February 2018 Notifications

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News letter dated on 03.02.2018
   03.02.2018

GST Updates

1. E-Way bill will be introduced by 13 states for both Inter-State as well as Intra-State movement of goods. These States are:- Karnataka, Tamil Nadu, Pondicherry, Kerala, Andhra Pradesh, Telangana, Arunachal Pradesh, Bihar, Haryana, Jharkhand, Sikkim, UP, Uttarakhand w.e.f 01-02-2018.
2. Media Monitoring Services can’t be taxed as ‘Business Auxiliary Service’: New Delhi bench of CESTAT in the case of CST Delhi vs. M/s IPAN.
3. No E-Way Bill for Intra-State Supplies in Rajasthan, Gujarat. Govt of Rajasthan on Monday notified that no E-Way Bill is required for intra-State supply of goods. Govt of Gujarat also exempted all intra-State supply of goods from the generation of e-way bill under GST.
4. Input tax credit cannot be denied to recipient on default of payment by supplier. Supreme Court in the case of Commissioner of Trade & Taxes, Delhi and others Vs. Arise India Limited and others [TS-2-SC-2018-VAT],
5. E-Way Bill: In view of difficulties faced by the trade in generating e-way bill due to initial tech glitches, it has been decided to extend the trial phase for generation of e-way bill, both for inter and intra-State movement of goods. Eway Bill for inter state movement of Goods will be applicable w.e.f. 21.2.18...As per latest information...
6. Features for filing Form GST ITC-04 have been enhanced on the GST portal to allow multiple entries of items in a single challan.
7. E-Way Bill postponed due to Technical Glitches. The Central Government has decided to postpone the implementation.
8. CBEC has issued 9 UTGST Tax Rate, 10 Integrated Tax (Rate) and 9 Central Tax (Rate) Notifications which in total amount to 27 Notification to give effect to Changes in GST Rate and its related Provision as recommended by 25th GST Council Meeting.

Compiled By :Vikas Jain

Income tax Updates
1. Last date for Income Tax return u/s 139(4) for Financial Year 2015-2016 & 2016-2017 is 31st March 2018, after that you cannot file return unless you have received notice from Income Tax Dept.
2. CBDT v. Regen Infrastructure & services (P) limited: Condonation of delay in filing of return of income cannot be rejected when assessee has encountered technical snags in website of income tax and the same be directed to be treated as filed u/s 139(1).
3. The CBDT has issued a Notification No 151/2017-A&PAC-1 dated 10th Jan 2018 to Assessing Officer prescribing standard procedure for applying provision of Sec 68 of Income Tax Act 1961.
4. Brokerage / Commission paid in Connection with Share Transaction are not subject to TDS: Kolkata ITAT.
5. Mere high appreciation in share values not enough to treat gain from Penny stocks as bogus. Case Name: Pr CIT vs. Prem Pal Gandhi (Punjab & Haryana High Court)

Compiled By :Vikas Jain

Insolvency & Bankruptcy Updates
1. Insolvency & Bankruptcy Board of India has issued a Press release in Public Interest that the Board has no Association with “IBBI Insolvency Practitioners LLP”.

Compiled By :Vikas Jain & Shurti Mittal

Companies Act 2003 Updates
1. MCA launched New Name approval form RUN (Reserve Unique Name ) w.e.f. 26th January’18.
2. MCA announced changes towards ease of doing business in India on the occasion of 69th Republic Day.
1. No incorporation fee: up to Rs. 10 lakh capital.
2. Introduction of 'RUN': "Reserve Unique Name". It is a one pager e-form into which one name of proposed company can be reserved without obtaining DIN and Digital Signature
3. Reduction of time limit for reservation of Name: from 60 days to 20 days
4. No resubmission for reservation of Name: It can be either rejected or approved in one go
5. Simplified process for incorporation of company: by removing the requirement of affidavit with declaration from the proposed directors and promoters.
6. New process for obtaining DIN: combined SPICe form only at the time of an individual's appointment as Director.
3. MCA has notified the companies (Appointment and Qualification of Directors) Amendment Rules, 2018 which shall come into force from the date of the notification in the Official Gazette i.e. 26th January, 2018.
4. MCA has notified that to access DSC related services of MCA, new settings are required effective Feb’03, 2018.
Compiled By :Vikas Jain & Shurti Mittal

