Circulars

Regarding Unregulated Deposit Schemes Ordinance-
2019
The recently-promulgated Banning of Unregulated Deposit Schemes
Ordinance 2019 ruffled a few feathers with news reports and legal experts
expressing concerns over how the ordinance could hurt individuals who raise
quick loans from relatives or friends, and businesses taking loans from
unrelated parties and enterprises.
A series of tweets by the Finance Ministry last week, along with specific
clarifications issued on individuals borrowing from friends and relatives, have
allayed some of the concerns.
We break down the various provisions and exclusions of the ordinance to
explain how it will have an impact on individuals and businesses.
The ordinance
The intent of the ordinance is to check illicit deposit/ponzi schemes that hurt
small investors.
But the words used to describe some of the exclusions, as laid down in Section
2 (4) of the ordinance, kept individuals and businesses on tenterhooks.
The ordinance states that any deposit scheme under which deposits are
accepted or solicited by any deposit-taker by way of business, which is not a
regulated deposit scheme, is banned.
Deposit in the ordinance has been defined as “an amount of money received
by way of advance or loan in any other form by any deposit-taker with a
promise to return whether after a specified period or otherwise either in cash
or in kind in the form of a specified service with or without any benefit in the
form of interest, bonus, profit or in any other form”.
There are several exclusions in the ordinance on what is not a ‘deposit’.
Varying interpretations by legal experts have led to confusion.Individuals
For
instance,
Partnerships
Companies
while There have been several The other concern is
amounts received by an debates by legal whether businesses can
individual by way of experts, which may take unsecured loans
loan from his relatives need more clarification. from unrelated entities
are
excluded,
under
Section 2 (4) (f), there
was
ambiguity
over
whether relatives only
included
immediate
family, and not friends
and far-off relations.
Under Section 2 (4) (e),
any amount received by
way of contributions
towards capital by
partners of any
partnership
excluded
firm
from
is
the
But the ministry has definition of ‘deposit’,
now
clarified
that implying
that
such
“individuals borrowing amounts are allowed
or
taking
loans
or and do not attract penal
money from relatives or provisions under the
business needs or any
other personal reasons
have nothing to fear.
(4)
(l)
excludes
amount received for the
purpose
of
business,
which clearly implies
that businesses can take
unsecured loans from
unrelated parties and
enterprises.
The
ministry has, however,
specifically
clarified
this point by stating that
businesses,
proprietorships,
Also as per Section 2 (4)
(f), amounts received by
a firm by way of loan
from relatives of any of
Such transactions are the partners is excluded
not unregulated deposit from the definition of
schemes as defined in ‘unregulated deposits’
Section 2 (17)”.
2
“small
friends for marriage or ordinance.
medical emergency or
and parties. But Section
partnerships, LLPs and
SMEs
that
take
unsecured loans from
unrelated parties and
enterprises
are
also
exempt under Section 2
(4) (I) of the law”.
and is hence, allowed.
Bottomline: There is no
Also, an individual can But there is uncertainty
receive money from a over
the
money
friend residing abroad, received from a partner
as ‘loan’. Here, the
government will have to
ban on small businesses
receiving loans in the
course of or for business
purposes.subject, of course, to the issue
provisions of FEMA.
further
clarification.
Bottomline: As far as Bottomline:
individuals
concerned,
borrow
As
the
are current provisions read,
they
money
can there is uncertainty over
from whether a partnership
relatives or friends for firm can receive money
any purpose – business from its partner which is
or personal – as per the other
than capital
ministry’s clarification. contribution. Any
amount received from a
partner’s friend is not
allowed.

Respected Members,
We like to inform you that the 3rd Meeting of Managing Committee will held at Radisson Blu Resort Goa, Cavelsossim Beach, South Goa.
Please Note Check Inn time in Hotel will be 2.00 pm onwards. Members are requested to make your travelling arrangements accordingly.
This is for your information and necessary action.
Regards
For FPTA
Hiren Karia
Hon. Secretary

Contents

  1. Income Tax

  1. Goods & Service Tax (GST)

3. FEMA

4 Company Law

Income Tax

Aadhaar mandatory for Income Tax Returns

Constitutional validity of Aadhaar has been upheld by the Hon’ble Supreme Court of India in September 2018. Consequently, in terms of Section 139AA of Income Tax Act., 1961 and order dated 30.6.2018 of the Central Board of Direct Taxes, Aadhaar-PAN linking is mandatory now which has to be completed till 31.3.2019 by the PAN holders requiring filing of Income Tax Return.

Procedure for Aadhaar PAN linking has been published vide notification no. 7 dated 29.6.2017 by Pr. Director General of Income Tax (Systems). Advisements were also published in leading newspapers for information of PAN holders.

Assessing Officers should appear before Commissioner Appeals & properly defend ‘Quality’ Assessment Orders: CBDT

The CBDT has issued a directive dated 14th February 2019 in which it has stated that all assessment orders which are marked as “quality orders” should be duly represented before the CIT(A) by the department and properly defended with verbal and written submissions. The CBDT has stipulated a clear-cut SOP on the subject.

It is stated that since the monetary limit of tax effect for filing appeal before ITAT (Tribunal) against Commissioners Appeal’s order has been raised to Rs. 20 lacs vide CBDT Circular No. 3 dated 11.07.2018, it is expedient that the cases are properly defended before the CIT Appeals, as the department will have no recourse to any appeal against the order of CIT Appeals.

(Source: http://itatonline.org)

Press Release by CBDT dated 22nd January 2019 about identifying Non-filers through electronic system

The Non-filers Monitoring System (NMS) aims to identify and monitor persons who enter into high value transactions and have potential tax liabilities but have still not filed their tax returns. Analysis was carried out to identify non-filers about whom specific information was available in the database of the Department. The sources of information include Statement of Financial Transactions (SFT), Tax Deduction at Source (TDS), Tax Collection at Source (TCS), information about foreign remittances, exports and imports data etc. Data analysis has identified several potential non-filers who have carried out high value transactions in Financial Year 2017-18 but have still not filed Income Tax Return for Assessment Year 2018-19 (relating to FY 2017-18).

The Department has enabled e-verification of these NMS cases to reduce the compliance cost for taxpayers by soliciting their response online. It is reiterated that there is no need to visit any Income Tax office for submitting response, as the entire process is to be completed online.

Non-filers are requested to assess their tax liability for AY 2018-19 and file the Income Tax Returns (ITR) or submit online response within 21 days. If the explanation offered is found to be satisfactory, matters will be closed online. However, in cases where no return is filed or no response is received, initiation of proceedings under the Income-tax Act, 1961 will be considered

(https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/744/PressRelease_CBDT_identifies_Non_filers_NMS_22_1_19.pdf)

Gain on Penny Stocks

In the case of Mahavir Jhanwar vs. ITO, Kolkata Tribunal has held that :

If the assessee has filed evidences for (a) purchase of shares, (b) payment by account payee cheque, (C) balance sheet disclosing investments, (d) demat statement (e) evidence of sale of shares through stock exchange, (e) bank statement reflecting sale receipts, (f) brokers ledger, (g) Contract Notes etc., the gains cannot be treated as bogus on human probabilities, suspicion, conjectures and surmises.

(Source: http://itatonline.org

CBDT forms panel to examine issues and suggestions for better litigation management

The Central Board of Direct Taxes (CBDT) has constituted a five-member committee to examine the suggestions and issues on litigation management that emanated from a judicial conference held in January. The committee has been tasked with examining cases where the appellate tribunal (ITAT) has passed perverse or irregular orders. Additionally, it will also examine the feasibility of creating a separate bench of the ITAT for international tax in places where the pendency is high.

CBDT directive regarding withdrawal of Low Tax Effect Appeals

Further to the circular no. 3 of 2018, CBDT has issued directives on 15.01.2019 for withdrawal of appeals from ITAT and High Court. It mentions that based on the data received till date, substantial scope of withdrawal of identified appeals exists. It has instructed the concerned officers to ensure that immediate efforts are made to arrange personal meetings with senior officials of registry of ITAT and High Court so that the appeal withdrawal process is completed quickly.

Entire exercise of withdrawal of appeals must conclude by January end and withdrawal figures intimated to the Board on email at cit.aj.cbdt@incometax.gov.in latest by 31st January, 2019 in the format prescribed.

(Source: http://itatonline.org)

Income-Tax Deduction from Salaries during the Financial Year 2018-19 under Section 192 of the Income-tax Act, 1961regarding.

In Circular No.1/2019 dated 1st January, 2019 on the above-mentioned subject, the provisions of section 80TTB were inadvertently not correctly explained in para 5.5.12 of the circular. The correct position of the admissibility of deduction under section 80TTB is provided as under:

Section 80TTB introduced by Finance Act, 2018, w.e.f 01 .04.2019, allows deduction to a senior citizen from his gross total income in respect of income by way of interest on deposits with

(a) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);

(b) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or

(c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),

The amount of deduction in respect of above interest on deposit is as under:

(i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount; and

(ii) in any other case, fifty thousand rupees.

However, no deduction is allowed under section 80TTB to any partner of the firm or any member of the association or any individual of the body if said interest is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals.

For this purpose, “senior citizen” means an individual resident in India who is of the age of sixty years or more at any me during the relevant previous year. However, taxpayers claiming deduction under section BOTTB shall not be eligible for deduction under section 80TTA”

2. In view of above, Circular No.1/2019 may accordingly be treated as modified to this extent. The earlier corrigendum dated.01 .02.2019 stands withdrawn and cancelled.

(Source: https://www.incometaxindia.gov.in/communications/circular/revised_corrigendum_80b_11_ 2_19.pdf)

GST (Goods & Service Tax)

Notifications

The Government has notified 1 February, 2019 as the date from when various provisions of the amendments to the GST statutes comes into force. Some of the major amendments which have come into effect are summarized below:

Sr. No.

Relevant Section

Provisions

Implication / Comments

1

Section 9(4) – Levy and collection

Substitution of Section 9(4)

Sec 9 (4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of taxable goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both

Erstwhile section 9(4), mandated that all registered persons shall pay the tax on reverse charge basis on purchases made from unregistered persons. Further, an exemption for the same was provided for trade facilitation.

With this substitution of section 9(4), Government will notify a class of registered persons who would be liable to pay tax on reverse charge basis in case of receipt of specified goods/services from an unregistered supplier

The details of such specified persons and specified goods/services are to be notified in future.

2

Section 16(2) – Availment of Input Tax Credit (ITC)

Append section 16

Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, ––

(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;

(b) he has received the goods or services or both.

Explanation. — For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services,

(i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;

(ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person;

One of the conditions for availing credit by registered person is the receipt of goods or services or both by him.

To satisfy the requirement of receiving services for availing ITC, it is stated that where the services are provided by the supplier to any person on the direction of and on account of registered person it shall be deemed that such registered person has received the services.

Presently this deeming fiction is applicable only in case of “bill-to-ship-to” supply of goods. The same has been extended to services as well which will be beneficial for taxpayer.

3

Section 17(5) – Blocked credit

Clause (a) is substituted

Clause (aa) is inserted

Clause (a): Motor vehicles for transportation of persons having approved seating capacity of not more than 13 persons (including the driver) and other conveyance, Except when they are used for making the following taxable supplies, namely

(A) Further supply of such motor vehicles;

or

(B) Transportation of passengers; or (c) Imparting training on driving such motor vehicles;

Clause (aa): Vessels and aircraft Except when they are used––

(i) For making the following taxable supplies, namely: —

(A) Further supply of such vessels or aircraft; or (B) transportation of passengers; or

(C) imparting training on navigating such vessels; or

(D) imparting training on flying such aircraft;

(ii) For transportation of goods

Capacity: It expands the scope of ITC availability in case of motor vehicles having approved capacity of more than 13 persons (including the driver) to the extent that same is used for business purpose. If capacity is less than 13, then ITC is allowed only in case it is used for specified purposes i.e. sub- clause (A), (B), (C).

Removal of word “Other Conveyance”:

The amendment is sought to make it clear that ITC would be available in respect of dumpers, work-trucks, fork-li trucks and other special purpose motor vehicles.

ITC on Vessels or Aircraft is not allowed, except used for making supplies as per sub- clause (i) and (ii).

4

Section 17(5) – Blocked credit

Clause (ab) inserted

Clause (ab): Services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): – Provided that the input tax credit in respect of such services shall be available—

where the motor vehicles, vessels or aircraft

referred to in clause (a) or clause (aa) are

used for the purposes specified therein;

(where received by a taxable person

engaged—

(I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him

ITC would not be available for said services obtained in relation to motor vehicle, vessel or aircraft except used for sub-clause (i) and (ii).

5

Section 17(5) – Blocked credit

Clause (b) is substituted

Clause (b): Following supply of goods or services or both: —

(i) Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:

Provided that the ITC in respect of such goods/services shall be available where an inward supply of such goods/ services is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;

(ii) Membership of a club, health and fitness centre; and

(iii) travel benefits extended to employees on vacation such as leave or home travel concession:

Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide to its employees under any law for the me being in force.

Said amendment introduced clarity in provisions of ITC eligibility in case of food, Renting of vehicle, whether provided under any law.

Presently, in accordance with the provisions of section 17(5)(b), ITC is not available in respect of food and beverages, health services, travel benefits to employees etc.

This sub-section is being amended to allow ITC in respect of such goods or services or both where the provision of such goods or services or both is obligatory for an employer to provide to its employees under any law for the me being in force.

This is a taxpayer-friendly amendment.

6

Section 49(5) Order of Utilization of ITC

Sec 49(5) Proviso added after clause (c) “Provided that the input tax credit on account of State tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax”

Sec 49(5) Proviso added after clause (d) “Provided that the input tax credit on account of Union territory tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax”

Clauses (c) and (d) to Section 49(5) are amended to provide that the credit of SGST/ UTGST can be utilized for payment of IGST only when the balance of the input tax credit on account of CGST is not available for payment of IGST.

7

Section 49A Order of Utilization of IT

Addition of section 49A

Sec 49A “Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilized towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment”

By virtue of the said amendment, a taxpayer would be able to utilize credit on account of CGST, SGST/UTGST, only after exhausting all the credit on account of IGST available to him.

This is being done to minimize fund settlement on account of IGST.

The manner of utilization of GST credits is summarized below:

Payment for

First set off from

Then set off from

SGST

IGST

SGST

CGST

IGST

CGST

IGST

IGST

CGST& SGST

8

Section 49B Power retained to change the order of utilization in future

Addition of section 49B

Sec 49B “Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilization of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax”

This Section provides an enabling power for the Government to prescribe any specific order of utilization of ITC for payment of taxes.

This provision is subject to clause (e) and (f) of Section 49(5) i.e. CGST and SGST/UTGST cannot be cross utilized.

9

Schedule I Expansion of Scope of taxability under RCM

Omission

Import of services by a person taxable from a related person or from any of his other establishments outside India, in the course or furtherance of business

This amendment is to ensure that Import of services by entities which are not registered under GST (say, they are only making exempted supplies) but are otherwise engaged in business activities shall be liable to tax when received from a related person or from any of their establishments outside India.

10

Schedule III

Activities or Transactions Which Shall Be Treated Neither As A Supply of Goods Nor A Supply Of Services

Addition

7. Supply of goods from a place in the nontaxable territory to another place in the non-taxable territory without such goods entering into the taxable territory.

8. (a) Supply of warehoused goods to any person before clearance for home consumption. (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. Explanation. – For the purposes of this clause, the expression “warehoused goods” shall have the meaning as assigned to it in the Customs Act, 1962.

The scope of Schedule III is expanded to include merchant trading, supply of goods in the course of High Sale and Sale of imported warehoused goods.

Thus, these transactions shall neither be treated a supply of goods nor supply of services.

  • Assesses will be able to obtain multiple registrations in the same State for separate places of business, which was previously possible only for separate business verticals. The concept of business verticals for separate registrations has been done away with.

  • A single credit/ debit note can be issued pertaining to multiple invoices.

  • Transition credit of Cess has been specifically restricted.

  • A service can be said to be exported even if the consideration is received in Indian rupees wherever permitted by Reserve Bank of India, if other conditions for treating a service as exports of services is fulfilled.

  • The place of supply for services of transportation of goods, where the transportation of goods is to a place outside India, will be the place of destination of such goods, when the location of the supplier and recipient of services are in India.

[Notification No.02 /2019-Central Tax dated 29-01-2019]

Extended the me limit to file return in Form GSTR – 7 (i.e. GST TDS Return)

The due date for filing return in Form GSTR – 7 for the months of October 2018 to January 2019 is extended ll February 28, 2019.

[Notification No.7/2019 & 8/2019-Central Tax dated 31-01-2019 & 08-02-2019 respectively]

FEMA

External Commercial Borrowings (ECB) Policy – New ECB Framework

It has been decided by the RBI, in consultation with the Government of India, to rationalize the existing framework for ECB and Rupee Denominated Bonds in light of the experience gained to improve the ease of doing business. The new framework is instrument neutral and would further strengthen the An-Money Laundering / Counter Financing of Terrorism framework. The salient features of the new framework are as under:

Merging of Tracks: Merging of Tracks I and II as “Foreign Currency denominated ECB” and merging of Track III and Rupee Denominated Bonds framework as “Rupee Denominated ECB”.

Eligible Borrowers: This has been expanded to include all entities eligible to receive FDI. Additionally, Port Trusts, Units in SEZ, SIDBI, EXIM Bank, registered entities engaged in micro-finance activities, viz., registered not for profit companies, registered societies/trusts/cooperatives and non-government organizations can also borrow under this framework.

Recognized Lender: The lender should be resident of FATF or IOSCO compliant country. Multilateral and Regional Financial Institutions, Individuals and Foreign branches / subsidiaries of Indian banks can also be lenders.

Minimum Average Maturity Period (MAMP): MAMP will be 3 years for all ECBs. However, for ECB raised from foreign equity holder and utilized for some specified purposes would be 5 years. Similarly, for ECB up to USD 50 million per financial year raised by manufacturing sector, which has been given a special dispensation, the MAMP would be 1 year.

Late Submission Fee (LSF) for delay in Reporting: Any borrower, who is otherwise in compliance of ECB guidelines, except for delay in reporting drawdown of ECB proceeds before obtaining LRN or Form ECB 2 returns, can regularize the delay by payment of LSF as per the laid down procedure.

ECB up to USD 750 million or equivalent per financial year, which otherwise are in compliance with the parameters and other terms and conditions set out in the new ECB framework, will be permitted under the automatic route not requiring prior approval of the Reserve Bank. The designated AD Category I bank while considering the ECB proposal is expected to ensure compliance with applicable ECB guidelines by their constituents. Any contravention of the applicable provisions will invite penal action or adjudication under the Foreign Exchange Management Act, 1999.

Lending and borrowing under the ECB framework by Indian banks and their branches/subsidiaries outside India will be subject to prudential guidelines issued by the Department of Banking Regulation of the Reserve Bank. Further, other entities raising ECB are required to follow the guidelines issued, if any, by the concerned sectoral or prudential regulator.

(RBI/2018-19/109 A.P. (DIR Series) Circular No. 17 dated January 16, 2019)

Company Law

The Companies (Amendment) Ordinance, 2019

Date of publication in the Official Gazette: 12th January, 2019

PURPOSE AND DATE OF COMMENCEMENT

The President of India has promulgated The Companies (Amendment) Ordinance, 2019 to give continued effect to the provisions of The Companies (Amendment) Ordinance, 2018 to amend The Companies Act, 2013. The Companies (Amendment) Ordinance, 2019 shall be deemed to have come into force since 02nd November, 2018.

SYNOPSIS

Financial Year Indian Company and foreign counterpart-

The company or body corporate in India can make an application with the Central Government instead of NCLT for following Uniform Financial Year as that of its foreign counterpart company for consolidation of accounts.

Certificate of Commencement of Business-

Before commencement of business or exercising the borrowing powers, every company having share capital (incorporated after November 2, 2018) shall submit a declaration in Form INC-20A within a period of 180 days from the date of incorporation, to the effect that every subscriber to the memorandum has paid the value of the shares as agreed for and the Registered Office is verified by filing necessary returns with the Registrar.

The Registrar shall have power to physically verify the Registered Office of the company in case of him having reasonable cause to believe that, no business or operations are being carried out by the company.

Failure to comply with this Section in a continuous manner may be an additional ground for Registrar to strike off of the name of the company apart from imposing heavy financial penalties.

Change of status of a Public Limited Company to a Private Limited Company-

An Application for alteration of Articles of Association to give effect to the conversion of a public limited company to a private limited company to be made to “Central Government” in place of “Tribunal”.

Issue of shares at discount-

Heavy financial penalties for non – compliance have been imposed instead of imprisonment.

Notice to be given to the Registrar for alteration of share capital-

Specific financial penalties for non – compliance have been prescribed.

Charge creation-

Time-line for charge creation has been reduced.

Form CHG-1 has to be filed with the Registrar of Companies within 30 days from the date of charge creation.

For filing Form CHG-1 after 30 days of creation, but before 60 days from the date of creation, additional fees are to be paid.

An Application to be filed with The Registrar of Companies in case of non-filing of Form CHG-1 within 60 days of creation.

The Registrar may extend additional 60 days from the date of Application for which an ad valorem fee shall be levied.

Non filing of Annual Return and Financial Statements-

Heavy financial penalties for non – compliance have been imposed instead of imprisonment.

Explanatory Statement-

Specific financial penalties for non – compliance have been imposed.

Resolutions and Agreements to be filed with The Registrar of Companies-

Specific financial penalties for non – compliance have been imposed.

Non – compliance of the provisions related to resignation of the Statutory Auditors-

Specific financial penalties for non – compliance have been imposed.

Disqualification to hold the position as a Director in case of increase in the number of Directorships beyond a certain number-

Breach of maximum limit of directorship is considered as additional ground of disqualification of Director.

Limit- 20 out of which 10 Directorships including alternate Directorships in Public Limited Companies.

Compounding Authority threshold increased for The Regional Director-

The Regional Director can pass compounding orders for offences punishable with penalties of Rs. 25 Lakhs. Earlier the limit was that of Rs. 5 Lakhs.

Penalties for repeated defaults-

Penalty for a repeated default has been incorporated.

Where a penalty in relation to a default has been imposed on a person under the provisions of the Companies Act, 2013, and the person commits the same default within a period of 3 years from the date of order imposing such penalty, passed by the adjudicating officer or Regional Director as the case may be, it or he shall be liable for the second and every subsequent defaults for an amount equal to twice the amount provided for such default under the relevant provision of the Companies Act, 2013.

Penal Provisions-

Certain changes in penal provisions in various Sections.

Re-categorization of offences-

Re-categorization of certain offences, which are in the category of compoundable offences to an in-house adjudication framework, wherein defaults would be subject to the penalty levied by an adjudicating officer.

http://www.mca.gov.in/Ministry/pdf/NoficationCAO2019_15012019.pdf

The National Company Law Tribunal (NCLT) Amendment Rules, 2019, dated 15th January, 2019

In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the National Company Law Tribunal Rules, 2016 namely:

In the National Company Law Tribunal Rules, 2016 in rule 71 – Application for obtaining the approval of the Tribunal for the consolidation and division of all or any of the share capital into shares of larger amount than its existing shares

In sub rule (3) in clause (b) – serve by registered post with acknowledgement due, a notice together with the copy of the application to the “Regional Director” (substituted for the words “Central Government”), Registrar of Companies and to the Securities and Exchange Board of India, in the case of listed company and to the regulatory body, if the company is regulated under any other act AND;

In sub rule (4) – Where any objection of any person whose interest is likely to be affected by the proposed application has been received by the applicant, it shall serve a copy thereof to the “Regional Director” (substituted for the words “Central Government”), Registrar of Companies and to the Securities and Exchange Board of India, in the case of listed company and to the regulatory body, if the company is regulated under any other act.

http://www.mca.gov.in/Ministry/pdf/NCLTAmendmentRules_18012019.pdf

The Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019 dated 22nd January, 2019

The Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019 (brought into effect from the 22nd January, 2019) amends the Companies (Prospectus and Allotment of Securities) Rules, 2014 with the amendments which are as follows:

  • In Rule 9A (Issue of securities in dematerialized form by unlisted public companies), after Sub rule (10), the following should be inserted namely:

11) This rule shall not apply to an unlisted Public company which is:

i) a Nidhi

ii) a Government Company

iii) a wholly owned subsidiary

http://www.mca.gov.in/Ministry/pdf/CompaniesProspectusAllotmentRule_23012019.pdf

The Companies (Acceptance of Deposits), Amendment Rule, 2019

The Companies (Acceptance of Deposits) Amendment Rule, 2019 (brought into effect from 22nd January, 2019) amends the Companies (Acceptance of Deposits) Rules, 2014 with the amendments as follows:

In Rule 2 (1)(c)(xviii), the word Real Estate Investment Trust has been inserted for the category of any amount received which not included in definition of Deposit.

In Rule 16A, there has been an insertion made of following sub rule 3: Every Company other than Government Company shall file a Onetime return in Form DPT – 3 of outstanding receipt of money or loan by a Company from 1st April, 2014 to 22nd January, 2019 but not considered as Deposits as per Rule 2 (1)© of the Companies (Acceptance of Deposits) Rules, 2014 within 90 days from date of publication date (22nd January, 2019) i.e. on or before 21st April, 2019.

Form DPT – 3 has been revised as per new amendments.

http://www.mca.gov.in/Ministry/pdf/AcceptanceDepositsAmendmentRule_22012019.pdf

The Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order,2019

The Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 came into force from the date of its publication in the Official Gazette i.e. from 22nd January, 2019.

The Central Government has directed that, all companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed forty five days from the date of acceptance (date of actual delivery of goods or services OR in case any objection is raised in wring in that regard, the date of removal of such objection) or the date of deemed acceptance (in case no objection is raised, date of actual delivery of goods or services) of the goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) (hereafter referred to as “Specified Companies”), shall submit a half yearly return to the Ministry of Corporate Affairs stating the following: (a) the amount of payment due; and (b) the reasons of the delay.

Every specified company shall file a return as per MSME Form I, by 31st October for the period from April to September and by 30th April for the period from October to March.

Further, initially, every specified company shall file in MSME Form I, details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order (22nd January, 2019) within thirty days from the date of publication of this notification i.e. up to 20th February, 2019.

http://www.mca.gov.in/Ministry/pdf/MSMESpecifiedCompanies_22012019.pdf

Notification of Section 465 of the Companies Act 2013 dated 30th January, 2019

The Central Government appoints 30th January, 2019 as the date on which the provisions of Section 465 of the said act in so far as they relate to the repeal of the Companies Act, 1956 (that in except in so far as they relate to the repeal of the Registration of Companies (Sikkim) Act, 1961 shall come into force.

By virtue of Section 465 of the Companies Act, 2013, the corresponding provisions of the Companies Act, 1956 are not applicable.

Gist of Section 465:

Repeal of Certain Enactments and Savings.

The Companies Act, 1956 and the Registration of Companies (Sikkim) Act, 1961 (hereafter in this section referred to as the repealed enactments) shall stand repealed.

http://www.mca.gov.in/Ministry/pdf/NotificationSecon465_31012019.pdf

The above discussion is only for general use and knowledge purpose. Please contact your Tax Advisor for a detailed discussion, analysis and conclusion regarding your tax issues and situations. DO NOT rely solely on the discussion and information above.

