Key Topics

AUDIT

• SA-250 – CONSIDERATION OF LAWS AND REGULATIONS IN AN AUDIT OF FINANCIAL STATEMENTS

DIRECT TAX

• ICDS II – VALUATION OF INVENTORIES

FEMA

• DOWNSTREAM INVESTMENT UNDER FEMA

Updates

FEMA

• FEMA UPDATES FOR THE MONTH OF OCTOBER 2018

GST

• GST UPDATES FOR THE MONTH OF OCTOBER 2018

COMPANIES ACT, 2013

• RULES, CIRCULARS, NOTIFICATIONS AND ORDERS ISSUED DURING THE MONTH OF OCTOBER, 2018

Key Topics:

EDITORIAL

BENAMI ACT

• CASH TRANSACTIONS NOT NECESSARILY A BENAMI TRANSACTION

GST

• IMPORTANCE OF OTHER RECONCILIATIONS IN GST AUDIT

FEMA

• A PEAK INTO RECENT AMENDMENTS IN ECB REGULATIONS

COMPANIES ACT 2013

• COMPANIES AMENDMENT ORDINANCE 2018

INSOLVENCY & BANKRUPTCY CODE

• DECODING SECTION 29A OF IBC

DIRECT TAXES

• RELEVANCE OF POSSESSION OF IMMOVABLE PROPERTY

1. CLARIFICATIONS ON GST APPLICABILITY FOR DELCREDERE AGENT:

Circular No. 57/3/2018-GST dated 04.09.2018 has been issued to provide that the movement of goods between Principal and Agent would be considered as deemed supply under Schedule I of CGST Act, 2017 to attract GST, only when Agent undertakes to issue invoice in his own name. In cases, where Principal undertakes to issue invoice to customer, then supply of goods by Principal to Agent will not be considered as deemed supply and accordingly, no GST is payable.

In view of this clarification, certain representations were made with respect to GST implications in case of Del-Credere Agent (DCA) who guarantees the payment to Principal even if there is a default by Customer. DCA effectively extends loan to Customer or charges interest for delay in payment for the goods supplied to him.

Read more: SBS i 14th Edition

Gst Updates For The Month Of October 2018

CIRCULARS

1. NOTIFICATIONS ISSUED UNDER CGST ACT, 2017 REGARGING REFUND TO UIN ENTITIES ARE APPLICABLE TO GST (COMPENSATION TO STATES) ACT, 2017:

Section 55 of CGST Act, 2017 prescribes for refund of taxes paid by specified International Organizations, Foreign Diplomatic Missions or Consular Posts etc on notified supply of goods or services received by them subject to such conditions as may be prescribed. In this regard, Notification No. 16/2017--Central Tax (Rate) dated 28.06.2017 has been issued. A question was raised whether such entities can claim refund of the Compensation Cess paid on goods or services received by them. It was clarified that vide section 11 of Compensation Cess Act, 2017 that the provisions of CGST Act and SGST Act are applicable in relation to levy and collection of Compensation Cess. Therefore, the notifications issued under CGST Act except those prescribing rates or granting exemptions, are applicable for the purpose of the Compensation Cess Act. Accordingly, the said entities are eligible to claim refund of Compensation Cess also if any paid-on goods or services received by them.

{CIRCULAR NO. 68/42/2018 – GST DATED 05.10.2018}

Read more: SBS i 13th Edition