Other related laws Updates

1. SEBI has issued circular w.r.t Online Filing System for Offer Documents, Schemes of Arrangement,
2. SEBI: private placement, rather than a public issue, is the markets regulator’s favored route to start trading in securities receipts issued by (ARCs). Only certain “qualified buyers” will be permitted to trade in them, and the minimum lot size will be Rs10 lakh.
3. SEBI has issued circular w.r.t Online Registration Mechanism and Filing System for Depositories.
4. Employees’ Provident Fund Organization (EPFO) said it has launched facilities for employers to pay dues and update ownership details online. The EPFO has facility of online submission of Form 5A (Return of Ownership), it said in a statement.
5. The Auditing and Assurance Standards Board of ICAI is issuing the revised formats of the statutory auditor’s report for urban cooperative banks (UCBs).
6. SEBI has agreed to transfer Rs 16.7 billion of its surplus funds to the government. The Centre has been eyeing these resources, which would enable it to reduce the fiscal deficit.
7. SEBI will now be able to impose a minimum penalty of Rs 5 crore on stock exchanges and clearing corporations if they breach regulations as announcements for the capital markets in the Union Budget 2018.

Compiled By :Vikas Jain



Salient Features of Finance Bill 2018
   01 February 2018

  1. No change in Tax Rate. All persons including individuals, HUF, Firms and Companies to pay same tax. However Education cess is being increased from 3 to 4 % to be known as Education and Health cess.
  2. However for Domestic Companies having total turnover or gross receipts not exceeding Rs 250 crores in Financial year 2016-17 shall be liable to pay tax at 25% as against present ceiling of Rs 50 crore in Financial year 2015-16.
  3. Long term Capital gain exemption under section 10(38) in respect of listed STT paid shares being withdrawn.
  4. However capital gain up to 31.1.2018 shall not be taxed as cost of acquisition will be taken as Fair Market Value as on 31.1.2018.
  5. Tax on STT paid long term capital Gain will be 10% under Section 112A. Further such tax will be liable for TDS.
  6. Standard Deduction of Rs 40,000 for salaried employees. However benefit of transport allowance of Rs 19,200 and Medical Reimbursement of Rs 15,000 under Section 17(2) are being withdrawn. Thus net benefit to salaries class only Rs 5,800.
  7. Provision of Section 43CA, 50C and 56(2) (x) being amended to allow 5% of sale consideration in variation Vis a Vis stamp duty value. On account of location, disadvantage etc.
  8. Provision of section 40(IA) and 40A (3) and 40A (3A) are being made applicable to CharitableTrust. Hence expenditure incurred without deduction of tax and in cash will not be eligible as application of income under section 10(23C) and section 11(1) (a).
  9. Agriculture Commodity Derivative income /loss also not to be considered as speculative under section 43(5).
  10. Income Computation and Disclosure Standards (ICDS) being given statutory backing in view of decision of Delhi High Court decision.
  11. Marked to market loss computed as per ICDS to be allowed under section 36.
  12. Gain or loss in Foreign Exchange as per ICDS to be allowed under new section 43AA.
  13. Construction Contract income to be computed on percentage completion method as per ICDS.
  14. Valuation of Inventory including Securities to be as per ICDS.
  15. Interest on compensation, enhanced compensation. Claim or enhancement claim and subsidy, incentives to be taxed in the year of receipt only as per new Section 145B.
  16. Conversion of stock in trade to capital asset to be charged as business income in the year of conversion on Fair Market value on the date of conversion.
  17. 54EC benefit of investment in Bonds to be restricted to Capital gain on land and building only. Further period of holding being increased from 3 years to 5 years.
  18. PAN to be obtained by all entities including HUF other than individuals in case aggregate of financial transaction in a year is Rs 2, 50,000 or more. All directors, partners, members of such entities also to obtain PAN.
  19. All companies irrespective of income to file return and in case it is not filed, such companies will be liable for prosecution irrespective of the fact weather it has tax liability of Rs 3,000 or not.
  20. Assessments to be E assessment under new section 143(3A).
  21. No adjustment under section 143(1) while processing on account of mismatch with 26AS and 16A.
  22. Deemed dividend to be taxed in the hands of the company itself as Dividend Distribution of tax @ 30%.
  23. Penalty for non filing financial return as required under section 285BA being increased to Rs 500 per day.

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