RUSSIA DELEGATION
2019
7 NTS – 8 DAYS
21ST APRIL – 28TH APRIL -2019
MOSCOW – SAINT PETERSBURG
Russia, the world’s largest nation, borders European and Asian countries as well
as the Pacific and Arctic oceans. Its landscape ranges from tundra and forests to
subtropical beaches. It’s famous for Moscow’s Bolshoi and St. Petersburg’s
Mariinsky ballet companies. St. Petersburg, founded by Russian leader Peter the
Great, has the baroque Winter Palace, now housing part of the State Hermitage
Museum’s art collection.
CLIMATE
MOSCOW – SAINT PETERSBURG, RUSSIA
2°C to 15°C
MOSCOW
3 NTS
SAINT
PETERSBURG
4 NTS
MILL VISIT
DIMITROV – VOLGA
ST. PETERBURG
MILL
ARKHANGELSK
S. BALA
9841950894
TENTATIVE DAY WISE ITINERARY
DAY 1: 21ST APRIL – 2019 – SUNDAY: ARRIVE MOSCOW(L/ D)
• Meet & greet at airport in Moscow
• Airport – Hotel transfer in A/c vehicle
• Buffet Lunch at Indian restaurant ( Lunch) Lunch on the way to hotel.
• Check-in to Hotel after 14:00hrs. Panoramic City tour.
• Reaching Red Square for walking tour of below attractions:-
• Red square Kremlin
• St.Basil’s Cathedral ( outside )
• Lenin Tomb ( outside )
• Bolshoye Theatre ( outside )
• Buffet Dinner at Indian restaurant (Dinner), transfer in A/c vehicle.
• Overnight at hotel in Moscow.
DAY 2:22ND APRIL – 2019 – MONDAY DIMITROV ILLIM GROUP & SEGEZHA & SFT GROUP CITY
OFFICE -(B, L, D)
• After buffet breakfast Visit Dimitrov Illim Group and Post Lunch visit Mill office of
Segezha and SFT group
DAY 3:23RD APRIL MOSCOW – INDIAN EMBASSY &, MOSCOW (B, L, D)
After breakfast, Meeting with Indian Embassy – Moscow. Later after lunch proceed for a city
tour left out. Dinner at Indian Restaurant. Overnight in the Moscow.
DAY 4:24TH APRIL-2019 MOSCOW –VOLGA PAPER MILL – ST. PETERSBURG (B, L, D)
After breakfast, Proceed early for a Train at 0930hrs to Volga, Pulp & Paper Mill (GOJ)– and
take a night flight at 1840hrs to St. Petersburg. Overnight in St. Petersburg.
DAY 5 :25
TH APRIL-2019 ST.PETERSBURG PAPER MILL & ILLIM GROUP CENTRAL OFFICE (B, L, D)
After breakfast, Proceed for SAINT-PETERSBURG PAPER MILL .& Post Lunch Visit Illim
Group Central Office Dinner at Indian Restaurant. Overnight in the St. Petersburg
DAY 6:26TH APRIL-2019 ST. PETERSBURG- VISIT ARKHANGELSK PAPER MILL (B, L, D)
After breakfast, proceed to ARKHANGELSK PAPER MILL.Take a flight & Return at 1750Hrs.
Lunch at your convenient & Dinner at Indian Restaurant.
DAY 7:27TH APRIL -2019 ST.PETERSBURG –CITY TOUR (B, L, D)
Arrive and breakfast. Later Proceed for city sightseeing tour with Photo stops including summer
gardens, Neva River Embankments, Visit Peter & Paul Fortress. Lunch at Indian Restaurant.
Visit Hermitage Museum, one of the largest museums in the world, Walk at Palace square. Enjoy
Folklore show at Nikolaevsky palace and “Feel yourself Russian”. Dinner at Indian Restaurant,
Overnight in St.Petersburg. (B, L, D)
DAY 8:28
TH APRIL-2019 – DEPARTURE – ST. PETERSBURG (B, L)
After breakfast, checkout the hotel. Lunch at Indian Restaurant. Transfer to the Airport to board
flight. (B, L)
COST PER PERSON ON DOUBLE/TWIN SHARING BASIS:
PRICE IN DETAILS: PERIOD: 21ST APRIL 2019 –28TH APRIL 2019 (LAST DEPARTURE DATES)
PER PERSON ON TWIN SHARING -MIN OF 40-45 PAX TRAVELLING TOGETHER- MINIMUM 12 PAX FROM EACH HUB
AIRLINE HOTEL ENVISAGED PACKAGE COST
EMIRATES (EK) PARK INN BY RADISSON IZMAILOVO & PARK INN
PARIBALTIYASKAYA OR SIMILAR
INR 142850
+ 5 % GST
SERVICES INCLUDED
1. Round Trip Economy class Airfare from their respective hub using Emirates Airlines.
2. 03 Nights’ accommodation in above mentioned hotel or similar with breakfast in Moscow.
3. 04 Nights’ accommodation in above mentioned hotel or similar with breakfast in St. Petersburg.
4. Professional fee paid by FPTA Delegates to Indo-Russian Chamber of Commerce & Industries
5. Buffet breakfast at the hotels and free WIFI
6. 6 Lunches & 7 Dinners
7. 1 Train Journey and 3 Internal Flight are included as per itinerary
8. 2nd Class tickets on Train from Moscow to Volga – Prices are subject to availability at the time of
booking CONSIDERED 0930 hrs TRAIN
(Kindly note to maintain group fare ITS MINIMUM 20 PAX, we need to prepay and issue all train
tickets at least 30 days prior to departure or else the fares applicable will be open fares and can
be much higher as compared to group fares)
9. S7 flight to St. Petersburg @ 2110 hrs included – Fares are subject to availability at the time of
booking
10. Return Flight between St. Petersburg to Arkhangelsk
11. Cost of Russian Visa
12. Overseas Medical Insurance below 55 Yrs ( Above 55 Yrs as per Insurance company policy)
13. All Delegate’s confirmation subject to final approval by FPTA- International Committee
14. Service of Professional Tour Manager
NOTE:
 The transfer other than Moscow / St Petersburg – will be borne by mills or extra
(additional)
 The above cost is subjected availability at the time for confirmation
TOUR PRICE EXCLUDES
– Meals (other than mentioned in the program)
– Drinks
– Mineral water beyond that supplied
– Tips
– Early check in or late check out
– Insurances
– Optional excursions and activities
– Additional transfer required due to any emergency situation
– Items of a personal nature (Phone calls, laundry, beverage)
– Peak season surcharges if any – All not mentioned above
FLIGHT DETAILS IN EMIRATES
EX- CHENNAI – 10 PAX
1 EK 547 20APR MAA DXB 2215 0100
2 EK 133 21APR DXB DME 0630 1040
3 EK 176 28APR LED DXB 2355 0655
4 EK 546 29APR DXB MAA 1450 2030
EX- MUMBAI – 10 PAX
1 EK 509 20APR BOM DXB 2220 0005
2 EK 133 21APR DXB DME 0630 1040
3 EK 176 28APR LED DXB 2355 0655
4 EK 506 29APR DXB BOM 0930 1410
EX- DELHI – 10 PAX
1 EK 515 20APR DEL DXB 2150 2359
2 EK 133 21APR DXB DME 0630 1040
3 EK 176 28APR LED DXB 2355 0655
4 EK 516 29APR DXB DEL 1000 1445
EX- HYDERABAD – 10 PAX
1 EK 529 20APR HYD DXB 2150 2355
2 EK 133 21APR DXB DME 0630 1040
3 EK 176 28APR LED DXB 2355 0655
4 EK 528 29APR DXB HYD 1510 2015
TOUR COST DOESN’T INCLUDE
-Any Increase in the airfare charged by the airlines on air your air ticket (Currently Calculated
Dec , 2018 rates)
-Any increase in the rate of exchange leading to an increase in the surface transportation and land
arrangement which may come into effect prior to departure.
-Cost of relevant foreign exchange to be surrendered by the passengers out of the Basic Travel
Quota Scheme.
-Entrance fees other than what is mentioned in the itinerary
-Porterage charges, Tips, Insurance, laundry, wines, Corkage, mineral water, telephone charges,
Room Service, Beverages, optional tour and al item of personal nature and also food and drink
not forming part of the group menus.
-Early Check in & Late Checkout: International Check in (1400 hrs)/Check out (1200 hrs)
-Alcohol, Conference equipment, Theme décor, Entertainment etc during Conference or Dinner
at the hotel
-Surcharge rates may be applicable on the entire package, depending upon the final date of
travel.
-All Hotels do not have tea/coffee making facility in room. The same differs hotel to Hotel and
city to city
-Anything not specifically mentioned in the ―Package Tour Price Includes‖ column
TERMS & CONDITIONS
-Our tour price is subject to a minimum 40-45 Adults Full Paying Adult traveling together, In
case. Min of 40-45 Pax Travelling Together- Minimum 15 Pax from Each Hub of any changes of
the number of the group attendees; our rates will be changed accordingly
-No refund on unutilized services
-Tour cost is subject to change with respect to any increase in visa charges, airfare, taxes and/or
any other cost factor that is not within M/S. HOLIDAY PARK PVT LTD control at the time of
giving this cost.
-The names/passports of all qualifiers need to be given to M/S. HOLIDAY PARK PVT LTD one
month prior to the date of departure.
-All the above is just an offer – No Reservation has been made on your behalf
-The above quote is based on current fares for both land and air applicable in market.
-In case of any increase in the Airport taxes or fuel surcharge, the difference in the cost must be
paid. The proof from the Airlines and government for the same will be submitted for your kind
reference.
-We are not holding any reservations on Airlines & Hotel for the above group. And the same is
subject to availability/change on clients preferred dates, failing which there will be a supplement
cost.
-All the above rates are subject to availability of hotel rooms at the time of booking.
-All Hotels do not have tea/coffee making facility in room. The same differs hotel to Hotel and
city to city
-Late sitting in a restaurant for meals is totally subject to the terms & conditions of the hotel /
restaurant used. Same will be requested but cannot be guaranteed.
-If the hotel is not available, we reserve the right to offer an alternative of a similar standard
-If passengers depart or arrive separate to the group, additional charges will be levied and same
will have to be paid by the individual.
-In case of currency fluctuations of more than 3% or amendment in local Government taxes, we
reserve the right to adjust the tour price accordingly.
-Any Payments through Credit Card will attract bank charges, to be paid to directly.
-Kindly note that advance paid to the airlines / hotel to hold inventory is Non-Refundable.
-Any incidental or actual expenses to be paid over and above
-Above rates are valid only for the above group travelling during APRIL 2019
-Passenger less than 12 years old is considered as child.
Grant of visa on arrival depends on sole discretion of Immigration Authority and M/S. Holiday
Park Pvt Ltd is not responsible for any non-grant of visa to traveler.
-Kindly avoid being over drunk by intake of hard drinks during the flights to avoid any
inconvenience during visa on arrival, Immigration and custom process.
-The airfare and the rate of exchange is as of DEC 2018 (1 EURO = INR 81 ) and is subject to
change with or without prior notice due to frequent fluctuations in the airfare, taxes and rate of
exchange.
PAYMENT & CONFIRMATION
– We request for a purchase order and Payment of INR 70,000 advance of the estimated
business value at the time confirmation to proceed with the bookings.
– Balance payment before 30 days of departure
– All payments are non-refundable & final payment.
– All Payments to be made by Cheque / RTGS in favor of ―M/S. HOLIDAY PARK PVT
LTD .
– Any payments through credit card will attract bank charges to be paid to M/S. HOLIDAY
PARK PVT LTD additionally.
– Any incidental or actual expenses to be paid over and above the tour price.
CANCELLATION POLICY
-If circumstance make you cancel your tour, the cancellation must be intimated to us in writing.
-When a cancellation is made 60 days before departure: As charged by airlines plus
M/S. HOLIDAY PARK PVT LTD Management Fee. (Rs.1500) & Visa: As actual cost plus
Rs 500 service charge per visa and other services.
-45 – 30 days prior to commencement of service 75 % of Tour Cost
-30 days prior to commencement of service 100 % of Tour Cost
-All amendments, etc will need to conform to each airline’s policy on such matters.
BANK DETAILS : CONTACT DETAILS
M/S. HOLIDAY PARK PRIVATE LIMITED Ms. Praveena – Manager – Operation
ICICI BANK +91-9952970929
CURRENT ACCOUNT : 000905500708
NUNGAMBAKKAM BRANCH
IFSC Code: ICIC0000009
MICR Code: 600229003
GST NO : 33AADCH3180Q1ZB
Thanks & Best Regards,
S. Bala
Business Head
M/S. Holiday Park Private Limited
1F4, Metro Tower, 115, Ponamallee High Road,
Pursaiwakkam, Chennai – 600 084
Phone: +91-44-48554939 /
Mob : +91-9841950894
Email: bala@holidayparkindia.com

Contents

  1. Income Tax

  1. Goods & Service Tax (GST)

3. FEMA

4 International Taxation

5 Company Law

6 U.S. Tax Laws and Compliance

Income Tax

Reliance on statement of third party without giving opportunity to cross examine would against principle of natural justice

Delhi ITAT in the case of Anubhav Jain vs. ITO has held that the appellant had contested the truthfulness of the statements of the two witnesses and wanted to discredit their testimony for which purpose it wanted to avail the opportunity of cross-examination. Reliance by the AO on statements of third pares without giving the assessee an opportunity of cross-examination is a gross failure of the principles of natural justice and renders the assessment order a nullity

(http://itatonline.org)

CBDT clarification regarding filing of Low Tax Appeals by Income Tax Department

The CBDT has issued a leer dated 11th December 2018 by which it has issued an important clarification regarding the filing of low tax effect appeals by the Department as stipulated in Circular No. 3 of 2018 dated 11.07.2018 and leer issued vide No. 279 /Misc.142/2007 -ITJ(Pt) dated 20.08.2018

It was also clarified in CBDT Circular No. 3 of 2018 dated 11.07.2018, that appeal should not merely be filed because the tax effect in the case exceeds the monetary limits prescribed in the said Circular.

It has been unambiguously and expressly provided that adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:

Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or

Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or

Where Revenue Audit objection in the case has been accepted by the Department, or

Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets) / undisclosed foreign bank account.

Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO / Directorate General of GST Intelligence (DGGI).

Cases where prosecution has been filed by the Department and is pending in the Court.

The direction that appeals be ‘contested on merits’ in itself implies that there should not be any mechanical filing of appeals in these cases. It is therefore reiterated that the import and intent of para 10 of Circular 3 of 2018 is that even on issues mentioned in the said para, appeals against the adverse judgments should only be filed on merits

(http://itatonline.org)

CBDT directive regarding Refund Fraud and Leakage of Confidential Data

The CBDT has issued a directive dated 27 November, 2018 by which it has outlined the measures to be taken by the Department to avoid refund frauds and leakage of confidential data in accordance with the guidelines of the Central Vigilance Commission. All Pr. Commissioners of Income Tax, Pr. Directors of Income Tax (Inv) and Commissioners of Income Tax (Appeals) have been advised to ensure strict compliance of the guidelines and implement the same in leer and spirit.

This directive has become necessary in the wake of the large-scale tax refund scam seen earlier.

(http://itatonline.org)

Income tax return filing up 50% so far this year, says CBDT chairman

CBDT Chairman Sushil Chandra attributed the rise in tax filing to the demonetization move by the government.

Income tax return filing for assessment year 2018-19 has so far seen a 50 per cent rise since last year, a top finance ministry official said. “This is the effect of demonetization” Central Board of Direct Taxes Chairman Sushil Chandra said on the side-lines a CII event.

Demonetization has been very good for increasing the tax base of the country. This year, we have already got around 6.08 crore income tax returns, which is 50 per cent higher than last year by this particular date, he said. He further added that the revenue department will achieve direct tax collection target, which is 11.5 lakh crore, for the current financial year. “Our gross direct tax growth rate is 16.5 per cent and net direct tax growth rate is 14.5 per cent, which itself shows that demonetization really helped in widening and deepening of tax base,” the CBDT chief insisted.

He also said that so far 70 countries are sharing information with India under Automatic Exchange Of Information (AEOI). Chandra said that due to demonetization, so far, the number corporate tax payers have gone to 8 lakh from 7 lakh last year.

(https://www.businesstoday.in/current/economy-politics/income-tax-return-filing-up-50-per-cent-so-far-thisyear-says-cbdt-chairman/story/297219.html)

Task Force constituted for New Direct Tax Law

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, has issued Press Release dated 26th November, stating that in order to review the Income-tax Act, 1961 and to draft a new direct tax law in consonance with the economic needs of the country, a Task Force was constituted by the Government of India in November, 2017.

In partial modification of the earlier order, the Government has appointed Shri Akhilesh Ranjan, Member (Legislation), CBDT as Convenor of the Task Force. Other members of the Task Force remain unchanged. The Task Force shall submit its report to the Government by February 28, 2019.

(https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/739/Press-ReleaseTask-Forcedrafting-New-Direct-Tax-Legislation%20-26-11-2018.pdf)

National capital jumps closer to business capital in I-T collections

The changing economic landscape of India is showing up in the region-wise break-up of income tax collections. Mumbai, the business capital of the country, still contributes the largest, 29%, of total income tax revenues, but its share has been falling. Delhi, the second-largest contributor to the tax kitty, saw collections rising 45% from April to November this year over the same period in 2017. Collections in Mumbai rose only 5%. Slower growth in Mumbai is attributed to hey refunds.

(https://economicmes.indiames.com)

GST (Goods & Service Tax)

Orders

GST Annual Return and Audit Due Date Extended to 31st March, 2019

The Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for filing of GST Audit reports in forms GSTR-9, GSTR-9A and GSTR-9C.

FORM GSTR-9 and FORM GSTR-9A have been notified vide notification No. 39/2018-Central Tax, dated 04-092018 while FORM GSTR-9C has been notified vide notification no. 49/2018-Central Tax, dated 13-09-2018 as part of the CGST Rules.

The Board has decided to extend the due date for filing FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C till 31st March, 2019.

[Order No. 1/2018-Central Tax dated 11-12-2018]

Orders by Authority for Advance Ruling

Back Office Support Services provided to the Overseas Companies will not qualify as ‘Zero Rated Supply’ in terms of Section 16 of the IGST Act, 2017

Facts of the Case:

M/s Vservglobal Private Limited (‘applicant’) is an Indian Company having its office at Mumbai. The company is incorporated to provide back office support services to overseas companies (‘clients’). Clients are engaged in trading of chemicals and other products in International Trade.

Applicant will have its role, after finalization of purchase / sale order by a client. In the instant case, the applicant is providing back-office services to M/s. Vikhuda Overseas Corporation Limited, Hong Kong (Vikhuda, HK). Applicant will undertake following activities for and on behalf of client:

Get Sales Details Form (SDF) and Purchase Detail Form (PDF) from concerned pares

Generate order number in the ERP system (VOSS) and create Purchase order (PO) and Sales Contract (SC) in VOSS

Send SC and Proforma Invoice (PI) to customer and obtain Shipping Instructions (SI) • Send PO to supplier and obtain PI and SI

Liaise with supplier for cargo readiness and inspection authorities

Inform customer about tentative schedule

Process payment request in VOSS and send payment

Provide forwarder/carrier nomination to supplier and seek carrier booking details to share with supplier and customer

Follow-up for smooth Shipping on Board; log Expected departure and arrival date in excel order sheet

Obtain draft BL prior to sailing; follow-up for shipping document with supplier

Raise payment request in VOSS for balance/final payment

Send payment request to Group company for supplier for balance/final payment

Arrange inspection certificate

Raise payment request for freight and inspection charges

Arrange to send the original to Vikhuda HK

Trouble shooting

Apart from above, applicant will also maintain records of employees of clients, their payroll processing etc., all the payments to third pares like supplier, inspection agency, shipping line, employees etc. will be done directly by clients and applicant will maintain accounting of the same. Applicant will be compensated for its services either on fixed monthly basis or as per the volume of transactions, on mutually agreed terms, in convertible foreign exchange.

Applicant sought advance ruling on, whether the aforesaid services proposed to be rendered qualify as ‘Zero Rated Supply’ in terms of Section 16 of IGST Act, 2017 or not.

Applicant’s Submissions:

Applicant submitted that he fulfils all the conditions in order to qualify as ‘zero rated’ supply and also export of service’ (viz. supplier located in India, recipient located outside India, place of supply outside India, payment received in convertible foreign exchange, supplier and recipient are not merely establishments of a distinct person).

Applicant further submitted that the service in question fall within the scope of ‘Business and Production service’ under Group 998222, 23 and 24. Also on a specific query of AAR, the applicant filed additional written submission to further their argument that they do not fall within the purview of ‘intermediary’ (in which case the location of the service provider would become the Place of Supply).

Applicant further added that the entire gamut of service is a composite supply, since the service scope essentially consists of maintain accounts of its clients, liaison with buyers and sellers of the clients with respect to delivery, transportation and payment etc. Applicant also relied on the ruling of Go daddy India Web Service P Ltd (2016 (46) STR 806 (AAR) in which the applicant provide support service in relation to marketing, branding, offline marketing, oversight of quality of the third-party care centre and payment processing, on a principal to principal basis. Hon’ble authority held that said services are bundled in natural course of business and not intermediary service.

Tax Officer’s Submissions:

The Tax officer, as his preliminary submission, stated that the issue in question centres on the ‘place of supply’, which is outside the scope of the AAR and hence the application should not be entertained. Without prejudice, he submitted that Vikhuda HK’s Indian operations are anchored by its branch in Mumbai. The Address of Vikhuda HK’s branch in India and applicant are one and the same (Dhantak Plaza, 201, opp. Waman Centre Makwana Road, Marol, Andheri (E), Mumbai-59). Further, Vikhuda India Trading Limited too operates from the same premises and the directors are common. Thus, the service is provided and received in India, hence does not qualify as export of service, but an intra-state supply of service. Further, as per bank statement, the payment has not been received in convertible foreign currency by applicant.

AAR Conclusions:

AAR did not heed to the preliminary submission of Tax officer about lack of jurisdiction of AAR on place of supply. AAR also did not deal with observation of the tax officer about common office/director of Vikhuda/applicant. AAR extensively relying on the definition of the term ‘intermediary’ and activity carried-out by applicant as detailed above, held that –

A sum of all activities mentioned above indicate applicant as a person who arranges or facilitate supply of goods or services or both between the overseas client and customers of the overseas client, and therefore applicant is clearly covered and falls in the definition of an ‘intermediary’ as defined under the IGST Act;

As the applicant is held as ‘Intermediary’ the provisions pertaining to place of supply in case of intermediary services as provided in sub-section 8 of Section 13 of IGST Act,2017 are relevant;

In the instant case and as per applicant’s own admission of fact that applicant is supplier of services, which is a corporate entity incorporated in India and having registered office in Mumbai. The place of supply in case of services provided by the applicant being intermediary would be the location of the supplier of services i.e. location of the applicant which is located in the state of Maharashtra, India;

To qualify a transaction of supply of services as export of services that transaction has to satisfy all five ingredients of the definition of export of services simultaneously. In the present case we find that the condition at (iii) of export of services is not satisfied and hence without examining and getting into the contention of the jurisdictional officer with regards to condition at (v) of the said definition as to distinct person which would require more specific and detailed examination and verification on their part to get correct factual position in this regard. AAR held that the services proposed to be rendered by the applicant do not qualify as ‘export of services’ as defined u/s. 2(6) and thus not a ‘zero rated supply’ as per Secon16 (1) of the IGST Act, 2017.

[AAR-Maharashtra, Vserveglobal Private Limited, GST-AAR-03/2018-19/B-59, dated July 07, 2018]

Serving food to the employees of the Company would be treated as ‘canteen service’ under GST

Facts of the Case:

Ismail Ahamad Soofi(‘applicant’) is engaged in the business of providing catering/canteen services to the industries and corporates. The applicant enters into contract with the companies for providing catering services to its employees by following model either B2B or B2C. Under B2B model, the amount of consideration is paid by the company whereas under the B2C model, consideration is paid by employees. Under both the models, food is being prepared either in the kitchen located in the company’s premises or in the centralized kitchen located outside the company’s premises.

Presently, the applicant treats the catering services provided by it under B2C Model as canteen/restaurant services under Entry. No. 7 (i) of Notification No. 11/2017 dated June 28, 2017 as amended by the Notification No. 46/2017-CT (Rate) dated November 14, 2017 and discharges GST at 5% cumulatively (CGST & SGST). Whereas for the B2B Model, the applicant treats it as outdoor catering services under Entry 7 (v) of the aforesaid Notification and discharges GST at 18% cumulatively (CGST & SGST).

Applicant sought advance ruling before the AAR, Maharashtra as to:

Whether the catering services provided by the applicant under both the models (B2B and B2C) would amount to supply of canteen/restaurant services (attracting GST @5%) or supply of outdoor catering services (attracting GST @ 18%), especially after the amendment in Notification No. 11/2017-CT (Rate) dated June 28, 2017 vide Notification No. 46/2017-CT (Rate) dated November 14, 2017

The applicant submitted that under the Service Tax regime, the revenue has accepted that the services provided by the applicant squarely fall under the definition of “canteen service”.

As the nature of the services provided by the applicant has remained the same under the GST regime, the services provided by the applicant will be considered as ‘canteen’ service even under the GST regime and will fall under the Serial No. 7(I) of the aforesaid notification and the applicant is eligible to collect tax at the rate of 2.5% subject to the conditions.

AAR relied on the dictionary meaning of ‘canteen’ to derive a conclusion as to what should be considered as a canteen service.

In view of the observations on generally catering contracts, AAR ruled that the activity undertaken by the applicant in the current scenario would be classified as canteen services under Entry. No 7(I) or (iv) of Notification No. 11/2017-CT (Rate) dated June 28, 2017 depending on whether their canteen has the facility of air-conditioning or central air-heating in any part of the establishment, at any me during the year. Further, pursuant to Notification No. 46/2017-CT (Rate) dated November 14, 2017, the said service would fall under Sr. No. 7(I) of this amended Notification and will be taxable at 5%.

[AAR Maharashtra- ISMAIL AHAMAD SOOFI, GST-ARA-05/2018-19/B-61, dated July 09, 2018]

FEMA

External Commercial Borrowings (ECB) Policy – Review of Minimum Average Maturity and Hedging Provisions

In terms of the existing ECB Policy, certain eligible borrowers raising foreign currency denominated ECBs under Track I, having a minimum average maturity requirement of 5 years, are mandatorily required to hedge their ECB exposure fully. The extant provisions have been reviewed by the RBI and it has been decided, in consultation with the Government of India, to amend the following provisions of the ECB framework:

i. Minimum average maturity: Reduce the minimum average maturity requirement for ECBs in the infrastructure space raised by eligible borrowers from 5 years to 3 years; and

ii. Hedging requirements: Reduce the average maturity requirement from extant 10 years to 5 years for exemption from mandatory hedging provision applicable to ECBs raised by above referred eligible borrowers. Accordingly, the ECBs with minimum average maturity period of 3 to 5 years in the infrastructure space will have to meet 70% mandatory hedging requirement.

Further, it is also clarified that ECBs falling within the aforesaid scope but raised prior to the date of this circular will be required to mandatorily roll-over their existing hedge(s) only to the extent of 70 per cent of outstanding ECB exposure.

All other provisions of the ECB policy remain unchanged.

(RBI/2018-19/71 A.P. (DIR Series) Circular No.11 dated November 6, 2018 and RBI/2018-19/79 A.P. (DIR Series) Circular No.15 dated November 26, 2018)

International Taxation

Disallowance of expenditure under Section 40(a)(i) of Income-tax Act are not applicable to India Mauritius tax treaty

Based on the facts and in the circumstances of the case, recently, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Unocol Bharat Ltd (the taxpayer) dealt with the issue of allowability of salaries and other operating expenditure of a Permanent Establishment in India of a foreign company. The Tribunal held that no disallowance provisions under Section 40(a)(i) of the Income-tax Act, 1961 could apply to the taxpayer on account of non-deduction of tax in the absence of any restrictive clause in Article 7(3) of India Mauritius tax treaty.

One needs to be very cautious while interpreting the language of the treaty since each treaty has been differently worded. The tax treaty should be read with the protocol or MOU specified therein. Similarly, Article 7(3) of the India-Mauritius tax treaty in the present case has been differently worded, and the Tribunal held that disallowance u/s 40(a)(i) of the Income Tax Act, 1961 are not applicable while allowing expenditure in terms of Article 7(3) of the said treaty.

(DDIT v. Unocol Bharat Ltd. (ITA No. 1388/Dec/2012) – Taxsutra.com)

FTS is not taxable in India where services are for the purposes of making or earning any income from any source outside India

Based on the facts and in the circumstances of the case, recently, the Gujarat High Court in the case of Motif India Infotech Pvt Ltd (the taxpayer) dealt with the issue with respect to taxability of Fees for Technical Services (FTS) vis-à-vis exclusion provided under Section 9(1)(vii)(b) of the Income-tax Act, 1961 (the Act). The High Court held that FTS was paid by the taxpayer to a foreign company for the purpose of making or earning income from any source outside India. The source of income namely the taxpayer’s customers were foreign-based companies. Therefore, even though services were in the nature of technical services, since the same were covered within the exclusion under Section 9(1)(vii)(b) of the Act, tax was not required to be deducted on payment of such FTS.

(PCIT v. Motif India Infotech Pvt Ltd (2018-TII-60-HC-AHM-INTL))

Salary received in India by non-resident for services rendered outside India not taxable in India despite the absence of TRC

For a taxpayer qualifying to be a non-resident in India, income received, deemed to be received, accrued, deemed to be accrued, arising or deemed to be arising in India would be subject to tax in India. In relation to salary income, the income earned for services rendered in India would be taxable in India.

In this context, based on the facts and in the circumstances of the case, the Bangalore Bench of the Income-tax Appellate Tribunal (the Tribunal) has recently held that salary received in India by a non-resident individual taxpayer for services rendered in the U.S. is not taxable in India under the Income-tax Act, 1961, despite taxpayer’s failure to furnish Tax Residency Certificate as all evidence relating to stay and taxation in the U.S. was furnished in the course of the assessment.

This decision could enable taxpayers who travel outside India for employment and qualify to be a non- resident to claim an exclusion benefit on the salary received in India for services rendered outside India, without a TRC.

(Smt. Maya C. Nair v. ITO (ITA No. 2407/Bang/2018 dated 31 October 2018))

Payment in respect of web hosting charges not royalty

Based on the facts and in the circumstances of the case, recently, the Pune Tribunal (ITAT), in case of EPRSS Prepaid Recharge Services India P. Ltd. (tax payer), held that payment in respect of web hosting charges to a non-resident will not constitute royalty under the India-US Double Taxation Avoidance Agreement (DTAA) as well as the Income-tax Act, 1961 (Act). Thus, the liability for tax withholding under the Act does not arise.

The ITAT also held that the retrospective amendment to the definition of royalty under the Act will not override DTAA provisions. Further, the ITAT held that a retrospective amendment cannot fasten the liability on taxpayers to withhold tax for the years that have already been closed.

Characterization of digital payments to non-residents as ‘royalty’ or ‘fees for technical services’ has been a topic of debate with the lines getting blurred because of the extensive use of technology in all facets of doing business. This is especially the case where taxpayers enter into various online/ cloud computing arrangements.

The facts of the case, as well as a combined reading of provisions under the Act and the relevant DTAA would determine such characterizations. The provisions under the Act would apply in case of payments to non-residents where the income recipient does not have the benefit of DTAA. The ruling also reiterates the principle that a retrospective amendment cannot have the effect of enforcing the taxpayer to meet a compliance which is impossible to act upon.

(EPRSS Prepaid Recharge Services India P. Ltd. vs The Income Tax Officer (ITA Nos. 828 and 1204/PUN/2016))

Company Law

The Companies (Amendment) Ordinance, 2018:

In order to amend the Companies Act, 2013 (“the Act”) and to streamline it with the demands of changing corporate environment, the Companies (Amendment) Ordinance, 2018 (“the Ordinance”) was promulgated and brought into effect from 2nd November 2018. The key area of the amendments focuses on the decriminalization of numerous offences as had been recommended in the Report of the Committee to review Offences under the Companies Act, 2013. The amendment also facilitates ease of doing business by giving relief to the corporates and professionals associated in terms of re-categorizing the offences from being punishable as “compoundable offences” to “acts carrying civil liabilities”. With this amendment, the MCA has objective of enhancing beer corporate governance compliance.

The reforms brought in vide the Ordinance include:

Re-categorising of offences which are in the category of compoundable offences to an in-house adjudication framework. However, no change has been made in respect of any of the non-compoundable offences.

Ensuring compliance of the default and prescribing stiffer penalties in case of repeated defaults.

Reducing the burden on the NCLT by:

Enlarging the jurisdiction of Regional Director (“RD”) by enhancing the pecuniary limits up to which they can compound offences under section 441 of the Act.

Vesting in the Central Government, the power to approve the alteration in the financial year of a company under section 2(41);

Vesting in the Central Government, the power to approve cases of conversion of public companies into private companies;

Corporate governance related reforms include re-introduction of declaration of commencement of business provision;

Greater responsibility with respect to filing documents related to creation, modification and satisfaction of charges;

Non-maintenance of registered office to trigger de-registration process; holding of directorships beyond permissible limits to trigger disqualification of such directors.

http://www.mca.gov.in/Ministry/pdf/NoficationCompanies(Amendment)Ordinance_05112018.pdf

Companies (Registered Valuers and Valuation) Fourth Amendment Rules, 2018

The Companies (Registered Valuers and Valuation) Fourth Amendment Rules, 2018 (brought into effect from the 13th November 2018) amends the Companies (Registered Valuers and Valuation) Rules, 2017 to now include valuation in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities under the provision of the Act or these rules in its ambit.

Amendments have also been made in the qualification criteria of a valuer. It should also be noted that, in Rule 11 the following has been omitted: “and he may conduct valuation as per these rules if required under any other law or by any other regulatory authority”

Annexure IV pertaining to the “Eligibility Qualification and Experience for Registration as Valuer” has been substituted accordingly.

http://www.mca.gov.in/Ministry/pdf/CompaniesRegisteredValuers4AmdtRules_13112018.pdf

National Financial Reporting Authority Rules, 2018

The Central Government has notified the National Financial Reporting Authority Rules (NFRA), 2018 on the 13th November 2018.

Important aspects specified by the NFRA rules are Classes of companies and bodies corporate governed by the NFRA Authority, Functions and dues of the NFRA Authority, Annual return, Recommending accounting standards and auditing standards, Monitoring and enforcing compliance with accounting standards and auditing standards, overseeing the quality of Audit service and suggesting measures for improvement, power to investigate, disciplinary proceedings, manner of enforcement of orders passed in disciplinary proceedings, punishment in case of non-compliance etc.

http://www.mca.gov.in/Ministry/pdf/NFRARules2018_13112018.pdf

U.S. Tax Laws and Compliance

Foreign Earned Income Exclusion

As a U.S. Citizen (or a U.S. resident alien) who plans to relocate to a foreign country for employment and would like to know whether income he/she earns from services they will perform abroad can be excluded from their gross income for U.S. Tax Purposes.

Although U.S. citizens and U.S. residents are generally taxed on their world-wide income, a portion of the foreign earned income and part of their foreign housing costs may be excluded from gross income if they have a tax home in foreign country and are either (i) a bona fide foreign resident, or (ii) physically present in the foreign country for 330 full days during any consecutive 12-month period (a “qualified individual”).

A taxpayer has a tax home in foreign country if expenses in travelling away from that country on business would be deductible under Code Sec. 162(a)(2). An employee’s tax home is located at his regular or principal (if more than one regular) place of business.

Earned income means wages, salaries, or professional fees and other amounts received as compensation for personal services actually performed, including the fair market value of compensation paid with property.

