IND AS 115 and Real Estate.

The Ministry of Corporate Affairs (MCA) had notified Ind AS 115, "Revenue from Contracts with Customers," on 28 March, 2018, with effect from reporting periods beginning on or after 01 April, 2018. The new accounting standard has replaced the existing revenue recognition requirements.  

Time Limit for 264 revision.

Return filing has now become a technical exercise and knowledge of the legal provisions does not suffice to survive in tax practice. This is for the reason that the returns which are processed in CPC sometimes either bully the taxpayers or puzzle the tax counsels. There are numerous instances where the returns are stated as defective in one communication from CPC and after a week or so we get yet another communication saying that the defect was rectified perhaps suo motu by the CPC. All this is done in-house in CPC without any response from the taxpayer. This has become a perennial irritant for the tax counsels in the recent years.   

PE in India - Proposed Amendments in Rules

Introduction

1. With the view to bring greater clarity and predictability in the matter of profit attribution to Permanent Establishment ("PE") in India, the Central Board of Direct Taxes ("CBDT") has formed a Committee to examine the existing scheme of profit attribution and to recommend the amendments. The Committee has issued a report on 18^th April 2019 proposing the amendments to the rules for profit attribution open for public consultation.This Article discusses in details the various amendments proposed by the Committee, the objective behind the amendments and the critical analyses of the same.   

Possibility of TDS on E Commerce

Introduction

In the last few years, the online marketplaces are on the ascent and the organizations like Amazon, Flipkart, Zomato, Swiggy etc are the banner bearers of online business in India. E-commerce has brought a fundamental change in the way of doing business and the customer engagement across various sectors.   

Taxation of Derivatives

1. This article analyses the recent landmark decision of the Supreme Court in the case of Snowtex Investment Ltd. v. Pr. CIT [2019] 105 taxmann.com 282 (SC) – referred to as "taxpayer".

The actual issue before the Supreme Court was whether the profits earned by the taxpayer from F&O activities (derivatives business) can be set off against the loss on sale of shares? The issue¹ posed before the Supreme Court was "can the profits earned from derivative business be treated as "speculative business" within the meaning of Explanation to section 73 of the Act"?

We have analysed the aforesaid decision without going into a discussion or debate as to whether or not the provisions of the Explanation to section 73 of the Act are ultra-vires the provisions of section 43(5) of the Act?   

June Legal Update

• CCI imposes penalty on chemists and druggist associations in Madhya Pradesh and two pharmaceutical companies
• CCI approves amalgamation of GlaxoSmithKline into Hindustan Unilever Limited
• EC rejects merger between Tata Steel and ThyssenKrupp
• Supreme Court allows CCI appeal against JCB - permits material seized during dawn raid to be used as evidence
• Delhi High Court settles constitutional challenges to the Competition Act, 2002

Key Decisions of 35th GST Council Meeting

• Due date for filing form GSTR 9/ GSTR-9C has been extended from 30 June 2019 to 31 August 2019 for all assesses;
• E-invoicing – it has been decided by council to implement e-invoicing mechanism in a phased manner starting from January 2020 on voluntary basis;
• New-return mechanism – as proposed earlier, new return mechanism to be implemented from October 2019 onwards with filing of GST-ANX-1 form (for outward supplies) and from January 2020 returns in form RET-1 to be made compulsory;
• National anti-profiteering authority tenure has been proposed to be extended for 2 more years;
• Blocking of generation of e-way bills on non-filing of returns to be made effective from 21 August 2019.           

GST Council decision relating to changes in law and procedure

 

The 35th GST Council Meeting was held here today under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. This was the first meeting of the Council after the swearing in of the new Government. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Revenue Secretary Shri Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. The GST Council recommended the following changes related to law and procedure:

Income Tax Notice - What steps to be taken ?

After receiving the tax returns, the tax authorities examines the returns filed and if due to any reason they believe that information submitted by an assesee is wrong or incomplete then the assesee is served with a notice demanding justifications/ penalty or any action as stated by the department in the notice so served.

Issues reported in filing Form GSTR 9/9C by the taxpayers: Steps to be taken

This mail is in reference to filing of Form GSTR 9/9C, by a normal taxpayer for financial year 2017-18, which is required to be filed by them on GST Portal latest by 30th June, 2019.  Taxpayers have reported some issues in filing their Form GSTR 9/9C, which are clarified below: