PRESS NOTE ON FILING OF RETURN IN FORM GSTR-3B FOR JULY, 2017
GST Council had earlier decided to defer the filing of return in FORM GSTR-3 and had recommended the filing of return in FORM GSTR-3B. Accordingly, the Central Government vide notification No. 21/2017-Central Tax dated 08.08.2017 had notified the last date for filing of return in FORM GSTR-3B for the month of July, 2017 as20.08.2017.
2. Concerns have been raised by the trade about whether transitional credit would be available for discharging the tax liability for the month of July, 2017. In this regard, attention is invited to notification No. 23/2017-Central tax dated 17.08.2017 wherein the date and conditions for filing the return in FORM GSTR-3B have been specified. Salient points for filing the said return are as follows:Continue reading
A. Project Permanent Establishment
Time spent for making rig ready to use is includible for determination of Permanent Establishment
- The taxpayer, a company having been registered in and a tax resident of Singapore, had entered into an Agreement dated 18 June 2010 with Gujarat State Petroleum Corporation Ltd (GSPC) for the provision of offshore drilling services.
- For this purpose, the taxpayer brought its offshore drilling rig to India on 26 April 2010. However, the actual services under the Agreement commenced from 3 December 2010 and continued till 31 March2011.
- The taxpayer claimed that it was not liable to tax in India during AY 2011-12 in the absence of a Permanent Establishment (PE) in India since its drilling operations continued for only 119 days. This is less than the threshold of 183 days in any fiscal year provided in the India-Singapore DTAA for services in connection with the exploration, exploitation or extraction of mineral oils.
- The AO observed that the rig was undergoing upgrades and repair activities. These were preparatory activities to make the rig suitable for undertaking the drilling services for GSPC. The AO, therefore, rejected the taxpayer’s claim and took a view that the taxpayer had a PE in India since the rig was in India for 340 days during AY 2011-12.
- The Commissioner of Income Tax (Appeals) (CIT(A)) reversed the order of the AO.
- Being aggrieved, the Revenue filed an appeal against CIT(A)’s order before the Tribunal.
Below are points regarding “All about GST”:
1) HSN Code to be mentioned
For turnover below 1.5 Cr, no need to mention HSN code in invoice.
From 1.5 Cr. – 5 Cr turnover,
only mention 2 digit HSN code
and above 5 Cr mention only 4 Digits of HSN code.
*But, All the taxpayers need to maintain 6 digit HSN Code and the same shall be uploaded with monthly Return*Continue reading
The Central Board of Direct Taxes (CBDT) vide Circular no. 24/2017 dated 25th July, 2017 issued a clarification by way of 14 FAQ’s with respect to determination of book profit for computing Minimum Alternate Tax (MAT) liability under section 115JB of the Income-tax Act, 1961 (Act) for INDAS compliant companies.
Following are the few important clarifications:
- The CBDT clarifies that the starting point for computing the of book profits under section 115JB of the Act for an Ind AS complaint company would be Profit / Loss before Other Comprehensive Income (OCI).
- First Time Adoption adjustments as of March 31, 2016 (i.e. the start of business on April 1 , 2016 or equivalently, close of business on March 31, 2016) will be considered for computation of MAT liability for FY 2016-17 (AY 2017-18) and thereafter. Therefore, the convergence date has been clarified to be March 31, 2016
Optional reporting of details of one foreign bank account by the non-residents in refund cases
Currently, refund generated on processing of return of income is directly credited to the bank accounts of the taxpayers. Availability of the detail of bank accounts in which the refund is to be credited is a precondition for direct credit of refund in the bank accounts.
Various representations were received from the non-residents that they are facing difficulties in getting refund as they do not have bank account in India and there is no column in the notified form of return of income for reporting details of foreign bank account by the non-residents for this purpose.Continue reading