Where a taxpayer is engaged in a trade or business (not in corporate form) in which both personal services and capital are material income – producing factors, a reasonable allowance as compensation for the personal services performed by the taxpayer will be treated as earned income from that trade or business.

Earned income includes all fees received by an individual in a professional occupation (e.g. as a doctor or lawyer). Professional fees are earned even though the individual employs assistants to perform part or all of the services, if the patients or clients are those of the individual and they look to the individual as the person responsible for the services performed.

For 2018, the foreign earned income exclusion allows up to $103,900 of foreign earned income to be excluded from your taxable income. If both a taxpayer and his/her spouse qualify, an exclusion is separately determined for each of them.

For the purpose of the exclusion, housing expenses are those reasonable expenses paid or incurred during the tax year by the individual’s employer on behalf of the individual for housing of the individual in a foreign country. The total of foreign earned income exclusion and the housing cost exclusion may not exceed the foreign earned income exclusion.

IRS also provides higher adjusted limitation on housing expenses for a qualified individual incurring housing expenses in one or more of the high cost localities.

The exclusion is not automatic but must be elected by attaching a Form 2555 or Form 2555Z to the taxpayer’s returns for the first year that they want the election to be effective and file Form 2555 or Form 2555Z in all the following years.

The above discussion is only for general use and knowledge purpose. Please contact your U.S. Tax Advisor for a detailed discussion, analysis and conclusion regarding your tax issues and situations. DO NOT rely solely on the discussion and information above.

Page 1 of 6
(To be published in Part-I, Section I of the Gazette of India Extraordinary)
F.No. 06/42/2017-DGAD
Government of India
Department of Commerce
Ministry of Commerce & Industry
(Directorate General of Anti-Dumping & Allied Duties)
4
th Floor, Jeevan Tara Building, Parliament Street
Dated 23rd January, 2018
INITIATION NOTIFICATION
Case No. OI- 45/2017
Subject: Initiation of Anti-Dumping investigation concerning imports of “Coated
Paper” originating in or exported from China PR, European Union &
USA.
No 06/42/2017-DGAD: Indian Paper Manufacturers Association on behalf of M/s
BILT Graphics Paper Products Ltd, subsidiary of M/s Ballarpur Industries Ltd.
(hereinafter referred to as ‘petitioner’ or “the applicant”) has filed an application (also
referred to as “petition”) before the Designated Authority (hereinafter referred to as
the “Authority”) in accordance with the Customs Tariff Act, 1975 as amended from
time to time (hereinafter referred to as the ‘Act’) and Customs Tariff (Identification,
Assessment and Collection of Anti-Dumping Duty on Dumped articles and for
Determination of injury) Rules, 1995 as amended from time to time (hereinafter
referred to as the “AD Rules”) for initiation of anti-dumping investigation concerning
imports of ‘Coated Paper’ (hereinafter referred to as the “subject goods”) originating
in or exported from China PR, European Union & USA, Indonesia and Korea.
2. And whereas, on finding prima facie finds that evidence of dumping of the subject
goods, originating in or exported from China PR, European Union & USA
(hereinafter as “the subject countries”), injury to the domestic industry and causal
link between the alleged dumping and injury exist to justify initiation of an antidumping
investigation; the Authority hereby initiates an investigation into the
alleged dumping, and consequent injury to the domestic industry in terms of Rule
5 of the AD Rules, to determine the existence, degree and effect of alleged
dumping and to recommend the amount of antidumping duty, which if levied, would
be adequate to remove the injury to the domestic industry.
3. The Authority has prima facie found absence of dumping on imports of subject
goods from Indonesia and Korea RP for the period of investigation. The antidumping
investigation accordingly is not being initiated concerning imports
originating in or exported from other two countries namely Indonesia and Korea
RP.
Page 2 of 6
A. Product under consideration and like articles
4. The product under consideration in the present petition is “Paper or Paper Board
coated with kaolin (china clay) or calcium carbonate or polymer or other inorganic
substance, with or without a binder; and with no other coating, either on one or
both sides; whether or not surface-coloured, surface-decorated or printed, in rolls
or rectangular (including square) sheets, of any sizes; whether or not dull,
gloss, matte or high-gloss(cast coated) finish; made generally, but not invariably or
exclusively from virgin chemical pulp, properly classifiable under Chapter 4810”.
5. Product under consideration is primarily used for printing of magazines,
catalogues, books & manuals, calendars, brochures, labels, flexible packaging etc.
The GSM for Coated Paper ranges from 40 gsm to 350 gsm.
6. Specifically excluded from the scope of this petition is multilayered board for
packaging purpose which does not form part of the product under consideration.
7. Coated Paper and Paper Board falling under customs heading 4810 is covered
under the present investigation. Customs heading is, however, indicative only and
not binding on the scope of product under investigation.
B. Domestic Industry & Standing
8. The application has been filed by Indian Paper Manufacturers Association on
behalf of domestic industry, M/s BILT Graphic Paper Products Ltd, which is
producer of the subject goods. There is one more known domestic producer of the
product under consideration, namely, JK Paper Limited. It is seen that the
production by the petitioner company constitutes ‘a major proportion’ in Indian
production of the like product produced. It is also noted that petitioner company
has neither imported the subject goods, nor is it related to an importer or exporter
of the subject goods. It is, thus, determined that the application has been filed by
and on behalf of the domestic industry and the application satisfies the
requirements of ‘standing’ under Rule 5 of the AD Rules. Further, the petitioner
company constitutes ‘Domestic Industry’ in terms of Rule 2(b) of the AD Rules.
C. Like Article
9. The applicant has claimed that there is no known difference in product produced
by the applicant and exported from the subject countries. Both products have
comparable characteristics in terms of parameters such as physical & chemical
characteristics, functions & uses, product specifications, pricing, distribution &
marketing and tariff classification, etc. The Authority considers that the subject
goods produced by the domestic industry are like article to the subject goods
imported from the subject countries, for the purpose of the present investigation.
Page 3 of 6
D. Subject Countries
10.The countries against which present investigation is initiated are China PR,
European Union & USA (referred to as “subject countries” in the present
notification).
E. Normal value
China PR
11.With regard to the submissions made by the petitioner regarding treating China
as a Non-Market Economy, it is noted by the Authority that the commitments
under para 15(a) (i) of the Accession Protocol signed by China with WTO
requires that the producers under investigation clearly shows that market
economy conditions prevail in the industry producing the like product with
regard to the manufacture, production and sale of that product. In event of this
being substantiated, the importing WTO member shall use Chinese prices or
costs for the industry under investigation in determining price comparability.
Further Article 2.2.1.1 of WTO and AD Rules of India requires that the financial
records of producer/exporter reasonably reflect the production costs.
Therefore, information and supportive evidence thereof in respect of the
following is required to be provided.
a. Decisions in regard to price, cost, input including raw material, cost of
technology and labour, output, sales and investment, are made in response to
market signal reflecting supply and demand and without significant State
interference and whether cost of major inputs substantially reflect market value.
b. Production costs and financial situation does not suffer from any distortion.
c. The producer/exporter are subject to bankruptcy and property law which
guarantees legal certainty and stability for the operation of the firms.
d. Exchange rate conversions are carried out at the market rate.

For the purpose of initiation the constructed normal value is being adopted.
EU & USA
12.The applicant has submitted that efforts were made to get information/evidence
of transaction price of subject goods in the domestic market of subject countries
but was not able to get such information. The applicant has therefore
constructed normal value for all subject countries on the basis of best estimates
of cost of production in the country origin, duly adjusted for selling, general &
administrative costs and reasonable profits. For the purpose of initiation the
normal value so constructed is being adopted.
F. Export Price
13. Export Prices have been determined considering volume and value of
imports for the proposed period of investigation as per DGCI&S Published data.
Price adjustments have been made on account of ocean freight, marine insurance,
Page 4 of 6
commission, port expenses, inland freight expenses, credit cost , non-refundable
VAT (in case of China only) and bank charges which may have been incurred by
the exporter for exporting the material to India.
G. Dumping Margin
14.Considering the normal value and export price determined, there is prima facie
evidence that the normal value of the subject goods in the subject countries are
higher than the export price.
H. Evidence of Injury and Causal Link
15.Information furnished by the applicant has been considered for assessment of
injury to the domestic industry. The applicant has furnished evidence regarding the
injury having taken place as a result of the alleged dumping in the form of increased
volume of dumped imports in absolute terms and in relation to production and
consumption in India, price undercutting, price underselling and consequent
adverse impact in terms of decline in production, sales, market share, profit, cash
flow and ROI. There is prima facie evidence of the “material injury” being suffered
by the domestic industry caused by dumped imports from subject countries to
justify initiation of an antidumping investigation.
I. Initiation of investigation
16.The Authority finds prima facie evidence of dumping of subject goods, originating
in or exported from the subject countries; injury to the domestic industry and causal
link between alleged dumping and injury, to justify initiation of anti-dumping
investigation to determine the existence, degree and effect of alleged dumping and
to recommend the amount of anti-dumping duty, which if levied, would be adequate
to remove the ‘injury’ to the domestic industry. Accordingly, the Authority hereby
initiates an investigation into the alleged dumping and consequent injury to the
domestic industry in terms of Para 5 of the Rules.
J. Period of investigation (POI)
17.The period of investigation for the present investigation is from April 2016 –June
2017 (15 Months). The injury investigation period has been considered and
proposed to cover the periods 2013-14, 2014-15 and 2015-16 and the period of
investigation.
K. Submission of Information
18.The known exporters in the subject countries, the Government of the subject
countries through their embassies in India, the importers and users in India known
to be concerned with the product are being addressed separately to submit
relevant information in the form and manner prescribed and to make their views
known to the Authority at the following address
Page 5 of 6
The Designated Authority,
Directorate General of Anti-Dumping & Allied Duties,
Ministry of Commerce & Industry,
Department of Commerce
4
th Floor, Jeevan Tara Building,
5 Parliament Street,
New Delhi -110001.
Dgad.india@gov.in
19.Any other interested party may also make its submissions relevant to the
investigation in the prescribed form and manner (downloadable from the website
of the authority at www.dgtr.gov.in ) within the time limit set out below.
L. Time limit
20.All interested parties are hereby advised to intimate their interest (including the
nature of interest) in the instant matter within 2 weeks of this notification and file
their questionnaire responses and offer their comments to the domestic industry’s
application within forty days (40 days) from the date of publication of this
notification. The information must be submitted in hard copies as well as soft
copies.
21.It may be noted that if no information is received from an interested party within the
prescribed time limit, or the information received is incomplete, the authority may
record its findings on the basis of the facts available on record, in accordance with
the rules.
M. Submission of Information on Confidential/Non-Confidential basis
22.In case confidentiality is claimed on any part of the questionnaire’s
response/submissions, the same must be submitted in two separate sets (a)
marked as Confidential (with title, index, number of pages, etc.) and (b) other set
marked as Non Confidential (with title, index, number of pages, etc.). All the
information supplied must be clearly marked as either “confidential” or “nonconfidential”
at the top of each page.
23.Information supplied without any confidential marking shall be treated as nonconfidential
and the Authority shall be at liberty to allow the other interested parties
to inspect any such non-confidential information. Two (2) copies of the confidential
version and of the non-confidential version must be submitted by all the interested
parties.
24.For information claimed as confidential; the supplier of the information is required
to provide a good cause statement along with the supplied information as to why
such Information cannot be disclosed and/or why summarization of such
information is not possible.
25.The non-confidential version is required to be a replica of the confidential version
with the confidential information preferably indexed or blanked out /summarized
depending upon the information on which confidentiality is claimed. The non-
Page 6 of 6
confidential summary must be in sufficient detail to permit a reasonable
understanding of the substance of the information furnished on confidential basis.
However, in exceptional circumstances, parties submitting the confidential
information may indicate that such information is not susceptible to summarization;
a statement of reasons why summarization is not possible must be provided to the
satisfaction of the Authority.
26.The Authority may accept or reject the request for confidentiality on examination of
the nature of the information submitted. If the Authority is satisfied that the request
for confidentiality is not warranted or the supplier of the information is either
unwilling to make the information public or to authorize its disclosure in generalized
or summary form, it may disregard such information.
27.Any submission made without a meaningful non-confidential version thereof or
without a good cause statement on the confidentiality claim may not be taken on
record by the Authority. The Authority on being satisfied and accepting the need
for confidentiality of the information provided; shall not disclose it to any party
without specific authorization of the party providing such information.
N. Inspection of Public File
28.In terms of rule 6(7) any interested party may inspect the public file containing nonconfidential
versions of the evidence submitted by other interested parties.
O. Non-cooperation
29.In case any interested party refuses access to and otherwise does not provide
necessary information within a reasonable period, or significantly impedes the
investigation, the Authority may declare such interested party as non-cooperative
and record its findings on the basis of the facts available to it and make such
recommendations to the Central Government as deemed fit.
(Sunil Kumar)
Additional Secretary & Designated Authority

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. Company Law

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Income Tax department can now send communication to more addresses

The Central Board of Direct Taxes has amended the rules relating to service of notice, summons, requisition or order. The step widens the scope of addresses that the I-T department can use for delivering any form of communication with the taxpayers. The I-T can now use address of the assessee as available with the banks, post office, insurer or that available in government/local authority records. It can also include communication address provided under PAN database, which is meant for filing statement of financial transaction.

(Source: http://www.financialexpress.com/economy/income-tax- department-can- now-send-communication to- more-addresses/986555/)

 

Income Tax notices to 4-5 lakh individuals trading in bitcoins across the country

Widening its probe into bitcoin investments and trade, the Income Tax (I-T) department is set to issue notices to 4 to 5 lakh high net worth individuals (HNI) across the country who were trading on the exchanges of this unregulated virtual currency. The taxman had conducted surveys at nine such exchanges last week to check instances of tax evasion. The department, official sources said, found that out of the estimated 20 lakh entities registered on these exchanges, about 4 to 5 lakh were & “operational” and indulging in transactions and investments.

(Source:https://timesofindia.indiatimes.com/business/india-business/it-notices-to-4-5-lakh-individualstrading-in-bitcoins-across-the country/articleshow/62121048.cms)

 

Income tax department in tough spot as investors go all tech

Crypto currencies appear to be living up to their cryptic reputation. Days after the income-tax department issued about 5 lakh notices to high net-worth individuals (HNIs) who own bitcoins or any other crypto currency, investors are drafting replies that would show they have no dues to the authorities. On its part, the income tax department may also find it difficult to figure out whether wealthy investors actually hold any bitcoins, or the income earned from these instruments.

(Source:https://economictimes.indiatimes.com/news/economy/policy/bitcoin-income-tax-department-intough-spot-as-investors-goes-all-tech/articleshow/62302684.cms)

 

Full Income Tax e-assessment from next year – CBDT forms committee

The government is set to roll out a pan-India “faceless and nameless” e-assessment procedure for income tax payers from 2018 with the CBDT constituting a high-level committee to prepare a quick roadmap for the implementation of this ambitious proposal. The Central Board of Direct Taxes (CBDT), the policy- making body for the Income Tax Department, notified a nine- member committee, headed by a Principal Chief Commissioner rank officer and has set for it a deadline of February 28, 2018, for submitting its report.

(Source:https://economictimes.indiatimes.com/news/economy/policy/faceless-and-nameless-e-assessmentprocedure-for-income-tax-payers-from-2018/articleshow/62139572.cms)

 

Mere 1.7% Indians paid income tax in AY 2015-16: Official data

Just over 2 crore Indians, or 1.7 per cent of the total population, paid income tax in the assessment year (AY) 2015- 16, according to data released by the I-T department. The number of income-tax return filers increased to 4.07 crore in the assessment year 2015-16 (FY 2014-2015) from 3.65 crores in the previous year but only 2.06 crore actually paid tax as the others claimed income below taxable limits. In the previous AY 2014-15, 1.91 crores, out of 3.65 crores who filed returns, had paid income tax.

(Source: https:// timesofindia.indiatimes.com/business/india-business/mere-1-7-indians-paid- income-tax-inay-2015- 16-official- data/articleshow/62241622.cms)

 

 

GST (Goods & Service Tax)

 

Reduction in late filing fees for delay in filing of GSTR-4

Late fees payable for delay in filing of GSTR-4 (Quarterly return for registered persons opting composition levy) reduced to fifty rupees (twenty five each for CGST and SGST) and In case of NIL return, the late fees reduced to twenty rupees (ten each for CGST and SGST).

(Notification No.73 /2017 – Central Tax dated December 29, 2017)

 

E-way Bill: The GST Council in their 24th meeting decided that the nationwide e-way bill system will be ready to be rolled out on a trial basis latest by January 16, 2018 and the rules for implementation of nationwide e-way bill system for inter-state movement of goods on a compulsory basis will be notified with effect from February 1, 2018. States may choose their own timings for implementation of e-way bill for intra-state movement of goods on any date before June 1, 2018.

 

Accordingly the Central Board of Excise and Customs (CBEC) has notified that the following provisions of Notification No. 27/2017 of Central Tax dated August 30, 2017 shall come in to force effective February 1, 2018:

 

Rule 138 – Information to be furnished prior to commencement of movement of goods and generation of e-way bill

Rule 138A – Documents and devices to be carried by a person-in- charge of a conveyance

(Notification No.74 /2017 – Central Tax dated December 29, 2017)

 

Due dates for furnishing of FORM GSTR-1

The CBEC has notified the following due dates for furnishing of Form GSTR-1

 

 

Sr. No. Months for which the details in FORM GSTR-1 are furnished Time period for furnishing the details in FORM GSTR-1
1. July – November 2017 10 January 2018
2. December 2017 10 February 2018
3. January 2018 10 March 2018
4. February 2018 10 April 2018
5. March 2018 10 May 2018

 

(Notification No.72 /2017 – Central Tax dated December 29, 2017)

 

 

 

 

 

 

 

 

 

International Tax

 

Payment for intranet charges and SAP software is royalty under the Income-tax Act as well as under the India Germany tax treaty

Based on the facts and in the circumstances of the case, recently, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of SMS Iron Technology Pvt Ltd (the taxpayer) held that the payment made by the taxpayer to a non-resident company for software is covered under the term ‘scientific equipment’ and therefore taxable as royalty under the Income-tax Act, 1961 as well as under the India-Germany tax treaty. The Tribunal observed that the payments were made for the use of licensed software on the internet/intranet and it is also contingent on the basis of number of user license or number of sessions for which the software is used.

 

The Tribunal held that the payment made by the taxpayer to a non-resident company for software cannot be termed as reimbursement of expenditure since the taxpayer has not produced any agreement, debit notes or working of such reimbursement. The Tribunal observed that when an Indian subsidiary company incurs expenditure or avails any service from some third party abroad and payment to such third party is routed through its holding or related company abroad, the provision for deduction of tax at source applies as if taxpayer has made payment to such independent party de hors routing of payment through the holding company.

(SMS Iron Technology Pvt Ltd v. ITO (ITA No. 4480 to 4486/Del/2014) – Taxsutra.com)

 

Since the taxpayer is incorporated and liable to tax in the UAE, it is eligible for the India-UAE tax treaty benefit

Based on the facts and in the circumstances of the case, recently, the Rajkot Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Martrade Gulf Logistics FZO-UAE (the taxpayer) held that since the taxpayer is liable to tax in UAE by virtue of its incorporation in UAE, it is eligible for India-UAE tax treaty benefit. The tie breaker rule with respect to residential status of the taxpayer comes into play when the taxpayer is a resident of both the states, i.e. India and UAE which is not the case in the instant decision. The Tribunal observed that whether the taxpayer company was formed in the UAE or in Germany, it would not have made any material difference so far as non-taxability of said income in India is concerned. Accordingly, the Limitation of Benefit Article will not apply. Accordingly, the Tribunal held that the taxpayer is eligible for India-UAE tax treaty benefit.

(ITO v. Martrade Gulf Logistics FZO-UAE (ITA Nos 7 to 9/Rjt/2011) – Taxsutra.com)

 

Taxpayer’s aggregation of IT services and ITeS provided to Associated Enterprises under a single composite contract upheld

Based on the facts and in the circumstances of the case, recently, the Kolkata Bench of Income-tax Appellate Tribunal (the Tribunal), in the case of Data Core (India) Pvt. Ltd. (the taxpayer), dismisses tax department’s appeal, upholds taxpayer’s aggregation of Information Technology services and Information Technology enabled services provided to Associated Enterprises under a single composite contract for Assessment Year 2010-11. It refers to OECD’s TP guidelines with specific reference to BEPS Action 8-10, UN TP Manual and UK Transfer Pricing Guidelines wherein due recognition has been given to contractual terms of the agreement for undertaking TP analysis and provides for aggregate analysis of transactions encapsulated under a bundled arrangement. (Data Core (India) Pvt. Ltd. v. ITO (ITA No. 387/Kol/2015)

 

 

Company Law

Condonation of Delay Scheme, 2018

Companies registered under the Companies Act, 2013 (or its predecessor Act) are inter-alia required to file their Annual Financial statements and Annual Returns with the Registrar of Companies and non-filing of such reports is an offence under the said Act.

 

Whereas, section 164(2) of the Act read with section 167 of the Companies Act,2013 [the Act], which provisions were commenced with effect from 01.04.2014, provide for disqualification of a director on account of default by a company in filing an annual return or a financial statement for a continuous period of three years.

 

Whereas, Rule 14 of the Companies (Appointment and Qualification of Directors) Rules, 2014 further prescribes that every director shall inform to the company concerned about his disqualification, if any, under section 764(2), Form form DIR-8.

 

Whereas, consequent upon notification of provisions of section 164(2), Ministry of Corporate Affairs (MCA) had launched a Company Law Settlement Scheme 2014 providing an opportunity to the defaulting companies to clear their defaults within the time period specified therein and following the due process as notified.

 

Whereas, MCA in September 2017, identified 3,09,614 directors associated with the companies that had failed to file financial statements or annual returns in the MCA21 online registry for a continuous period of three financial years 2013-14 to 2015-16 in terms of provisions of section 1.64(2) r /w 167(1)(a) of the Act and they were barred from accessing the online registry and a list of such directors was published on the website of MCA.

 

Whereas, as a result of above action, there have been a spate of representations from industry, defaulting companies and their directors seeking an opportunity for the defaulting companies to become compliant and normalize operations.

 

Whereas, certain affected persons have also filed writ petitions before various High Courts seeking relief from the disqualification.

 

Whereas, with a view to giving an opportunity for the non-compliant, defaulting companies to rectify the default, in exercise of its powers conferred under sections 403, 459 and 460 of the Companies Act, 2013, the Central Government has decided to introduce a Scheme namely “Condonation of Delay Scheme 2018” [CODS-2018] as follows.

  1. The scheme shall come into force with effect from 01.01.2018 and shall remain in force up to 31.03.2018
  2. Definitions – In this scheme, unless the context otherwise requires, –
  3. “Act” means the Companies Act, 2013 and Companies Act, 1956 (where ever applicable);
  4. ‘overdue documents’ means the financial statements or the annual returns or other associated documents, as applicable, in the case of a defaulting company and refer to documents mentioned in paragraph 5 of the scheme.

iii. “Company” means a company as defined in clause 20 of section 2 of the Companies Act, 2013;

  1. “Defaulting company” means a company which has not filed its financial statements or annual returns as required under the Companies Act, 1956 or Companies Act, 201.3, as the case may be, and the Rules made there under for a continuous period of three years.
  2. “Designated authority” means the Registrar of Companies having jurisdiction over the registered office of the company.
  3. Applicability: – This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/ whose names have been removed from the register of companies under section 248(5) of the Act). A defaulting company is permitted to file its overdue documents which were due for filing till 30.06.2017 in accordance with the provisions of this Scheme.
  4. Procedure to be followed for the purposes of the scheme:- (1) In the case of defaulting companies whose names have not been removed from register of companies,-
  5. The DINs of the concerned disqualified directors de-activated at present, shall be temporarily activated during the validity of the scheme to enable them to file the overdue documents.
  6. ‘The defaulting company shall file the overdue documents in the respective prescribed eForms paying the statutory filing fee and additional fee payable as per section 403 of the Act read with Companies (Registration Offices and fee) Rules, 2014 for filing these overdue documents.

iii. The defaulting company after filing documents under this scheme, shall seek condonation of delay by filing form e-CODS attached to this scheme online on the MCA21 portal. The fee for filing application eform CODS is Rs.30,000/- (Rs. Thirty Thousand only).

  1. The DINs of the Directors associated with the defaulting companies that have not filed their overdue documents and the eform CODS, and these are not taken on record in the MCA21 registry and are still found to be disqualified on the conclusion of the scheme in terms of section 164(2)(a) r/w 767(1)(a) of the Act shall be liable to be deactivated on expiry of the scheme period.
  2. In the event of defaulting companies whose names have been removed from the register of companies under section 248 of the Act and which have filed applications for revival under section 252 of the Act up to the date of this scheme, the Director’s DIN shall be re-activated only NCLT order of revival subject to the company having filing of all overdue documents.
  3. Scheme not to apply for certain documents – This scheme shall not apply to the filing of documents other than the following overdue documents:
  4. i) Form Number 208/MGT-7- Form for filing Annual return by a company having share capital.
  5. ii) Form 21A/MGT-7- Particulars of Annual return for the company not having share capital.

iii) Form 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC-4, AOC-4(CFS), AOC (XBRL) and AOC- 4(non-XBRL) – Forms for filing Balance Sheet/Financial Statement and profit and loss account.

  1. iv) Form 66 – Form for submission of Compliance Certificate with the Registrar. v) Form 238/ADT-1- Form for intimation for Appointment of Auditors.
  2. The Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned Court(s) for all documents filed under the scheme. However, this scheme is without prejudice to action under section 167(2) of the Act or civil and criminal liabilities, if any, of such disqualified directors during the period they remained disqualified.
  3. At the conclusion of the Scheme, the Registrar shall take all necessary actions under the Companies Act, 1956/2013 against the companies who have not availed themselves of this Scheme and continue to be in default in filing the overdue documents.
  4. The e-Form CODS 2018 would be available from 20.02.2018 or an alternate date, which will be intimated by the ministry on www.mca.gov.in. The stakeholder should complete the necessary procedural requirements and file overdue documents without waiting for the availability of the e-CODS form.
  5. Form FORM-e- GODS 2018 can be referred in the following link:

http://www.mca.gov.in/Ministry/pdf/Generalcircular16_29122017.pdf

THE PAPER TRADERS’ ASSOCAITION, Mumbai 

Nov 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1 06/11/17 Monthly Circulars Two Circulars were circulated on 06/11/2017 regular Circular giving information along with Revised Due Dates of GST Form/Return and in other circular details of Annual Get-together & Dinner –Cum-Entertainment Programme of Association were given. (Date, Time, Venue & Name of Drama etc.)
2 07/11/17 2ndMC Mtg. During the Mtg. the Minutes of 2nd MC Mtg& Audited Balance Sheet& P&L A/c. for the year ended 31/03/2017 were approved, Time-Date & Venue of Extra Ordinary Gen. Meeting was fixed, Annual Get-together Programme was finalized and with the permission One New Member was admitted, New Frame of Guide Line to be laid down while accepting the donations was discussed and Shri Shamji Karia & Shri Hiren Karia Narrated the Paper Day Celebration that took place at New Delhi on 01/11/2017 at PAPEREX 2017.
3 17/11/17 Sp. Mtg Special Meeting of Office Bearers was held to Finalize the letters of Award and discuss GST pertaining problems

 

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honor and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

 

 

 

 

Dec 2017

No. Date Name of the Activity Description
1 14/12/17 Monthly Circulars One Circular was circulated on 14/12/2017 regular Circular giving information along with Communication directory 2018 advertisement. tariff rates, Annual subscription for the year 2017-18, Advertisement through circular, Publications, D.A for the month of Dec 2017, One new member.
2 08/12/17 & 22/12/17 Sp Mtg Every Friday office bearers meet for solve PTA office problems & discuss main some points.

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honor and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

 

 

 

 

 

 

 

 

 

 

 

Madras Paper Merchants Association, Chennai

Sep 2017

Our 65th AGM was held on 30th September 2017 at our Association premises, Chennai-1. The meeting started with prayer at 7.00 p.m. about eighty members recorded their presence. Welcome Address was given by the President Mr. A. Murugan Secretary Report was given by Mr. RM. Veerappan, Treasurer Report was given & the Audited Accounts were passed for the year ended 31st march 2017.

Mr. A. Natesan, Mr. Sekar Chandak & Mr. R. Muthu Krishnan Spoke about paper trade, market conditions.

Honoured   Chief Guest Mr. A. Annamalai (Venkat) FPTA President by Mr. A. Murugan President of M.P.M.A.

The various awards given away at the AGM and their recipients were as follows:

  1. Shri Jai Kishan Gupta award for outstanding service rendered to the Association and its members was given to Mr. P. Rajesh Jain, presented by Mr. A. Annamalai (Venkat)
  2. Jeyam Annamalai award for the outstanding Managing Committee member was given away to Mr. M. Manikandan, presented by Mr. A. Natesan
  3. Thiru K.R. Ramanathan award for the outgoing President was given away to

Mr. A. Murugan, Presented by Mr. R. Muthu Krishnan

  1. Thiru S.V. Sivanadian award for the outgoing Secretary was given away to

Mr. RM. Veerappan, presented by Mr. A. Muthuraman

  1. Shri Swastik Chandak award for the outgoing Vice President of FPTA from MPMA was given away to Mr. A. Annamalai (Venkat), presented by Mr. Sekar Chandak.
  2. Shri Bharath Ravichandran award for outstanding contribution to the Association by

Mr. A. Natesan, presented by Mr. R. Ravichandran & Mr. A. Murugan

The outgoing team was honoured by the members

The New team of Office Bearers & the Members of Managing Committee were formed for year 2017-18.

Office Bearers:  Mr. P. Rajesh Jain – President

Mr. M.A. Pandiyan – Vice President

Mr. RM. Veerappan – Secretary

Mr. G. Balaji – Joint Secretary

Mr. M. Manikandan – Treasurer

The incoming team was honoured by the members.

The new President Mr. P. Rajesh Jain spoke about his activities to be done for the year 2017-18 & thanked the members for electing him as the president.

It was unanimously decided to re-appoint the present Auditors M/s. Murugapan & Associated, Chartered Accountants, Chennai for the year 2017-18.

5 Lucky Dip Prizes was sponsored by New Office Bearers (2017-18) & gifts were given.

Small mementos were given to comparers Mr. A. Prabhu & Mr. N. Annamalai (Anish) presented by Mr. P. Rajesh Jain

________________________________________________________________

 

OCT 2017

2nd Managing Committee Meeting held on Tuesday 16-10-2017 at our Association premises, following subject were discussed.

