Hi Folks June is significant for World Environment Day, Water Day, Music Day and so on. But this time it is GST all the way. Nothing can be more transformational than this single biggest Nation-wide Tax Roll-out that is set to impact the chaiwallah (Tea Vendor) on the road to the billionaire business tycoon in private jets. Ironically it required a Chaiwallah to take kadak (strong) decisions and actions to usher in GST and change the flavours of business ! No prizes for guessing who this Kadak Chaiwallah is ☺ At the stroke of midnight today, Excise, Sales tax, VAT, Octroi and several other indirect taxes will die a legislative death to resurrect in a new avatar as GST. When the whole world sleeps (this is a misnomer in today’s world when technology doesn’t allow us to sleep at all !) India will awaken to a new reform as the Government rolls out the red carpet in a celebratory style for the new STAR – GST !! This issue of LexSpeak carries highlights of the multiple notifications, rules, regulations etc. that enable GST to become a reality from 1st July, 2017. There are other regulatory updates also that we carry which perhaps pale in the shadow of the giant. GST or no GST. Look at the Night Queen, the lovely white Brahma Kamalas that adorn our banner this time. They bloom and open to the fullest at midnight, bouncing softly in the gentle breeze, lighting up the darkness around, oblivious of whether there are people around to appreciate or not. They perform on select nights quietly with no expectation. For a change they have the GST bloom for company this time ! Should you wish to refer to any of our older issues of LexSpeak, do visit our Resource Centre at  www.lexvalorem.com. Warm regards The much awaited, heralded (but also feared and wished away by certain sections of Trade and Industry) and trumpeted, as the biggest ever Tax reform in the Indian history is to be rolled out on 30th June, 2017 to take effect from 1st July, 2017. As a line up to the same, CBEC has issued several Notifications, Rules, Regulations, Circulars, Forms and FAQs starting from 19th June onwards. Carrying each of them is not practical. We have summarised briefly the essence of most important ones in as simple terms as possible. Please click on read more. W.e.f 14th June, 2017, provisions relating to Fast track corporate solvency, its applicability and application process have been notified under the Insolvency and Bankruptcy Code (IBC), 2016. Application can be made for the following corporate debtors: small company as defined under Companies Act, 2013; a Startup (other than the partnership firm) as defined by the Government; an unlisted company with total assets, as reported in the financial statement of the immediately preceding financial year, not exceeding Rs. 1 crore. The relevant regulations provide the process from initiation of insolvency resolution of eligible corporate debtors till the approval of resolution plan by Adjudicating Authority. Process shall be completed within 90 days. Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 have been notified which is applicable to the service providers. Board shall have the power to conduct inspection against service providers and their records, to ensure that records are being maintained as per the regulations and if the service provider fulfils all the obligations as required under the regulations. Further, the regulations also empower the Board to conduct investigation of the affairs of the service provider. Procedure for conducting the investigation have been notified.

Rotation of Statutory Auditors is required to be done by listed companies and certain other classes of companies as prescribed under the Companies Act, 2013. Private Companies having Rs. 50 crores or more as paid up share capital need not comply with the rotational auditors. Previously the limits were only upto Rs. 20 crores.
Banks have been directed to include certain minimum details of Transactions in the Passbook / Statement of Account, to enable the account holders to cross verify the transactions undertaken. An indicative list of Debit and Credit Transactions notified are as below:
For Debit Transactions: :Payment to Third Parties; Self Payment; Bank charges; Reversal of wrong credits; Creation of Fixed Deposit etc.
For Credit Transactions: Cash deposit; Receipt from third parties; Reversal of wrong debits; Interest on Deposits; Loan proceeds etc.
Due date for filing Service Tax Returns for the period April 1, 2017 to June 30, 2017 has been notified as August 15, 2017. Further any revised return for the period April 1, 2017 to June 30, 2017 may be filed within 45 days from the date of submission of the return for the said period.
Advance Pricing Agreement is an agreement between a tax payer and a taxing authority on an appropriate transfer pricing methodology for a set of transactions over a given period of time.
An application has to be made in Form 3CED for entering into Advance Pricing Agreements. The Form has been modified requiring certain additional particulars in respect of Associated Enterprise (AE)/ Parent Company.
Intimation of Aadhar number to the Income Tax Authorities has become mandatory. While filing our Income Tax Returns, Aadhar needs to be mentioned / linked to our Return.
Section 92CE pertaining to transfer pricing has been inserted by Finance Act 2017 with effect from 1.4.2018. Where there is an increase in income or reduction of loss to the extent of Rs. 1 crore or more by way of primary adjustment (either suo moto by the asssesee or by accepting the adjustment made by the assessing officer or by means of an Advance Pricing Agreement or made as per safe harbour rules or by resolution by mutual agreement) to the transfer price, then the excess amount owed by the associated enterprise on account of the primary adjustment if not repatriated into India, shall be considered as an advance by the Indian Assessee to its associated enterprise and interest on such deemed advance shall be computed and added as income of the Indian Assessee. The rules for such computation have been notified.
Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.

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