CORPORATE AND PROFESSIONAL UPDATE MARCH 27, 2017

Professional Update For the Day:

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Direct Tax:

Provision made by the assessee for payment of any gratuity, that has become payable during the year is allowable. In fact the CBDT has also clarified the introduction of section 40A(7) that the provision made for payment of gratuity that has become payable during previous year is allowable. Therefore the liability accrued on account of the gratuity which became payable during the year on account of the employees who retired during the year itself is allowable  [DCIT Vs M/s. Reliance Jute Mills International Ltd (ITAT Kolkata) ]

CBDT Stipulates Guidelines For Waiver Of Interest Charged U/s 201(1A)(i) Of The Income-Tax Act, 1961 For TDS Default.  Circular No. 11/2017 dated 24.03.2017.

Insurance & Travelling Expenses incurred in Foreign Currency needs to be Excluded from both Export and Total Turnover for the purpose of section 10A Calculations. [M/s. Sunquest Information Systems India Pvt. Ltd. Vs JCIT (OSD) (ITAT Bangalore)]

Indirect Tax:

CESTAT holds that exemption accorded to small scale industries under Notification No. 8/2001-CE cannot be denied because brand name used by assessee is registered with another person; CESTAT observes that such denial would constrain the exemption Notification and would be perilous for any small unit to use a brand unless registered in own name [TS-57-CESTAT-2017-EXC]

Finance ministry on Saturday approved the re-organisation of the indirect tax wing renaming the Central Board of Excise and Customs (CBEC) as the Central Board of Indirect Taxes and Customs (CBIC).

FAQ on GST: 

Query: If taxable person affects inter state supplies, can he availed composition scheme?

 Answer: If taxable person does not affects inter state supplies,then he cannot avail composition scheme.

GST Update

GST Provisional IDs not used till 31.3.17 may be cancelled as not needed. All existing indirect tax assessees migrate to GST by 31st March, 2017.

The CBIC will have 21 zones, 101 GST tax payer services commissionerates comprising 15 sub-commissionerates, 768 divisions, 3,969 ranges, 49 audit comm and 50 appeals Commissionerates.

RBI UPDATE

RBI issued notification that All Agency Banks to remain open for public on all days from March 25, 2017 to April 1, 2017.

Other Update

ICAI invites applications for suitable positions at various levels for Financial Reporting Domain of its Technical Directorate on full time / contractual basis for its Mumbai location. www.icai.org

The Ministry of Labour and Employment has notified the draft Contract Labour (Regulation and Abolition) Central Amendment Rules, 2017. It provides employers to pay wages to its employees through cheque or e-payment.

The Comptroller and Auditor General of India (CAG) plans to audit the impact of note ban and the affect it has had on government tax revenues, said CAG Shashi Kant Sharma.

Key Due Dates:

Important dates for March 2017:

  • 6 March  : Service tax monthly deposit other than Ind, HUF & P.Firm
  • 7 March  : TDS/ TCS deposit
  • 15 March : Deposit of PF
  • 15 March : Payment of Advance Tax
  • 20 March : Monthly UP VAT return & tax
  • 21 March : Deposit of ESI
  • 31 March : E-payment of service Tax by all assesses Monthly/ Quarterly
  • 31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17
  • Return of TDS for dec quarter in DVAT 48 : 17:03:2017
  • E payment of DVAT & CST tax for Feb : 21:03:2017
  • Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.
  • E payment of service tax for quarter ended march : 31:03:2017
  • E payment of excise duty for quarter ended : 31:03:2017
  • Filing of ITR for AY 2016-17 without penalty & AY 2015-16 with penalty of 5000 : 31:03:2017
  • Payment of balance Advanve income tax by ALL (sec 234B&234C) : 31:03:2017
  • Issue of DVAT certificate for deduction made in feb : 22.03.2017

There is a thin line dividing self-confidence and overconfidence. Hence, be careful.

Self-confidence is key to success. It’s four components are: Feel Good, Take Responsibility, Be Accountable and Develop Skills.

Life isn’t about getting and having, it’s about giving and being.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

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CORPORATE AND PROFESSIONAL UPDATE MARCH 25, 2017

Professional Update For the Day:

annual-compliance-of-a-private-limited-company

Direct Tax:

Advertisement expenses incurred to publicize change of name from UTI bank to Axis Bank allowable as revenue exp. [2017] 79  187 (Ahmedabad – Trib.)

Sum paid for right to use software without any copyright won’t fall within the purview of royalty.[2017] 79  206 (Kolkata – Trib.)

