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June 2019, Vol 71
Business Support ServicesAccoun�ngTax & RegulatoryPayrollCorporate Services
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Contents
GST (Goods &Service Tax)
by:
Anuya Sawant
IncomeTaxby:
Manish Parekh
CompanyLaw
by:
Mayura NiphadkarPinkesh Jain
ComplianceCalender
by:
Pinkesh Jain
by:
Bhavesh ShahInterna�onal
Taxa�on
IncomeTaxContributed by:
Manish Parekh [email protected]
1
CBDT directs dedica�on of
Fortnight to clear pendency of Appeal
effect & Rec�fica�on
The CBDT has issued a direc�ve dated 13th May, 2019 s�pula�ng the dedica�on of a fortnight for clearing pendency of Appeal Effect and Rec�fica�on and for redressing public grievance
“Board has decided to dedicate the second fortnight of May, 2019 i.e. 16th to 31st May, 2019 to expedi�ous disposal of appeal effect and rec�fica�on claims of the taxpayers. During this period, all assessing officers shall accord top priority to the work of giving appeal effect and passing of rec�fica�on orders, and shall earmark the first half of the day to meet applicants/ counsels who seek to have a hearing to explain their case.
In the area of rec�fica�on, special a�en�on may be given to demands on account of TDS mismatch and demands disputed by the taxpayer in proceedings u/s 245 as delay in such cases is crea�ng widespread dissa�sfac�on amongst taxpayer”
(Source: h�p://itatonline.org)
CBDT wants shell companies ‘revived’
to collect pending taxes
Income-tax authori�es do not want to let go the revenue dues owed by shell companies that have been deregistered by the Ministry of Corporate Affairs (MCA). But the task is easier said than done, as it would mean the restora�on of over 4,000 companies iden�fied by the Central Board of Direct Taxes (CBDT). The CBDT has been holding talks with the MCA over this.
CBDT has directed its field forma�ons across the country to file applica�ons with the NCLT for the restora�on of shell companies.
Around 2.26 lakh shell companies were struck off in the first drive pertaining to FY14 and FY15. Similarly, 1,00,150 companies were struck off �ll November 30, 2018, in the second drive pertaining to FY16 an Fy17.
(Source: h�ps://www.thehindubusinessline.com)
CBDT extends due date for filing of
TDS statement in Form 24Q of Q4 for
FY 2018-19
The Central Board of Direct Taxes (CBDT) had earlier no�fied amended Form 24Q for filing TDS statement by deductors of tax vide No�fica�on No. 36/2019 dated 12th April, 2019. Subsequently, the File Valida�on U�lity (FVU) for online filing of Form 24Q was updated by NSDL on 21st of May, 2019.
With a view to redress genuine hardship of deductors in �mely filing of TDS statement in Form 24Q on account of revision of its format and consequent upda�ng of the File Valida�on U�lity for its online filing, CBDT has ordered the following:
Extended the due date of filing of TDS statement in Form 24Q for financial year 2018-19 from 31st of May, 2019 to 30th of June, 2019 and
Extended the due date for issue of TDS cer�ficate in Form 16 for financial year 2018-19 from 15th of June, 2019 to 10th of July, 2019.
(Source: h�ps://www.incometaxindiaefiling.gov.in/eFiling/Portal/Sta�cPDF_News/Press-Release-CBDT-extends-due-date-for-filing-of-TDS-statement-in-Form-24Q-dated-04-06-2019.pdf)
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GST (Goods& Service Tax) Anuya Sawant [email protected]
Contributed by:
2
Important Judgments
Bharat Raj Punj Vs Commissioner of Central Goods And Service Tax (Rajasthan High Court, 12th March 2019)
Case: Input tax credit availed fraudulently by issue of fake or fic��ous sale invoices.
Decision: Arrested senior officials of the company a�er recording their statements. Also, Rajasthan High Court dismissed the Writ pe��on of the pe��oner and imposed a cost of Rs. 1,00,000/- only.
It is an offence commi�ed under Sec�on 132 of the Act. It specifically covers cases leading to wrongful availment of Input tax credit. The Department has the power to issue summons or arrest the offender on reasonable grounds, without first determining the tax.
Op�val Health Solu�ons Pvt Ltd Vs UOI (Calcu�a High Court, 7th Feb 2019)
Case: Rec�fica�on or Revision of GST TRAN-2 form should be allowed or not.
Decision: Allowed pe��oner to file a revised Form GST TRAN-2 either electronically or manually.