  1. Our 65th AGM was reviewed

 

  1. Eight Sub Committees were formed in consultation with members; list has been circulated and attached.

 

1.      Taxation & FPTA Interaction  :

Mr. A. Natesan

Mr. R. Muthu Krishnan

Mr. A. Muthuraman

Mr. A. Annamalai (Venkat)

2.      Mill Visit & Foreign Tours  :

Mr. Sekar Chandak

Mr. N. Annamalai (Nagappa)

Mr. L. Joseph

Mr. Ranjit Veena Batra

Mr. Ghanshyam Chandak

3.      Self Development & Training Courses :

Mr. N. Annamalai (Anish)

Mr. N. Kasinathan

Mr. Ajay Kumar Gupta

Mr. Arun Jain

Mr. Aamod Mehta

4.      Bad Debts & Arbitration  :

Mr. S. John Amalraj

Mr. A. Annamalai (Venkat)

Mr. R. Ravichandran

Mr. A. Murugan

Mr. S. Palaniappan

Mr. S. Thahir Jalal

Mr. M. Rajesh

 

5.      Public Relation Committee  :

Mr. M. Nagoor Meeran

Mr.  R. Muthu Krishnan

Mr. S.M. Akbar

Mr. N. Kasinathan

6.      Entertainment-Cultural & Sports  :

Mr. A.K. Arulraj

Mr. Ganesh Agarwal

Mr. M. Felix Ballarmin

Mr. Ajay Kumar Gupta

Mr. A. Antony samy

Mr. C. Palanisamy

Mr. P. Kumar

Mr. A. Elangovan

Mr. A. Marimuthu

Mr. N. Annamalai (Anish)

Mr. Jai chandak

7.      MPMA Digital & Website  :

Mr. Arun Jain

Mr. R. Muthu Krishnan

Mr. T.M. Imthiyaz Ahmed

Mr. K. Ramesh

8.      Membership Enrollment & Building Maintenance  :

Mr. C. Palanisamy

Mr. R. Ravichandran

Mr. M. Arulanandam

Mr. M. Abdul Gafoor

Mr. Ganesh Agarwal

 

  1. Any other matter:

GST latest development were discussed, Taxation committee convener

Mr. A. Natesan proposed to conduct GST clarification meeting.

 

Membership drive – Mr. Palani samy has enrolled eight applications for membership, prospective members were discussed and accepted all applications.

 

Diwali celebration:

We conducted Diwali celebration on Monday 16-10-2017. Chief Guest

Shri. J. Arul Prakash, T.V. Fame, Pattimandram Speaker, who delivered speech about Diwali. Members exchanged wishes for Diwali. Sweet were distributed to our members.

Nov 2017

GST Seminar:

 

GST Seminar cum Question & Answer Session was held on 15th November 2017 at YMCA Mc Connaught Hall, YMCA building, Chennai-1. Mr. A. Natesan Convener of Taxation Sub Committee has organized the meeting,

 

Mr. I. Julian Indathayalan. I (Sr. Auditor with specialization in GST) was the speaker of the day.

 

We have requested the members to forward their doubts and questions to be clarified prior to the meeting. Mr. Julian has explained the latest outcome of GST council & also clarified the doubts.

 

The meeting was well attended by the members.

 

Dec 2017

  1. CHILDREN’S DAY & FAMILY GET TOGETHER PROGRAM:

We have conducted children’s day and family get together program on Sunday the 3rd  December 2017 at  Green Meadows Resort, ECR Road ,Chennai and  more than 30 family members participated (above 100 Persons)  in the event and enjoyed the day with full of fun and events.

Chief Guest Shri. Madhu Sudan Bang, FPTA Vice President participated with his family.  Shri. A. Annamalai (Venkat), FPTA President participated with his family. Many games and events have been organized by event management.

Chief Guest Shri. Madhu Sudan Bang, Shri. A. Annamalai (Venkat) & Tamil film actor Mr. Ashok Selven distributed the Prizes to winners.

  1. 3rd Managing Committee Meeting was held on Friday 22nd December 2017 at our Association premises.

 

The following subjects were discussed.

Committee discussed about the Latest Development in GST

Members suggested some points on approaching government for allotment of Land for Ware house to Paper trade,

Committee discussed about appointment of an Auditor to clarify Doubts of Members over phone about GST & other sales tax.

Committee discussed about to conduct training program on Paper – Its properties & testing

 

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore

Activities-Achievements-Updates during this Period by the Association

 

Nov 2017

No. Date Name of the Activity Description
1 1.11.2017 Rajyotasav Day Celceberation All member were invited and the day was celebrated , Flag hosting done by Vice president and Secretary followed by Breakfast
2 1.11.2017 PaperX   PAPERX  attended by 35member along with KPMSA President
3 11.11.2017 New members three KPMSA LIFE members added
4 11.11.2017 2nd FPTA MC Discussion on 2nd FPTA MC to be held on 06.01.2018

 

Dec 2017

No. Date Name of the Activity Description
1 2.12.2017  Mc meeting Discussion on FPTA 2 MC arrangement
2 22.12.2017 Mc meeting Core teams discussion printing, travel , registration & gift food etc for 2nd FPTA mc
3 22.12.2017 Arbitation One member approached for recovery of bad Debts

 

________________________________________________________________

The Paper Merchants’ Welfare Association, Vijayawada

 

Dec 2017

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1 17-12-2017 2nd MC Meeting 1. Accepted and Approved last MC meeting minutes.

2. Accepted and Approved Financial Accounts up to the period 15-12-2017.

3. Reviwed voluntary Blood Donation Camp conducted on 2nd October 2017 on the eve of Mahatma Gandhi Jayanthi at Rotary Red Cross Blood Bank, Gandhi Nagar, Vijayawada -2. 25 persons attended but Blood was secured only from 18 persons in accordance of their health condition.

4. Reviewed Karthika Vanasamaradhana celebrated in the month of November 12th, 2017 at Mulapadu in dense forest of decent and pleasant location. Participated 198 persons with their families and children. Conducted cultural programmes. Winners were given prizes. Expenses incurred Rs. 1,99,755/- entire amount was secured by way of donations and sale of Tickets. Return Gifts were offered to the member firms attended.

5. Discussed and passed resolution to change present name of our Association i.e., The Paper Merchants Welfare Association, Vijayawada as Andhra Pradesh Paper Merchants’ Welfare Association, Regd. Office : Vijayawada. It came into force with effect from 17-12-2017.

6. Discussed to participate FPTA MC Members & FPTA Vice-President in ensuing FPTA 2nd MC Meeting to be held on 6th & 7th January 2017 in Bengaluru.

7. Discussed and resolved sale of Office Compartment through paper add or broker.

8. Decided and confirmed as per direction of FPTA every year August 1st, our Affiliated Association wants to celebrate The Paper Day at all shops of our Association in the state by displaying banners to make public awareness to drive out misconception among public regarding production of paper.

9. Regarding Anti Dumping Duty investigation the committee is of opinion to take neutral stand. 10. Committee had passed resolution to collect Rs. 500/ – from members of every firm but decided to bring it to notice of house in the 35th AGM likely to be held in the month of July or August 2018 for approval.

TELANGANA PAPER MERCHANTS’ ASSOCIATION

 

DEC 2017

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

 

 

 

 

 

24.12.2017

 

 

 

 

 

T.P.M.A CRICKET CHAMPION’S TOURNAMENT 2017-18

 

 

 

 

 

 

1. T.P.M.A Secunderabad conducted its annual T.P.M.A CRICKET CHAMPION’S TOURNAMENT 2017-18 at Vijay Anand Ground. The Cricket Trophies were unveiled earlier in October at our Deepavali Sneh milan program by our FPTA President, FPTA Vice President & FPTA Hon. Secretary

 

All our Association Members attended the event with family and children which was full of fun and sport.

 

Everyone had a gala time all throughout the day.

Breakfast, lunch & Hi-Tea was served to all Guests.

2  28.12.2017 3rd  MEETING OF KAGAZ BHAVAN COMMITTEE Status and discussion on various pending works of Kagaz Bhavan was held by the Chairman.
3.  28.12.2017

 

 

 

 

 

 

 

 

 

 

2nd JOINT MEETING OF MANAGING COMMITTEE & KAGAZ BHAVAN COMMITTEE.

 

TPMA had a 2nd Joint meeting of the Kagaz Bhavan and the Managing Committee to discuss various issues pertaining to the activities of the association and Kagaz Bhavan.   

Chairman Shri B.R. Rao presented report of Kagaz Bhavan committee. He gave details of Building maintenance and other pending works.

The meeting was attended by office bearers, Past Presidents, Managing Committee Members & Kagaz Bhavan committee Members. All the members also discussed various matters about the association activities & market conditions.

Member’s suggestions were also discussed and will be implemented for the development of our association.

All the Circulars sent by you have been Circulated to all the Members.

 

 

 

Salem paper Allied Traders Association

DEC 2017

 

1) SPATA’s Executive committee meeting was held on 15/12/2017.
Resolution passed: All members must have GSTIN Number before next AGM of SPATA and those who are not having would be removed from SPATA.

2) FPTA’s President Shri. A. Venkat Annamalai and Vice-President Shri. R. Sunder visited SPATA’s Felicitation Ceremony on 15/12/2017 at Rathna Residency Salem.

3) FPTA’s President in his speech advised all members to participate Association activities actively. Also, informed members that Import will go down and market will improve.

4) FPTA’s Vice-President Shri. R. Sunder in his speech highlighten Co-operation among Members and working with good margins in Business with impressive Quotes of World Leaders.

5) Speaker Shri. Sampath spoke about “Navarathnas of Life”.

6) Those SPATA members who came in time to Felicitation Ceremony was recognized on Stage by FPTA’s President Shri. A. Venkat and appreciated by him.

 

 

TRICHY DISTRICT  KAGITHA VANIGARKAL NALA SANGAM:

 

NOVEMBER 2017:

 

For the month of NOVEMBER  we conducted management committee meeting  and discussed about G.S.T RETURN filing and  shared our views and gave clarifications for our members .

 

December 2017:

 

For the month of December we conducted  Management committee meeting and discussed about WW FORM FILING and  decided to take part in activities of   SWACHH  BHARAT  MISSION    with TRICHY CITY CORPORATION  and we contributed DUTBIN OF Rs20000/- to  the needy people .

 

The Lucknow Paper Merchants Association, Lucknow –

 

Nov 2017

No. Date Name of the Activity Description
1 14-11-2017 Executive Committee Meeting Executive Committee Meeting of LPMA was held to discuss the business prospects of Lucknow Paper Traders. As fresh tenders for supply of paper, printing with paper etc being invited by various government departments for new academic year 2018-19, if any help to fellow members are required from association or any clarification needed, Association will be pleased to extend all possible support.

It was decided to have healthy and amicable competition.

 

Paper and Allied Merchant Association

Dec 2017.

04-12-2017          Federation of Trade Association of Coimbatore (FTAC) EC Meeting Attended by Mr. Balasubramanian and Mr. R Ravi

06-12-2017          Visit to Hotel Rathna Residency by Mr. Lalchand, Mr. R. Ravi and Mr. C. Balasubramanian for fixing venue for FPTA President Mr. A. Annamalai Visit on 16-12-2017.

10-12-2017          Conference call with FPTA President, Vice President of FPTA and conveners of sub committees of FPTA. Mr. Balasubramanian participated.

11-12-2017          Governing Council Meeting of Chamber of Commerce. Mr. R. Ravi and Mr. Balasubramanian participated.

14-12-2017          EC Meeting of PAMA.

Subject discussed:

  1. FPTA MC Meeting at Bangalore on 6th and 7th Jan 2018.
  2. FPTA President visit to PAMA on 16.12.2017.
  3. PAMA family Get – to – Gather in Jan / Feb 2018.
  4. PAMA coolie Talks – settlement
  5. PAMA social service projects.

16.12.2017           As a Service towards society our Association provided Breakfast for 100 inmates of Coimbatore  Corporation “ CORPORATION NIGHT SHELTER” for orphans, disabled and under privileged people Mr. Lalchand, Mr. R. Ravi, Mr. AM. Sankar, Mr. C. Balasubramanian, other office bearers and members of PAMA joined the event at the shelter in West Arokiasamy Street R. S. Puram Coimbatore – 2.

21-12-2017          Meeting called for by GST Commissioner at his office, Chamber of Commerce, Federation of Trade Association and other Trade / Industry Association were invited to share their views on GST. Mr. Balasubramanian and Mr. R. Ravi participated.

Use of Paper is Good for the Environment

 

Everyone receives many email messages with the tagline “Please consider your environmental responsibilities before printing this email” or “Save paper – Think Before you Print”. A myth has been perpetuated that use of paper destroys forests by cutting trees.In recent times, media reports have appeared on some or the other organisation going ‘paperless’ and one of the reasons cited is that massive use of paper means felling of thousands of trees and harming the environment.

 

Nothing could be farther from the truth. While there may be any number of reasons to move towards digitisation in any field or organisation, it should not be linked to felling of trees and environment protection.

 

While it may be technically correct to state that the use of paper means felling of trees, it is only part of the picture, and completely distorts it.

 

Unlike in some parts of the world, the paper industry in India is not a forest based industry but is an agro / farm forestry based industry. That is, like any other crop, farmers grow trees on their lands and sell their harvest to the paper mills.

 

India’s paper industry has strong backward linkages with the farming community, from whom wood, which is a key raw material, is sourced. Of the total demand for wood by the paper industry, around 90% is sourced from industry driven agro / farm forestry, with the rest from Government and other sources. India’s paper industry is wood-positive, that is, it plants more trees then it uses.

 

Pioneering work has been carried out by the paper industry over the last three decades in producing tree saplings (e.g. Eucalyptus, Casuarina, Subabul, etc.) which are disease and drought resistant and can be grown in a variety of agro climatic conditions. A large part of this wood is grown in backward marginal / sub-marginal land, which is potentially unfit for other use.

 

Intensive efforts mounted by the paper mills over the last several years have been instrumental in influencing plantation on cumulatively 900,000 hectares approximately on an all India basis. About 125,000 hectares are being brought under agro / farm forestry on an annual basis.

 

Substantial amounts have been spent by the paper industry on plantation R&D, production of high quality clonal saplings, technical extension services to improve agro / farm forestry services, hand holding of marginal farmers over a gestation period of 4-5 years. This has generated significant employment opportunities for the local community, especially in the rural areas.

 

In India, an estimated 5 lakh farmers are gainfully employed in the growing and harvesting of trees, what is called Trees Outside Forests (TOF).

 

There is no truth in the argument that claims use less paper and save the environment. Paper industry in India is not cutting forests. As opposed to the perception, paper industry has been encouraging growing of trees at a fast pace by the farmers for sourcing wood. India is a fibre deficient country and the demand-supply gap is a major constraint in the growth of the paper industry.

 

Growing trees by paper industry is leading to absorption of carbon dioxide and helping the cause of mitigating climate change. Industry has also earned carbon credits for this agroforestry initiative. What is significant to note is that young trees grown by the paper industry absorb more carbon dioxide than the aged ones. Usage of paper is thus good for the environment. These working or managed forests are very useful for the environment, and paperindustry has demonstrated potential to enlarge the country’s green cover.

 

Paper and paperboard also provide a much more environment-friendly and better packaging material than alternate material like plastic.

 

Paper is biodegradable, renewable, recyclable and sustainable, made from planted trees. Growing and harvesting trees provides jobs for lakhs of people. Working forests support the environment, providing clean air, clean water through increased rainfall, wildlife habitat and carbon storage.

 

Hence, we say – USE PAPER, as Use of Paper is Good for the Environment.

 

 

Public Awareness Committee

Federations of Paper Traders’ Associations of India

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. Fema

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

CBDT suspends Assessing Officer for converting LIMITED Scrutiny into FULL Scrutiny with mala fide intention

The CBDT has sent a strong message to all unscrupulous AOs that it will no longer tolerate their shenanigans of harassing taxpayers with a view to extort bribes. The usual modus operandi of such Ao’s is to conduct roving inquiries and threaten to make huge additions unless the hapless taxpayer agrees to pay a bribe. The CBDT has put an end to this nefarious practice by directing that all cases where a limited scrutiny is converted into a full scrutiny should be backed with an order sheet entry in which reasons are given. The approval of the Pr CIT has also been made a precondition. An officer who defied this directive has been placed under suspension as his action gave rise to a “very strong suspicion of malafide intentions“

(Source: http://www.itatonline.org)

Income Tax notices to 1.16 lakh for cash deposit of over Rs 25 lakh

The Income Tax Department has slapped notices on 1.16 lakh individuals and firms who made cash deposits of more than Rs 25 lakh in bank accounts post note ban but failed to file returns by the due date, CBDT Chairman Sushil Chandra said. Besides, large cash deposit by people who have filed I-T returns are also under close scrutiny, he said. The tax department has combed as many as 18 lakh people who had deposited junked 500 and 1000 rupee currency notes of over Rs 2.5 lakh each post demonetization.

(Source: http://www.moneycontrol.com/news/business/economy/i-t- notices-to- 1-16- lakh-for- cashdeposit-of- over-rs- 25-lakh- 2449037.html)

 

Press Release and Section 119 Order regarding extension by CBDT of due date for linking of Aadhaar with PAN

Under the provisions of recently introduced section 139AA of the Income-tax Act, 1961(’Act’) with effect from 01.07.2017, all taxpayers having Aadhaar Number or Enrolment Number are required to link it with PAN Number for filing the tax return. The said provision was relaxed by the Central Board of Direct Taxes (’CBDT’) vide its order(s) dated 31.07.2017 & 31.08.2017, in file of even number, wherein further time till 31.12.2017 was allowed to the taxpayers to link Aadhaar with PAN .

(Source: https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Order-under- Section-119- Income-tax- Act-1961- MiscComm-8- 12-2017.pdf)

 

Press Release regarding suspension of Deputy Commissioner of Income Tax for demanding bribe and harassing taxpayer in scrutiny case

The Ministry of Finance has issued a press release dated 8th December 2017 stating a complaint was received making serious allegations against a Deputy Commissioner Shri D. K. Meena, Deputy Commissioner of Income Tax, posted at Surendra nagar in Gujarat Region for harassing a taxpayer in a scrutiny case with malafide intention. The officer was alleged to have demanded illegal gratification through the taxpayer’s Chartered Accountant for favorably completing the assessment. The audio recordings of conversations were also received which, inter alia, mention the bribe amount being demanded by the officers of the Department for settling the case.

 

It is stated that on examination of the case records, serious lapses and irregularities were found which led credence to the allegations made against the officer. It is stated that the Department has zero tolerance to such

malpractices and corruption and that pending investigation, the officer has since been placed under suspension.

(Source: www.itatonline.org)

 

Taxman pressing ahead with prosecution notices

As tax officials chase to meet stiff revenue targets amid sluggish growth, there is a sudden surge in prosecution notices slapped by the income tax department. Till now prosecution provision was invoked sparingly and primarily on willful tax evaders. Now, prosecution proceedings are being initiated for not filing tax returns or for short or even delayed remittance of tax deducted at source (TDS) by business entities.

 

A list of 8,000-odd non-filers (of tax return) with a past record of earnings has been compiled by the tax department. Many in that list have been issued prosecution notices. While this may come across as somewhat harsh, notices have also gone to companies which even after deducting TDS (from salaries, rent, or other heads) have failed to submit it to the government.

(Source: https://economictimes.indiatimes.com)

Income Tax department conducts surveys at Bit coin exchanges country-wide

The Income Tax Department has conducted survey operations at major Bit coin exchanges across the country on suspicion of alleged tax evasion, official sources said. They said various teams of the sleuths of the department, under the command of the Bengaluru investigation wing, visited the premises of nine such exchanges in the country including in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram.

 

The survey, under section 133A of the Income Tax Act, is being conducted for “gathering evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others,” they said.

(Source: www.financialexpress.com/economy/income-tax- department-conducts- surveys-at- bitcoinexchanges-country- wide/971807/)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Reduction in late filing fees

Late fees payable for delay in filing of return for October 2017 onwards reduced to fifty rupees (twenty five each for CGST and SGST) and In case of NIL return, the late fees reduced to twenty rupees (ten each for CGST and SGST).

(Notification No.64 /2017 – Central Tax dated November 15, 2017)

 

Amendments made to CGST Rules:

Notes:

 

  • For the purpose of reversal of input tax credit under Rule 42 and 43, supply of services made to Nepal and Bhutan against payment in Indian rupees will not be considered as exempted supply

 

  • Electronic filing of an application, intimation, reply etc. shall also include manual application, intimation, reply etc. (Rule-97A & Rule-107A Inserted)

 

  • Rule 109A has been inserted which deals with appeals and revision, to appoint authority with whom a further appeal can be filed by a person aggrieved by the decision or order of the adjudicating authority.

 

  • Form GST RFD-01 has been provided for manual application for refund in specified cases

(Notification No. 55 /2017 – Central Tax dated November 15, 2017)

 

No GST liability on advances received against supply of goods

It has been specified that date of Invoice will be considered as time of supply in case of goods. Thus, there will be no GST liability on advances received in case of supply of goods.

(Notification No. 66 /2017 – Central Tax dated November 15, 2017)

 

Quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of up to Rs.1.5 crore

The Central Government, on the recommendations of the Council, notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year (in case of registrations taken in current financial year), shall follow the special procedure as detailed below for furnishing the details of outward supply of goods or services or both in Form GSTR-1.

 

Sr. No. Quarter for which the details in

FORM GSTR-1 are furnished

Time period for furnishing the

details in FORM GSTR-1

1. July – September, 2017 31st December 2017
2. October – December, 2017 15th February 2018
3. January – March, 2018 30th April 2018

 

(Notification No. 57 /2017 – Central Tax dated November 15, 2017)

 

 

 

 

 

International Tax

 

Amendment in the Income-tax Act does not affect the provisions of the tax treaties unless the

same are included in the tax treaty

Based on the facts and in the circumstances of the case, recently, the Mumbai Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Bank of India (the taxpayer) held that any notification or circular cannot alter the nature of income that has been specifically included in tax treaties. The tax authorities treated the business income and house property income as one source of income for tax purposes. However, the India-Kenya tax treaty (tax treaty) contains two different Articles i.e. ‘business income’ and ‘house property income’. The Tribunal observed that even amendment in a section of the Income-tax Act, 1961 would not affect the provisions of tax treaties, unless same are not ratified by both the signatories of the tax treaty. Accordingly, it was held that under Article 6 of the tax treaty house property income should be taxed in Kenya and not in India.

(DCIT v. Bank of India (ITA No. 3082/Mum/2015) – Taxsutra.com)

Income earned abroad by a non-resident cannot be taxed in India for mere receipt of salary in

Indian bank account

For a taxpayer qualifying to be a non-resident in India, income received, deemed to be received, accrued, deemed to be accrued, arising or deemed to be arising in India would be subject to tax in India. In relation to salary income, the income earned for services rendered in India would alone be taxable in India. In this context, recently, the Delhi Bench of the Income-tax Appellate Tribunal in the case of Pramod Kumar Sapra held that income earned by a non-resident for services rendered outside India cannot be taxed in India merely since the receipt of salary is in India

(Pramod Kumar Sapra v. ITO (ITA No. 5965 of 2015) (Del))

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fema

 

RBI amends FDI Regulations

RBI vide Notification No. FEMA 20(R)/2017-RB, dated 7th November, 2017 issued Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 (hereinafter referred to as ‘Regulations, 2017’) in supersession of Notification No. FEMA 20/2000- RB and Notification No. FEMA 24/2000-RB, both dated May 3, 2000, Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (hereinafter referred to as ‘Regulations, 2000’). The Regulations, 2017 are effective from 8th November, 2017 (Date of publication in the Official gazette) except proviso (ii) to sub-regulation 1 of regulation 10 of these Regulations and proviso (ii) to sub-regulation 2 of regulation 10 of these Regulations, reproduced hereunder as Annexure 1, which will come into effect from a date to be notified.

 

Some of the key Definitions like Capital instrument, Investment, Foreign Direct Investment (FDI), Foreign Investment, Foreign Portfolio Investment, Resident Indian Citizen, Non Resident India (NRI), Overseas Citizen of India (OCI), etc. are amended / newly inserted. While some of the terms defined like Employees’ Stock Option, Start up, Startup Company, Sweat equity share, etc. are aligned with Act, 2013/DIPP notifications/Consolidated

FDI Policy. In view of the new Definitions, some of the terms defined earlier like Foreign Institutional Investor, Qualified Foreign Investor, Warrants, etc have been deleted.

 

Changes have also been made in provisions related to Downstream Investments, Transfer of Shares, etc. Further, In case of an unlisted Indian company, the valuation of capital instruments done as per any internationally accepted pricing methodology for valuation on an arm’s length basis can now be certified by even a practicing Cost Accountant.

 

While Regulations, 2000 were revisited and amended frequently to align those with other regulatory amendments, Regulations, 2017 is concise as well as comprehensive and avoids repetitive provisions as observed in Schedule of Regulations, 2000.

(RBI Notification No. FEMA 20 (R)/ 2017-RB dated November 7, 2017)

 

 

Respected Members,
 
Kindly note our new contact numbers as mentioned below:
 
022 4973 2041
022 2267 7708
 
This for your information.
 
Regards
FPTA
Hiren Karia
Hon. Secretary

THE PAPER TRADERS’ ASSOCAITION, Mumbai 

Sep 2017

 

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1    01/09/17 Special Mtg. Special Meeting of Office Bearers to discuss about forth coming 76th AGM of our Association.
2 08/09/17 Monthly Circulars The monthly Circular was circulated on 08/9/2017 wherein important information about “Due Dates for GST Return for the month of 07/17 & 08/17 were given along with regular information and important information about Income Tax and Goods and Service Tax.
3 12/09/17 BDS Mtg. Discussion on cases in progress.
12/09/17 FPTA President FPTA President Shri A. Annamalai (Venkat) visited the PTA Office and interacted with all the office bearers during the meeting.
4 15/09/17 76th AGM The 76th AGM was graced by Shri Bhagwanbhai Bhura as Chief Guest & A. Annamalai (Venkat) as Guest of Honour. Both of them were introduced to the house & then shared their vast experience. FPTA Awards won by PTA office bearers & various PTA Awardees were declared. Latest edition of Red Book published by the Publication Committee was inaugurated by the Chief Guest Shri Bhurajee and Guest of HonourShriVenkatjee& on President’s request members expressed their thoughts.
5 25/09/17 1st MC Mtg. During the meeting 2 Hon Secretaries &1 Hon.Treasurer,5 additional Managing Committee members, 3 Co-opt Members & 9 Special Invitees were selected.

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honour and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

 

 

Oct 2017

No. Date Name of the Activity Description
1    10/10/17 2nd MC Mtg. During the mtg. 1)Resolutions were passed for finalizing the Signatories of various Bank Accounts & Fixed Deposits 2)Conveners of various Sub Committees were appointed 3)Two new Members were admitted 4)Discussion on proposed “Get together cum dinner followed by Entertainment Programme” and 5)Discussed Proposed Paper Day Celebrationon 01/11/17.
2 11/10/17 Monthly Circulars The monthly Circular was circulated on 11/10/2017 wherein along with regular information 76th Annual General Meeting was detailed in nutshell. 1) Introduction of Chief Guest Shri Bhagwan Bhura and Speech delivered by him 2) Introduction of Guest of HonourShri A. Annamalai (Venkat) FPTA President & Speech delivered by him. 3) During 55th AGM Awards won by PTA Mumbai. 4) PTA Awards for year 2016-17 won by PTA Members 5) Inauguration of latest edition of Red Book (Defaulter Book) by Chief guest and Guest of Honour.
3 25/10/17 Special Mtg. Special Mtg of Office Bearers was held to Finalise the programme of Get together.

 

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honour and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of Association of Paper Manufacturers that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of Association of Paper Manufacturers jointly should promote the Paper as Green Product.

 

 

 

 

 

 

________________________________________________________________

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore – Aug 2017

Activities-Achievements-Updates during this Period by the Association

 

Sep 2017

 

No. Date Name of the Activity Description
1 17.09.2017 AGM  Report send new team form
2 21.09.2017 Managing Committee meeting Monthly 1st MC meeting held to discuss regular work and trade scenario. Members also discussed about hosting 2ND FPTA managing Committee meeting in Karnataka.

All e mails received from FPTA were forwarded to all our kpmsa members.

3 21.09.2017 New members Two new KPMSA LIFE members added
       

 

 

 

Oct 2017

No. Date Name of the Activity Description
1 11.10.2017 Meeting with MLA Meeting with  MLA mr.Dinesh Gudurao told problem regarding civic amentnity in and around paper market
2 24.10.2017 Managing Committee meeting Monthly 2nd MC meeting held to discuss regular work and trade scenario. Members also discussed about hosting 2ND FPTA managing Committee meeting in Karnataka.

All e mails received from FPTA were forwarded to all our kpmsa members. 20-25member confirm to attend PAPERX along with our President.

3 24.10.2017 New members no new KPMSA LIFE members added
4 24.10.2017 2nd FPTA MC Various committee founded for management of 2nd FPTA MC to be held on 06.01.2018

________________________________________________________________

 

 

 

The Paper Merchants’ Welfare Association, Vijayawada

 

Sep 2017

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

22-9-2017 1st M.C. Meeting 2017-18 1) Reviewed last MC Meeting Minutes and together with Emergency MC Minutes.

 

2) Acceptance and Approval of Financial Report for the year upto the period 2017-2018.

 

3) The PMWA 34th AGM held on 23rd July 2017 reviewed and the total expenses incurred for the meeting Rs. 1,34,815/- was accepted by committee.

 

4) Reviewed of FPTA 56th AGM held at Madras from 12th to 14th August 2017 hosted by The Madras Paper Merchants Association Chennai. Out of full strength of 20 delegates 19 delegates were attended from our Association. one member Mr. K. Nageswara Rao, M/s. Sree Srinivasa & Co., dropped due to his private affairs.

 

In this meeting the following members were nominated from our Association as FPTA MC members for the year 2017-2018.

1. Mr. Lalit Kumar Tarachand,

M/s. Sha Amichand Tarachand & Sons, Vijayawada-1.

2. Mr. V.V.D. Ramesh,

M/s. Sri Ravi & Co., Vijayawada-1.

3. Mr. Nilesh Solanki,

M/s. Vardhaman Paper Products, Vijayawada-3.

4. Mr. A.T. Arasu,

M/s. Arasu Papers, Vijayawada-1.

5. Mr. A. Chandrasekhar Reddy,

M/s. Divya Publications, Vijayawada-10.

6. Mr. Paharsingh Rajpurohit,

M/s. Suresh Paper Agencies, Vijayawada -3. (Co-Opted)

Mr. Madhusudan Bang,

M/s. Ram chandar Shivnarayan Sons, Vijayawada -2

was nominated as FPTA Zonal Vice-President for the year 2017-2018 as per our allotment once in every alternate year.

 

5) Reviewed the Jakkampudi Economic Township which Government of A.P. Proposed to establish industrial cluster to the paper related firms and rehabilitation to the workers at the Government Land adjoined to the Vijayawada town.

 

6) Reviewed the certain inoperated firms were decided to delete from their membership.

7) Discussed and decided present membership profile has been slightly modified as certain old colums were replaced with new colums convenient to the present digital technology.

 

8) Discussed and decided to conduct Blood Donation camp on occasion of Mahatma Gandhi 148 Birth Anniversary in October 2nd, 2017 Monday at Rotary Red Cross Blood Bank, Gandhi Nagar, Vijayawada.

 

9) The Committee resolved and decided to collect Rs. 5,516/- towards subscription for present firm title changed or on changing of title. They should be paid before31st December 2017 if failed to pay in the prescribed time they can be deleted straight way with out prejudice.

 

10) Discussed and decided to celebrate Karthika Vanasamaradhana (Diwali Garden Party) on 5-11-2017 in thick forest at Mulapadu surrounding Vijayawada.

 

11) a) The Committee with the permission of chair resolved and decided and enhanced life membership subscription for the new

members enrolment from Rs.10,000/- to Rs.15,000/- with effect from 22nd September 2017 and the admission fee Rs. 516/- remained unchanged.

b)The Committee had decided certain restrictions should be implemented on whatsapp group which the committee feel unfavorable.

c) The Committee had decided to inform the PMWA Members to participate paper expo in Delhi to be conducted on 1st and 2nd November 2017. The interested members can be participated

in this event at their own expenses and risk.

d) The Committee proposed and decided to conduct 2nd MC Meeting 2017-2018 on 15th December 2017.

