PALMS ADVISORY LLP

05/07/2018

04/07/2018

TDS: Law on whether commision paid to non-resident agents for services rendered outside India accrues in India and whether the assessee is liable to deduct TDS thereon explained (All judgements referred by ITAT)

Section 195 of the Act has to be read alongwith the charging Section 4,5 and 9 of the Act. One should not read Section 195 of the Act to mean that the moment there is a remittance, the obligation to deduct tax automatically arises. Section 195 of the Act clearly provides that unless the income is chargeable to lax in India, there is no obligation to withhold tax. In order to determine whether the income could be deemed to accrue or arise in India, section 9 of the Act is the basis.

The taxpayer paid commission to non-resident agents for services rendered outside India.

The taxpayer had not deducted tax on these payments on the ground that the overseas agents operated in their own country and no part of their income had accrued in India.

DCIT vs. Sterling Ornaments (P) Ltd (ITAT Delhi)

02/07/2018

Due date to link Aadhaar with extended till 31.03.2019
CBDT had allowed time till 30th June, 2018 to link PAN with while filing the tax-returns.

Upon consideration of the matter, the CBDT further extends the time for linking PAN with Aadhaar till 31st March, 2019.

02/07/2018

Section 69 of Income Tax Act, :

Gist:

Hon'ble dismissed the SLP filed by Revenue against the Hon'ble order held in the case of Tejua Rohitkumar Kapadia, that

Purchases cannot be treated as Bogus, if

(i) There is no dispute that the purchases made were duly supported by bills and all the payments have been made by account payee cheques

(ii) The supplier has confirmed the transactions,

(iii) There is no evidence to draw the conclusion that the entire purchase consideration which the assessee had paid had come back to the assessee in cash.,

(iv) All purchases made from were found to have been sold and sales were also accepted by the Assessing Officer.,

(v) Supplier has accounted for purchases made by the assessee and paid taxes on it.

CITATION.
SPECIAL LEAVE PETITION (CIVIL) Diary No(s). 12670/2018

30/06/2018

has started a new initiative of allotment of e-PAN for limited period.

A Paper-less facility wherein only a holding a valid Aadhar Card and having updated mobile and email ID can apply.

THIS IS FREE OF COST. However it is not applicable to Foreign Citizen.

A welcome step from the Government of India for making cost free allotment of PAN to Indian Resident.

We at PALMS are committed in taking such Government initiative to ground zero and for which we shall help all those citizen in guiding and making application for their e-PAN application without any charges.

You may even directly apply by visiting below link :

This is to inform that by clicking on the hyper-link, you will be leaving e-Filing Portal and entering website operated by other parties. Such links are provided only for the convenience of the client and e-Filing Portal does not control or endorse such websites, and is not responsible for their con...

30/06/2018

*GSTN using data analytics to detect tax evasion, under-reporting of sales*

The Goods and Services Tax Network (GSTN) is using data analytics to look at industry outliers who may be under-reporting sales and also to target transactions between related parties specifically shown to avoid paying taxes. *The information technology network has also started matching the e-way bill data with the tax returns*, said Prakash Kumar, chief executive officer of GSTN.

“Since all the processes are online, we have centralised data that is easy to analyse and search for discrepancies,” he said at a press conference, ahead of GST completing a year.

GSTN is also looking at related parties, who may be just reporting all businesses among themselves.

Ajay Bhushan Pandey, chairman of GSTN, said *it is time to leverage the large amount of data generated over the past one year to check for tax evasion*.

GSTN has floated a DRAFT request of a *proposal* for a fraud analytics provider as it looks to detect complex fraud patterns.

via Mint.

01/02/2018

Details of Finance Bill 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 tp 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 beinf 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 Charitable Trust . 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 Derivates 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 Inventorty 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 divedend 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.

01/02/2018

Union Budget Highlights

- Indian stamp act to be modified in consultation with states

- Bank Bill discounting to be linked with gstn

- New gold policy to be announced

- *Fiscal Deficit at 3.5% of gdp for 17-18 and 3.3% of gdp for 18-19*

- Presumptive income tax compliance for business and profession not satisfactory

- 80JJAA days limit reduced for Textile and footwear industry to 150 days

- No adjustment u/s 50C / 43CA if stamp duty value variation is 5%

- *Tax rate reduced to 25% for companies having turnover Upto 250 Cr for Fy2016-17

- *No change in tax slab*

- *Relief to salaries taxpayers - standard deduction of 40000*, however few tax free allowance removed

- Senior citizen - interest income on fd, post office exempt till 50000, medical insurance limit revised

- Payment by Trust in cash above 10k to be disallowed, TDS provision for disallowance

- *LTCG above 100000 to be taxed at 10% without indexation*

- *Cess increased to 4% from 3%*

26/01/2018

A Wellcome step from Government of India, by simplifying procedure for incorporation of company and even making it "ZERO FEE" payment.

