helping you remain compliant - hasmukh shah & co llp … · 2019-07-06 · bhavesh shah...
Post on 24-Jul-2020
1 Views
Preview:
TRANSCRIPT
March 2019, Vol 68
Outsourcing & Consul�ng
Accoun�ngTax RegulatoryPayrollCorporate Services
www.hscollp.in
Helpingyou remaincompliant
www.hscollp.in
Contents
GST (Goods &Service Tax)
by:
Santosh WankhadeAnuya Sawant
IncomeTaxby:
Manish Parekh
CompanyLaw
by:
Mayura NiphadkarPinkesh Jain
FEMAby:
Bhavesh Shah
ComplianceCalender
by:
Pinkesh Jain
by:
Bhavesh ShahInterna�onal
Taxa�on
IncomeTaxContributed by:
Manish Parekh manish.parekh@hscollp.in
1
Denial of exemp�on u/s 54F on belated
deposit of amount in Capital Gains scheme
account
In the case of Smt. Hansaben Pravinbhai Patel v/s. Income Tax Officer TAT Ahmedabad has held that:
Net considera�on arising on sale of original assets has to be deposited in Capital Gains Scheme Account, within
s�pulated �me, unless the same has been u�lized. Belated deposits in the scheme is not in terms with the
provisions of the Act. The mandate of Sec�on 54F (4) of the Act being crystal clear, it is quite difficult to depart
therefrom. In the absence of any ambiguity in the exemp�on provision for eligibility, we do not see any reason to
interfere with the order of the CIT (A) where the net considera�on has not been u�lized for the purposes of
deposit in the no�fied bank account in terms of Sec�on 54F (4) of the Act before due date specified u/s 139(1) of
the Act.
Do not harass Taxpayers or be High-
Handed with them: New CBDT Chief To Assessing Officers:
The newly appointed Chairman of the CBDT, Hon’ble P. C. Mody, has sent the clear message to all officials of the
income-tax department that while maximizing the revenue collec�on is the immediate priority, the same has to
be done “without any harassment or high handedness“
The learned Chairman has s�pulated that the conduct of the officials should be impeccable, friendly, yet
objec�ve –without fear or favour –as the Dept moves towards becoming a non-adversarial regime.
It is also emphasized that �mely delivery of quality Tax Payer Services should be another prime area of focus.
Con�nuous and concerted efforts should be made to address and redress all public grievances within the
prescribed �me- limit.
(Source : h�p://itatonline.org )
Capital Gains not be treated as bogus
In the case of Mukta Gupta vs. ITO, ITAT Delhi has held that :
Capital gains cannot be treated as bogus solely on the basis that the price of the shares has risen manifold and the
reason for astronomical rise is not related to any fundamentals of market. If the transac�ons are duly proved by
trading from stock exchange and the documenta�on is proper, the gains cannot be assessed as unexplained
credit or as unexplained money
(Source : h�p://itatonline.org )
Back
2
GST (Goods& Service Tax)
Anuya Sawant anuya.sawant@hscollp.in
Contributed by:
Santosh Wankhade gst@hscollp.in
Read More
Circulars Details of inter-state supplies to unregistered persons in Table 3.2 of GSTR 3B
It has been brought to the no�ce of the Board that a number of registered persons have not reported the details
of inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B. However, the said details
have been men�oned in Table 7B of FORM GSTR-1.
It is instructed that the registered persons making inter-State supplies to unregistered persons shall report the
details of such supplies along with the place of supply in Table 3.2 of FORM GSTR- 3B and Table 7B of FORM
GSTR–1 as mandated by the law.
Contraven�on of any of the provisions of the Act or Rules would a�ract penalty which may extend to Rs.25,000/-.
[Circular No.89/08/2019 -GST dated 18-02-2019]
Men�oning place of supply in Tax Invoice
It has been brought to the no�ce of the Board that a number of registered persons (especially in the banking,
insurance and telecom sectors, etc.) are not men�oning the place of supply along with the name of the State in
case of a supply made in the course of inter-State trade or commerce.
It is instructed that all registered persons making supply of goods or services or both in the course of inter-state
trade or commerce shall specify the place of supply along with the name of the State in the tax invoice.
Contraven�on of any of the provisions of the Act or Rules would a�ract penalty which may extend to Rs.25,000/-.