 

Oct 2017

 

No. Date Name of the Activity Description
1.

 

 

 

 

 

 

2.

22-10-2017

 

 

 

 

 

 

27-10-2017

SOCIAL ACTIVITY

 

 

 

 

 

 

Emergency

MC Meeting 2017-18

Blood Donation Camp was conducted by PMWA on 2nd October 2017 on the eve of Mahatma Gandhiji Birthday at Rotary Red Cross Blood Camp, Gandhi Nagar, Vijayawada -3. Totally 25 members attended. Out of them Blood was colleted from 15 members on their sound health condition as per the doctor’s report.

 

Distribution of work to the executive members of our

Association for celebration of Karthikavana samaradhana (Diwali Garden Party) fete to be performed 12-11-2017 Sunday in thick forest at pleasant and delightful location surrounding Vijayawada.

 

Formation of Committees :-

1) Food Committee :-

a) Breakfast & Lunch:

1. B. Sankar, M/s. Sai Binding Works

2.G. Murali Krishna, M/s. Murali Binding Works

b) Hi-Tea :

1. Kundanmal Gandhi, M/s. Paras Enterprises

2) Banners :-

1. Nilesh Solanki, M/s, Vardhaman Paper Products

2. D.Adinarayana Rao, M/s, Kamakshi Book Depot

3) Photographer :-

1. V.V.D. Ramesh, M/s. Sri Ravi & Co.,

4) Anchor & DJ :-

1. M. Ravi Kumar, M/s. Vishnu Binding Works

2. G. Nageswara Rao, M/s. A.S. Distributors

5) Seating Arrangments (Tents, Tables, Chairs) : –

1. Kundanmal Gandhi, M/s. Paras Enterprises

2. J. Srinivas, M/s. Rajeswari Traders

6) Gifts & Lucky Draw :-

1. M. Ravi Kumar, M/s. Vishnu Binding Works

2. Kundanmal Gandhi, M/s. Paras Enterprises

3. J. Srinivas, M/s. Rajeswari Traders

7) Sale of Tickets :-

1. Pahar Singh, M/s. Suresh Paper Agencies

2. H.C. Bhandari, M/s. Kamalsri Papers

3. M. Ravi Kumar, M/s. Vishnu Binding Works

4. D.Adinarayana Rao, M/s, Kamakshi Book Depot

 

Nov 2017

 

No. Date Name of the Activity Description
1.

 

 

 

 

 

 

 

 

 

 

2.

1-11-2017

 

 

 

 

 

 

 

 

 

12-11-2017

Paper Day Celebration at Delhi

 

 

 

 

 

 

 

 

Karthika

Vanasamaradhana

(Diwali Garden Party)

From our Association nine members attended including PMWA President Mr. Lalit Kumar Tarachand and Secretary Mr. V.V.D. Ramesh. It was said to be spread awareness and make propaganda among public and especially student community about paper manufacturing which they have negative trend.

Eminent persons spoken about its mode of manufacturing of paper that which will not give any damage to environment and ecological balance.

 

Karthika Vanasamaradhana was celebrated at pleasant location in dense forest at Mulapadu Near Vijayawada. Nearly 230 members including their families and children participated in this event. Conducted musical songs, Dance and Sports all were enjoyed very lot in his fete event.

Palatable dishes were arranged. Winners in sports were provided with prizes and also conducted Lucky Dips to test their fortune and distributed prizes. Return gifts were offered to the participants.

TELANGANA PAPER MERCHANTS’ ASSOCIATION

 

Nov 2017

Activities-Achievements-Updates during this Period by the Association

 

No. Date Name of the Activity Description
1.

 

 

 

 

 

 

 

 

 

2.

18.11.2017

 

3RD  Meeting of Managing Committee

 

1.  33rd meeting of managing committee of our Association was held on 18.11.2017 to discuss and implement various matters of our association.

 

2. Discussions were held about  matters  related to Kagaz Bhavan Committee & Arbitration board.

 

3. ‘’Cricket Tournament’’ a detailed discussion was held to organize the event which is going to be held on 24/12/2017.

 

All the Circulars sent by you have been Circulated to all the Members.

 

 

Salem paper Allied Traders Association

September 2017

 

15/09/2017:

1) Executive committee meeting  conducted.

2) As already decided in Executive committee meeting on 21/08/2017, We discussed about Our AGM to be held at Salem CJ PALLAZZIO on 17/09/2017.

3) Approved our Association’s Balance sheet for the year 2016-17.

 

17/09/2017

1) SPATA AGM held at CJ PALLAZZIO at11.30am.

2) Balance Sheet approved by AGM.

3) Approval received for Continuing Current Auditor for Subsequent year.

4) New Board of Members Elected and took charge.

 

New Board Members are:

 

C.Alagappan (M/s Ramsunder Papers)-  President

 

S.Balaji (Sri Vidya Book Shop, Salem-636 002) -Vice President.

 

A.Viswanathan -Saraswathi  Book Shop-  Secretary

 

D.Manimannan – Kalaimagal Book Shop- Jt.Secretary

 

A.Ramanathan -Balaji Paper -Treasurer.

 

And 7 EC members has taken charge.

 

 

 

 

Oct 2017

 

We had our Oct meeting on November 9th at Salem town Selva mess with our new team of office bearers and advisory committee member headed by our new president Mr.A. L. Alagappan.and executed by Mr. A. Viswanathan Secretary. we talked about various aspects of GST, industrial visit to TNPL unit 2,and agendas for upcoming year(i.e.) every month 2nd Friday evening meeting the person who comes first for every meeting will get a SPL gift from our President, Members who are all attending all meetings will get a silver coin as a reward, then in every 4 month  we bring all our members for a joint meeting by open discussion regarding business development, investment, motivation camps with mentor’s.

 

We plan to have family tour in the month of August 2018.

 

We are focused on each and every possible way to bring our members to make active part in all aspects of association welfare and growth.

 

REPORT OF Sivakasi Paper Merchants Assn. – October’2017:

Family entertainment on 07.10.2017:

On 07.10.2017, our Recreation Committee had arranged movie tickets for SPMA members and their family. Totally it was different experience for the members. It was great to meet all members with family.

2nd Committee meeting on 23.10.2017:

All committee members were informed of our FPTA  President, Mr. A. Venkat and Vice President, Mr. R. Sunder visit to SPMA on 17.11.2017.

Public awareness/welfare committee informed of arranging a meeting with SHN Girls in Sivakasi regarding Paper Awareness during the FPTA President’s visit and distributing pamphlets to the students.

Bulletin committee gave a detailed information and planning on the SPMA newsletter “DELIGHT” to be released during FPTA President’s visit.

Social media committee assured of support for the Bulletin committee for collection of information about Paper & related industry news.

Hence all committee members gave good support to organize a great event on the day of FPTA President’s visit.

2nd Regular meeting on 31.10.2017:

The main agenda of this meeting was preparation for FPTA President, Mr. A. Venkat’s visit.

Very solid discussion on the newsletter “DELIGHT” release was discussed. All members were happy that this newsletter will be circulated not only among SPMA members, but will be sent to FPTA and 35 affiliated associations and also to other local Paper manufacturers and Printers & related associations.

About RED BOOK, we had healthy discussion among members and it was implemented to list the bad pay masters.

Discussion on Special invitation to be printed for the FPTA President’s visit was also discussed.

 

 

TRICHY  DISTRICT  KAGITHA VANIGARKAL NALA SANGAM:

 

September 2017

 

  1. We have conducted our AGM   ON 30-9-2017 & 1-10-2017
  2. It was a family function with a special speaker of NELLAI KANNAN and health advice given by  two expert doctors.
  3. We had our management committee meeting on    10-9-2017.
  4. Market situation were discussed in our AGM
    ______________________________________________________________________________

 

Paper and Allied Merchant Association

October 2017.

4-10-2017            PAMA Sep 2017 Monthly Report sent to FPTA,

8-10-2017            Conference call with FPTA President Mr. Venkat and other conveners of sub – committees of FTA and Vice President of FPTA.

9-10-2017            Chamber of Commerce – Governing Council Meeting 6 P M Attended by Mr. R. Ravi and Mr. C. Balasubramanian.

25-10-2017          PAMA – EC Meeting 7.30pm

Subject discussed:

  1. Confirmation of PAMA AGM Minutes dt 17.09.17
  2. FPTA MC Meeting at Bangalore on 6th 7th Jan 2018
  3. Paper Day 01.11.2017
  4. FPTA Vietnam Tour from 4th – 11th Feb 2018.
  5. FPTA President visit, Guidelines for affiliated associations.
  6. PAMA September 2017 Report.
  7. PAMA Presidents proposal for office – bearers and EC Members.

26-10-2017          Chamber of Commerce- “ Insolvency and Bankruptcy Code 2016” Speaker : Dr. Navrang Saini Whole time members, Insolvency and Bankruptcy Board of India, New Delhi. Attended by Mr. C. Balasubramanian.

26-10-2017          Office bearers of Chamber of Commerce including Mr. C. Balasubramanian met Shri G Sreenivasa Rao IRS Commissionerate Coimbatore.

31-10-2017          “ RUN FOR UNITY” Organized by Central Excise Department on the Occasion of National Unity Day. Office bearers of Chamber of Commerce including Mr. C. Balasubramanian and others Trade and Industry bodies as well as Government Departments participated in the Run.

 

November 2017.

02.11.2017           The Monthly Report of activities of PAMA sent to FPTA, FPTA President – Chennai and FPTA Vice President Sivakasi.

07.11.2011           Chamber of Commerce – Meeting on GST “GST-Current Challenges and Solutions” Addressed by Mr. C.P. Rao. I.R.S Principal chief commissioner – GST Chennai.

Mr. G. Srinivasa Rao I.R.S Commissioner GST Coimbatore.

Attended by Mr. R. Ravi, Mr. C. Balasubramanian and other PAMA Members.

10.11.2017           Coolie talks with Loadman Union at PAMA office on revision of Loading/unloading charges for our Loadmen.

12.11.2017           Conference call with FPTA President and conveners of FPTA Committees. Mr. C. Balasubramanian participated.

13.11.2017           Chamber of Commerce – Governing Council Meeting. Mr. R. Ravi and Mr. C. Balasubramanian participated.

28.11.2017           Chamber of Commerce – Session on GST “150days of GST – A stake Holders Review” by Mr. S. Jaikumar Advocate Country Head swamy Associates.

Mr. R. Ravi and Mr. C. Balasubramanian Participated.

28-11-2017          PAMA – EC Meeting

The Lucknow Paper Merchants Association, Lucknow – April 2017 to Oct 2017

 

No. Date Name of the Activity Description
1 13.04.2017 Executive committee Meeting Executive Committee Meeting of LPMA was held to discuss the problems, if any, being faced by the Paper Traders regarding filing of Commercial Tax Returns & ITR as financial year 2016-17 has come to end. Also a get together function was organized being successful closure of FY 2016-17.
2 18-05-2017 Executive Committee Meeting Executive Committee Meeting was called to discuss the civic problems being faced by Trading & business community like bad road conditions, street lighting and security concern. A delegation of 02 Executive Committee Members met City Commissioner for road and street lighting problems who assured to look into the problems and will arrange to repair the roads, cleaning of drainage and provide proper lighting. The delegation also met with DGP who assured for proper policing in night and will also provide police personnel for day time security.
      3 22-06-2017 Executive Committee Meeting Executive Committee Meeting was convened to discuss the problems of Paper Trading Community and fellow Members and to take feedback for the problems raised by members for which delegation met to City Commissioner & DGP. The Executive Committee was informed for the progress made by the concerned Government Departments and satisfied. Members were asked to be cutious for surrounding activities.
4 06-07-2017 General Body Meeting General Body Meeting was called in the pretext of GST application, implemented by Government of India w.e.f 01.07.2017. In this reference members were asked to take help from the leaflets, broachers, provided by FPTA. Members were asked to carefully note the GST Act and discuss, if any problem arises in future.
5 03.08.2017 Executive Committee Meeting Meeting was called to discuss about the preparation of Indepenence Day Celebration, to be organized at H.O. of the Association. Members were asked to be active in social welfare activities and common problems of the society and make effforts for solution.
6 15-08-2017 Independece Day Celebration General Body of the Association assembled at Association’s Office to celebrate Independence day. Flag Hoisting was made by President and every member was felicitated on this auspicious occasion. Members were asked to donate books and other stationery to poor children which was being done by the Association since last many years.
7 14-09-2017 General Body Meeting LPMA General Body meeting was held at Associations’ Office to discuss the problems, being faced by Trading Community in general and Paper Traders in Particular in filing various GST Returns and it was decided that a delegation of 3-4 members of Executive Committee of LPMA will meet The Commissioner, Commercial Tax Department very soon and will apprise him the traders’ problems with request to suggest/get the solution. The result of the meeting with Commissioner, Commercial Tax, will be communicated to all LPMA Members. Members were also requested to make their presence on 2nd October, 2017 to celebrate ‘Gandhi Jayanti’ and ‘Shastri Jayanti’.
8 02-10-2017 General Body Meeting Members of LPMA assembled at Association H.O. to celebrate “Gandhi Jayanti” and “LalBahadurShastriJayanti” which was organized with much enthusiasm. Members were requested to participate in welfare schemes of poor and children which are launched by the Association as well as schemes initiated by Government or by any other Social Organization.
​Respected Members,
 
With reference to the 2nd Managing Committee Meeting to be hosted by Karnataka Paper Merchants’ & Stationers at Bangalore on 06th & 07th January 2018.
 
The two major points will be also be part of our meeting agenda for discussions during the meeting in any other matter as mentioned below.
 
1. On Celebrating Paper Day by Affiliated Associations
 
2. Initiation of Anti – Dumping Duty investigation concerning imports of Un-Coated Copier Paper Originating in or exported from Indonesia, Thailand and Singapore.
 
We request all our Managing Committee Members to come prepared to share your valuables views on above subjects during the M C Meeting.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary
 
Cc. All Patrons and Life Associates Members​

 

 

Circular No. 04/57/2017-18                                                                                Date: 06th December 2017

 

To

All the Managing Committee Members

All Affiliated Associations and Former Presidents of FPTA.

 

NOTICE – 2ND MEETING OF THE MANAGING COMMITTEE 2017-18

 

Notice is hereby given that the Second Meeting of the Managing Committee (2017-18) of the Federation of Paper Traders’ Associations of India will be held at Bangalore under the auspices of Karnataka Paper Merchants’ & Stationers Association, Bangalore.

 

The details of venue, date and timing are as under:

 

Venue                      :               Hotel Shangri La

                                    # 56-6B, Palace Road, Bangalore – 560052

Tel: 080- 4512 6100

 

Date                             :           06th & 07th January 2018

 

Timings                       :           As per tentative programme attached.

 

AGENDA

 

The following items will form the agenda for the meeting.

  1. To confirm the draft minutes of the Fourth meeting of the managing committee (2016-17) and the

First meeting of the present managing committee (2017-18) held on 12th & 14th August 2017.

  1. To consider applications for membership for Life Associate, Patron and Ordinary Member, if any.
  2. Report of Shri. A. Natesan Convener of Advisory Board.
  3. To discuss reports of Vice-Presidents and Conveners of the Sub-committees circulated.
  4. To consider report of review committee Convener on guidelines of various awards
  5. Discussion on Current Market Scenario/Grievance Committee for PAN India or Zonal.
  6. Discussion for 3rd Managing Committee Meeting to be hosted by Rajasthan Paper Merchants’ Association,

Jaipur.

  1. Any other matter with the permission of the chair.

Yours faithfully,

For Federation of the Paper Traders’ Associations of India,

 

 

 

Hiren Karia

Hon Secretary

 

Cc. All Patrons, Life & Ordinary Associate members.

 

 

IMPORTANT

Managing committee members are requested to co-operate with the hosts, while registering, attending the meetings and inform well in time regarding their schedule of arrival and departure programmes.

(Please also send copies of your correspondence to the host (Karnataka Paper Merchants’ & Stationers Association, Bangalore and copy to FPTA office to give you the necessary supporting help)

 

 

 

 

 

 

2

 

Tentative Program

Saturday, 7th January 2017

 

7.30 a.m. to 09.00 a.m.                       Registration and Breakfast
09.30 a.m. to 11.30 a.m.         Advisory Board Meeting
12.00 p.m. to 01.30 p.m.        Inauguration

FPTA President’s address to host Association and Interaction

01.30 p.m. to 02.30 p.m.        Lunch

03.00 p.m. to 04.30 p.m.        1st Business Session

04.30 p.m. to 05.00 p.m.        Hi-Tea
05.00 p.m. to 07.00 p.m.         2nd Business Session

07.30 p.m. to 10.00 p.m.                  Dinner & Entertainment

 

Sunday, 8th January 2017

 

07.30 a.m. to 09.00 a.m.                     Breakfast
09.30 a.m. to 11.00 a.m.                     3rd Business Session
11.00 a.m.                   Checkout

 

The Meeting is planned as one day event. Please send your travel details to kpmsablr@gmail.com before 15th December 2017. All Members attending the event must carry their I.D. proof for check-in.

 

Members of FPTA under Life/Patron/Observer categories who wish to participate in the meeting must inform our association (KPMSA) in advance before 15th December 2017. The fee for such participants has being fixed at Rs. 7,500 (Rupees Seven thousand Five Hundred only) each per person, plus taxes as applicable; the amount may be remitted by way of cheque/DD/NEFT in favour The Karnataka Paper Merchants and Stationers Association.

 

Participating Members are requested to send ID Proof Along with Passport Size Photo to KPMSA Bangalore address before 15th December 2017

 

Our bank details are as follows:

A/c. Name          :              “The Karnataka Paper Merchants and Stationers Association”

Bank                      :               State Bank of India

Branch                  :               Cottonpet Branch, Bangalore-380 001

A/c. No.               :               54051177943

IFSC Code            :               SBIN0040260

Looking forward to meeting you all in Bengaluru.

 

Contact Persons

Shri. Deepak Mittal, President                                 Mob: – 9844067424

Shri. Dinesh M. Jain, Secretary                               Mob: – 9845022820

Shri Ranjeet Jain. Chairman Registration Committee   Mob: – 9448476339.

Shri Ashok M. Jain Chairman Transport Committee    Mob: – 8088875152.

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. Company Law

 

 

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

India adopts reporting rules to crack aggressive corporate tax planning

India has notified final rules for multinational group companies (MNCs) in India to report specifics of their global parents’ operations as part of a global initiative to end instances of aggressive corporate tax planning. Details filed by the multinational company’s local arm in India, together with the finer details of the parent’s operations in every market which Indian authorities can source from the group’s home country under tax treaties, will help the government know how businesses manage flow of funds across borders to keep tax outgo low.

(Source:http://www.livemint.com/Companies/G8PAbxMFLR0q29cUuKFTmL/India-adopts-reporting-rules-tocrack-aggressive-corporate-t.html)

 

CBDT Chief Lambastes Income Tax Department For Failure To Redress Public Grievances In Timely & Proper Manner

Sushil Chandra, the Chairman, CBDT & Special Secretary to the Government of India, has addressed an irate letter dated 14th November, 2017 to all Pr. Chief Commissioners and Director Generals in which he has expressed grave dissatisfaction at the failure of the department to redress public grievances (CPGRAMs) in a namely & proper manner.

 

The learned Chairman has pointed out that redressal of public grievances is one of the primary focus areas of the Government and it is being monitored at the highest level and that he has written DO letters to all the Pr. Chief Commissioners delineating the steps to be taken for expeditious resolution of the grievances.

 

“However, in spite of all these efforts by the Board, it is a matter of concern that total pending grievances as on 13.11.2017 are as high as 1492,” the learned Chairman has observed.

 

Facts and figures to show the tardiness of the Department in the disposal of grievances have been set out.

 

“This high pendency reflects poorly on the efforts made by the field officers,” it is lamented.

 

It is also observed that the “High receipt of CPGRAMS grievances indicates that the resolution of grievances under e-Nivaran is far from satisfactory”.

 

At the end, a stern warning has been issued to the Pr. Commissioners and Directors Generals to ensure that all officers & agencies are properly briefed so as to reduce the avenues of grievances. It is also emphasized that efforts should be made to strengthen the functioning of the ASK centres ensuring timely e-nivaran of grievances

so that there is little or no need for public to resort to filing grievances on CPGRAMS.

(Source: http://www.itatonline.org/info/cbdt-chief- lambastes-dept- for-failure- to-redress- public-grievancesin-timely-proper- manner/)

 

Income Tax Department to issue notices to suspicious cash depositors

The Income-Tax (I-T) Department will soon issue notices to those who have deposited “suspicious” amounts of money in banks after demonetization and have not responded to the taxman’s preliminary communication, the CBDT has said. Chairman Sushil Chandra said despite closing of the I-T returns filing time period, a number of entities and individuals failed to file their returns, as required under the ‘Operation Clean Money’ initiated by the government to check black money after demonetization..

(Source:http://www.business-standard.com/article/economy-policy/i-t-to-issue-notices-to-suspicious-cashdepositors-117111500059_1.html)

 

Supreme Court ruling lets I-T department open closed cases

Many individuals and small businesses could now find the tax office raking up old wounds and chasing tax demands they believed had been long forgiven. To minimize feuds between the income- tax (I-T) department and small taxpayers, the revenue authorities had in the past decided that for tax demands below certain limits, the department would not wage legal battles to recover dues. These limits were fixed in February 2011 and were raised in December 2015. A recent Supreme Court ruling will now change this for many. The apex court has ruled that “the Central Board of Direct Taxes (CBDT) cannot issue any circular having retrospective operation.”

(https://economic_mes.indiatimes.com/news/poltics-and-nation/supreme-court-ruling-lets-i-t-departmentopen-closed-cases/articleshow/61349694.cms)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Highlights of Recommendations made by the GST Council in the 23 rd Meeting at

Guwahati on 10th November 2017

 

(These are the recommendations yet to be notified by the authorities)

Period / Month GSTR-3B along

with payment

GSTR-1 GSTR-2 GSTR-3
Taxpayers with

annual aggregate

turnover up to Rs.

1.5 crore (Quarterly)

Taxpayers with

annual aggregate

turnover more than

Rs. 1.5 crore

(Monthly)

July 2017 25-Aug-2017 31-Dec-2017 31-Dec-2017 The time period for filing GSTR-2 andGSTR-3 for the months of July 2017 to March2018 would be worked out by a Committee of Officers
August 2017 20-Sep-2017 31-Dec-2017
September 2017 20-Oct-2017 31-Dec-2017
October 2017 20-Nov-2017 15-Feb-2017 31-Dec-2017
November 2017 20-Dec-2017 10-Jan-2018
December 2017 20-Jan-2017 10-Feb-2018
January 2018 20-Feb-2017 30-Apr-2017 10-Mar-2018
February 2018 20-Mar-2017 10-Apr-2018
March 2018 20-Apr-2017 10-May-2018

 

Notes:

1) Late fee is waived in all cases where return in FORM GSTR-3B is not filed within due date for the months of July, August and September, 2017. Where such late fee was paid, it will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for discharge of their future tax liabilities.

2) For subsequent months, i.e. October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month is ‘NIL’ will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts).

 

From / Period Particulars Due Date
GSTR-4

July to Sept 17

Quarterly return for registered person opting for composition levy 24-Dec-2017
GSTR-5

July 2017

Return for Non-resident taxable person 11-Dec-2017
GSTR-5A

July 2017

Details of supplies of online information and database access or

retrieval services by a person located outside India made to

non-taxable persons in India

15-Dec-2017
GSTR-6

July 2017

Return for input service distributor 31-Dec-2017
TRAN-1 Transitional Input Tax Credit / Stock Statement 31-Dec-2017
(for original as well as revised Form TRAN-1)

 

  • Manual Filing: Facility for manual filing of Advance Ruling application to be introduced

 

  • Further benefits for service providers:

Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

 

In an earlier meeting of the GST Council, it was decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lakhs (Rs. 10 lakhs in special category states except J &K) from obtaining registration even if they are making inter-State taxable supplies of services. As a further measure towards taxpayer facilitation, it has been decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed twenty lakh rupees. As a result, all service providers, whether supplying intra-State, inter-State or through e- commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J &K).

 

  • Other:

Major relief in GST rates on certain goods and services Changes to Composition Scheme Benefits for Diplomatic Missions/UN organizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Tax

 

CBDT issues clarification related to guidelines for establishing ‘Place of Effective Management’ in India

 

The Finance Act, 2015 introduced the concept of ‘Place of Effective Management’ (POEM) under the provisions of Section 6(3) of the Income-tax Act, 1961 (the Act). On 24 January 2017, Central Board of Direct Taxes (CBDT) issued the guiding principles (POEM guidelines) for determination of POEM of a company. Various stakeholders

have raised concerns that as per the guidelines, POEM may be triggered in the cases of certain multinational companies with regional headquarter structure merely on the ground that certain employees having multi-country responsibility or oversight over the operations in other countries of the region are working from India and consequently, their income from operations outside India may be taxed in India.

 

Recently, the Central Board of Direct Taxes (CBDT) has issued a circular clarifying that as long as the regional headquarter operates for subsidiaries/group companies in a region within the general and objective principles of global policy of the group laid down by the parent entity in the field of payroll functions, accounting, human resource functions, IT infrastructure and network platforms, supply chain functions, routine banking operational procedures, and not being specific to any entity or group of entities per se; it would not constitute a case of Board of Directors of companies standing aside and such activities of regional headquarter in India alone will not be a basis for establishment of POEM for such subsidiaries/group companies. The CBDT has also clarified that the provisions of General Anti-Avoidance Rule may get triggered in such cases where the above clarification is found to be used for abusive/aggressive tax planning.

(CBDT Circular No. 25 of 2017 dated 23 October 2017)

 

Due date for furnishing Country by Country Report for first fiscal year in India extended to 31 March 2018

 

In keeping with India’s commitment to implement the Organization for Economic Co-operation and Development’s recommendations in Action Plan 13 of the Base Erosion and Profit Shifting project, the Finance Act, 2016 introduced Section 286 of the Income-tax Act, 1961 (the Act) providing for furnishing of Country-by-Country Report (CbCR) in respect of an International Group.

 

Sub-section (2) of section 286 of the Act provides for furnishing the CbCR by the ‘due date’ specified under section 139(1) of the Act for furnishing the return of income for the relevant accounting year i.e. 30 November.

 

Financial Year (FY) 2016-17 will be the first reporting year for furnishing of CbCR. Keeping in mind the hardships taxpayers might face in the first year of CbCR filing, Central Board of Direct Taxes vide its circular dated 25 October 2017, has extended the due date for furnishing CbCR for FY 2016-17 to 31 March 2018.

(CBDT Circular No. 26 of 2017 dated 25 October 2017)                                                        

 

Payment for granting distribution right of ‘Adwords program’ is taxable as ‘royalty’ under the Income-tax Act as well as India- Ireland tax treaty

Based on the facts and in the circumstances of the case, recently, the Bangalore Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Google India Private Limited (the taxpayer/ Google India) dealt with the issue whether payment by the taxpayer to Google Ireland Ltd. under ‘Adwords Program’ Distribution agreement is royalty. The Bangalore Tribunal held that the said payment is taxable as royalty under the provisions of the Income-tax Act, 1961 as well as under the India-Ireland tax treaty. The Tribunal observed that it is not merely an agreement to provide the advertisement space but is an agreement for facilitating the display and publishing of an advertisement to the targeted customer with the help of various patented tools and software.

 

The taxpayer is having the access to various data and it uses the information for the purposes of selecting the ad campaign and for maximising the impression and conversion of the customers to the ads of the advertisers.

(Google India Private Ltd. v. ACIT (IT(TP)A.1511 to 1518/Bang/2013) – Taxsutra.com)

 

Indian subsidiary of a foreign company providing back office support services does not constitute a PE in India under India- USA tax treaty – Supreme Court

Based on the facts and in the circumstances of the case, recently, the Supreme Court in the case of E-Funds IT Solution Inc. (the taxpayer) dealt with an issue whether the subsidiary of a US company for back office support services constitutes a Permanent Establishment (PE) in India under the India-USA tax treaty (the tax treaty). The Supreme Court relied on its own decision in case of Formula One World Championship Ltd. and observed that there must exist a fixed place of business in India, which is at the disposal of the foreign companies, through which the business has been carried on. The appellate authorities did not give any findings with respect to availability of fixed place of business at the disposal of the taxpayer. No part of the main business and revenue earning activity of the taxpayer is carried on through a fixed business place in India which has been put at its disposal. Indian company only renders support services which enable the taxpayer in turn to render services to its clients abroad. This outsourcing of work to India would not give rise to a fixed place PE in India.

 

With respect to service PE, the Supreme Court observed that the requirement of Article 5(2)(l) of the tax treaty is that an enterprise must furnish services ‘within India’ through employees or other personnel. None of the customers of the taxpayer are located in India or have received any services in India. All its customers receive services only in locations outside India. Only auxiliary operations that facilitate such services are carried out in India. The first condition provided under Article 5(2)(l) is not satisfied. Therefore, the taxpayer does not have Service PE in India.

(ADIT v. E-Funds IT Solution Inc. (Civil Appeal No. 6082 of 2015) (SC) – Taxsutra.com)

 

 

 

 

 

 

 

 

 

 

 

Company Law

Companies (Registered Valuers and Valuation) Rules, 2017

In exercise of the powers conferred by section 247 read with sections 458, 459 and 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the Companies (Registered Valuers and Valuation) Rules, 2017.

 

These rules may be called the “Companies (Registered Valuers and Valuation) Rules, 2017.”

 

They shall come into force on the date of their publication in the Official Gazette.

 

For complete text of above rules, refer

http://www.mca.gov.in/Ministry/pdf/RegisteredValues_19102017.pdf

 

Extension of Due date of filling AOC-4 and XBRL:

All Companies required to prepare or voluntarily preparing their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 for financial year 2016-2017 are required to file their statements only in XBRL format. It has been decided to extend the last date for filling of AOC-4 XBRL for such companies for the financial year 2016-2017 without additional fees till 31st March, 2018. The filling should be made by these companies accordingly when the Ind AS based XBRL taxonomy is deployed, for which a separate intimation would be given to all stakeholders.

 

For text of the notification, refer:

http://www.mca.gov.in/Ministry/pdf/GeneralCircular13_26102017.pdf

 

Also the due date for filling e-forms AOC-4 and AOC-4 (XBRL non Ind AS) and the corresponding AOC-4 CFS eforms has been extended to 28.11.2017.

http://www.mca.gov.in/Ministry/pdf/GeneralCircular14_28102017.pdf

 

Commencement of Section 247:

In exercise of the powers conferred by sub-section (3) of section 1 of the Companies Act, 2013 (18 of 2013), the Central Government hereby appoints the 18th October, 2017 as the date on which the provisions of section 247 of the said Act shall come into force.

http://www.mca.gov.in/Ministry/pdf/CommencementNotification_20102017.pdf

 

 

 

 

Dear Members,
 
With reference to the 56th AGM held at Chennai, it was decided to rest few awards from 2017-18 and to invite applications from the interested sponsors.
 
We hereby invite sponsorship for the award to be instituted for the Managing Committee Members who renders useful services for the activities of FPTA   ​(Earlier it was in the memory of Late Shri. Jayantilal S. Shah, Mumbai).
 
The application will be decided on merit basis and minimum award will be Rs. 5,00,000 non-refundable.
 
Members interested can send their application to the Secretariat office by post or email enable us to put before the Managing Committee to be held at Bengaluru on 06th & 07th January 2018 for needful.
 
