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Vistra India Update 373

April 1 - April 15 2019

INCOME TAX

1.    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 (a) where the parent entity is not obligated to file the report or  with which India does not have an agreement providing for exchange of the report in respect of reporting accounting years ending up to February 28, 2018 to March 31, 2019.

The agreement for providing for exchange of the report of the nature referred to in subsection (2) of section 286 of the Act has been entered into by India and the USA on March 27, 2019. However, the agreement and the exchange mechanism would come into effect only after both the countries notify each other about the completion of all internal procedures for exchange which is underway.

Since filing of the report by the constituent entity referred under clause (a) or (aa) of subsection (4) of section 286 of the Act in India gets triggered on completion of twelve months from the last date of the reporting accounting year and Circular 9/2018 has extended the period for furnishing of the report till March 31, 2019 in respect of reporting accounting years ending upto February 28, 2018, due to non-notification of the agreement and resultantly non-activation of the exchange mechanism between India and the USA, said report has to be filed by such constituent entities, whose parent entities are resident in USA and whose reporting accounting years ended after February 28,2018.

In view of the above, in order to remove the genuine hardship faced by the constituent entities referred to under clause (a) or (aa) of said sub-section, whose parent entities are resident in USA, in furnishing of the report under sub-section (4) of section 286 of the Act read with sub-rule (4) of rule 10DB of the Rules, the Board, in exercise of powers conferred under section 119 of the Act, extends the period for furnishing of said report by such constituent entities, in respect of reporting accounting years ending upto April 29, 2018, to April 30, 2019.

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2.    Revised Income tax returns notified

Central Government of India has notified the revised income tax returns and its applicability. 

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3.    Amendments to Form 16 and Form 24Q notified

Central Government of India has notified amendments to Form 16 and Form 24Q.

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COMPANY LAW

4.    Clarification of filing one time return in DPT - 3 Form

Ministry of Corporate Affairs (MCA) has issued following clarification on filing one time return in Form DPT - 3:

1.    The data of Deposits should be filed up to 31st March, 2019 as opposed to the details required to be filed up to 22nd January, 2019 as per earlier notification.
2.    Pending the deployment of Form DPT-3 on the MCA 21 portal, additional fees shall be levied and payable after 30 days from the date of deployment of the form.  

The MCA will issue separate notification amending relevant Rules. 

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5.    Relaxation of additional fees and extension of last date of filing e-Form CRA -2 for certain cases.

Based on representations received, Ministry of Corporate Affairs (MCA) has decided to extend the last date for filing of e-Form CRA -2 (Form of intimation of appointment of cost auditor by the company to Central Government) without payment of additional fees up to 31st May, 2019 in cases where the Companies have been mandated to get its cost records audited for the first time under Companies Act, 2013 on account of Companies (Cost Records and Audit) Amendment Rules, 2018.

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GOODS AND SERVICES TAX

6.    Due date of filing of GSTR – 1  extended

The Board vide Notification No. 17/2019– Central Tax has extended the due date for filing of GSTR – 1 as detailed below.

a.    For taxpayers with aggregate turnover of more than Rs. 1.5 crores for the month of March 2019 the due date of filing is extended from 11th day April 2019 to 13th day of April 2019.

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CUSTOMS

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

The Central Board of Excise and Customs (CBEC) vide Notification No. 30/2019 - 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 5th of April 2019 respectively.  

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