Reference: Central Board of Direct Taxes
Update:
Liability of professionals acting as Non-executive directors:
Practicing professionals are prohibited from acting as full time directors. They can only act as non-executive directors not performing administrative duties. Such persons cannot be prosecuted for offenses committed by the company. it will be a travesty of justice to prosecute all Directors if the offense is committed without their knowledge. The accounts are signed by such directors in a routine manner and they are not subject to vicarious liability
Update:
Faceless tax assessment pilot likely from October 8: Taking the first concrete steps toward “faceless tax administration,” the Central Board of Direct Taxes (CBDT) has given its approval for a programme that will kickstart the ambitious plan for jurisdiction-free assessment, which is aimed at reducing the scope for corruption by eliminating the need for face-to-face interaction between officers and tax payers.
Implication:
The plan will initially be limited to assessments in which tax officials have maximum one or two queries and then expanded.
Update:
Exception to monetary limits for filing appeals specified in any Circular issued under Section 268A of the Income-tax Act, 1961:
CBDT directed the income tax authorities to pursue the cases of \”organised tax evasion\” through long-term capital gains or short-term capital loss in courts as it set aside the condition of sticking to the established monetary limits for filing appeals.
Implication:
The order said the board, by way of a special order, could direct filing of appeals in these instances of organised tax evasion activity even if they were below the threshold.
Update:
Income Tax (6th Amendment) Rules, 2019:
CBDT has amended Income tax Rules, 1962 to amend for filing of applications for exemptions u/s 10(23C)(iv),(v),(vi) and (via) and requirements for approval of an institution or fund u/s 80G.
Implication:
The same shall come into force on the 5th November, 2019
Reference: Central Board of Indirect Taxes and Customs
Update:
CBIC has waived of the requirement to furnish Form ITC-04 from July, 2017 to March, 2019. However, the details of challans for goods dispatched to a job worker from July, 2017 to March, 2019 but not received back or not supplied by job-worker from his place of business is required to be furnished in Form ITC-04 for the quarter April-June, 2019.
Implication:
Quoting UIN in invoices waived off for the period April, 2018 to March, 2020
Update:
Architectural and other services given to local authorities not involving any supply of goods are exempt under GST
Jayesh Anilkumar Dalal, In re – [2019] 108 taxmann.com 535 (AAR – GUJARAT)
The Authority for Advance Rulings, Gujarat observed that the applicant provides loans and advances for which it charges consideration in the form of interest. No other consideration except interest is charged by the applicant. As per exemption notification under GST, services by way of loans or advances for which consideration is received in the form of interest is exempt from GST. The notification does not mention notional consideration and hence, GST is not chargeable on the same. However, if the applicant actually charges, processing fees or any other charges, other than interest, GST will be applicable.
Implication:
Interest charged by the applicant on loans or advances provided is exempt under GST.
Reference: Institute of Chartered Accountants of India
Update:
ICAI has issued Advisory on Auditor’s Reporting on Section 197(16) of the Companies Act, 2013:
1 Section 197(16) of the Companies Act, 2013 requires as under:
“The auditor of the company shall, in his report under section 143, make a statement as to whether the remuneration paid by the company to its directors is in accordance with the provisions of this section, whether remuneration paid to any director is in excess of the limit laid down under this section and give such other details as may be prescribed”
2 The aforesaid reporting requirement for auditors of public companies needs to be covered in auditor’s report under the Section “Report on Other Legal and Regulatory Requirements”. Accordingly, auditors of public companies are advised to comply with the aforesaid reporting requirements in their auditor’s reports.
Implication:
This Advisory will come into force from immediate effect.
Reference: Securities and Exchange board of India
Update:
Monitory penalty on Syncom Healthcare Ltd and its official:
SEBI imposed a total penalty of Rs. 1.15 crore on Syncom Healthcare Ltd and its officials for violation of various market norms while manipulating issuance of global depository receipts. During investigation between August 2010 and September 2010, SEBI noted that the firm had issued 4.5 million GDR amounting to approximately Rs. 96 Crore on 3rd September, 2010. The firm and its officials have violated provisions of listing agreement and failed to comply with Securities Contract Regulation Act and prohibition of Fraudulent and unfair Trade Practices norms.
