Experts Query Daily Digest :16 September 2019

Loan & Advance

Suppose Co operative housing society given job terrace shed form month of Feb 19.

Contract estimate Rs. 14 Lakh then then balance sheets as on 31.03.2019 showing amount 11 lakhs asset side loan and advance .

my knowledge only 3 lakh given advance to contractor then why is showing 11 lakh balance sheet asset side loan and advance.

Partners Personal Loan paid by partnership firm

Dear Experts,

Please help resolve this query.

1. Partnership firm is paying installment of partners personal loan e.g. Gold Loan , Car Loan taken by partners for personal purposes.

2. In the firm this is treated as drawings and debited to capital account of firm.

3. In the partners personal returns have shown this as loan from the firm.

Please give your expert advise whether my treatment is correct.

My concern is in case of scrutiny it should not be treated as deemed remuneration on similar lines of company.

Please guide.

Best Regards,
Ashish

154 order

AY 18.19 - A company's Tax Audit Report was filed in August 18 in which bonus provision amount was shown as unpaid as bonus provision was not paid till the date of report. Return of Income was filed on 31.10.18 by allowing bonus provision on payment basis u/s 43B. CPC Order (u/s 143 and 154 upon rectification request) has disallowed the said bonus on the ground of mismatch between TAR & ITR and has increased the total income. If we accept this CPC order and claim the said bonus payment in subsequent year AY 19.20. Will there be any other consequences other than extra payment of interest u/s 234B & 234C?
Can there be rectification to 154 order, because portal is showing rectification option in the rectification window.

Income tax

My question is
What will be the date of sale of constructed property
Date of "agreement to sell" or date of "sale deed" ( registry)

For capital gain calculation When one has received 70% earnest money and rest equal amount in one year

UDIN NUMBER ON TAX AUDIT REPORT

IF WE FORGOT TO GENERATE UDIN NUMBER BEFORE UPLOADING AUDIT REPORT. AND GENERATE IT AFTER UPLOADING THE REPORT. WHAT WOULD BE THE CONSEQUENCES...................

Whether clubs registered under Societies registration

Please advise whether the clubs registered under Societies Registration act 1860 should have to pay income tax if not registered under sec 12 of IT act

Income Tax for Musicians

In which category should I register my music band to so that it falls under the lowest tax bracket. Eg. as Partnership or LLP or Society or any other category? Would appreciate if anyone can help.

TDS Applicability- Public Charitable/Religious Trust

Below case laws the above provision is not applicable for Trust Since Its part of Budget 2018 so same Should be applicable after 01/04/2019 In the case of Mrs. Sushila Mallick vs. ITO reported in 19 com233, the Hon’ble Lucknow ITAT has held that the brokerage had been paid on account of sale of the properties, the income of which had been shown under the head ‘short-term capital gain’. The selling of properties was not the business of the assessee and, as such, the amount involved in the transaction relating to the selling of properties was not the part of turnover of the assessee. In view of same the Hon’ble ITAT held that in facts of the case the provisions of Section 40(a)(ia) of the Act is not applicable. •In the case of Mahatma Gandhi Seva Mandir vs. DDIT(Exempt) reported in 21 com321 the Hon’ble ITAT has held that the exception in Section 40 is carved out, only for the purpose of Section 28 and not for computing the exemption of income of a charitable trust under Section 11. The disallowance made under Section 40(a) will only go to enhance the business profit of an assessee whose income is assessable under Section 28 and not otherwise. Hence, provisions of Section 40(a) are not applicable in case of charitable trust or institution where income and expenditure is computed in terms of Section 11. Mahendra Doshi 15/09/2019

TDS on interest on subordinated debt

TDS on interst on subordinated debt shall be deducted under which section?

MERGER OF TWO CA FIRMS AND APPOINTMENT OF AUDITOR

DEAR EXPERTS

I WOULD LIKE TO ASK THAT WHEN ONE FIRM OF CA GOT MERGED WITH OTHER CA FIRM, IN THAT CASE WHETHER ADT - 3 FOR THE FIRM/AUDITOR WHICH IS GOT MERGED IS REQUIRED TO BE FILED WITH ROC OR ADT - 1 FILING IS SUFFICIENT.
AS PER MY KNOWLEDGE, ADT - 3 IS REQUIRED IN CASE OF CASUAL VACANCY DUE TO RESIGNATION OF THE AUDITOR. IN MY CASE IT IS MERGER OF THE FIRM AND NOT RESIGNATION OF THE AUDITOR.