Regards
For FPTA
 
Hiren Karia
Hon. Secretary​
Respected Members,
 
With reference to the 2nd Managing Committee Meeting​ on 06th & 07th January 2018 to be hosted by the Karnataka Paper Merchants and Stationers Association, Bangalore.
 
The venue and other details will be send you in due course.
 
This for your information.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary 

Dear Members,

 

With reference to our email dated 10th November 2017 on initiation of Anti – Dumping Duty investigation concerning imports of “Un Coated Copier Paper” Originating in or exported from Indonesia, Thailand and Singapore, Notification No. 6/32/2017-DGAD dated 02/11/2017 issued by Directorate General of Anti-Dumping & Allied Duties, Department of Commerce, Ministry of Commerce & Industry.

​We request All Affiliated Associations to forward the email to their member and get their comments, feedback and views on this matter.​

 

We request our members to send us feedback in this regard, latest by 15th November 2017, to send us to concern ministry if any.

 

Please do the needful and oblige.

 

Regards

For FPTA

Hiren Karia

Hon. Secretary​

Page 1 of 6
(To be published in Part-I, Section I of the Gazette of India Extraordinary)
Government of India
Department of Commerce
Ministry of Commerce & Industry
(Directorate General of Anti Dumping & Allied Duties)
4th Floor, Jeevan Tara Building, Parliament Street
Dated 02nd November 2017
INITIATION NOTIFICATION
Subject: Initiation of Anti-Dumping Duty investigation concerning imports of “Uncoated
Copier Paper” originating in or exported from Indonesia, Thailand and Singapore
F.No.6/32/2017 – DGAD: M/s JK Paper Limited, JK Paper Limited, The West Coast Paper
Mills Ltd., Tamil Nadu Newsprint and Papers Limited Ltd and Ballarpur Industries Limited
(hereinafter referred to as ‘petitioners’ or ‘applicants’) have filed an application (also referred
to as petition) along with relevant information before the Designated Authority (hereinafter
referred to as the Authority) in accordance with the Customs Tariff Act, 1975 as amended from
time to time (hereinafter referred to as the ‘Act’) and Customs Tariff (Identification,
Assessment and Collection of Anti-Dumping Duty on Dumped articles and for Determination
of injury) Rules, 1995 as amended from time to time (hereinafter referred to as the AD Rules)
for initiation of anti-dumping investigation concerning imports of ‘Uncoated Paper’
(hereinafter referred to as the subject goods) originating in or exported from Indonesia,
Thailand and Singapore (hereinafter also referred to as the subject countries).
2. AND WHEREAS, the Authority finds that sufficient prima facie evidence of dumping of the
subject goods originating in or exported from the subject countries, ‘injury’ to the domestic
industry and causal link between the dumping and ‘injury’ exists to justify initiation of an antidumping
investigation. The Authority hereby initiates an investigation into the alleged
dumping, and consequent injury to the domestic industry in terms of the Rules 5 of the AD
Rules, to determine the existence, degree and effect of any alleged dumping and to recommend
the amount of antidumping duty, which if levied, would be adequate to remove the ‘injury’ to
the domestic industry.
A. Product under consideration
3. The product under consideration for the purpose of present investigation is “uncoated paper in
rectangular sheet of following sizes, with permissible limits (a) 210mm x 297 mm also known
Page 2 of 6
as A4 size; (b) 297mmx 420mm also known as A3 size; (c) 215mm x 345mm also known as
FS or legal size.” The product under consideration practically implies “uncoated copier paper”.
The product under consideration is generally (but not exclusively) used as a photocopy or copy
paper and therefore is popularly known as “copy paper”, “copier paper”, “photocopy paper”,
“multipurpose paper”, “uncoated copier paper”, “A4 Size Paper”, “A3 Size Paper” or “FS Size
Paper”. It is in the form of finished sheets; weighing in different gsm. It can be a white paper
or a punched paper and in different smoothness of the surface. Specifically excluded from the
scope of the product under consideration are uncoated paper of a kind used for writing, printing
or other graphic purposes in reels or in large sized sheet (i.e., other than sizes specified above)
forms.
4. Product under consideration is classified under customs heading 4802. The customs
classification is indicative only and in no way it is binding upon the product` scope.
B. Like Article
5. The applicants have claimed that there is no known difference in product produced by the
applicants and exported from the subject countries. Both products have comparable
characteristics in terms of parameters such as physical & chemical characteristics, functions &
uses, product specifications, pricing, distribution & marketing and tariff classification, etc. The
two are technically and commercially substitutable and hence should be treated as ‘like article’
under the Rules. Therefore, for the purpose of the present investigation, the Authority treats
the subject goods produced by the domestic industry in India as ‘Like Article’ to the subject
goods being imported from the subject countries.
C. Domestic Industry & Standing
6. The application has been filed by JK Paper Limited, The West Coast Paper Mills Ltd., Tamil
Nadu Newsprint and Papers Limited Ltd and Ballarpur Industries Limited. There are five other
known producers of the product under consideration in the country, namely, Seshasayee Paper
and Boards Limited, Trident Group, International Paper APPM Ltd., Orient Paper & Industries
Ltd., and Century Pulp and Paper.
7. The production by the applicants constitutes ‘a major proportion’ of Indian production of the
like product produced in India. Further, the applicants have claimed that they have neither
imported the subject goods, nor are they related to any importer or exporter of the subject
goods. The applicants, therefore constitutes “domestic industry” within the meaning of Rule 2
(b) and thus satisfies the criteria of standing in terms of Rule 5 (3) of the Rules supra.
D. Subject Countries
8. The countries involved in the present investigation are Indonesia, Thailand and Singapore
(hereinafter referred to as ‘Subject Countries’).
Page 3 of 6
E. Normal value
9. The applicants have submitted that efforts were made to get information/evidence of
transaction price of subject goods in the domestic market of subject countries. However,
applicants were not able to get such information. The applicants have therefore constructed
normal value for all subject countries on the basis of cost of production in India duly adjusted.
F. Export Price
10. The export price has been claimed by the applicants as the weighted average import price from
the subject countries based on the transaction-wise import data procured from DGCI&S. Price
adjustments have been claimed on account of ocean freight, marine insurance, commission,
inland freight expenses, port expenses, bank charges to arrive at the net export price.
G. Dumping Margin
11. The comparison of normal values with the ex-factory export price has been carried out, which
shows a significant dumping margin in respect of the subject goods exported by each of the
subject countries.
H. Evidence of Injury and Causal Link
12. The applicants have furnished evidence regarding the injury having taken place as a result of
the alleged dumping in the form of increased volume of dumped imports in absolute terms and
in relation to production & consumption, price undercutting, and consequent significant
adverse impact on profitability, return on capital employed, cash flow, and deterioration in
production, capacity utilization, sales and market share of the domestic industry and low level
of profits, cash profits & return on investment. There is sufficient prima facie evidence of
‘material injury’ being suffered by the domestic industry caused by alleged dumped imports
from the subject countries to justify initiation of an anti-dumping investigation.
13. The applicants have also claimed threat of material injury on the grounds that rate of increase
in imports from the subject countries is significantly high, the subject producers have huge
surplus capacities, price undercutting is significant and the Indian market is attractive which is
likely to further increase in imports and cause supressing or depressing effects in the domestic
market.
I. Initiation of investigation
14. The authority finds sufficient prima facie evidence of dumping of subject goods, originating in
or exported from the subject countries; injury to the domestic industry and causal link between
Page 4 of 6
alleged dumping and injury, to justify initiation of anti-dumping investigation to determine the
existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping
duty, which if levied, would be adequate to remove the ‘injury’ to the domestic industry.
Accordingly, the authority hereby initiates an investigation into the alleged dumping and
consequent injury to the domestic industry in terms of Para 5 of the Rules.
J. Period of investigation (POI)
15. The petitioners proposed period of investigation as April 2016-March 2017. However, the
Authority has considered the period April 2016 – June 2017 (15 months) as the investigation
period for the purpose of present investigations. The injury investigation period shall cover the
periods April 2013- March 2014, April 2014-March 2015, April 2015-March 2016 and the
period of investigation.
K. Submission of Information
16. The known exporters in the subject countries, the Government of the subject countries through
their embassy in India, the importers and users in India known to be concerned with the product
are being addressed separately to submit relevant information in the form and manner
prescribed and to make their views known to the Authority at the following address:
The Designated Authority,
Directorate General of Anti-Dumping & Allied Duties,
Ministry of Commerce & Industry,
Department of Commerce
4th Floor, Jeevan Tara Building,
5 Parliament Street, New Delhi -110001.
Dgad.india@gov.in
17. Any other interested party may also make its submissions relevant to the investigation in the
prescribed form and manner (downloadable from the website of the authority at
www.dgtr.gov.in ) within the time limit set out below.
L. Time limit
18. Any information relating to the present investigation and any request for hearing should be sent
in writing so as to reach the Authority at the address mentioned above not later than forty days
(40 Days) from the date of publication of this Notification. If no information is received within
the prescribed time limit or the information received is incomplete, the Authority may record
its findings on the basis of the facts available on record in accordance with the Anti-dumping
Rules.
Page 5 of 6
19. All the interested parties are hereby advised to intimate their interest (including the nature of
interest) in the instant matter and file their questionnaire responses and offer their comments
to the domestic industry’s application regarding the need to impose the Antidumping measures
within 40 days from the date of initiation of this investigation
M. Submission of Information on Confidential/Non-Confidential basis
20. In case confidentiality is claimed on any part of the questionnaire’s response/submissions, the
same must be submitted in two separate sets (a) marked as Confidential (with title, index,
number of pages, etc.) and (b) other set marked as Non Confidential (with title, index, number
of pages, etc.). All the information supplied must be clearly marked as either “confidential” or
“non-confidential” at the top of each page.
21. Information supplied without any confidential marking shall be treated as non-confidential and
the Authority shall be at liberty to allow the other interested parties to inspect any such nonconfidential
information. Two (2) copies of the confidential version and of the non-confidential
version must be submitted by all the interested parties.
22. For information claimed as confidential; the supplier of the information is required to provide
a good cause statement along with the supplied information as to why such Information cannot
be disclosed and/or why summarization of such information is not possible.
23. The non-confidential version is required to be a replica of the confidential version with the
confidential information preferably indexed or blanked out /summarized depending upon the
information on which confidentiality is claimed. The non-confidential summary must be in
sufficient detail to permit a reasonable understanding of the substance of the information
furnished on confidential basis. However, in exceptional circumstances, parties submitting the
confidential information may indicate that such information is not susceptible to
summarization; a statement of reasons why summarization is not possible must be provided to
the satisfaction of the Authority.
24. The Authority may accept or reject the request for confidentiality on examination of the nature
of the information submitted. If the Authority is satisfied that the request for confidentiality is
not warranted or the supplier of the information is either unwilling to make the information
public or to authorize its disclosure in generalized or summary form, it may disregard such
information.
25. Any submission made without a meaningful non-confidential version thereof or without a good
cause statement on the confidentiality claim may not be taken on record by the Authority. The
Authority on being satisfied and accepting the need for confidentiality of the information
provided; shall not disclose it to any party without specific authorization of the party providing
such information.
Page 6 of 6
N. Inspection of Public File
26. In terms of rule 6(7) any interested party may inspect the public file containing non-confidential
versions of the evidence submitted by other interested parties.
O. Non-cooperation
27. In case any interested party refuses access to and otherwise does not provide necessary
information within a reasonable period, or significantly impedes the investigation, the
Authority may declare such interested party as non-cooperative and record its findings on the
basis of the facts available to it and make such recommendations to the Central Government as
deemed fit.
(Sunil Kumar)
Additional Secretary & Designated Authority

GST
QUICK REFERENCER
Abhipra Capital Ltd.
GF-58-59, World Trade Centre, Barakhamba Lane, Connaught Place, New Delhi-110001
www.abhipra.com, Mobile No.: 7428396205, Email: gst@abhipra.com, gsthelpline@abhipra.com
Suvidha
Provider
Abhipra

Abhipra GSP – Bridge between taxpayer
and the GST Network

 

 

 

 

 

 