[Circular No.90/08/2019 -GST dated 18-02-2019]
Supply of warehoused goods from customs bonded warehouse during the period July 2017 to March 2018
Supply of warehoused goods while being deposited in a customs bonded warehouse during the period July, 2017
to March, 2018 was exigible to IGST. Due to non-availability of the facility on the common portal to report
payment of IGST, such supplies were reported as intra-state supplies in GSTR 1 and accordingly Central GST
(‘CGST’) and State GST (‘SGST’) was paid on such supplies.
It is therefore clarified that suppliers shall be deemed to have complied with the provisions of law as long the
amount of CGST and SGST is equal to the amount of IGST due on such supplies.
[Circular No.91/08/2019 -GST dated 18-02-2019]
3
GST (Goods& Service Tax)
Anuya Sawant anuya.sawant@hscollp.in
Contributed by:
Santosh Wankhade gst@hscollp.in
Press Release Reduc�on in GST rates on real estate sector
In order to boost the residen�al segment of the real estate sector, following recommenda�ons were made by the
GST Council in its 33rd mee�ng held on Feb 24 th 2019:
GST rate:
i. GST shall be levied at effec�ve GST rate of 5% without ITC on residen�al proper�es outside affordable segment;
ii. GST shall be levied at effec�ve GST of 1% without ITC on affordable housing proper�es.
Effec�ve date: The new rate shall become applicable from 1st of April, 2019
GST exemp�on on TDR/ JDA, long term lease (premium), FSI:
Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such
residen�al property on which GST is payable.
Advance Ruling Denial of ITC on construc�on of warehouse using pre-fabricated technology which can be dismantled and
reconstructed at a different loca�on (i.e. movable)
Tewari Warehousing Company Pvt Ltd [TS-71-AAR-2019-NT]
Facts
• Applicant is construc�ng a warehouse on leasehold land using pre-fabricated technology.
• Warehouse can be dismantled and reconstructed at a different loca�on.
Ques�on
• Whether the input tax credit (‘ITC’) is admissible on the inward supplies for construc�on of the said warehouse?
Ruling
• Observes that inten�on of the Applicant is beneficial enjoyment of the warehouse for more than two decades
and thereby intended to be used as a permanent structure subject to usual business uncertain�es.
• Holds that the warehouse cannot be conceived without beneficial enjoyment of the civil structure embedded
on earth.
• Holds that the warehouse constructed by the Applicant cons�tutes immovable property, denies ITC on inward
supplies used for construc�on of the said warehouse in view of provisions of sec�on 17(5)(d) of the CGST Act.
Back
4
Investment by Foreign Por�olio Investors
(FPI) in Debt
In terms of exis�ng provisions, no FPI shall have an exposure of more than 20% of its corporate bond por�olio to a
single corporate (including exposure to en��es related to the corporate). As announced in the Statement on
Developmental and Regulatory Policies of the Sixth Bi-monthly Monetary Policy Statement for 2018-19 dated
February 07, 2019, in order to encourage a wider spectrum of investors to access the Indian corporate debt
market, it has been decided to withdraw this provision with immediate effect.
(RBI/2018-19/123 A.P. (DIR Series) Circular No. 19 dated February 15, 2019)
FEMAContributed by:
Bhavesh Shah bhavesh.shah@hscollp.in
Back
Establishment of Branch Office (BO) Liaison Office (LO)
Project Office (PO) or any other place of
business in India by foreign en��es
related
In terms of extant regula�ons for Establishment of Branch Office (BO) / Liaison Office (LO) / Project Office (PO) or
any other place of business in India by foreign en��es, applica�ons received from a Non-Government
Organiza�on, Non-Profit Organiza�on, Body/Agency/Department of a foreign Government for opening of a
branch office or a liaison office or a project office or any other place of business in India are to be forwarded to the
Reserve Bank for prior approval and be considered in consulta�on with the Government of India. This has since
been reviewed and it is advised that if such an en�ty is engaged, partly or wholly, in any of the ac�vi�es covered
under Foreign Contribu�on (Regula�on) Act, 2010 (FCRA), it shall obtain a cer�ficate of registra�on under FCRA
and shall not seek permission under the said regula�on.
Accordingly, the Form FNC has also been suitably modified and the following phrase is added under the heading
‘Declara�on’ in Part II clause (ii), at the end of the exis�ng sentence.
“We will not undertake either partly or fully, any ac�vity that is covered under Foreign Contribu�on Regula�on
Act, 2010 (FCRA) and we understand that any misrepresenta�on made or false informa�on furnished by us in this
behalf would render the approval granted under the Foreign Exchange Management (Establishment in India of a
branch office or liaison office or a project office or any other place of business) Regula�ons, 2016, automa�cally
as void ab ini�o and such approval by the Reserve Bank shall stand withdrawn without any further no�ce”.
