Blog

Aug 18, 2018

Clarification regarding the applicability of GST on petroleum gases retained for the manufacture of petrochemical and chemical products

The Central Board of Indirect Taxes and Customs Vide Circular No. 53/27/2018-GST dated 09/08/2018 has clarified that:- In cases where petroleum gases are supplied by oil refineries to manufacturers on a continuous basis through dedicated pipelines, GST will be payable by the refinery only on the value of net quantity of petroleum gases retained for the manufacture of petrochemical and chemical products......

Aug 18, 2018

Levy of Anti-Dumping Duty on import of Methylene Chloride

Central Board of Indirect taxes and Customs issued Notification No. 38/2018-Customs (ADD) which states that “Levy of Anti-dumping duty on the import of Methylene Chloride from European Union or USA extended till 20-10-2019.”.....

Aug 18, 2018

Discontinuation of registration of Sub-brokers as intermediary with SEBI

SEBI Board in its meeting held on 21-06-2018 decided to discontinue the registration of sub-brokers with SEBI. Consequently, SEBI vide its Circular No. SEBI/HO/MIRSD/DoP/CIR/P/2018/117 has decided the following:  No fresh registration shall be granted to any person as Sub-Broker. Any pending applications for registration, shall be returned to the concerned Stock Exchanges for onward transmission to the applicant.  The registered Sub-Brokers shall have time till March 31, 2019 in order to migrate to act as an AP and / or Trading Member. The Sub-Brokers, who do not choose to migrate into A.....

Aug 18, 2018

Amendments & Insertions made in Form 3CD

The Central Board of Direct Taxes Vide Notification No. 33/2018. Income Tax 8th Amendment) Rules has made substantial changes in Form 3CD whereby reporting requirements relating to GST, Cash Transactions,Transfer Pricing, etc. have been prescribed, applicable w.e.f. 20th August 2018......

Aug 18, 2018

Extension of due date for filing Income Tax Return for AY 18-19

The Central Board of Direct Taxes Vide Order F.No 225/242/2018/ITA.II dated 26/07/2018 has extended the due date for filing Income Tax Return from 31-07- 2018 to 31-08-2018......

Aug 18, 2018

Updation of KYC of Directors

The Ministry of Corporate affairs vide Companies (Appointment and Qualification of Directors) dated 05/07/2018 has notified format of E-form DIR-3 KYC under new Rule 12A , which states as follows:  “Every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall, submit e-form DIR-3-KYC to the Central Government on or before 30th April of immediate next financial year.”  Provided that every individual who has already been allotted a Director Identification Number (DIN) as at 31st March, 2018, shall submit e-.....

Aug 18, 2018

Monetary Policy - Changes in various rates

Repo rate - 6.5% w.e.f 01.08.2018 Reverse Repo rate - 6.25% w.e.f 01.08.2018 Marginal Standing Facility rate - 6.75% w.e.f 01.08.2018 Bank rate - 6.75% w.e.f 01.08.2018.....

Aug 18, 2018

Assessee can claim depreciation on the assets if he could not run the factory on account of stay from the Court and If the assessee had not written of its liability in books of account, said liability could not be ceased under section 41(1) - Vide Decision of High Court of Gujarat in Babul Products (P.) Ltd.vs. Assistant Commissioner of Income-tax, OSD, Range-1, Ahmedabad

The Honorable High Court of Gujarat in the above case has held that if the assessee has closed the business due to a stay order received from the court, he shall be entitled to claim depreciation under section 32. Further, if the assessee has not written off a liability in the books of accounts, it cannot be brought to tax under section 41(1)......

Aug 18, 2018

For issuing a consolidation order for consolidation of appeals pending for a long time, Revenue shall move a comprehensive application before the ITAT, serving a copy in advance to the assessee - Vide decision of High Court of Delhi in BPTP Ltd. vs. Prinicpal Commissioner of Income Tax

The Honorable High Court of Gujarat in the above case has held that if the revenue were to issue consolidation order to the assessee, it can do so only after making an application to the ITAT(Income Tax Appellate Tribunal) supported by a proper reason and should also serve a notice in advance to the assessee......

Aug 18, 2018

Assessees were permitted to file their returns without any insistence of linkage of their Aadhaar with their PAN numbers in view of extension of deadline for PANAadhar linkage till 31-03-2019 - Vide decision of High Court of Delhi in Shreyasen vs Union Of India.

The Honorable High Court of Delhi in the above case has held that the assessees can file their Income Tax Returns for the relevant year without having to link their Aadhar number with PAN......