Abhipra
• Registration
• Challan
Generation
• Invoice
uploading
• Return Filling
• Ledger
(V.D. Aggarwal)
Chartered Accountant
Mob : 9810194395
E-mail: vda@abhipra.com
Preface
It is a matter of great pleasure to me for presenting GST Quick Referencer on the Paper Day and the
business festival technical conference on pulp and paper industry strategies for sustainable growth and
competitiveness (from 01.11.2017 to 04.11.2017) which is being celebrated by Paper Merchant
Association (PMA) and Federation of Paper Traders Association of India (FPTA).
I hope this referencer will help all the members of both the Associations in discharging their obligations
arising under GST.
Goods and Services Tax Act is a new Act and is currently under its infant stage and hence almost every
day some modications / reliefs are being announced by the GST Council to adapt the system as per
market scenario.
Honorable Prime Minister Shri Narendra Modi has appealed for creating “NEW INDIA”. This calls for making money
more accountable and productive. The government’s initiative for Demonetization and GST are very important tools to
assault the shadow economy, to integrate informal economy with the formal, and to take all consequential steps in one
direction to expand India into a far, cleaner, bigger and better economy.
Latest IMF report supports Indian economy in positive side and states that after demonetization and implementation of
GST, India is likely to regain the tag of the fastest growing, emerging economies of the world in 2018.
According to the IMF, GST which promises the unication of India’s vast domestic market, is among several key structural
reforms under implementation that are expected to help push growth rate above 8 per cent.
The GST is expected to have an overall positive impact on paper manufacturers, especially in the organized sector. The
entire supply chain will become more efcient. The GST on imports will provide some relief to domestic paper
manufacturers. Exports to other countries will also get some boost, with full refund of input tax credit to the
manufacturers/merchant export
I am grateful to Federation of Paper Traders Association of India and Paper Merchant Association and their ofce
bearers namely Shri Venkat Annamlai (President), Hiren Karia (Genenral Secretary) of Federation of Paper Traders
Association of India and Shri Gyan Prakash (President), Shri Anil Gupta (General Secretary) of Paper Merchant
Association and also especially GST convener Shri Krishan Mohan Ji and organizing Convener and Co-Convener of Paper
Day Shri Satyapal Gupta Ji and Shri Ramesh Gupta Ji for providing me an opportunity to be with you on this occasion.
They have taken big initiatives and pains for arranging this technical conference for 4 days which will give awareness
about GST to the entire paper community and will give fruitful result.
Place : Delhi
Dated : 01.11.2017
Index
Sr. No. Particular Page No.
1. Registration 01
2. Registration Forms & Procedure 02
3. Returns 03
4. Transitional Provision 05
5. Time, Place and Value of Supply 06
6. Supply of Goods Under Reverse Charge Mechanism (RCM) 11
7. Services Under Reverse Charge Mechanism (RCM) 12
8. Input Tax Credit (ITC) Mechanism 14
9. Job Work 17
10. Credit Note / Debit Note 18
11. Import 19
12. Export 20
13. Audit 22
14. Offences and Penal Provision 23
15. HSN Code & Rate of Tax 25
16. E-way Bill 26
17. Some Other Important Key Points – Principal, Pure Agent, Electronic Ledger 29
18. GST Obligations – Calendar 30
Abhipra
1. Registration under GST
A) Registration is required on turnover exceeding Rs 20 lakhs in a nancial year and Rs 10 lakhs for Special
category states namely Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland,
Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
B) In case of dealing in exempted items no need for registration irrespective of any volume of turnover.
C) Registration is mandatory for inter-state supply of goods.
D) Registration is also mandatory for:
• Casual Taxable Person
• Non-Resident Taxable Person
• Agents of a supplier
• Taxpayers paying tax under reverse charge mechanism
• Input Service Distributors
• E-commerce operator or aggregator and their suppliers
• Person supplying online information and database access or retrieval services from a place outside India to a
person in India, other than a registered taxable person.
E) Important to multiple business verticals houses
• A person having multiple business verticals (as dened in section 218) in one state may obtain a separate
registration for each business vertical.
F) Documents required for registration
i. Mobile number and email ID for generation of OTP.
ii. Proof of constitution of business (incorporation certicate in case of company, Partnership deed in case of
rm etc.)
iii. Principal place and additional places of business address proof as stated below
– in case of rented premises – rent agreement with electricity/telephone bill (not older than three months)
– In case of owned premises – copy of ownership proof alongwith electricity/telephone bill (not older than
three months)
iv. Details of bank accounts of the business such as account no., type of account, name and address of the
bank, IFSC code, along with proof such as a copy of rst page of passbook or relevant extract of bank
statement
Additional information in case of Companies apart from mentioned in clause F above
v. List of top ve goods with their corresponding HSN code and category of services rendered
01
vi. Copy of Form number DIR 12 in case of companies incorporated under companies 2013 and in case of old
companies incorporated under Companies Act 1956 form number 32, (proof of appointing the directors)
along with their photograph, copy of PAN, Aadhaar card/passport and mobile no.
vii. List of directors and authorized signatory.
viii. Copy of board resolution, photograph, copy of PAN, Aadhaar card/passport and mobile no. of the authorized
person.
Additional information in case of Partnership rm apart from mentioned in clause F above
ix. PAN card of partnership rm, Partnership Deed, Bank Statement, PAN of all partners and ID proof of
designated partners.
x. Digital Signature of designated partners/authorized signatory
G. Exemption from GST Registration:
The following shall not be required to obtain registration and will be allotted a UIN (Unique Identication Number)
instead.
• Any specialized agency of UNO (United Nations Organization) or any multilateral nancial institution and
organization notied under the United Nations Act, 1947
• Consulate or Embassy of foreign countries
• Any other person notied by the Board/Commissioner
• Any specic person recommended by GST council
2. GST Registration Forms and Procedure
GST Registration Forms
Form GST REG 01 Application for Registration under section 19(1) GST ACT 2017 to be led within 30 days of
liability
Form GST REG 02 Acknowledgement fromt GSTN
Form GST REG 03 Notice for Seeking Additional Information relating to Registration / Amendments / Cancellation
Form GST REG 04 Application for ling clarication Registration / Amendment / Cancellation / Revocation of
Cancellation
Form GST REG 05 Order of Rejection of Application for Registration / Amendment / Cancellation / Revocation of
Cancellation
Form GST REG 06 Registration Certicate issued under section 19(8A) of the GST Act, 2017
Form GST REG 07 Application for Registration as TDS or TCS under section 19(1) of the GST Act, 2017
Form GST REG 08 Order of Cancellation of Application for Registration as TDS /TCS under section 21 of the GST Act
Abhipra
02
Abhipra
Form GST REG 09 Application for Allotment of Unique ID to UN Bodies/ Embassies /any other person under
section 19(6) of the GST Act
Form GST REG 10 Application for Registration for Non Resident Taxable Person
Form GST REG 11 Application for Amendment in Particulars subsequent to Registration
Form GST REG 12 Order of Amendment of existing Registration
Form GST REG 13 Order of Allotment of Temporary Registration/ Suo Moto Registration
Form GST REG 14 Application for Cancellation of Registration under GST Act 2017
Form GST REG 15 Show Cause Notice for Cancellation of Registration
Form GST REG 16 Order for Cancellation of Registration
Form GST REG 17 Application for Revocation of Cancelled Registration under GST Act 2017
Form GST REG 18 Order for Approval of Application for Revocation of Cancelled Registration
Form GST REG 19 Notice for Seeking Clarication / Documents relating to Application for Revocation of
Cancellation
Form GST REG 20 Application for Enrolment of Existing Taxpayer
Form GST REG 21 Provisional Registration Certicate to existing taxpayer
Form GST REG 22 Order of cancellation of provisional certicate
Form GST REG 23 Intimation of discrepancies in Application for Enrolment of existing taxpayer
Form GST REG 24 Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration
under GST Act 2017
Form GST REG 25 Application for extension of registration period by Casual / Non-Resident taxable person
Form GST REG 26 Form for Field Visit Report
3. GST Returns
A return is a document that a taxpayer is required to le as per the law with the tax administrative authorities. Under
the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. Similarly,
there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an Input
Service Distributor, a person liable to deduct or collect the tax (TDS/TCS).
GST Return Form
Return Form Particulars By Whom? Due Dates
GST R-1 Outward supplies (SALES) Registered Tax Supplier 10th of the next month
GST R-2 Inward supplies (Purchase) Registered Taxable
Recipient
15th of the next month
03
GST R-3 Monthly return Registered Taxable Person 20th of the next month
In case of SMEs having turnover up to Rs 1.5 crore are required to le above return on quarterly basis
GST R-4 Quarterly return for composite Taxpayer
(Turnover up to 1 Crore)
Composition Taxpayer 18th of the month succeeding
quarter
GST R-5 Non-Resident Foreign Taxpayer Non-Resident Taxable
Person
20th of the next month
GST R-6 Input Service Distributor (ISD) Input Service Distributor 13th of next month
GST R-7 Tax Deducted at Source(Notication is
still pending)
Tax Deductor 10th of the next month
GST R-8 Supplies through Ecommerce E-commerce Operator/Tax
Collector
10th of the next month
GST R-9 Annual Return Taxable Person 31st December of next nancial
year (2018-19)
GST R-10 Final Return Taxable person whose
registration has been
surrendered or cancelled.
Within three months of the date of
cancellation or date of cancellation
order, whichever is later.
GST R-11 Details of inward supplies to be
furnished by a person having UIN
Person having UIN and
claiming refund
28th of the month following the
month for which statement is led
Abhipra
Revision of GST Retuns
• There is no provision for revision of returns.
• All unreported invoices of previous tax period would be reected
in the return for the month in which they are proposed to be
included. The interest, if applicable will be auto populated.
• All under-reported invoice and ITC revision will have to be
corrected using credit/debit note and such credit / debit note
would be reected in the return for the month in which such
adjustment is carried out. The credit/debit note will have
provision to record original invoice, date etc. to enable the
system to link the same with the original invoice as also to
calculate the interest, if applicable. Its format will be like the
invoice.
• There would be separate tables in the returns for reecting
those adjustments for which credit / debit notes are not
required to be issued / issued. The interest, if applicable will be
auto populated.
Abhipra
GST Suvidha Provider
04
Abhipra
Transitional Provision for Input Tax Credit
Registered Under VAT but
not in Excise
Excise invoice
available for which
are in stock
100% Credit
Available
Availability of credit
If stock taxable as 18% or
28% in GST – 60% of CGST
If stock taxable as 5% or 12%
in GST – 40% of CGST
Registered Under VAT &
Excise
Input credit forward in
VAT/Excise return for
period ending
30/06/2017
Unavailed CENVAT credit
on capital goods
Credit available to be utilized as
VAT Credit – SGST Credit
Excise Credit – CGST Credit
Not Carried forward
in return under
Excise Law
Entitled to take in his
electronic credit
ledger
As per Current provision if any VAT credit is not carry forward in GST regime due to non submission of forms as
prescribed, it can be refunded under the existing law when the said claims are substantiated in the manner prescribed.
4. Transition Provision for Input Tax Credit
GST Transitional Forms
GST TRAN 1 Application by every registered person entitled to take credit of input tax under section 140 within
sixty days from appointed day.
GST TRAN 2 GST Transitional Provisions FORM GST TRAN 2
GST Transitional Forms
05
5. Time, Place and Value of Supply under GST
Abhipra
Time of Supply under Reverse Charge
06
Time of supply of Goods &
Services under Forward Charge
In case of Goods –
Earliest of the following
In case of Services –
Earliest of the following
Date of issue of
invoice by the
supplier or Last
Date by which he
is required to
issue the invoice
Date on which
the supplier
recieves the
payment
Date of issue of
invoice by the
supplier if invoice
issued within
prescribed period
Date of provision
of Service if
invoice is not
issued with in
prescribed
format
Date on which
the supplier
receives the
payment
Time of supply of Goods &
Services under Reverse Charge
In case of Goods –
Earliest of the following
In case of Services
The date
of the
receipt of
the goods
30 days
from the
date of
invoice
issued by
the
supplier
Associated
Enterprises –
Earliest of the
Following
Other than Associasted
Enterprises – Earliest of
the following
The date of entry
in the books of
the receipent
Date of
Payment
The date on
which
payment is
made
60 days
form the
date of
invoice
issued by
the supplier
The date
on which
payment
is made
Abhipra
Place of Supply (Other than Import & Export)
Place of Supply of Services
07
Supply of services to
registered person
Location of recipient Location of
Supplier
Where the address of
recipient on record
exist
Where the address of
recipient on record
not exist
Supply of services to
person other than
registered person
Location fo such
operson
Place of Supply of Services
Place of Supply (Other than Import & Export
Where Physical
movement of goods
Involved
Where
Physical movement
of goods not
Involved
If goods assembled
or installed at site
If goods supplied
on board or
conveyance
In any other case
Goods supplied
directly by the
supplier to the
receipient
Goods supplied to the
receiplent on the direction
of Third Person (either by
trasfer of title or
otherwise)
Place of such
installation
Location of goods
at the time of
delivery
By Law made by
the parliament
along with
suggestions by
GST Council
Location where
goods taken on
board
Location where
movement of
goods terminate
for delivery
Principal place of
business of such
person
Valuation of supply under GST
Transaction Value
Under GST law, taxable value is the transaction value i.e. price actually paid or payable, provided the supplier and the
recipient are not related and price is the sole consideration. In most of the cases of regular normal trade, the invoice value
will be the taxable value. However, to determine value of certain specic transactions, Determination of Value of Supply
rules have been prescribed in CGST Rules.
Compulsory Inclusions
Any taxes, fees, charges levied under any law other than GST law, expenses incurred by the recipient on behalf of the
supplier, incidental expenses like commission and packing incurred by the supplier, interest or late fees or penalty for
delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already
added) to arrive at the taxable value.
Exclusion of discounts
Discounts like trade discount, quantity discount etc. are part of the normal trade and commerce. Therefore, pre-supply
discounts i.e. discounts recorded in the invoice have been allowed to be excluded while determining the taxable value.
Discounts provided after the supply can also be excluded while determining the taxable value, provided two conditions are
met, namely:
(a) Discount is established in terms of a pre supply agreement between the supplier and the recipient and such discount
is linked to relevant invoices
(b) Input tax credit attributable to the discounts is reversed by the recipient
Taxable value when consideration is not solely in terms of money
In some cases, where consideration for a supply is not solely in money, taxable value has to be determined as – prescribed
in the rules. In such cases following values have to be taken sequentially to determine the taxable value:
i. Open Market Value of such supply
ii. Total money value of the supply i.e. monetary consideration plus money value of the non-monetary consideration
iii. Value of supply of like kind and quality
iv. Value of supply based on cost i.e. cost of supply plus 10% mark-up
v. Value of supply determined by using reasonable means consistent with principles and general provisions of GST law.
(Best Judgment method)
Value of supply between related persons (excluding Agents)
A person who is under inuence of another person is called a related person like members of the same family or
subsidiaries of a group company etc. Under GST law various categories of related persons have been specied and as
relation may inuence the price between two related persons therefore special valuation rule has been framed to arrive at
Abhipra
08
Abhipra
the taxable value of transactions between related persons. In such cases following values have to be taken sequentially to
determine the taxable value: –
i. Open Market Value
ii. Value of supply of like kind and quality.
iii. Value of supply based on cost i.e. cost of supply plus 10% mark-up.
iv. Value of supply determined by using reasonable means consistent with principles and general provisions of GST law.
(Best Judgment method)
However if the recipient is eligible for full input tax credit, the invoice value will be accepted as taxable value. It has
also been provided that where the goods being supplied are intended for further supply as such by the recipient, the
value shall , at the option of the supplier, be an amount equivalent to 90% of the price charged for the supply of goods
of like kind and quality by the recipient to his unrelated customer.
Value of supply of goods made or received through an agent
(a) Open market value of goods being supplied, or, at the option of the supplier, 90% of the price charged for the supply
of goods of like kind and quality by the recipient to his unrelated customer.
(b) In case value cannot be determined under (a) then following values have to be taken sequentially to determine the
taxable value:
i. Value of supply based on cost i.e. cost of supply plus 10% mark-up
ii. Value of supply determined by using reasonable means consistent with principles & general provisions of GST
law. (Best Judgment method)
Value of supply of services in case of a Pure Agent
Subject to fulllment of conditions as laid down in rules, the expenditure and costs incurred by the supplier as a pure
agent of the recipient of supply of service, has to be excluded from the value of supply.
Determination of value in respect of specied supplies
Methods to determine Taxable value of specied supplies have also been prescribed under valuation Rules. These can be
used by the supplier, if he so desires.
(A) PURCHASE OR SALE OF FOREIGN CURRENCY INCLUDING MONEY CHANGING
Special provision related to determination of Value of service of purchase or sale of foreign currency including
money changing
Option-1
Case 1: Transaction where one of the currencies exchanged is Indian Rupees
Taxable value is difference between buying rate or selling rate of currency and RBI reference rate for that currency at
the time of exchange multiplied by total units of foreign currency. However if RBI reference rate for a currency is not
09
available then taxable value is 1% of the gross amount of Indian Rupees provided/ received by the person changing
the money.
Case 2: Transaction where neither of the currencies exchanged is Indian Rupees
Taxable value will be 1% of the lesser of the two amounts the person changing the money would have received by
converting (at RBI reference rate) any of the two currencies in Indian Rupees.
Option-2
The person supplying the service may also exercise the following option to ascertain the taxable value, however, once
opted then he cannot withdraw it during the remaining part of the nancial year:
• One percent of the gross amount of currency exchanged for an amount upto one lakh rupees, subject to minimum
amount of two hundred and fty rupees
• One thousand rupees and half of a percent of the gross amount of currency exchanged for an amount exceeding
one lakh rupees and up to ten lakh rupees
• Five thousand rupees and one tenth of a percent of the gross amount of currency exchanged for an amount
exceeding ten lakhs rupees subject to a maximum amount of sixty thousand rupees
Rate of exchange of currency, other than Indian rupees, for determination of value.
The rate of exchange for determination of value of taxable goods or services or both shall be the applicable RBI
reference rate for that currency on the date of time of supply as determined in terms of Section 12 or Section 13 of the
CGST Act. Value of supply will be inclusive of Integrated tax, Central tax, State tax, Union territory tax.
(B) BOOKING OF TICKETS FOR AIR TRAVEL BY AN AIR TRAVEL AGENT
Special provision related to determination of value of service of booking of tickets for air travel by an air
travel agent
Taxable value is 5% of basic fare in case of domestic travel and 10% of basic fare in case of international travel. Basic
fare means that part of the air fare on which commission is normally paid to the air travel agent by the airline.
(C) LIFE INSURANCE BUSINESS
Special provision related to determination of value of service in relation to life insurance business Taxable
value varies with nature of insurance policy. The details are as follows:
• Where policy has dual benets of risk coverage and investment – Taxable value is gross premium charged less
amount allocated for investments or savings if such allocation is intimated to the policy holder at the time of
collection of premium.
• Single premium annuity policy where allocation for investments and savings is not intimated to the policy holder –
taxable value is ten percent of the single premium charged from the policy holder.
• Other cases- Twenty ve percent of premium charged from the policy holder in the rst year and twelve and a half
percent of premium charged for subsequent years.
Abhipra
10
Abhipra
However, where insurance policy has benet of risk coverage only, then taxable value is entire premium charged
from the policy holder.
(D) VALUE OF SUPPLY OF SECOND HAND GOODS
Special provision related to determination of value of second hand goods
The taxable value of supply of second hand goods i.e. used goods as such or after such minor processing which does
not change the nature of goods shall be the difference between the purchase price and the selling price, provided no
input tax credit has been availed on purchase of such goods. However, if the selling price is less than purchase price,
that negative value will be ignored. Persons who purchase second hand goods after payment of tax to supplier of such
goods will be governed by this valuation rule only when they do not avail input tax credit on such input supply. If
input tax credit is availed, then such supply will be governed by normal GST valuation.
Value of supply of goods repossessed from a defaulting borrower
If the defaulting borrower is not a registered person, the purchase value will be purchase price in the hands of such
borrower reduced by ve percentage points for every quarter or part thereof, between the date of purchase and the
date of disposal by the person making such repossession. However, if the defaulting borrower is registered, the
repossessing lender agency will discharge GST at the supply value without any reduction from actual/notional
purchase value.
(E) VALUE OF REDEEMABLE VOUCHERS/STAMPS/COUPONS/TOKENS THE SPECIAL PROVISIONS RELATED TO
DETERMINATION OF THESE SUPPLIES ARE AS BELOW:
Special provisions related to determination of value of redeemable vouchers / stamps / coupons / tokens
The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is redeemable against a
supply of goods or services or both shall be equal to the money value of the goods or services or both redeemable
against such token, voucher, coupon, or stamp.
Value of taxable services provided by a notied class of service providers as referred to in Para 2 of Schedule 1 of
GST Act between the distinct persons. The taxable value is deemed to be Nil wherever input tax credit is available.
6. Supplies of goods under reverse charge mechanism:
S. No Description of supply of goods Supplier of Goods Recipient of Goods
1 Cashew nuts, not shelled or peeled Agriculturist Any registered person
2 Bidi wrapper leaves (tendu) Agriculturist Any registered person
3 Tobacco leaves Agriculturist Any registered person
4 Supply of lottery State Government, Union Territory or
any local authority
Lottery distributor or selling agent
5 Silk yarn Any person who manufactures silk
yarn from raw silk or silk worm
cocoons for supply of silk yarn
Any registered person
11
Abhipra
Sl.
No.
Service Provider of
service
Percentage of
service tax
payable by
service
provider
Recipient of Service Percentage of
service tax
payable by any
person other
than the
service provider
1. Taxable services provided or
agreed to be provided by any
person who is located in a nontaxable
territory and received
by any person located in the
taxable territory other than
non-assessee
online recipient (OIDAR)
Any
person who is
located in
a
non- taxable
territory
Nil Any person located in the taxable
territory other than non assessee
online recipient (Business
Recipient)
100%
2. Services provided or agreed to
be pr o v ided by a g o ods
transport agency (GTA) in
respect of transportation of
goods by road
Goods
Transport
Agency (GTA)
Nil (a) any factory registered under
or governed by the Factories
Act, 1948;
(b) any society registered under
the Societies Registration
Act, 1860 or under any other
law for the time being in
force in any part of India;
(c) any co-operative society
established by or under any
law;
(d) any person registered under
CGST/SGST/UTGST Act;
(e) a n y b o d y c o r p o r a t e
established, by or under any
law; or
(f) a n y p a r t n e r s h i p  r m
whether registered or not
under any law including
association of persons.
(g) Casual taxable person
100%
3. Services provided or agreed to
be provided by an individual
advocate or rm of advocates
by way of legal services,
directly or indirectly
An individual
advocate or
rm of
advocates
Nil Any business entity. 100%
7. Services Under Reverse Charge
12
Abhipra
4. Services provided or agreed to
be provided by an arbitral
tribunal
An
arbitral
tribunal
Nil Any business entity. 100%
5. Sponsorship services Any person Nil Anybody corporate or
partnership rm.
100%
6. Services provided or agreed to
be provided by Government or
local authority excluding, –
(1) renting of immovable
property, and
(2) services specied below-
(i) services by the Department
of Posts by way of
speed post, express parcel
post, life insurance, and
agency services provided
to a person other than
Government;
(ii) services in relation to an
aircraft or a vessel, inside
or outside the precincts of
a port or an airport;
(iii) transport of goods or
passengers.
Government
or local
Authority
Nil Any business entity. 100%
7. Services provided or agreed to
be provided by a director of a
company or a body corporate to
the said company or the
body corporate;
A director of a
company or a
body
corporate
Nil A company or a body corporate. 100%
8. Services provided or agreed to
be provided by an insurance
agent to any person carrying
on insurance business
An insurance
agent
Nil Any person carrying
on insurance business.
100%
9. Services provided or agreed to
be provided by a recovery agent
to a banking company or a
nancial institution or a nonbanking
nancial
company
A recovery
agent
Nil A banking company or a
nancial institution or a nonbanking
nancial company.
100%
13
10. Services by way of transportation
of goods by a vessel
from a place outside India up to
the customs
station of clearance in India
Person located
in non-taxable
territory
Nil Importer as dened under
clause (26) of section 2 of the
Customs Act, 1962.
100%
11. Transfer or permitting the use
or enjoyment of a copyright
covered under clause (a) of subsection
(1) of section 13 of the
Copyright Act, 1957 relating to
original literary, dramatic,
musical or artistic
works
Author or
music
composer,
photographer,
artist, etc.
NIL Publisher, Music company,
Producer
100%
12. Radio taxi or Passenger
Transport Services provided
through electronic commerce
operator
Taxi driver or
Rent a cab
operator
Nil Any person 100% by
Electronic
Commerce
Operator
8. Input Tax Credit Mechanism (ITC)
Input tax credit means credit can be taken for the GST paid at the time of procuring the inward supplies.
GST comprises of the following levies:
a) Central Goods and Services Tax (CGST) [also known as Central Tax] on intra-state or intra-union territory without
legislature supply of goods or services or both.
b) State Goods and Services Tax (SGST) [also known as State Tax] on intra-state supply of goods or services or both.
c) Union Territory Goods and Services Tax (UTGST) [also known as Union territory Tax] on intra-union territory
d) supply of goods or services or both.
e) Integrated Goods and Services Tax (IGST) [also known as Integrated Tax] on inter-state supply of goods or services or
both. In case of import of goods also, the present levy of Countervailing Duty (CVD) and Special Additional Duty (SAD)
would be replaced by integrated tax.
Abhipra
Tax Liabilities Available Input Tax Credit (In the order of utilization)
IGST IGST CGST SGST
CGST IGST CGST
SGST IGST SGST
The following are important issues relating to Input Tax Credit:
14
Abhipra
A. Any registered person can avail credit of tax paid on the inward supply of goods or services or both, which is used or
intended to be used in the course or furtherance of business.
B. The pre-requisites for availing credit by registered person are:
a. He is in possession of tax invoice or any other specied tax paying document.
b. He has received the goods or services. “Bill to ship” scenarios also included.
c. Tax is actually paid by the supplier.
d. He has furnished the return.
e. If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received.
f. He should pay the supplier, the value of the goods or services along with the tax within 180 days from the date of issue
of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with
interest. However, once the amount is paid, the recipient will be entitled to avail the credit again. In case part payment
has been made, proportionate credit would be allowed.
C. Documents on the basis of which credit can be availed are:
a. Invoice issued by a supplier of goods or services or both
b. Invoice issued by recipient alongwith proof of payment of tax
c. A debit note issued by supplier
d. Bill of entry or similar document prescribed under Customs Act
e. Revised invoice
f. Document issued by Input Service Distributor
D. No ITC beyond September of the following Financial Year to which invoice pertains or date of ling of annual return,
whichever is earlier
E. The Input Service Distributor (ISD) may distribute the credit available for distribution in the same month in which, it is
availed. The credit of CGST, SGST, UTGST and IGST shall be distributed as per the provisions of Rule 4(1) (d) of ITC Rules.
ISD shall issue invoice in accordance with the provisions made under Rule 9(1) of Invoice Rules.
F. ITC is not available for supplies/services as laid down in section 17(5) of CGST Act, 2017. An illustrative list as under:
Negative List of ITC as per Section 17(5) of the CGST Act
1 In Case of Motor Vehicle
NATURE OF BUSINESS NATURE OF VEHICLE ITC CLAIM
Dealer of Motor Vehicle Any Vehicle Full ITC can be claimed
Passenger Transportation Vehicle used for Passenger
Transportation
Full ITC can be claimed
15
Abhipra
Any Other vehicle ITC cannot be claimed
Training relating to driving of such
vehicle
Vehicle used for training Full ITC can be claimed
Any other Vehicle ITC cannot be claimed
Any other business Vehicle used for transportation of goods Full ITC can be claimed
Any other vehicle ITC cannot be claimed
2 In case of Other Items
NATURE ITC CLAIM EXCEPTIONS
Food & Beverages ITC cannot be claimed If engaged in similar line of business, then
Outdoor catering ITC cannot be claimed
Beauty treatment services ITC cannot be claimed
Health services ITC cannot be claimed
Cosmetic and plastic surgery ITC cannot be claimed
Rent a cab service ITC cannot be claimed If engaged in similar line of business or there is
mandatory requirement from government to provide
such services by employer to employee then full ITC
can be claimed on these items
Life Insurance service ITC cannot be claimed
Health Insurance service ITC cannot be claimed
Membership of a club, health &
tness Centre
ITC cannot be claimed No exception
LTA benet extended to employees ITC cannot be claimed No exception
Construction Contract Services for
construction of immovable property
ITC cannot be claimed If engaged in similar line of business, then
Full ITC can be claimed on these items
ITC on goods and services used for
self-construction of building cost of
which is capitalized in books
ITC Cannot be claimed No exception
Goods and Services Meant for
Personal Consumption
ITC Cannot be claim No exception
3 ITC to be Reverse
Goods lost, stolen, destroyed,
written off
ITC to be reverse No exception
Goods disposed off by way of gift or
free samples
ITC to be reverse No exception
16
Abhipra
9. What is Job-Work?
Section 2(68) of the CGST Act, 2017 denes job-work as ‘any treatment or process undertaken by a person on goods
belonging to another registered person’. The one who does the said job would be termed as ‘jobworker’. The ownership of
the goods does not transfer to the job-worker but it rests with the principal. The jobworker is required to carry out the
process specied by the principal on the goods.
Job-work procedural:
a) A registered person (Principal) can send inputs/capital goods under intimation and subject to certain conditions
without payment of tax to a job-worker and from there to another job-worker and after completion of job-work bring
back such goods without payment of tax. The principal is not required to reverse the ITC availed on inputs or capital
goods dispatched to job-worker.
b) Principal can send inputs or capital goods directly to the job-worker without bringing them to his premises and can
still avail the credit of tax paid on such inputs or capital goods.
c) However, inputs and/or capital goods sent to a jobworker are required to be returned to the principal within 1 year
and 3 years, respectively, from the date of sending such goods to the job-worker.
d) After processing of goods, the job-worker may clear the goods toI.
Another job-worker for further processing
II. Dispatch the goods to any of the place of business of the principal without payment of tax
III. Remove the goods on payment of tax within India or without payment of tax for export outside India on fullment
of conditions.
The facility of supply of goods by the principal to the third party directly from the premises of the jobworker on payment of
tax in India and likewise with or without payment of tax for export may be availed by the principal on declaring premise of
the job-worker as his additional place of business in registration. In case the job-worker is a registered person under GST,
even declaring the premises of the job-worker as additional place of business is not required.
Before supply of goods to the job-worker, the principal would be required to intimate the Jurisdictional Ofcer containing
the details of the description of inputs intended to be sent by the principal and the nature of processing to be carried out
by the job-worker. The said intimation shall also contain the details of the other job-workers, if any.
The inputs or capital goods shall be sent to the jobworker under the cover of a challan issued by the principal. The
challan shall be issued even for the inputs or capital goods sent directly to the job-worker. The challan shall contain the
details specied in Rule 10 of the Invoice Rules.
The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.
Input Tax credit on goods supplied to job worker
Section 19 of the CGST Act, 2017 provides that the principal (a person supplying taxable goods to the jobworker) shall be
entitled to take the credit of input tax paid on inputs sent to the job-worker for the job-work. Further, the proviso also
17
provides that the principal can take the credit even when the goods have been directly supplied to the job-worker without
being brought into the premise of the principal. The principal need not wait till the inputs are rst brought to his place of
business.
10. Credit Note / Debit Note
Credit Note means Where a tax invoice has been issued for supply of any goods or services or both and the taxable value
or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where
the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be decient, the
registered person, who has supplied such goods or services or both, may issue to the recipient what is called as a credit
note containing the prescribed particulars.
Format
There is no prescribed format for credit note / debit note but must contain the following particulars, namely:
(a) name, address and Goods and Services Tax Identication Number of the supplier;
(b) nature of the document;
(c) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or
numerals or special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination
thereof, unique for a nancial year;
(d) date of issue;
(e) name, address and Goods and Services Tax Identication Number or Unique Identity Number, if registered, of the
recipient;
(f) name and address of the recipient and the address of delivery, along with the name of State and its code, if such
recipient is un-registered;
(g) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;
(h) value of taxable supply of goods or services, rate of tax and the amount of the tax credited to the recipient; and
(i) signature or digital signature of the supplier or his authorised representative.
Tax Liability
The person who issues a credit note in relation to a supply of goods or services or both must declare the details of such
credit note in the return for the month during which such credit note has been issued but not later than September
following the end of the nancial year in which such supply was made, or the date of furnishing of the relevant annual
return, whichever is earlier. In other words, the output tax liability cannot be reduced in cases where credit note has been
issued after September.
The output tax liability of the supplier gets reduced once the credit note is issued and it is matched. The details of the
credit note relating to outward supply furnished by the supplier for a tax period shall, be matched:
(a) with the corresponding reduction in the claim for input tax credit by the recipient in his valid return for the same tax
Abhipra
18
Abhipra
period or any subsequent tax period; and
(b) for duplication of claims for reduction in output tax liability.
The claim for reduction in output tax liability by the supplier that matches with the corresponding reduction in the claim
for input tax credit by the recipient shall be nally accepted and communicated to the supplier. The reduction in output
tax liability of the supplier shall not be permitted, if the incidence of tax and interest on such supply has been passed on
to any other person.
Where the reduction of output tax liability in respect of outward supplies exceeds the corresponding reduction in the
claim for input tax credit or the corresponding credit note is not declared by the recipient in his valid returns, the
discrepancy shall be communicated to both such persons. Whereas, the duplication of claims for reduction in output tax
liability shall be communicated to the supplier.
Records
The records of the credit have to be retained until the expiry of seventy-two months from the due date of furnishing of
annual return for the year pertaining to such accounts and records. Where such accounts and documents are maintained
manually, it should be kept at every related place of business mentioned in the certicate of registration and shall be
accessible at every related place of business where such accounts and documents are maintained digitally.
Conclusion
The credit note is therefore a convenient and legal method by which the value of the goods or services in the original tax
invoice can be amended or revised. The issuance of the credit note will easily allow the supplier to decrease his tax liability
in his returns without requiring him to undertake any tedious process of refunds.
The amount in respect of which any discrepancy is communicated and which is not rectied by the recipient in his valid
return for the month in which discrepancy is communicated shall be added to the output tax liability of the supplier in his
return for the month succeeding the month in which the discrepancy is communicated.
The amount in respect of any reduction in output tax liability that is found to be on account of duplication of claims shall
be added to the output tax liability of the supplier in his return for the month in which such duplication is communicated.
Debit Note means When a tax invoice has been issued for supply of any goods or services or both and the taxable value
or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the
registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing the
prescribed particulars.
The Contents and purpose of the debit is the same as stated above in relation to credit note.
11. Import
Since 2014, there has been no import duty on paper and paperboard from ASEAN countries. Under the India-Korea CEPA,
the basic customs duty has been reduced gradually with a 0% target by January 1, 2017 Between April and July this
year, the growth in imports has been more than 40%. In the writing and printing paper segment, import of coated,
uncoated, and copier papers is signicant.
19
12. Exports
Exports – Clarication on issues related to furnishing of Bond/Letter of Undertaking (LUT) for exports
To remove the difculties faced by the exporters notications has been issued which extends the facility of LUT to all
exporters.
Following issues was claried by the government:-
In view of the difculties being faced by the exporters in submission of bonds/Letter of Undertaking (LUT) for exporting
goods or services or both without payment of integrated tax
a) Eligibility to export under LUT: Extension given to all registered persons who intend to supply goods or services for
export without payment of integrated tax except those who have been prosecuted for any offence under the CGST Act
or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such
cases exceeds two hundred and fty lakh rupees.
b) Validity of LUT: The LUT shall be valid for the whole nancial year in which it is tendered.
c) Form for bond/LUT: Download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs
(www.cbec.gov.in)
d) Documents for LUT: Self-declaration by the exporters.
e) Time for acceptance of LUT/Bond: LUT/bond should be accepted within a period of three working days of its
receipt along with the self-declaration.
f) Bank Guarantee – Since the facility of export under LUT has been extended to all registered persons, bond will be
required to be furnished by those persons who have been prosecuted for cases involving an amount exceeding Rupees
two hundred and fty lakhs.
A bond, in all cases, shall be accompanied by a bank guarantee of 15% of the bond amount.
g) Clarication regarding running bond: The exporters shall furnish a running bond where the bond amount would
cover the amount of self-assessed estimated tax liability on the export.
h) Sealing by ofcers: Till self-sealing becomes mandatory operational, sealing of containers wherever required to be
carried out under the supervision of the ofcer.
i) Purchases from manufacturer and Form CT-1: It is claried that there is no provision for issuance of CT-1 form
which enables merchant exporters to purchase goods from a manufacturer without payment of tax under the GST
regime.
j) Transactions with EOUs: Zero rating is not applicable to supplies to EOUs and there is no special dispensation for
them under GST regime.
k) Realization of export proceeds in Indian Rupee: Jurisdictional ofcer: In exercise of the powers conferred by subsection
(3) of section 5 of the CGST Act, it is hereby stated that the LUT/Bond shall be accepted by the jurisdictional
Abhipra
20
Abhipra
Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter.
l) Realization of export proceeds in Indian Rupee: Accordingly, it is claried that the acceptance of LUT for supplies
of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are
made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI
guidelines.
Deemed Export
Deemed exports
Deemed exports refers to supplies wherein the goods do not actually leave India but the supplies are designated as
exports.
The supply of goods or services to the following would be treated as exports under GST Act
1. Supply made to a SEZ unit/ SEZ developer
2. Supply made to an Export oriented undertaking (EOU)
Filing of returns under GST Act for the deemed export is to be done as per the general procedures provided for export
under GST Act.
Kinds of supplies are designated as deemed exports(As per recent notication)
• Supply of goods by a registered person against Advance Authorisation;
• Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation;
• Supply of goods by a registered person to Export Oriented Unit;
• Supply of goods by a bank or Public‐Sector Undertaking specied in the notication No.
50/2017‐Customs, dated the 30th June 2017 (as amended) against Advance Authorisation.
Benets provided for deemed exports
Refunds are allowed of the GST paid on deemed exports. Typically, application for such refund is to be led in RFD01 by
the recipient of the supply. However, supplier can also le for the refund provided: recipient does not avail of input tax
credit on such supplies; and recipient furnishes an undertaking to the effect that the supplier may claim the refund.
Supplies qualifying as deemed exports
Prescribed documents / evidences required for ling the refund claim by a supplier
For Supplies against Advance Authorisation and EPCG Scheme:
Acknowledgment from jurisdictional ofcer of Advance Authorisation holder or EPCG holder that deemed export supplies
have been received. For Supplies against EOU Scheme: Duly endorsed tax invoice (under which supply was made) by EOU
recipient that supplies have been received.
21
• Undertaking from recipient that no input tax credit on such supplies have been availed by it;
• Undertaking from recipient that it will not seek refund in respect of such supplies and the supplier may claim the
refund particulars remarks
13. Audit
A. Audit Mandation by Law
Every registered dealer whose turnover during a nancial year exceeds the Rs 1 crore has to get his accounts audited
by a Chartered Accountant or a Cost Management Accountant. The dealer have to le audited returns along with
audited accounts and reconciliation statement
B. Audit by GST Tax Authorities
• The Commissioner of CGST/SGST (or any ofcer authorized by him) may conduct audit of a taxpayer. The
frequency and manner of audit is not notied yet.
• A notice will be sent to the auditee at least 15 days before.
• The audit will be completed within 3 months from date of commencement of the audit.
• The Commissioner can extend the audit period for a further six months with reasons recorded in writing.
Obligations of the registered dealer
The taxable person will be required to:
• provide the necessary facility to verify the books of account/other documents as required
• to give information and assistance for timely completion of the audit.
Findings of Audit
On conclusion of an audit, the ofcer will inform the taxable person within 30 days of:
• the ndings,
• their reasons, and
• the taxable person’s rights and obligations
If the audit results in detection of unpaid/shortpaid tax or wrong refund or wrong input tax credit availed, then demand
and recovery actions will be initiated.
Special Audit
The department may conduct a special audit due to the complexity of case and considering interest of revenue. The
Chartered Accountant or a Cost Management Accountant will be appointed to conduct the audit.
Abhipra
22
Abhipra
When can a special audit be initiated?
The Assistant Commissioner may initiate special audit, considering the nature and complexity of the case and interest of
revenue. If he is of the opinion during any stage of scrutiny/enquiry/investigation that the value has not been correctly
declared or the wrong credit has been availed then special audit can be initiated.
Special audit can be conducted even if the tax payers books have already been audited before.
Who will order and conduct special audit?
The Assistant Commissioner (with the prior approval of the Commissioner) can order for special audit (in writing). The
special audit will be carried out by a chartered accountant or a cost accountant nominated by the Commissioner.
Time limit for special audit
The auditor will have to submit the report within 90 days. This may be further extended by the tax ofcer for 90 days on
an application made by the taxable person or the auditor.
Cost
The expenses for examination and audit including the auditor’s remuneration will be determined and paid by the
Commissioner.
Findings of special audit
The taxable person will be given an opportunity of being heard in ndings of the special audit.
If the audit results in detection of unpaid/shortpaid tax or wrong refund or input tax credit wrongly availed then demand
and recovery actions will be initiated.
14. Offences and Penal Provisions
There are 21 offences under GST Act . For easy understanding, we have grouped them asFake/wrong
invoices
1. A taxable person supplies any goods/services without any invoice or issues a false invoice.
2. He issues any invoice or bill without supply of goods/services in violation of the provisions of GST Act.
3. He issues invoices using the identication number of another bonade taxable person
Fraud
4. He submits false information while registering under GST Act
5. He submits fake nancial records/documents or les fake returns to evade tax
6. Does not provide information/gives false information during any proceedings
23
Tax evasion
7. He collects any GST but does not deposit with the government within 3 months
8. Even if he collects any GST in contravention of provisions, he still has to deposit it to the government within 3
months. Failure to do so will be an offence under GST Act.
9. He obtains refund of any CGST/SGST by fraud.
10. He takes and/or utilizes input tax credit without actual receipt of goods and/or services
11. He deliberately suppresses his sales to evade tax
Supply/transport of goods
12. He transports goods without proper documents
13. Supplies/transports goods which he knows will be conscated
14. Destroys/tampers goods which have been seized
Others
15. He has not registered under GST Act although he is required to do so by law
16. He does not deduct TDS or deducts less amount where applicable.
17. He does not collect TCS or collects less amount where applicable.
18. Being an Input Service Distributor, he takes or distributes input tax credit in violation of the GST rules
19. He obstructs the proper ofcer during his duty (for example, he create hindrance in the working of the ofcer during
the audit by tax authorities)
20. He does not maintain all the books that he is required to maintain under law
21. He destroys any evidence
Abhipra
Type of offence Amount of penalty
Penalty for delay in ling GSTR Late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST.
Total will be Rs. 200/day. Maximum is Rs. 5,000. There is no late fee on IGST.
Penalty for not ling GSTR Penalty 10% of tax due or Rs. 10,000
– whichever is higher
Penalty for committing a fraud Penalty 100% of tax due or Rs. 10,000
– whichever is higher
(High value fraud cases also have jail term)
Penalty for helping a person to
commit fraud
Penalty extending upto Rs. 25,000
24
Abhipra
Common Offences Under GST Act And Their Penalties Penalty for opting for composition
scheme even though he is not
eligible
Demand & recovery provisions of sections 73 & 74 will apply.
· Fraud case
Penalty 100% of tax due or Rs. 10,000
– whichever is higher
· Non-fraud case
Penalty 10% of tax due or Rs. 10,000
– whichever is higher
Penalty for wrongfully charging GST
rate— charging higher rate
Penalty 100% of tax due or Rs. 10,000
– whichever is higher
(if the additional GST collected is not submitted with the govt)
Penalty for not issuing invoice Penalty 100% of tax due or Rs. 10,000
– whichever is higher
Penalty for not registering under
GST
Penalty 100% of tax due or Rs. 10,000
– whichever is higher
Penalty for incorrect invoicing Penalty of Rs. 25,000
Situations where there is no penalty (but interest may apply)
GST has Capital punishments provision for high value fraud cases as followsTax
amount involved 100-200 lakhs 200-500 lakhs Above 500 lakhs
Jail term Upto 1 year Upto 3 years Upto 5 year
Fine In all three cases
Type of offence Action
Penalty for incorrect type of GST charged (IGST
instead of CGST/SGST)
No penalty. Pay the correct GST and get refund of the wrong
type of GST paid earlier
Penalty for incorrect ling of GSTR No penalty. But interest @18% on shortfall amount
Penalty for delay in payment of invoice. ITC will be reversed if not paid within 6 months.
No penalty as such
Penalty for wrongfully charging GST rate— charging
lower rate
Interest @18% applicable on the shortfall
15. HSN Code & GST Rate
Reference for HSN code and GST rate – For paper and Pulp industry kindly refer Chapter 48 & 49
CBEC Link for nding HSN code with GST rates – https://cbec- gst.gov.in/gst-goods-services-rates.html
25
Abhipra
16. E-way bill
E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). A
‘movement’ of goods of more than Rs 50,000 in value cannot be made by a registered person without an e-way bill.
E-way bill will also be allowed to be generated or canceled through SMS.
When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient,
and the transporter.
When should an e-way bill be generated?
E-way bill will be generated when there is movement of goods –
• In relation to a ‘supply’
• For reasons other than a ‘supply’ ( say a return)
• Due to inward ‘supply’ from an unregistered person
What is a ‘supply’ in case of an e-way bill?
For this purpose, a supply may be either of the following:
• A supply made for a consideration (payment) in the course of business
• A supply made for a consideration (payment) which may not be in the course of business
• A supply without consideration (without payment)
In simpler terms, the term ‘supply’ usually means a:
1. Sale – sale of goods and payment made
2. Transfer – branch transfers for instance
3. Barter/Exchange – where the payment is by goods instead of in money
Therefore, e-way bills must be generated on the common portal for all these types of movements.
Who can generate an e-way bill?
• E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a
Registered Person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value
of goods is less than Rs 50,000.
• Unregistered persons or their transporters may also choose to generate an e-way bill. This means than an e-way bill
can be generated by both registered and unregistered persons. However, where a supply is made by an unregistered
person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.
26
Abhipra
Who When Part Form
Every Registered person
under GST
Before movement
of goods
Fill Part A Form GST EWB-01
Registered person is
consignor or consignee
(mode of transport may be
owned or hired) OR is
recipient of goods
Before movement
of goods
Fill Part B Form GST EWB-01
Registered person is
consignor or consignee
and goods are handed
over to transporter of
goods
Before movement
of goods
Fill Part B The registered person shall furnish the information relating to
the transporter in Part B of FORM GST EWB-01
Transporter of goods Before movement
of goods
Generate e-way bill on basis of information shared by the
registered person in Part A of FORM GST EWB-01
An unregistered person
under GST and recipient
is registered
Compliance to be
done by Recipient
as if he is the
Supplier.
1. If the goods are transported for a distance of ten
kilometers or less, within the same State/Union territory
from the place of business of the consignor to the place of
business of the transporter for further transportation, the
supplier or the transporter may not furnish the details of
conveyance in Part B of FORM GST EWB-01.
2. If supply is made by air, ship or railways, then the
information in Part A of FORM GST EWB-01 has to be
lled in by the consignor or the recipient
Note: If a transporter is transporting multiple consignments in a single conveyance, they can use the form GST EWB-02 to produce a
consolidated e-way bill, by providing the e-way bill numbers of each consignment. If both the consignor and the consignee have not
created an e-way bill, then the transporter can do so by lling out PART A of FORM GST EWB-01 on the basis of the invoice/bill of
supply/delivery challan given to them.
Can e-way bills be used during return ling?
Yes. The information provided in Part A of the Form GST EWB-01 can be used for preparing GSTR-1.
What is the validity of an e-way bill?
An e-way bill is valid for periods as listed below, which is based on the distance traveled by the goods. Validity is
calculated from the date and time of generation of e-way bill.
List of People Who Can Generate an E-Way Bill
27
Abhipra
Distance Valid from Valid for
Up to 100km Date & time at which e-way bill is generated 1 day
For every 100 km after that Date & time at which e-way bill is generated An extra day
Nationwide E-way Bill shall come into force from 1st April 2018
28
Abhipra
GST Suvidha Provider
Abhipra
29
Some Other Important Key Points
A. Who is a Principal?
As per the denition provided in the GST law, the term “Principal” means a person on whose behalf an agent carries
on the business of supply or receipt of goods or services, or both. For instance, a dealership store of an automobile
company is an excellent example of Principal-Agent relationship.
B. Who is a Pure Agent?
Pure Agent means a person who:
(a) enters into a contractual agreement with the recipient of supply to act on their behalf and incur expenditure or
costs in the course of supply of goods or services or both;
(b) neither intends to hold nor holds any title to the goods or services (or both) procured on behalf of or provided to
the recipient of supply;
(c) does not use the goods or services so procured for his own interest; and
(d) receives only the actual amount incurred to procure such goods or services.
C. Types of Electronic Ledgers
E-Cash Ledger:
This ledger will serve as an electronic wallet. Where, the taxpayer needs to make any payment such as tax, interest,
penalty etc and he does not have enough credit in his E-Credit ledger, he will have to simply add money to the wallet
and the money will be utilized to make the payment.
This ledger will basically reect all the deposit made in cash using various modes.
E-Credit Ledger:
The input tax credit that is self-assessed in the monthly returns will be reected here under three categories i.e IGST,
CGST & SGST. The taxpayer will be able to utilize the balance shown in this account only for payment of tax as per
the credit utilization rules and no other amount such as interest, penalty etc.The E-Credit ledger will show the input
credit under the three major tax heads namely IGST, CGST & SGST.
E-Liability Ledger:
This ledger will show the total tax liability of a taxpayer after netting off for the particular month. This ledger will be
auto populated.
Abhipra
30
1
8
15
22
29
2
9
16
23
30
3
10
17
24
31
4
11
18
25
5
12
19
26
6
13
20
27
7
14
21
28
GST Obligations – Calendar
GSTR-1
(Outward supply details)
GSTR-7
(TDS returns)
MONTHLY
GSTR-6
(Returns by ISD)
MONTHLY
GSTR-2
(Inward supply details)
MONTHLY
GSTR-4
(Composite dealer
returns #)
MONTHLY
GSTR-3
(Periodic Returns)
MONTHLY
GSTR9
(Annual return*)
MONTHLY
* Annual return is required to be filed before 31 December of the
subsequent year.
# Quarterly return is applicable to assessees opted for compounding
scheme. The same is to be filed within 18 days of the end of the
quarter.
Important – Dates for Quarterly return for SMEs is yet to be notified
Abhipra
OUR SERVICES
GST Suvidha Provider (GSP)
Depository Participant with NSDL, CDSL
Member: National Stock Exchange, Bombay Stock Exchange
Category I SEBI Approved Registrar and Transfer Agent
Aggregator & POP with Pension Pension Fund
Regulatory and Development Authority (PFRDA), (NPS)
UIDAI Empaneled Aadhar Enrolment Agency
Corporate Business Correspondence with Bank of India,
Gramin Bank of Aryavart
Office Automation Softwares,
Customized Software Development
Investment Advisor
Contact us
Registered Office : GF-58-59, World Trade Centre,
Barakhamba Lane, Connaught Place, New Delhi-110001,
Ph. : 91-11-23414629, 23414503
Corporate Office : A-387, Dilkhush Industrial Area, G.T. Karnal Road, Azadpur,
Delhi-110033, Ph. : 91-11-41411130, 7428396205 Telefax: 91-11-42390930
• website: www.abhipra.com • e-mail: gst@abhipra.com, info@abhipra.com • CIN: U74899DL1994PLC061802
Abhipra

Dear Members,

 

With continuation our earlier email dated 23rd October 2017 inter alia enrolling members for Vietnam Tour.