All other provisions of the LO/BO/PO policy shall remain unchanged. AD Category - I banks may bring the
contents of this circular to the no�ce of their cons�tuents and customers.
(RBI/2018-19/132 A.P. (DIR Series) Circular No. 20 dated February 27, 2019)
5
Supply of certain engineering technical
design/drawings/plans is not taxable as FTS
because it does not sa�sfy ‘make
available’ test under the India–UK tax
treaty
Based on the facts and in the circumstances of the case, recently the Mumbai Bench of the Income-tax Appellate
Tribunal in the case of Buro Happold Limited (the taxpayer) held that the amount received by the taxpayer from
its affiliate towards consul�ng engineering services is not taxable as Fees for Technical Services under Ar�cle
13(4)(C) of India-U.K. tax treaty since the taxpayer did not ‘make available’ technical knowledge, experience, skill,
know-how, process to the service recipient, through the development and supply of a technical plan or a
technical design. The amount received by the taxpayer was business profits and in the absence of a Permanent
Establishment in India, it could not be taxed in India.
(Buro Happold Limited v. DCIT (ITA No. 1296/Mum/2017) – Taxsutra.com)
Interna�onalTaxa�on
Contributed by:
Bhavesh Shah bhavesh.shah@hscollp.in
Back
6
Company Law
The Companies (Significant Beneficial Owners) Amendment
Rules, 2019
Read More
Contributed by:
Mayura Niphadkar Corplaw@hscollp.in
Pinkesh Jain pinkesh.jain@hscollp.in
The Companies (Prospectus and
Allotment of Securi�es) Second
Amendment Rules,2019
• Original Rules- The Ministry of Corporate Affairs (MCA) introduced the Companies (Significant Beneficial
Owners) Rules, 2018 in June, 2018.
• Purpose- To find out the ul�mate holder of shares who is the natural person, in a Company.
• Amended Rules- The MCA no�fied the Companies (Significant Beneficial Owners) Amendment Rules, 2019, on
8 th February, 2019 to give conceptual clarity.
h�p://www.mca.gov.in/Ministry/pdf/CompaniesOwnersAmendmentRules_08020219.pdf
• Effec�ve Date- 19 th February, 2019
• Amendment- Form PAS-3 for Allotment of Securi�es amended.
• Effect- Checkbox in the Form pertaining to the Allotment of Securi�es in a Private Placement offer for an
applica�on size of less than Rs. 20,000/- has been removed.
h�p://www.mca.gov.in/Ministry/pdf/ProspectusAllotmentRule2019_20022019.pdf
Companies (Adjudica�on of
Penal�es) Amendment Rules,
2019
• Effec�ve date- 19 th February, 2019
• Amendment- Rule 3 of Companies (Adjudica�on of Penal�es) Amendment Rules, 2019 was amended.
• Effect- Appointment of the officer by the Central Government for adjudica�on proceedings for non –
compliance or default under the Companies Act commi�ed by a Company and / or officers of the Company.
h�p://www.mca.gov.in/Ministry/pdf/Adjudica�oPenal�es2019_20022019.pdf
The Companies (Incorpora�on)
Amendment Rules, 2019:
• Effec�ve Date- 25 th February, 2019
• Amendment- Introduc�on of E Form INC – 22A, also known as ACTIVE Form.
• Applicability- Every Company incorporated on or before 31 st December, 2017.
• Compliance- Filing of Form on or before 25 th April, 2019 without fees; and therea�er, with fees of Rs. 10,000/-.
• Basic informa�on sought: Details of the Registered Office and officers of the company.
• Purpose- To clean up shell companies.
h�p://www.mca.gov.in/Ministry/pdf/CompaniesIncorpora�onAmendmentRules_21022019.pdf
7
Company LawContributed by:
Mayura Niphadkar Corplaw@hscollp.in
Pinkesh Jain pinkesh.jain@hscollp.in
Extension for last date of filing ini�al
return in MSMEForm 1:
• Effec�ve Date- 21 st February, 2019,
• Effect- Extension of the last date of filing ini�al return in MSME Form 1.