Sep 16, 2018

Clarification regarding the scope of principal-agent relationship under GST Act

The Central Board of Indirect Taxes and Customs Vide Circular No. 57/31/2018-GST has clarified the following: 1) If the invoice for further supply is issued by the agent in his name, then such services will be treated as the services provided by the agent on behalf of the principal and hence, the agent is required to obtain registration mandatorily as required by Section 24 of CGST Act. 2) However, if the agent issues an invoice in the name of the principal, such service shall not be treated as a service provided by the agent to the principal and hence, the agent shall obtain GST registration .....

Sep 16, 2018

Notification of due dates for filing GST returns

The Central Board of Indirect Taxes and Customs Vide Notification No 32/2018, 33/2018, 34/2018 – Central Tax dated 10/08/2018 has introduced a one-time scheme to waive off late fee payable for delayed furnishing of FORM GSTR-1 for the period from July, 2017 to September, 2018 &amp; extended the due dates as under: &nbsp; <table style="width: 282px; height: 88px;"> <tbody> <tr> <td style="width: 72px;">&nbsp; Form</td> <td style="width: 50px;">Period</td> <td style="width: 140px;">Due date for GSTR 1</td> </tr> <tr> <td style="width: 72px;">GSTR 1-Monthly</td> <td style="width: 50px;">July,.....

Sep 16, 2018

Master Circular for Commodity Derivative Market

Securities Exchange Board of India(SEBI) on 07-09-2018 has issued a Master Circular in relation to Commodity Derivatives Market. It is a compilation of various circulars issued earlier by the Commodity Derivatives Market Regulation Department(CDMRD). https://www.sebi.gov.in/legal/master-circulars/sep-2018/master-circular-for-commodity-derivatives-market_40276.html.....

Sep 16, 2018

Insertion of Rule 11UAB

Section 28(via) of the Income Tax Act, 1961 states “The fair market value of inventory as on the date on which it is converted into, or treated as, a capital asset determined in the prescribed manner shall be chargeable to tax under the head "Profits and gains of business or profession”. Central Board of Direct Taxes vide Notification No. SO 4213(E) dated 30-08-2018 inserted new Rule 11UAB which provides rules for the determination of fair market value of inventory: <table style="height: 88px;" width="412"> <tbody> <tr> <td style="width: 198px;">Inventory</td> <td style="width: 198px;">Fai.....

Sep 16, 2018

Relaxation of additional fees and extension of last date of filings of Form BEN-2

A beneficial owner shall file a declaration disclosing his beneficial interest in Form No. BEN-2 with the company, within thirty days after acquiring such beneficial interest in the shares of the company. The Ministry of Corporate affairs vide Circular No. 07/2018 dated 06/09/2018 stated the following :- Time limit for filing the BEN-2 form would be 30 days from the date of deployment of BEN-2 e-form on the MCA-21 portal and no additional fee shall be levied if the same is filed within 30 days from the date of deployment of the said e-form. http://www.mca.gov.in/Ministry/pdf/Gener alCircular.....

Sep 16, 2018

When department had correct address of assessee furnished in return of income, sending notice at incorrect address available with bank and then drawing presumption of service of notice on ground that notice was not received back unserved, cannot be sustained

The Honorable High Court of Allahabad in the above case has held that when new address has been furnished by the assessee in his return of income, notices cannot be sent at an old address available on records. https://www.taxmann.com/filecontent.aspx ?Page=CASELAWS&amp;id=101010000000183116 &amp;isxml=Y&amp;search=&amp;tophead=true&amp;tophead =true.....

Sep 16, 2018

Where assessee had availed deduction under section 80-IC for a period of 5 years at the rate of 100 per cent, he would be entitled to deduction on substantial expansion for remaining 5 assessment years at the rate of 25 per cent and not at rate of 100 per cent

Deduction under Section 80-IC is available to manufacturing units situated in the State of Sikkim, Himachal Pradesh and Uttaranchal and North-Eastern States. The exemption under section 80-IC is provided at the rate of 100% of such profits and gains for five assessment years commencing with the initial assessment years and, thereafter, 25% for next five years. The deduction is limited to a period of 10 years. In the above case, the assessee had claimed a deduction of 100% for the first five Asst. Years. Later, the assessee had again claimed 100% deduction for the 6th Asst. Year on the ground t.....

