Sunday, 16 December, 2018 - Monday, 31 December, 2018

Vistra India Update - 366

INCOME TAX

Online filing of application for certificate of lower rate or no deduction of Income tax under section 197

Principal Director General of Income-tax (Systems) has specified the procedure, format and standards for the purpose of electronic filing of Form No. 13 and generation of certificate under sub-section (1) of  section  197  / sub-section (9) of section 206C through TRACES

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Procedure Formats and  Standards  of  issue  of   Permanent Account Number (PAN)

Principal Director General of Income-tax (Systems) has specified the procedure, format and standards for issue of Permanent Account Number. 

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Country by Country reporting.

  • CBDT, vide notification dated 18th December, 2018, has prescribed the necessary time limit for furnishing CbC reports by taxpayers covered by section 286(4) of the I T Act, through an amendment to rule 10DB(4) of the I T Rules, to be twelve months from the end of the reporting accounting year of the international group, with an exception that in case the ultimate parent entity is resident of a country, which has committed systematic failure in the matter of exchanging of information under a CbC agreement with India, then the time limit for submission of CbC report in India shall be six months from the end of the month in which such systematic failure has been intimated. 
  • Further , CBDT, as a one-time measure, extends period of furnishing CbCR by constituent entities referred to u/s 286(4)(a)/(aa) in respect of reporting accounting years ending up to February 28, 2018 to March 31, 2019;

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Explanatory Notes to the Provisions of Finance Act 2018

The Central government has issued an explanatory notes to further provide clarification to the provisions of Finance Act 2018.

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COMPANY LAW

Companies (Incorporation) 4th Amendment Rules, 2018

Ministry of Corporate Affairs (MCA) has amended Companies Incorporation Rule, 2014 to provide, among others, the following:

Prescribes form no. INC-20A for declaration under section 10A of the Companies Act, 2013 at the time of commencement of business

In the case of a company pursuing objects requiring registration or approval from any sectoral regulator, the registration/approval, from such regulator shall also be attached with the declaration.

Prescribes form no. e RD-1for application to Regional Director:

For change in financial year

For the conversion of a public company into a private company

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Companies (Registration of Charges) 2nd Amendment Rules, 2018

Ministry of Corporate Affairs (MCA) has amended Companies Incorporation Rule, 2014 to replace Form No. CHG-4 to intimate satisfaction of charge.

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GOODS AND SERVICES TAX

  • Due date is extended for filing of GST Annual Return in FORM GSTR-9, GSTR-9A & GSTR-9C 
  • Vide Order No. 03/2018-Central Tax dated 31.12.2018 the CBIC has  extend the due date for furnishing of annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the FY 2017-2018 till 30th June 2019.

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Due date is extended for availing ITC of FY 2017-18

Vide Order No. 02/2018-Central Tax dated 31.12.2018 the CBIC has extend the due date for availing or correction of Input Tax Credit relating to the financial year 2017-18 in the return to be filed for the month of March 2019.

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Waiver of Late fees for delayed furnishing of FORM GSTR-1, FORM GSTR-3B and FORM GSTR-4

Vide Notification Nos 75/2018-Central Tax, 76/2018-Central Tax and 77/2018-Central Tax dated 31st December, 2018 the CBIC has waived off the late fees payable on delay in furnishing of the returns within the due date for the period from July 2017 to September 2018 but subject to furnishing of the said returns between the period from 22nd December, 2018 to 31st March, 2019.

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New services introduced under Reverse Charge Mechanism w.e.f 01.01.2019

Vide Notification No. 30/2018-Integrated Tax (Rate) dated 31st December, 2018 the CBIC has added following new services under Reverse Charge Mechanism from 01.01.2019:

1. Services provided by business facilitator (BF) to a banking company.

2. Services provided by an agent of business correspondent (BC) to business correspondent (BC).

3. Security services provided by any person other than a body corporate (services provided by way of supply of security personnel) to a registered person.

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Amendment to IGST Rules to determine place of supply in case of inter-State supply

Vide Notification No. 04/2018–Integrated Tax dated 31st December, 2018 the CBIC has amended the rules for determining the place of supply in case of inter-State supply on the following services along with the illustrations;

(a) services directly in relation to immovable property

(b) lodging accommodation by a hotel, inn, guest house, homestay, club or campsite

(c) accommodation in any immovable property for organising any marriage or reception or official, social, cultural, religious or business function

(d) any services ancillary to the services referred to in clauses (a), (b) and (c)

(e) in case of advertisement over internet

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Clarification on refund related issues

Vide Circular No. 79/53/2018-GST dated 31.12.2018 CBIC has clarified certain issues relating to GST Refund;

1. No Physical Submission of refund claims

2. All the relevant documents along with refund application to be uploaded in GST portal

3. Upload in GST Portal statement of input invoices and copies of only those invoices not reflecting in GSTR2A

4. No need to submit physical application or the supporting documents

5. Various other related matters

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Clarification on export of services

Vide Circular 78/52/2018-GST dated 31.12.2018 the CBIC clarified on certain issues relating to a case when an exporter of services outsources a portion of the services contract to another person located outside India.

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CUSTOMS

Publishing of rate of exchange for conversion of the foreign currency.

The Central Board of Excise and Customs (CBEC) vide Notification No. 99/2018 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 21st of December 2018 respectively.  

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RBI

Foreign Exchange Management (Borrowing or Lending) Regulations, 2018

  • In line with its efforts to rationalize multipole regulations under FEMA, 1999, the RBI now consolidated the regulations that govern all types of borrowing and lending transactions between a person resident in India and person resident outside India for both INR and foreign currency borrowings/lending
  • The new regulations ‘Foreign Exchange Management (Borrowing or Lending) Regulations, 2018’ are expected to  rationalize the existing framework for external commercial borrowings and Rupee denominated bonds to improve the ease of doing business.

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Press Note 2 clarifying FDI policy in E-Commerce

  • Department of Industrial Policy & Promotion (DIPP) under Ministry of Commerce and Industry issued Press Note 2(2018 Series) to provide clarity and guidelines on certain aspects of Foreign Direct Investment in E-Commerce sector.  Per new guidelines 100% automatic entry route for FDI in E-Commerce is allowed only in market-place model and not inventory based model.  Through this Press Note 2,   DIPP has defined several terms like what constitutes E-Commerce, E-Commerce entity, inventory based model of e-commerce, marketplace based model of e-commerce  to bring more clarity and certainty on business rules effecting E-commerce sector.
  • E-commerce market based entities are now required to furnish a certificate along with a report of statutory auditor to Reserve Bank of India confirming compliance with the new guidelines. The new guidelines will take effect from February 1, 2019. 

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