• Compliance- To be filed within 30 days from the date of availability of the form on the website.
h�p://www.mca.gov.in/Ministry/pdf/Ini�alReturnInMSMEForm_21022019.pdf
Back
8
Due dates for the Month of April, 2019*
Compliance Calender Contributed by:
Pinkesh Jain pinkesh.jain@hscollp.in
Back
Regula�on Due Date Compliance
1-Apr-19 LUT Renewal of Le�er of Undertaking (LUT) for FY 2019-20
10-Apr-19 GSTR 7
10-Apr-19 GSTR 8 Summary of Tax Collected at Source (TCS) and deposited by E-Commerce Operator for the month of Mar, 2019
11-Apr-19 GSTR 1 (Monthly) Return of outward supplies of taxable goods and/or services for the Month of Mar, 2019 (for Assessees having turnover exceeding 1.5 Cr.)
13-Apr-19 GSTR 6 Return for Input Service Distributors for the month of Mar, 2019
18-Apr-19 GSTR 4 Simple GST return for the month ended Mar, 2019 for Composi�on Taxpayers
30-Apr-19 TDS/TCS Due date for e-filing of a declara�on in Form No. 61 containing par�culars of Form No. 60 received during the period October 1, 2018 to March 31, 2019.
15-Apr-19 ESIC Payment ESIC Payment for the month of Mar, 2019. Employees' State InsuranceAct, 1948 - (ESIC)
14-Apr-19 TDS/TCS Due date for issue of TDS Cer�ficate for tax deducted under sec�on 194-IA / 194-IB in the month of Feb, 2018
Income Tax Act, 1961
Goods andService Tax (GST)
Descrip�on
30-Apr-19 TDS/TCS Due date for deposit of Tax deducted by an assessee other than an office of the Government for the month of March, 2019.
30-Apr-19 TDS/TCS Due date for uploading declara�ons received from recipients in Form. 15G/15H during the quarter ending March, 2019
30-Apr-19 TDS/TCS Due date for furnishing of challan-cum-statement in respect of tax deducted under sec�on 194-IA/194-IB in the month of March, 2019
Summary of Tax Deducted at Source (TDS) and deposited for the month of Mar, 2019
20-Apr-19 GSTR 3B Summary Return for the month of Mar, 2019
30-Apr-19 GSTR -1 (Quarterly) Return of outward supplies of taxable goods and/or services for the Month of March, 2019 (for Assessees having turnover less than 1.5 Cr.)
20-Apr-19 DPT-3 Details of outstanding Loan / Receipt of Money as on 22.01.2019Companies Act, 2013
30-Apr-19 DIR-3 KYC of every Person holding DIN as on 31.03.2019
25-Apr-19 INC-22A (Ac�ve) KYC of every company incorporated before 31.12.2017
30 days fromavaiability of form MSME-1 Every outstanding to MSME more than 45 days as on 22.01.2019
30 days fromavaiability of form NFRA-1 Every Company to which Na�onal Financial Repor�ng Authority Rules,
2018 (NFRA Rules) are applicable
Employees' ProvidentFunds & MiscellaneousProvisions Act, 1952
15-Mar-19 PF Payment PF Payment for the month of Mar, 2019.
Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
Maharashtra ProfessionTax Act
31-Mar-19 PT
* The above due date calender contains compliances generally applicable to taxpayers and this calender has been compiled by HSCo on basis of data
available on various portals and other sources. One should always check applicable compliances based on their business needs and should also check
updated due dates, if any, on the government portal before making the compliance.
Disclaimer:
The material in this newsle�er is only for private circula�on and is not intended to cons�tute any advice. It may be noted that nothing contained in
this publica�on should be regarded as our opinion. HSCo makes no representa�ons or warran�es express or implied with respect to informa�on
provided in this newsle�er or for its completeness or accuracy. HSCo disclaims all responsibili�es and accepts no liability for consequences of any
person ac�ng or refraining from ac�ng on such informa�on.
www.hscollp.in
Head Office (Mumbai)
409 - 410, Dalamal Chembers,
New Marine Lines,
Mumbai - 400 020, India.
E: hs@hscollp.in
Delhi Office
531, Somdu� Chambers II,
Bhikaji Cama Place,
New Delhi – 110066.
E: delhi@hscollp.in
Bangalore Office
Brigade IRV, 9th floor
Nallurahalli, Whitefield,
Bangalore - 560 066
E: bangalore@hscollp.in
Pune Office
1A, 2nd Floor, City Vista,
Fountain Road, Off.
Victorious Kids School,
Kharadi, Pune - 411 014.
E: pune@hscollp.in
top related