Law permits a person to rec�fy or revise the Form , who voluntarily admits to have made a mistake in the form or admits to have submi�ed detail that is not true. The tax authori�es have the right to retain original Form GST TRAN-2 for assessment purpose and they may ask the pe��oner to provide proper explana�on for such revision/rec�fica�on.
Vikas Goel and another Vs Central Goods and Services Tax Commissionerate (Punjab and Haryana High Court, 13th Dec 2018)
Case: Bogus billing under GST.
Decision: Arrested the pe��oner and denied their bail in GST fraud.
Pe��oners made bogus bills and adjusted the amount without any actual transporta�on or sale of goods. Transac�ons appeared only on paper. On search, it was found that premises were closed for a period of 5 years and there was tax evasion. So, the Department has the power to arrest under Sec�on 69 of the Act.
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3
Distribu�on charges received for
telecas�ng of TV channels in India are
not taxable as 'royalty' under the Income-tax Act as well as under the
India-Singaporetax treaty
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Interna�onalTaxa�on
Contributed by:
Bhavesh Shah [email protected]
Based on the facts and in the circumstances of the case, recently the Bombay High Court in the case of MSM Satellite (Singapore) Pte Ltd (taxpayer) dealt with the taxability of distribu�on charges received on account of telecas�ng of TV channels in India under the provisions of the Income-tax Act, 1961 as well as under the India-Singapore tax treaty. The High Court held that such receipts are not taxable as royalty since the taxpayer was not par�ng with any of the copyrights and the payment was not for any copyright in literary, ar�s�c or scien�fic work.
(CIT v. MSM Satellite (Singapore) Pte. Ltd (ITA No 103 of 2017) – Taxsutra.com)
Salary received in NRE account not taxable on receipt
basis if services rendered
outside India
As per provisions of Income-tax Act, 1961 (the Act), a non-resident is taxed, amongst other things, on income received by it in India. Based on the facts and in the circumstances of the case, recently the Kolkata bench of Income Tax Appellate Tribunal (ITAT), in the case of Deepak Kumar Todi (taxpayer), has held that mere receipt of salary by an individual in his Indian Non-resident External (NRE) account for services rendered in Nigeria is not taxable in India on receipt basis under the Act. The ITAT, while arriving at its conclusion, also held that the place where services have been rendered is relevant for determining whether income of a non-resident is taxable in India or outside India.
Taxa�on on receipt of salary in India has always been a cause of li�ga�on for non-resident outbound employees, who while render the services abroad, prefer to receive their salary in their home state i.e. India. While the courts have decided that salary received in India has to also have its place of accrual in India, it is important that the government comes out with a clarifica�on circular, given that many individual taxpayers are being subjected to such li�ga�on.
(Deepak Kumar Todi v. DDIT, Interna�onal Taxa�on (ITA No.1918/ Kol/ 2017))
4
Changes in Filing Fees and Forms
related to Removal of Names of Companies
from the Register of Companies
As per the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2019 it is amended that:
Company LawContributed by:
Mayura Niphadkar [email protected]
Pinkesh Jain [email protected]
ROC Fees required to file Form STK-2 is increased from Rs. 5,000/- (Rupees Five Thousand Only) to Rs. 10,000/- (Rupees Ten Thousand Only)
The Company cannot file Form STK-2 unless it has filed its overdue Returns (Form AOC-4, Form AOC-4 XBRL, Form MGT-7)
The Nil Statement of Accounts has been given a new name- “Form STK-8”
In Form STK-7, the following item shall be inserted namely:
“viii) The company has fulfilled all pending compliances (applicable in case an applica�on under sub-sec�on (2) of Sec�on 248 has been filed a�er the ini�a�on of ac�on under sub-sec�on (1) of sec�on 248)”
MCA no�fies Rule 8 - Names which
resemble too nearly with the name of
exis�ng company of the Companies (Incorpora�on)
Fi�h AmendmentRules, 2019
A company name applied for shall be deemed to resemble too nearly with the name of an exis�ng company, if, and only if, a�er comparing the name applied for with the name of an exis�ng company by disregarding certain ma�ers as described below, the names are same.