 

We like to inform you, the following quota for flying has been allotted for the delegates.

 

Mumbai Airport :10 delegates

Chennai airport : 10 delegates

Delhi Airport :10 delegates

Hyderabad Airport :10 delegates

Bangalore Airport: 02 delegates

Kolkata Airport : 02 delegates

 

Please note that the other states delegates will be adjusted in the above Airport wise quota’s for e.g. if Mumbai Airport has 10 quota’s, Ahmedabad, Surat, Baroda, Rajkot delegates will adjusted in the above quota (i.e. 6+4 or 5+5 etc.) for overall state representation and same will conveyed to the respective local associations to adjust accordingly.

Final list will be send by the Convener, International Trade Committee, Shri. Shekhar Chandak.

 

This is for your information and necessary action.

 

Regards

For FPTA

Hiren Karia

Hon. Secretary

Contents

 

                                                                      

  • Income Tax

 

  • Goods & Service Tax (GST)
  1. 3. International Law

 

 

  1. FEMA

 

  1. Company Law

 

        

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax

 

Direct Tax Collections for F.Y. 2017-2018 show Growth of 15.8% up to September, 2017

According to CBDT press release dated 17th October 2017, the provisional figures of Direct Tax collections up to September, 2017 show that net collections are at Rs. 3.86 lakh crore which is 15.8% higher than the net collections for the corresponding period of last year. Net Direct Tax collections represent 39.4% of the total Budget Estimates of Direct Taxes for F.Y. 2017-18 (Rs. 9.8 lakh crore). Gross collections (before adjusting for refunds) have increased by 10.3% to Rs. 4.66 lakh crore during April to September, 2017. Refunds amounting to Rs.79,660 crore have been issued during April to September, 2017.

 

An amount of Rs. 1.77 lakh crore has been received as Advance Tax up to 30th September, 2017 reflecting a growth of 11.5% over the Advance Tax payments of the corresponding period of last year. The growth in Corporate Income Tax (CIT) Advance Tax is 8.1% and that in Personal Income Tax(PIT) Advance Tax is 30.1%.

(Source : http://www.incometaxindia.gov.in/)

 

I-T department goes after defunct companies for tax frauds

The tax office is reopening old records of many companies that have wound up and no longer exist in the books of the government — something the revenue department has rarely done in the past. Former directors of such closely-held private companies, which have received tax notices along with the official liquidators, fear they could be suddenly saddled with unforeseen liabilities. While opening new private companies and shutting down old ones have often been a ploy to move unaccounted money, some of the companies set up to carry out bona fide businesses which subsequently failed have also come under the glare of the income tax department. Till now, the department has typically stayed away from companies to which it had issued non-objection certificate prior to the winding process. But, it’s well within the law and powers of the tax office to review an old tax assessment if there is suspicion of tax fraud.

 

(Source : http://economictimes.indiatimes.com/news/economy/policy/i-t-department-goes-afterdefunct-companies-for-tax- frauds/article show/60724618.cms)

 

Tax department to engage with corporates to spur receipts

Amid slowing growth in advance tax collections; the income-tax department is exploring enhanced engagement with the top 100 companies to facilitate compliance. A committee set up under the direct tax department to review assessment and scrutiny has identified “taxpayer segmentation” to improve collections. “The idea is to provide differential treatment to big taxpayers as they make up for the bulk of the revenue collection. The tax department is, after all, a 30 per cent stakeholder in corporate sector earnings. Stepping up engagement with them will help the department and the companies,” said a government official. The idea is to have a dedicated tax officer who will act as a one-point contact, keeping a close watch on a company’s quarterly results or performance, facilitating advance tax filing and helping estimate earnings for advance tax computation.

 

(Source:http://www.business-standard.com/article/economy-policy/worried-tax-department-to-engagewith-big corporates- to-spur-collections-117100301369_1.html)

 

Income Tax department fastens belt to add 1.25 crore new ITR filers this fiscal

The Income Tax Department has been tasked to add 1.25 crore new return filers in the current financial year as part of the government’s plan to widen the tax base in the country. The Central Board of Direct Taxes (CBDT), that makes policy decisions for the I-T department, has directed the taxman to undertake “focused efforts to significantly increase the tax base in the current financial year of 2017-18.” The target, the CBDT directive accessed by said, is to add 1.25 crore new I-T return filers. A new I-T return filer is defined as a person who has not filed return in the previous years but is liable to do so under the law. The taxman has to add such entities and get them do the filing of their I-T returns.

(Source: https://economictimes.indiatimes.com/news/economy/policy/income-tax-department-fastensbelt-to-add-1-25-crore- new-tax-filers-this-fiscal/article show/60867712.cms)

 

CBDT proposes self reporting for advance tax payment:

The central board of direct taxes (CBDT) has proposed a self-reporting mechanism for reporting estimates of current income, tax payments and advance tax liability by taxpayers who are required to get their account audited under the Income Tax Act, 1961 on a voluntary compliance basis. According to the draft rules, a taxpayer needs to furnish an intimation of estimated income and payment of taxes as on September 30 of the previous year, on or before November 15 of the previous year in the newly proposed form. Further, if the income estimated as on September 30 of the previous year is less than the income of the corresponding period of the immediately preceding previous year by an amount of Rs 5 Lakh or 10%, whichever is higher, then the assessee will be required to explain the reasons for the same by January 31 of the previous year, the CBDT said.

 

(Source: http://www.financialexpress.com/economy/cbdt-proposes-self-reporting-for-advance-tax-paymentall-you-need- to-know/862557/)

 

I-T self-assessment filings under lens

The income-tax (I-T) department is suspecting that taxpayers are understating their advance tax liabilities under self-assessment in the early quarters of the year and showing them as tax on additional income or windfall gains at the end of the financial year. Tax officials have sought an explanation from several corporates and individuals who have filed their self-assessment in the last three years, according to sources.

 

(Source: http://www.business-standard.com/article/economy-policy/i-t-self-assessment-filings-underscanner-117092400570_1.html)

 

Conduct of Assessment Proceedings electronically in time barring scrutiny cases Order under section 119 of the Income-tax Act, 1961 (’Act’)

As a part of Government’s initiative towards E-governance, Income-tax Department has brought digital transformation of its business processes to a significant extent through the Income-Tax Business Application (lTBA) project which provides an integrated platform to conduct various tax proceedings electronically through the ‘e-Proceeding’ facility available on it. As a digital platform for conduct of scrutiny assessment proceedings in an end to end manner is now available, CBDT has decided to utilize it in a widespread manner for conduct of proceedings in scrutiny cases. This Order covers various aspects of conducting scrutiny assessments electronically in cases which are getting barred by limitation during the financial year 2017-2018.

 

(Source: https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Instruction08-2017.pdf)

 

TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased

 

It has been brought to the notice of CBDT that in cases of deceased depositor who has made deposits under the Capital Gains Accounts Scheme, 1988; the banks are deducting TDS on the interest earned on such deposits in the hand of the deceased depositor and issuing TDS certificates in the name of the deceased depositor, which is not in accordance with the law. Ideally in such type of situations, the TDS certificate on the interest income for and up to the period of death of the depositor is required to be issued on the PAN of the deceased depositor and for the period after death of the depositor is required to be issued on the PAN of the legal heir.

(Source:https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/notification8_2017_tds.pdf)

 

Processing of returns in Form ITR-1 under section 143(1) of the Income-tax Act, 1961- applicability of section 143(1)(a)(vi)

 

Clause (vi) of sub-section (a) of section 143(1) of the Income-tax Act, 1961 (’Act’) as introduced vide Finance Act, 2016, w.e.f. 01.04.2017, while processing the return of income prescribes that the total income or loss shall be computed after making adjustment of addition of income appearing in Form 26AS or Form 16A or Form 16 (the three Forms) which has not been included in computing the total income in the return.

(Source:https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Instruction-9- 11-10-2017.pdf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GST (Goods & Service Tax)

 

Clarification on issues related to furnishing of Bond / Letter of Undertaking (LUT) for exports:

A fresh Notification No. 37/2017 – Central Tax dated 4th October, 2017 has been issued which extends the facility of LUT to all exporters under rule 96A of the Central Goods and Services Tax Rules, 2017. Further CBEC has issued a consolidated circular providing clarity on the procedure to be followed for export under bond/LUT.

Eligibility to Export under LUT:

The facility of export under LUT has been now extended to all registered persons who intend to supply goods or services for export without payment of integrated tax except those who have been prosecuted for any offence under the CGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees.

Validity of LUT:

The LUT shall be valid for the whole financial year in which it is tendered. Withdrawal of LUT Facility: In case the goods are not exported within the time specified in sub-rule (1) of rule 96A of the CGST Rules and the registered person fails to pay the amount mentioned in the said sub-rule, the facility of export under LUT will be deemed to have been withdrawn.

Restoring the LUT Facility :

If the amount mentioned in the said sub-rule is paid subsequently, the facility of export under LUT shall be restored. As a result, exports, during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applicable integrated tax or under bond with bank guarantee.

Form for bond/LUT:

Till the time FORM GST RFD-11 is available on the common portal, the registered person (exporters) may download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business.

Self-declaration:

Self-declaration to the effect that the conditions of LUT have been fulfilled shall be accepted unless there is specific information otherwise. That is, self-declaration by the exporter to the effect that he has not been prosecuted should suffice for the purposes of Notification No. 37/2017- Central Tax dated 4th October, 2017. Verification, if any, may be done on post-facto basis.

Time for acceptance of LUT/Bond:

As LUT/Bond is a prior requirement for export, including exports to a SEZ developer or a SEZ unit, the LUT/bond should be processed on top most priority. It is clarified that LUT/bond should be accepted within a period of three working days of its receipt along with the self-declaration by the exporter. If the LUT / bond is not accepted within a period of three working days from the date of submission, it shall deemed to be accepted.

Bank guarantee:

Since the facility of export under LUT has been extended to all registered persons, bond will be required to be furnished by those persons who have been prosecuted for cases involving an amount exceeding Rupees two hundred and fifty lakhs. A bond, in all such cases, shall be accompanied by a bank guarantee of 15% of the bond amount.

(Notification No. 37 /2017-Central Tax and Circular No. 8/8/2017- dated 4th October, 2017)

Highlights of Recommendations made by the GST Council in the 22nd Meeting at New Delhi on 6th October 2017

 

  • The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore as compared to the current turnover threshold of Rs. 75 lacs.
  • To facilitate the ease of payment and return filing for small and medium businesses with annual aggregate turnover up to Rs. 1.5 crores, it has been decided that such taxpayers shall be required to file quarterly returns in FORM GSTR-1,2 & 3 and pay taxes only on a quarterly basis, starting from the third Quarter of this Financial Year i.e. October-December, 2017 • The due dates for filing the quarterly returns for such taxpayers shall be announced in due course. Meanwhile, all taxpayers will be required to file FORM GSTR-3B on a monthly basis till December, 2017.
  • All taxpayers are also required to file FORM GSTR-1, 2 & 3 for the months of July, August and September, 2017.
  • The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under subsection (4) of section 5 of the IGST Act, 2017 i.e. Reverse Charge on Goods / Services received from unregistered person, shall be suspended till 31.03.2018
  • It has been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods. The GST on such supplies shall be payable only when the supply of goods is made.
  • The e-way bill system shall be introduced in a staggered manner with effect from 01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018
  • The last date for filing the return in FORM GSTR-4 by a taxpayer under Composition Scheme for the quarter July September, 2017 shall be extended to 15.11.2017
  • The last date for filing the return in FORM GSTR-6 by an Input Service Distributor (ISD) for the months of July, August and September, 2017 shall be extended to 15.11.2017.
  • GST rates on few goods have been recommended to be reduced.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Tax

 

Overseas taxes and Medicare would not constitute taxable salary in India

It is not uncommon to see organizations send employees outside India on a short and long term basis. In such cases, these employees could receive a salary both within and outside India. In this context, based on the facts and in the circumstances of the case, recently the Bangalore Bench of the Income-tax Appellate Tribunal in the case of Shri Sunil Shinde has held that overseas taxes and Medicare would not constitute a taxable salary in India, while offering overseas salary to tax in India.

This decision could provide relief to resident individuals who travel outside India where the foreign taxes are paid by the employer. The decision has restated that any perquisite provided by the employer, the benefit of which has not vested at the time of contribution, should be considered as exempt.

(Shri Sunil Shinde v. CIT (ITA No 2149 (Bang) 2016) – Taxsutra.com)

CBDT prescribes procedure for filing statement of income from a country or specified territory outside India and foreign tax credit

 

In 2016, Central Board of Direct Taxes (CBDT) issued Foreign Tax Credit (FTC) rules for providing mechanism/procedure to claim FTC in India. As per the Rules, the statement in Form 67 and the certificate or the statement specifying the nature of income and the amount of tax deducted shall be required to be furnished for the claim of FTC.

 

Recently, the CBDT has issued a Notification, prescribing procedure for filing a statement of income from a country or specified territory outside India and FTC. Introduction of the procedure for filing statement of income online to claim FTC is a significant step towards the use of electronic communication for paperless statements / forms. This procedure will provide a hassle free environment to claim credit on tax paid in foreign countries. (CBDT Notification No. 9/2017 dated 19 Sept 2017)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FEMA

Export Data Processing and Monitoring System (EDPMS) – Issuance of Electronic Bank Realization Certificate (eBRC)

The Authorized Dealer Category-I (AD Category-I) banks were earlier advised to carry out appropriate changes in their IT system / operating procedure to report subsequent export transactions in EDPMS and also capture the details of advance remittances (including old outstanding inward remittances) received for exports in EDPMS.

 

Now the AD Category-I banks are directed to update the EDPMS with data of export proceeds on “as and when realized basis” and, with effect from October 16, 2017 generate Electronic Bank Realization Certificate (eBRC) only from the data available in EDPMS, to ensure consistency of data in EDPMS and consolidated eBRC.

 

(RBI/2017-18/57 A. P. (DIR Series) Circular No. 04 dated September 15, 2017)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Law

MCA circular 10/2017 dated 13th September 2017 – Clarification regarding obligation with the Indian Accounting Standards (Ind AS) and Rule 4 of Companies (Indian Accounting Standards) Rules 2015–payment banks, small finance banks which are subsidiaries of Corporates

 

MCA has clarified that where the holding company in respect of subsidiaries which are payment banks or small finance banks, shall follow Ind AS per the corporate sector roadmap. The subsidiaries which are payment banks or small finance banks shall follow the banking sector roadmap stipulated by RBI.

 

For complete text of the notification, please refer the link:

http://www.mca.gov.in/Ministry/pdf/ CompaniesIndianAccountingStandardsGSR365E_14092017. Pdf

 

MCA Notification SO 2751(E) dated 24th August 2017 – Commencement of sub-sections (8) to (10) of section 212 of Companies Act 2013

 

The Government has notified 24th day of August, 2017 as the date on which the provisions of sub- sections (8), (9) and subsection (10) of section 212 of the said Act shall come into force. These provisions deal with various provisions related to the Serious Fraud Investigation Office (SFIO).

 

For complete text of the notification,

please refer the link: http://www.mca.gov.in/Ministry/pdf/Commencementnotification_25082017.pdf

 

BRIEF REPORT OF INAUGURATION FUNCTION & DRAFT MINUTES OF 56TH AGM/CONFERENCE OF FPTA HELD AT HOTEL GRAND ITC CHOLA, CHENNAI FROM 12th TO 14th AUGUST 2017.

 

The 56th Annual General Meeting and Conference of FPTA was held at Hotel Grand ITC Chola, Chennai from 12th to 14th August 2017 organized and hosted by Madras Paper Merchants’ Association, Chennai. The list of delegates and the invited former Presidents who recorded their presence is given in the Annexure.

 

Inaugural ceremony – Highlights

The ceremony began at 3.00 pm on 12th August 2017. The Master of Ceremony welcomed the members.

Chief Guest, Shri Nirmala Sitharaman, Hon’ble Union Minister of Commerce and Industry, Minister of State (Independent Charge), Shri. Sanjay Singh, CEO-ITC Ltd., (Paper and Specialty Paper Division), Shri. N. Gopalaratnam, Chairman, M/s. Seshasayee Paper and Boards Ltd., Shri. Saurabh Bangur, Vice Chairman, The West Coast Paper Mills Ltd., President, IPMA, Shri Shamji Karia, President, FPTA. Shri A. Annamalai (Venkat) FPTA Nominee President, Shri. C. Balasubramanian, FPTA Immediate Former President, Shri Shekhar Chandak, Chairman Reception Committee, MPMA, Chennai, Shri. A. Murugan, President, MPMA, Chennai, Shri. RM Veerappan, Hon. Secretary, MPMA, Chennai, Shri. A. Natesan, Chairman Finance Committee MPMA, Chennai,   and other dignitaries on the dais lighted the ceremonial lamp which was followed by the recital of prayer.

 

Bouquets and mementos were presented to the Chief Guest and Guests of Honour and members present on the dais.

Shri Shekhar Chandak, Chairman Reception Committee welcomed the Delegates and Dignitaries and thanked FPTA for giving them an opportunity for hosting the meeting at Chennai. He highlighted the significance of his association MPMA, Chennai and Chennai state.

 

Shri Shamji Karia, FPTA President welcomed the Chief Guest and dignitaries on the dais, congratulated MPMA, Chennai for holding this conference and proceeded with his speech: Welcome all to the 4th largest, 36th globally state, having historic significance, the service and manufacturing hub Chennai. On 24th SEPTEMBER 2016, it became my life’s most memorable day, wherein I was bestowed with Presidentship of FPTA. The day I took over the helms and responsibilities as a President of a very prestigious and highly regarded organization. I express my hearty gratitude to ‘THE PAPER TRADERS ASSOCIATION MUMBAI to nominate me for this coveted post.

We trader’s welcome the steps taken by Govt. of India  whether it was for demonetization of currency notes of Rs 1000 & Rs 500, though this notification had a widespread adverse impact on other industries, paper industry being organized had a minimal impact. Implementation of Goods & Services tax (GST) from 1st July 2017, “ONE NATION ONE TAX this is an entirely new tax system”.  I must say we all will have to change our approach towards the business. FPTA has taken continuous efforts to minimize the tax slab for PAPER & ALLIED products. Friends this year FPTA has been able to bridge relations with IPMA, Agro & Waste Papers Manufacturers Association and News Print Manufacturer Association. This was a milestone achievement. A joint meeting was organized, wherein there were healthy discussions to increase Public Awareness on paper usage, and also to create a Paper Day. A joint committee was formed towards common goals and I hope in coming days, we move ahead on this subject. I thank Shri. Satyapal Gupataji, Shri. R. C. Guptaji for taking initiative on Paper Day and Public Awareness with Mills Associations and guiding me whenever needed. I thank my associations specially the Ahmedabad and Kanpur for hosting the 2nd & 3rd Managing committee meetings respectively, on short span of time. During the year I had opportunity to visit traders associations of Delhi, Mumbai, Ahmedabad, Hyderabad, Nagpur, Pune, Noida, Meerut, Lucknow, Kanpur, Rajkot, Baroda, Surat, Vijayawada, Kolkata, West Bengal & Ors. I wish to personally thank all members and office bearers of respective associations for inviting me. I wish to specially thank Shri. Hiren Karia for most precise management of FPTA Secretariat , I have to also appreciate the good work done in Office Secretariat by Shri. Manish Shirsat and his colleagues. I also thank the immediate former Presidents Shri C. Balasubramanian, Shri. Arvind Sharma for their valuable guidance, I wish to express my sincere thanks to the Vice Presidents, Hon. Treasurer, Conveners of Sub Committees for their utmost cooperation. I wish a grand success of the AGM & Congratulate Shri. A. Annamalai (Venkat) the president elect for  2017-2018 and I hope he continues with effective implementation of Paper Day & Public Awareness Program in conjunction with IPMA & other associated paper mills.

Shri. Sanjay Singh, CEO-ITC Ltd., (Paper and Specialty Paper Division) welcomed all the dignitaries on dais as well as the other delegates.  He said there are three sources of raw material which paper is made wood, recycle paper, agro based and all are recyclable as people say industry cut the trees but every tree we cut we are planting two more trees, creating green belt. Paper Industry is creating jobs for the farmers in rural area also stopping migration to the urban area, initiative is been taking for segregate of waste management in different part of country.

 

Shri. N. Gopalaratnam, Chairman, M/s. Seshasayee Paper and Boards Ltd., He welcomed all the dignitaries on the dais and off the dais and shared his views. He highlighted the environmental and socially sustainable nature of paper and its manufacturing process. While expansion of electronic media has hit paper use in countries such as the US, there are opportunities in rapidly growing markets such as Mexico, Colombia, South Africa and Turkey, apart from India, where a growing middle class population is driving demand for paper. With well managed plantations, the industry is wood neutral and carbon neutral.

 

Shri. Saurabh Bangur, Vice Chairman, The West Coast Paper Mills Ltd., President, IPMA. welcomed and thanked all members and delegates gathered from the trade and industry, He said it is special moment addressing for 1st time trade fraternity FPTA, Trade is very important part of any business connect, without trade entire cycle would be incomplete, trade body knows the specific performance of the Industry as they are deeply connected and linked to the ground level of the market, He addressed the audience on topic of paper industry opportunity and challenges saying growing imports have killed the industry’s enthusiasm for investments and expansion. Paper from South East Asia is made from raw material available at less than half the cost that Indian units shell out. The government should consider allocating at least 10 per cent of the estimated 29 million hectares of degraded forest land for paper manufacturers to raise pulp wood plantations. Securing raw material resources is critical for long term sustainability and encourage additional investments,

 

Shri Nirmala Sitharaman, Hon’ble Union Minister of Commerce and Industry, Minister of State (Independent Charge):  The Government is open to take an objective look at the paper industry’s demand for safeguard duty on imports and consider a viable model for allocating land for pulp wood plantations, responding to the industry’s demand for safeguard duty on imports from ASEAN countries, the Minister said while the FTA has opened up the domestic market to imports, the industry is also benefiting from cheap import of raw materials. On land for raising pulp wood plantations, she said the paper manufacturers should talk to the State governments and the Centre and come up with a model that will augment farmers’ income. The earlier practice of raising babul tree, she claimed damaged the ecology, resulting in the vanishing of birds and wondered if this had helped the farmers who raised the trees in any way. Hence, the paper manufacturers should to reformulate business models and make use of degraded land to plant trees that can be availed as raw material by the industry. “It is a very critical industry. You have to make contribution to the country. Paper manufacturers have to reformulate yourself, give farmers who hold degraded land some return and ensure you have constant supply of raw material; the industry should work out a solution on replacing plastics in packaging rather than worrying about the space taken away by electronic mode of communication

SOUVENIR

President, Shri Sanjay Bangur released the souvenir. Shri R. Muthu Krishnan, Chairman of the Souvenir Committee presented the copies of the Souvenir to the dignitaries on the dais.

 

The Rasiklal B Parikh Award was presented to Shri Shamji Karia for his meritorious service as President at the hands of Guest of Honour Shri. N. Gopalaratnam.

 

Late Shri Haresh Chand Memorial Lecture Award: Seminar on Social Media and Digital for Paper Trade Industry was organized by the MPMA, Chennai. Prominent speaker was Shri. Krupa Shankar. Later on Talk Show on Paper Trader is Partner or Financer was also arranged, Moderator Shri P. Sreedhar conducted and Shri. Kasi Vishwanathan, Shri. Sandeep Bhargava, Shri. Mohit Jain and Shri. Jayesh Savla participated in this event.

 

Shri Rajeev Agarwal, Past President presented Shri Shri P. Sreedhar with the Late Shri Hareshchand Agarwal Memorial Lecture Award (Agra) for an informative and well conducted event.

 

ANNUAL GENERAL MEETING

BUSINESS SESSION

 

President Shri Shamji Karia welcomed the delegates to the Conference. The following proceedings commenced in line with the Agenda.

 

1    To confirm the minutes of the 55th Annual General Meeting and Conference held at       Hotel Grand Hyatt, Mumbai from 23rd to 25th September 2016 (Circulated vide Circular no. 03/56/2016-17 dtd. 02/12/2016).

 

As there were no comments the house confirmed the minutes of the meeting unanimously.

      Proposed by: Shri Arun Sundariya, Howrah

Seconded by: Shri Yatin Modi, Mumbai

 

2    Approved and adopted the Audited Accounts for the year ended 31st March 2017.

As there was no further discussions the house passed audited accounts unanimously.      

Proposed by: Shri Guman Singh Rajpurohit, Bangalore

Seconded by: Shri Santi Kumar Jain, Delhi

 

  1. Approved and adopted the Annual Report for the year 2016-17.

Proposed by: Shri Anil Gupta, Delhi

Seconded by: Shri Subrata Sen, Kolkata

 

  1. Appointing auditors for Accounting year 2017-18 or up to the conclusion of the next AGM and fixing their remuneration.

            It was unanimously decided to re-appoint the present Auditors M/s. HSMP & Associates LLP, Chartered Accountants, Mumbai for the year 2017-18 empowering Mumbai Office Bearers and Managing Committee to fix the remuneration.

Proposed by: Shri Narayan Bang, Secunderabad

Seconded by: Shri Gian Prakash Gupta, Delhi

 

  1. Reports from Advisory Board, Vice Presidents and Conveners of Sub-Committees in brief.

Hon. Secretary informed that the reports have been already printed in annual report and also circulated to the members, if any member wants to ask any questions can ask to the Vice Presidents in context of the activity reports. Shri. Gopal Saha, Kolkata, Shri. A. Annamalai (Venkat), Chennai, Shri. Ramesh Chand Jain, Delhi, Shri. B. Uttamchand Jain, Bangalore, Shri. Vishnukant Rathi, Secunderabad, Shri. Sanjay Jain, Meerut, Shri. Dipesh Ladda, Vadodara. presented bullet points of their report. Shri Hari Prasad Goenka from Howrah was not present in the meeting due to avoidable circumstances was on leave.  There were no comments from members.

 

Shri. A. Natesan, Convener Industry Affairs shared his meeting details with mills association on celebrating Paper Day and also to educate the society that Paper Industry does not spoil the environment. FPTA has put forward various dates for declaring and celebrating PAPERS DAY in the meeting. Paper Day date will be discussed with the industry and to celebrate it all over the country, the date announcement will be done during the PAPEREX exhibition on 1st November at Delhi.  All Affiliated Associations should celebrate in its jurisdictions involving School and Colleges along with paper mills association. Regarding funds we have shared views that Companies are legally bound to spend a portion of their income under Corporate Social Responsibility (CSR), the funds are available every year. Paper manufacturers can contribute a portion of the CSR funds towards this initiative, without impacting their routine plans, Industrial Cess. Hence forth all contribution would be for Paper Day. Paper is unique let us share the great stories of paper.

 

Shri Satyapal Gupta, Convener of Committee of Assocham & FICCI mentioned that his report is already published in Annual Report, He told members to be ready for digital business, traders should scrutinize the customer before deal, Members were reported on meeting had with Mills association on public awareness and celebrating paper day, which will be announced during PAPEREX and invited all to participate in this event at Delhi, Mills Associations representative has been invited for further discussion on this event and planning at Paper Merchants Association (Regd.), Delhi office on 19th August 2017, the details will be shared to members.

Members suggested and requested Shri. Satyapal Gupta to discuss with industry to celebrate PAPER DAY on 1st August.

 

Shri Rajkumar Bindal, Convener of CAIT and Govt. Affairs highlighted the work carried out at CAIT. Any trade representation should be forwarded through Convener of Govt. Affairs and CAIT

 

Shri Gian Prakash Gupta, Convener, Committee for Consumer Relations and Arbitration emphasized importance of Consumer Grievances and Arbitration to the present members.

 

Shri Ravi Rathi, Committee for Public Awareness accentuated various activities carried out by his committee.

 

Shri. Nirmal Kuhad, Convener for Social Media and Website Committee highlighted the events carried out. He mentioned the website is functioning and member’s involvement is essential for its updating. Members shared few suggestions. Nirmalji positively assured to do the needful. Mobile App will be inaugurated by Chief Guest and any suggestion/query will be sorted out by the technician immediately or later on.

 

Shri. Sandeep Bhargava reported the BIS meeting carried out and its outcome. He informed the house that only authorized members should make its representation of FPTA.

 

Shri A. Venkat, Convener of Committee for GST: A GST Q&A session by a consultant is conducted later in the evening to answer the members trade problems faced.

 

Shri Arvind Sharma, Chairman, Advisory Board: He gave details of the five awards that are to be put to rest from 2017-18. He informed that the due process of sending request to the old sponsors to increase the amount to Rs. 1 Lakh is completed. Shri Arvind Sharma also informed the house that the Advisory Board has received two applications along with (non-refundable) cheques of Rs 5 Lakhs each. He put the suggestions of the Advisory Board before the house for their approval.

 

Shri D. P. Saboo Award: The name of the award henceforth- will be Shri CHANDRAKANT DHANJI ZALANI (Babu Bhai) Award and will be awarded to an affiliated association for rendering outstanding services to its members and trade.

 

Shri Rasiklal B Parikh Award: Henceforth the award- will be known as SHAMJI R KARIA M/S T. K. RUBY & Co Award and will be awarded for meritorious services rendered by the President of FPTA.

 

Shri K. C. Daga Award: The sponsor gave his consent to- increase the amount to Rs 1 Lakh. The award is to be continued.

 

Shri Badluram Gupta Award: The sponsor gave his- consent to increase the amount to Rs 1 Lakh. The award is to be continued.

 

Shri Jayantilal Shah Award: The secretary informed- that the sponsor refused to increase the amount. It was decided that if any application comes it will be decided on merit basis. The minimum amount would be Rs 5 Lakhs non-refundable.

 

It was felt that there is some ambiguity in the criteria of certain awards and some guidelines should be there for the judges who are members of the committees formed to give awards. A review committee headed by Shri Balasubramanian was formed consisting of Shri Krishnendu Bhattacharjee, Shri A Natesan, President Shri A Annamalai (Venkat), and Honorary Secretary, as members.

 

Arrangements for Delhi PaperEx and follow-up of protocols –Delhi Paper Merchants’ Association requested to take care of the same. Shri Satyapal Gupta assured of all help needed in this regard.

 

The deposit amounts of rewards that are going to be put to rest from 2017-18 may be transferred to Public Awareness promotions, if required.

 

The Advisory Board appreciated the efforts put in by Shri Nirmal Kuhad for the launch of FPTA App and suggested that the house in the AGM be requested to fix the charges for main advertisements in the app as Rs 25,000 and for the sub-category advertisements as Rs 10,000 on a trial basis for the first 6 months.

 

The Advisory Board felt that the affiliated associations should be educated to include Managing Committee members as delegates in accordance with the guidelines of FPTA. This will also avoid hardships to the host association.

 

The members unanimously approved the suggestions presented by the Advisory Board.

&n