Source: https://twitter.com/arunjaitley/status/956500199861452805?ref_src=twcamp%5Ecopy%7Ctwsrc%5Eandroid%7Ctwgr%5Ecopy%7Ctwcon%5E7090%7Ctwterm%5E3

15/01/2018

✅Business Standard

Ø Min panel's proposal to end MAT on SEZs under review

Ø C Sivasankaran warns of ‘action’ against Cyrus Mistry

Ø Arun Jaitley launches India’s 1st agro options contract

Ø Cairn India to invest Rs 37K cr to ramp up production

Ø Govt's new audit clause may give Big 4 a serious jolt

Ø Auto firms to report robust profit growth in Q3

Ø Rails supplied to railways are defect free, says SAIL

Ø NPA disclosure rules: Sebi keen on implementing a revised proposal

Ø Govt working on new schemes for next foreign trade policy to boost exports

Ø Finished steel exports surge 29% in Dec; imports slip 26%

Ø Govt to auction over 9,400 'enemy' properties worth Rs 1tn

Ø P-notes investment declines from Rs 1.31 trn to Rs 1.28 trn in November

Ø Significant competition ahead from pvt sector: CIL chairman

✅Mint:

Ø SEBI permits voluntary exit of two exchanges

Ø GDP growth not justifiable unless benefits reach farmers:FM

Ø Doing business rankings based on hard data: World Bank

Ø Vedanta urges govt to resolve retrospective tax issues

Ø Nine of 10 most valued firms add Rs. 66,619 cr in m-cap

Ø SEBI plans rules for uniform pricing of corporate bonds

Ø Bitcoin fever hits US real estate market

Ø WEF ranks India 30th on global manufacturing index, Japan tops

Ø Govt may drop proposal on self-reporting of income estimates, tax payments

Ø Gold prices hit 7-week high on global cues

Ø HDFC to raise Rs11,104 crore from investors including GIC, KKR

✅Financial Chronicle:

Ø Govt plans review of functioning of independent directors

Ø Facebook might lose $23 bn after announcing changes to News Feed

Ø India needs more inclusive, active social policies, says economist Jean Dreze

Ø Housing and Urban Affairs Ministry seeks three-fold hike in Budget allocation

10/01/2018

✅Business Standard

Ø New industrial policy in few months: Suresh Prabhu

Ø Telecom services cost may rise by 10%

Ø CIL new pricing policy to be linked with quality

Ø Spectrum holding cap set to be relaxed

Ø Jio price cut to delay telcos' Arpu recovery in 2018

Ø Crude oil rises above $68 for first time since May 2015

Ø AI disinvestment process moving 'expeditiously': Govt

Ø RBI's first defaulter list: Liquidation value of steel firms at Rs 540 bn

Ø Insolvency resolution: Vedanta, Tata Steel submit bids for Electrosteel

Ø Sovereign wealth fund proposal back; may become holding company for assets

Ø Essar in talks to sell its Equinox office to Brookfield for Rs 24 billion

Ø Rs 6-trn direct tax collection rescues govt in fiscally difficult year

✅Mint

Ø NMDC gets robust response for OFS

Ø Wheat holding up to fog, ground frost; caution on pest attack

Ø PM to commence Barmer refinery project next week: Pradhan

Ø FMCG revenue seen rising 14.8% in Q3 on better rural demand

Ø BIL Energy to turn ex-bonus on Thursday

Ø Rural indicators point to worsening farm distress

Ø Marks & Spencer seeks technology savings through TCS tie-up

Ø Essar in talks with Brookfield to sell office buildings in Mumbai for Rs2,400 crore

Ø NCLT approves demerger of Emaar MGF

Ø 84 McDonald’s restaurants in north, east India to reopen this week

✅Financial Chronicle

Ø Food bill: Unpaid subsidy may touch Rs 1.25 lakh crore

Ø India mulls 70% safegaurd duty on solar equipment imports

Ø Reliance Infrastructure moves MERC for sale approval of Mumbai power biz to ATL

Ø Mexico inflation climbs at 16-1/2 year high, seen pressuring central bank

Ø Nifty shows early signs of exhaustion

Ø IOB defends decision to set off losses from share premium a/c

Ø Coal India raises thermal coal prices to pay for salary rise

Ø South Indian Bank Q3 net rises 3% to Rs 115 crore

Ø Rs 6,000 cr Bharat-22 ETF round II fund raising likely in Feb