THANKS IN ADVANCE

REGARDS

Share Application money: Treatment as Deposit

Dear All

My Company received Share application money against Compulsorily Convertible Debentures (CCD) in the year 2018 from parent Company outside India. CCD were issued through Private Placement under Section 42 of CA, 2013. The Company received some excess money against which CCD was not allotted. Also, Company failed to refund the money within the specified timelines, hence will have to pay interest as per Section 42.
Further, as per Companies (Acceptance of Deposit Rules), 2014 such amount shall be treated as 'Deposit'. The Company is already in the process of refunding this amount to the parent Company. My questions are:
(i) Since the Company neither "accepted" nor "invited" this amount in the form of Deposit, will Section 73 be applicable on this amount? If yes, what exactly is to be done by Company under Section 73?
(ii) The Company never intended to invite any amount as deposit, but due to some unavoidable delays, the nature of this amount turned to being a Deposit. Will Company be penalised under Section 76A?
(iii) Since the Rule says "such amount shall be treated as a deposit under these rules" Does this mean we have to only look into the Rules and not the Sections related to Deposits?
(iv)What else Company has to Comply with other than processing refund and compounding with RBI?

Best Regards

How to file DIR-12 when INC-22A cant be filed?

My company had 2 directors, out of which one had died.
DIN-KYC of Dead director cant be done, Consequently, INC-22A {active} cannot be filed either.

Since INC-22A not filed, DIR-12 for appointment cant be filed. Also DIR-12 for Cessation could not be filed as the minimum falling below 2.

Please suggest a way.

Non Convertible Redeemable Preference Share

Can a non-convertible redeemable preference shares be converted into equity after time period? If yes, please help me with the procedure.

Remove auditors from roc

Is there an option available to remove auditors from ROC, if CA does not resign ?

Takeover of firm into LLP

Dear Sir,

Please provide resolution for take over of firm into LLP. Whether valuation of firm is required ? or CA Certified balance sheet with latest date is sufficient of that firm ?

Final old syllabus may 2019 mark list&pass certificate

Anyone received ca final old syllabus mark list may 2019?how much time will take for getting the same? whether pass certificate will send by institute along with mark list?

AMA

Sir can anyone please share their Final AMA notes of MT Educare SSR Sir.
Whether it is CA Final New / Old Please share the material as soon as possible to my mail id thanumalayanb13@gmail.com

Thanks in advance!

Re-registration for the ca course

Dear sir/madam,
I am a student of ca course and had done ipcc in nov.2012and articleship in 2015 but after that due to family situations and circumtances i was unable to go through the ca final exam and haven't applied for the exam.can i apply for the may 2019 ca final exam?if yes,then what is the procedure to do so?
Thank you

REG BEN -2

Dear Sir/Mam,

If partnership firm holds 10% of shares in the Company (Reporting Company), then who is required to give declaration in Form BEN-1 ..

In case the above partnership firm consists of two partners and they sharing the profits equally i.e) 50% each..

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Reques for adding me on accountants whatsapp group

Hello Sir,
This is srinivas i want to join our accountants whatsapp group ...could you please add me (MY NO: 9398933325) AND (9391143022)

Conversion of Full Time COP to Part Time COP

Sir,
I am a partner in a firm since 1 year. Now I shifted to another place where I want to join employment.Is it possible to convert full time COP to Part time COP and join employment as well as continue in the partnership.

Please let me know the procedure as early as possible.
Kindly let me know the ICAI guidelines because I have searched for the same. There is no separate form.

Regarding purchase and sale of scraps.

Dear Experts,

I need your help regarding this topic. So we are planing to start processing Ewaste scraps and recover metals from it. The problem is the Ewaste scraps are available in cash from traders. They do not have any gst number or even a firm registered. How can we proceed ahead with purchasing and sales. Can we purchase the scraps in cash and sell the recovered metals in gst? How will this situation work out?

Thanking you,
Gaurav

Turnover omission inn filing GST returns

While filing the monthly GST returns for 2018-19, there is an omission of turnover of Rs. 20,00,000/- . How to bring this omitted supply into the GST returns ? Can the experts enlighten me in this regard?

Gst on sale of flats

Under Construction Property,Affordable Housing , No O.C.Recd., Agreement done in June-18 of Rs 25.Lakhs , Part payment till March-19 Recd.Rs.20 lakhs and Gst @12% Recd.on Rs.20 lakhs .My Quety is on balance Payment of Rs.5 Lakhs which is due in Sept-19 which Rate should apply 12% ( old ) or 1% new. as from April-19 onwards we are going in new Const.Scheme.

PLACE OF SUPPLY

COMPANY A SEND GOODS TO GUJRAT IN SKD CONDITION. AND CONTRACT WITH OTHER PARTY B OF GUJRAT TO ASSEMBLE THE GOODS AND DELIVER TO RECEIPENT C OF GUJARAT . WHAT WILL BE THE PLACE OF SUPPLY IN CASE OF B .IF HE RAISE INVOICE TO A. WHETHER HE WILL CHARGE IGST OR SGST,CGST . ?
AS PER GST LAW THE PLACE OF SUPPLY WILL BE THE PLACE WHERE GOODS ASSEMBLED?

PLEASE REPLY.

Slab

Sir

What is the actual slab of current year [19-20 ] for taking R C either 20 Lakhs or 40 lakhs ?

S M basha

GST filing Fee

Property income (rental) less then 22 lakhs per annum, GST registration compulsory?
Do we need to file monthly return or quarterly return, please advise.
what is the nominal fee CA can charge to file GST returns (quarterly)? (only 4 transaction per month).