Sep 16, 2018

Where assessee had entered into agreement with UK based university for providing certain technical services for which it had agreed to bear Indian taxes, liability of assessee to deduct TDS under India-UK DTAA from payments made to UK University was to be computed on gross amount of fees paid to University

The Honorable High Court of Madras in the instant case has held that TDS on payments made to non-residents for technical services has to be deducted on the gross amount including the tax liability undertaken by the assessee. https://www.taxmann.com/filecontent.aspx?Page=CASELAWS&amp;id=101010000000183448&amp;isxml=Y&amp;search=&amp;tophead=true&amp;tophead=true.....

Sep 16, 2018

Where petitioner had failed to make full and true disclosure of undisclosed income with reference to foreign property and foreign bank accounts, of which petitioner was a beneficial owner i.e., Income Tax Settlement Commission had rightly rejected settlement application filed by petitioner as invalid

The Honorable High Court Of Delhi in the above case has held that in case the assessee has filed an application with ITSC for the settlement of cases relating to him, the ITSC has right to reject the application made in case the applicant doesn’t disclose the details of undisclosed income, bank accounts and the property in his name. https://www.taxmann.com/filecontent.aspx?Page=CASELAWS&amp;id=101010000000183441&amp;isxml=Y&amp;search=&amp;tophead=true&amp;tophead=true.....

Oct 16, 2018

TDS and TCS provisions under GST

<!-- wp:paragraph --> <p>The Central Board of Indirect Taxes and Customs Vide Notification No 50/2018 &amp; 51/2018 – Central Tax dated 13th September, 2018 has notified that the provisions of Section 51 &amp; 52 shall come into force from 1st October 2018.<br> Key provisions of Section 51:-<br>  Following people shall be required to deduct tax at source @2% ( CGST 1% + SGST 1%) on the payment made or credited to the supplier where the total value of supply under a contract exceed Rs.2,50,000/-excluding GST: -<br> (a) a department or establishment of the Central or State Government, or<br.....

Oct 16, 2018

Monthly report of FPI registration on SEBI’s website

<!-- wp:paragraph --> <p>The Securities Exchange Board of India(SEBI) Vide its Circular No SEBI/HO/FPIC/CIR/P/2018/135 dated 10th October 2018 has decided that – For the purpose of ensuring transparency in processing of applications for FPI(Foreign Portfolio Investors) registration, the average time taken by the DDP(Deisgnated Depository Participant) shall be disseminated on SEBI’s website on a monthly basis.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><br> https://www.sebi.gov.in/legal/circulars/oct-2018/monthly-report-of-fpi-registration-on-sebi-s-website_40694.html</p> <!-- /wp.....

Oct 16, 2018

Participation of Eligible Foreign Entities (EFEs)in the commodity derivatives market

<!-- wp:paragraph --> <p>Currently, foreign entities are not permitted to directly participate in the Indian commodity derivatives market, even if they import/export various commodities from/to India. It has been decided to permit foreign entities having actual exposure to Indian commodity markets, to participate in the commodity derivative segment of recognized stock exchanges for hedging their exposure. Such foreign entities shall be known as “Eligible Foreign Entities” (EFEs).<br>Criteria for Eligible Foreign Entity:</p> <!-- /wp:paragraph --> <!-- wp:list {"ordered":true} --> <ol><li>.....

Oct 16, 2018

Extension of due date of furnishing ITRs and Tax Audit Reports of AY 2018-19

<!-- wp:paragraph {"align":"left"} --> <p style="text-align:left">The Central Board of Direct Taxes vide its Order under Section 119 of the Act dated 24th September, 2018 has extended the due date for filing of<br> Income Tax Returns &amp; Tax Audit reports till 15th October 2018. However, liability to pay interest under Section 234A remains. Further, pursuant to the order of Bombay High Court in case of Rajasthan Tax Consultants Association v. Union Of India, the due date has been further extended till 30th October 2018 vide Order dated 8th October 2018.<br> 1.https://www.incometaxindiaefilin.....

Oct 16, 2018

Amendments made in Schedule III(Preparation of Financial Statements) of Companies Act, 2013

<!-- wp:paragraph --> <p> The Ministry of Corporate affairs vide Notification dated 11/10/2018 has made amendments in Schedule III of the said Act. Key changes are as follows:</p> <!-- /wp:paragraph --> <!-- wp:list {"ordered":true} --> <ol><li>Loan receivables have been classified further. </li><li>Description of purpose of each reserve has been specified. </li><li>Names of headings of Fixed Assets and Securities Premium Reserve have been modified. </li><li>MSME Disclosures and further classification of Receivables &amp; Payables in IND AS Compliant Financials. </li><li>Division III has been.....