The following ma�ers are to be disregarded while comparing the names:
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,�corpora�on, corp, corpn, corp or group;
The plural or singular form of words in one or both names
The no�fica�on also contains certain illustra�ons for the gudelines.
h�p://mca.gov.in/Ministry/pdf/AmendmentRules_08052019.pdf
h�p://mca.gov.in/Ministry/pdf/AmendmentRules3_08052019.pdf
Read More
The Companies (Appointment and
Qualifica�on of Directors)
2nd Amendment Rules, 2019
As per the amendment where a company governed by Rule 25A of the Companies (Incorpora�on) Rules, 2014, fails to file the e-form ACTIVE within the period specified therein, the Director Iden�fica�on Number (DIN) allo�ed to its exis�ng directors, shall be marked as Director of ACTIVE non-compliant company.
h�p://www.mca.gov.in/Ministry/pdf/Companies (Appointment and Qualifica�on of Directors) 2nd Amendment Rules, 2019.pdf
Companies to submit Form PAS 6 (Half Yearly Audit
Report on Reconcilia�on of
Share Capital), no�fies MCA
MCA has no�fied the amended Companies (Prospectus and Allotment of Securi�es) effec�ve from 30 Sept. 2019. It has been amended that every unlisted Public Company governed by sub-rule (8) of Rule 9A- Issue of Securi�es in dematerialised form by unlisted public companies shall submit Form PAS-6 to the Registrar with applicable fees within sixty days from the conclusion of each half-year duly cer�fied by company secretary in prac�ce or chartered accountant in prac�ce. Every company shall immediately bring to the no�ce of the depositories any difference observed in its issued capital and the capital held in dematerialised form.
h�p://mca.gov.in/Ministry/pdf/Rules_23052019.pdf
5
1. MCA issues circular to provide
clarifica�on on filing form AD1-1 filed
through GNI-2under the
Companies Act, 2013
The MCA vide its circular number 06/2019 informs about receiving representa�on from Stakeholders seeking relaxa�on of fees for filing form ADT-1 via GNI-2 during the period from 01.04.2014 to 20.10.2014 for appointment of Auditor for the period from 01.04.2014 to 31.03.2019 due to non-availability of c-form ADT-1 during the said period.
Accordingly, the ma�er has been examined and it is hereby clarified that companies which had filed Form no. ADT-1 through GNI,-2 as an a�achment (by selec�ng 'others') during the period from 01.04.2014 to 20.10.2014 may file e-form no. ADT-1 for appointment of Auditor for the period up to 31.03.2019 without fee, �ll 15.06.2019 (since fee had been paid for filing GNL,-2 for the same purpose) and therea�er fee and addi�onal fee shall be applicable as per Companies (Registra�on of Office and Fees) Rules, 2014. Stakeholders are advised to avail this one �me opportunity and file ADT-1 without fee as stated above, well in �me and adhere to the �me lines as specified above.
Company LawContributed by:
Mayura Niphadkar [email protected]
Pinkesh Jain [email protected]
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* 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.
Compliance Calender Contributed by:
Pinkesh Jain [email protected]
Regula�on Due Date Compliance
10-Jul-19 GSTR 7
10-Jul-19 GSTR 8
11-Jul-19 GSTR 1
13-Jul-19 GSTR 6
20-Jul-19 GSTR 3B
Goods andService Tax (GST)
Descrip�on
31-Jul-19 GSTR 1
Summary of Tax Deducted at Source (TDS) and deposited for the month of Jun 2019
Summary of Tax Collected at Source (TCS) and deposited by E-Commerce Operator for the month of Jun, 2019
Return of outward supplies of taxable goods and/or services for the Month of Jun, 2019 (for Assessees having turnover exceeding 1.5 Cr.)
Return for Input Service Distributors for the month of Jun, 2019
Summary Return for the month of Jun, 2019
Quarterly return of outward supplies of taxable goods and/or services for registered persons with aggregate turnover up to Rs. 1.50 Crores for the quarter April to June 2019
Income Tax Act, 1961 7-Jul-19 TDS/TCS
10-Jul-19 TDS/TCS
15-Jul-19 TDS/TCS
30-Jul-19 TDS/TCS
Due date for deposit of Tax deducted/collected for the month of Jun, 2019.
Due date for issuing quarterly TDS cer�ficates in respect of salary paid and tax deducted has been extended from June 15, 2019 to July 10, 2019 vide order F.No. 275/38/2017-It(b), dated 04-06-2019
Due date for issue of TDS Cer�ficate for tax deducted under sec�on 194-IA / 194-IB in the month of May, 2019
Due date for furnishing of challan-cum-statement in respect of tax deducted under sec�on 194-IA / 194-IB in the month of Mayl, 2019
31-Jul-19 Income Tax Annual return of income for the assessment year 2019-20 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report under sec�on 92E
15-Jul-19 ESIC Payment ESIC Payment for the month of June, 2019. Employees' State InsuranceAct, 1948 - (ESIC)
15-Jul-19 PF Payment PF Payment for the month of June, 2019. Employees' Provident Funds& Miscellaneous ProvisionsAct, 1952
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