling System will take Time to Resolve: CBIC

Read more at: http://www.taxscan.in/gst-advance-ruling-system-will-take-time-to-resolve-cbic/31542/
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CSR Expenses Deductible from Total Income: ITAT [Read Order]

Read more at: http://www.taxscan.in/csr-expenditure-deductible-income-itat/31544/
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Enforcement Directorate files Complaint against Businessman in VAT Refund Scam

Read more at: http://www.taxscan.in/enforcement-directorate-vat-refund/31564/
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GST Evasion: Raid in 7 Lottery Centres, 11 Arrested

Read more at: http://www.taxscan.in/gst-arrest-raid-lottery-centres/31569/
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Government has announced the incorporation of companies with zero fees and with simple procedures.

Five procedures for starting a business are now integrated and can be done simultaneously. The ease of doing business policy of the government is in the form of these simple steps to form a company.

RUN ( Reserve Unique Name)

Reserving a company name is now an easy process. Earlier companies have to file INC-1 eForm. Time taken to apply for name reservation has been reduced considerably as the form for name reservation has been replaced with a simple web service. No need for a digital signature certificate for reservation of unique name.

Spice- ( Simplified Performa for Incorporating Company Electronically)

Five services has been incorporated in one eform. This is unique feature of spice . As the companies have to apply for DIN (Director Identification Number), Name reservation , Incorporation, Pan( Permanent Account Number), Tan(Tax deduction and collection account number) . All these can be applied with one single eform.

~DIN Not required prior to Filing Spice e-Form:

~DIN’s for directors of new companies through spice only.

*Speedy Incorporation Approvals*:

Central Registration Centre delivers Incorporation approval within 1 working day.

REFORMS:

1. Simplified procedure: The procedure for incorporation of companies have been simplified and this is the biggest reform for incorporation of new companies.

2. Zero Fees: Incorporation of new companies can be done with zero fees. This will provide an opportunity to new entrepreneurs to register themselves.

3. Reduced Time: Incorporation approval will be provided by the Central Registration Centre within one working day.
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Shareholderssical share certificates should convert it into dematerialized form by April 1, 2019 (earlier December 5, 2018):-

👉The shareholders who continue to hold shares and other types of securities of listed companies in physical form even after 01.04.2019, will not be able to lodge the shares with company / its RTA for further transfer.

Note: Only the requests for transmission and transposition of securities in physical form, will be accepted by the listed companies / their RTAs.

👉In this case, Shareholder will not be able to sell or transfer your shares after April 1, 2019. You will have to wait for demat of shares before being able to sell/transfer them.

👉Transmission and transposition of shares held in paper form will continue to be allowed. Transmission happens upon death of any or all shareholders. Transposition means change in ownership pattern; eg. From combination A & B (in this order) to B & A or from A & B & C to B & A & C. Though these will still be possible in paper form even after 31st March, 2019, conversion to demat is still suggested for many other benefits it offers.

👉  Hence,  all the securities holder of shares of Listed Companies are required to dematerialized their physical shares before 01.04.2019. After 1st April 2019 share cant be transfer if shall be in physical mode.
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GST Evasion: Raid in 7 Lottery Centres, 11 Arrested

Read more at: http://www.taxscan.in/gst-arrest-raid-lottery-centres/31569/
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👉Banks may be closed for 5 days from 21 to 26 December as bank union has given a call for an all India bank strike against Indian Banks' Associations move to leave officers in Scale IV & above out of the Bipartite Wage Settlement Ambit.

👉CBDT issues directions on filing of Appeal on merit on 7 Issues & it’s been expressly provided that adverse judgments relating to the these issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in Para 3 or there is no tax effect.

👉Delhi Govt. unearths an evasion of Rs. 262 crore of Cyber Tax. The evasion was committed by over 8,700 traders who were found showing fraudulent tax deposits into 13 banks since 2013.

👉CBIC conveys that the present advance ruling system will take some more time to resolve as there is no consensus between the union government and states over the uniform central body.

👉A SEBI investigation of the role of ratings agencies in the IL&FS crisis found them lacking and the regulator has now begun adjudicating proceedings against the agencies.

👉Standard Chartered Bank, which has significant retail operations in India, is downsizing across its retail banking division as more customers move online, thus the bank will let go of about 200 staff members.

👉ED files a complaint against a Ludhiana-based businessman, in the special court under the PMLA Act in Mohali as the department found that VAT refund worth Rs 74 lakh was all taken in lieu of fabricated exports.

👉Amazon's Indian arm signs an MoU with FISME to support sellers, under which the e-commerce major would provide the platform and logistics, while FISME would provide support in the area of policy and regulations.