Oct 16, 2018

Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and Aoc-4 (Financial statement) under the Companies Act, 2013- State of Kerala

<!-- wp:paragraph --> <p>The Ministry of Corporate affairs vide Circular No. 09/2018 dated 5th October 2018 has decided to relax the additional fees payable by companies having registered office in the State of Kerala on e-forms AOC-4, AOC (CFS) AOC-4 XBRL and e-Form MGT-7 upto 31.12.2018, wherever additional fee is applicable.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><br> http://www.mca.gov.in/Ministry/pdf/GeneralCircularKerala_05102018.pdf</p> <!-- /wp:paragraph -->.....

Oct 16, 2018

External Commercial Borrowings (ECB) Policy – Liberalisation

<!-- wp:paragraph --> <p>Reserve Bank Of India vide Cirulcar RBI/2018-2019/54 A.P. (DIR Series) Circular No.10 dated 3rd October 2018 has liberalized the norms relating to External Commercial Borrowings. As per the present norms, ECB up to USD 50 million or its equivalent can be raised by eligible borrowers with minimum average maturity period of 3 years. It has been decided to allow eligible ECB borrowers who are into manufacturing sector to raise ECB up to USD 50 million or its equivalent with minimum average maturity period of 1 year.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><br.....

Oct 16, 2018

Completed Assessment reopened on the ground that certain transactions were not disclosed during the original assessment - Vide Decision of High Court of Madras in Sun Direct TV Pvt. Ltd. V. Assistant Commissioner of Income-tax, Chennai

<!-- wp:paragraph --> <p><strong>Facts of the case:</strong></p> <!-- /wp:paragraph --> <!-- wp:list {"ordered":true} --> <ol><li>Completed assessments were sought to be reopened by the revenue after a lapse of six years on ground that there were some materials on record and informations that assessee had received money from company SAEHL in name of share subscription along with share premium of Rs.203.98 crores.</li><li>Assessee has also allotted shares to Kalanithi Maran and his wife only at Rs.10 per share without any premium.</li><li>Revenue contended that the Share premium invested by SA.....

Oct 16, 2018

Judgements relating to linking of Aadhar

<!-- wp:paragraph --> <p>The Honorable Supreme Court Of India vide Justice K.S. Puttaswamy (RETD.) V. Union of India has held the following –<br> <u>Aadhaar Constitutionally valid</u> - The Aadhaar Act serves legitimate State interest and good governance to ensure fruits of welfare schemes reach to unprivileged and marginalized section of the society by preventing<br> leakages, pilferages and corruption in the implementation of welfare schemes. It does not violate right to privacy, nor is it unconstitutional.<br> </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><u>Aadhaar for students n.....

Oct 16, 2018

Where it was alleged that Rule 89(5) of CGST Rules, 2017, as amended vide Notification Nos. 21/2018-CT and 26/2018-CT, denies grant of refund of unutilized tax credit in respect of tax paid on input services which is ultra vires to Constitution as well as CGST Act, 2017 and demand notice was to be stayed - Decision of High Court Of Gujarat in Shree Rama Newsprint Ltd. V. Union of India

<!-- wp:paragraph --> <p><strong>Facts of the case :</strong> The assessee has challenged the validity of Section 89(5)<br> as amended by notifications issued later on the following grounds:</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Section 54(3) of the CGST Act, 2017 – A registered person may claim refund of any unutilised input tax credit at the end of any tax period :<br> Provided that no refund of unutilised input tax credit shall be allowed in cases other than – </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p> i. zero-rated supplies made without payment of tax;<br> ii.....

Oct 16, 2018

No levy of Service Tax/GST on the fee paid for award of license for sale of liquor - Vide Decision Of High Court Of Punjab And Haryana in Rajwinder Singh V. Commissioner, CGST Commissionerate, Jalandhar

<!-- wp:paragraph --> <p><strong>Facts of the Case:</strong> The petitioner(Rajwinder Singh) has received notices dated 29.05.2017, 14.07.2017 and 11.01.2018 asking him to furnish certain information with reference to levy of service tax on the fee paid for award of license for sale of liquor.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>The respondent(CGST Commissionerate,Jalandhar) fairly submitted that he has received instructions to the State that in 26th meeting of GST Council held on 10.03.2018 it has been decided that no GST/Service Tax is leviable on the fee paid for grant of l.....

Copyright © 2016 RajuandPrasad. All rights reserved.