Payment made by assessee to ICC as ‘Rights fee’ was exclusively for use of Marks of ICC for purposes of promotion and advertisement and not for manufacture and sale of licensed products, hence, not in nature of ‘Royalty’ or ‘Fees for technical services’. [2017] 79  271 (Delhi – Trib.

Interest rate prevailing in country where loan is consumed to be used to determine ALP of loan granted to AE. [2017] 79  215 (Mumbai – Trib.)

Pradhan Mantri Garib Kalyan Yojna to declare Black Money is going to end on 31.03.2017. Either Pay Tax @ 49% or @ 77% along with penalty, prosecution and enforcement actions after this Scheme. 

The Lok Sabha passed the Finance Bill, Starting from April 1, 2017:

  1. A) The tax rate on income between Rs. 2.5-5 lakh will be 5 per cent from 10 per cent.
  2. B) A 10 per cent surcharge for individuals having income from Rs. 50 lakh to 1 crore.
  3. C) A simple one-page ITR form for individuals having a taxable income up to Rs. 5 lakh other than business income.
  4. D) No deduction will be allowed for investment in Rajiv Gandhi Equity Saving Scheme from Assessment Year 2018-19.
  5. E) Income tax officials can reopen tax cases for up to 10 years if search operations reveal undisclosed income over Rs. 50 lakh.

F)Taxpayers who do not file their returns on time will have to shell out a penalty of up to Rs. 10,000 from AY 2018-19.

  1. F) The holding period of a property for qualifying as long-term gains will be reduced to two years, from three years.
  2. G) The government has cut down tax benefits borrowers enjoyed on properties let out on rent up to Rs. 2 lakh.
  3. H) Individuals will be required to deduct a 5 per cent TDS for rental payments above Rs. 50,000 per month fromJune 1, 2017.
  4. I) Partial withdrawals from National Pension System (NPS) will not attract tax.
  5. J) Aadhaar number will be a must while applying for PAN as well as filing of income tax returns fromJuly 1.

K)limit on cash transactions has been set at Rs. 2 lakh from proposed Rs. 3 lakh.

Indirect Tax:

Input service availed by wholly owned Subsidiary Company allowable as credit to Holding company:[2017] 79  217 (New Delhi – CESTAT)

Consumables used in provision of services can’t be treated as sales; not liable to VAT. [2017] 79 195 (Delhi)

GST Updates :

All existing indirect tax assessees to migrate to GST in next 7 days as 31.3.17 is the last date shown on www.gst.gov.in for this purpose.

Key Due Dates:

Important dates for March 2017:

  • 6 March  : Service tax monthly deposit other than Ind, HUF & P.Firm
  • 7 March  : TDS/ TCS deposit
  • 15 March : Deposit of PF
  • 15 March : Payment of Advance Tax
  • 20 March : Monthly UP VAT return & tax
  • 21 March : Deposit of ESI
  • 31 March : E-payment of service Tax by all assesses Monthly/ Quarterly
  • 31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17
  • Return of TDS for dec quarter in DVAT 48 : 17:03:2017
  • E payment of DVAT & CST tax for Feb : 21:03:2017
  • Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.
  • E payment of service tax for quarter ended march : 31:03:2017
  • E payment of excise duty for quarter ended : 31:03:2017
  • Filing of ITR for AY 2016-17 without penalty & AY 2015-16 with penalty of 5000 : 31:03:2017
  • Payment of balance Advanve income tax by ALL (sec 234B&234C) : 31:03:2017
  • Issue of DVAT certificate for deduction made in feb : 22.03.2017

 

A seed grows with no sound, but a tree falls with huge noise. Destruction has noise, but creation is silent. Grow Silently.

You can never cross the ocean until you have the courage to lose sight of the shore.

 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

 

We look forward for your valuable comments. www.carajput.com

 

CORPORATE AND PROFESSIONAL UPDATE MARCH 24, 2017

Professional Update For the Day:

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Direct Tax:

CBDT issues clarifications on Income Computation and Disclosure Standard (ICDS) u/s 145(2) of the Income Tax Act, 1961 on 23 March, 2017.

CBDT notifies Third Protocol amending India-Singapore DTAA on 23 March 2017 effective from 27 February 2017.

Bombay High Court decision: No summons u/s 131(1) of the Income Tax Act can be issued, if no proceeding are pending. Jamnadas Madhavji And Co. And vs J.B. Panchal, Income-Tax Officer.

Income tax department has launched criminal prosecution in 570 cases till January in the current financial year, about a threefold jump from 196 in the previous fiscal.

Capital gains deposited by the assessee in the specified bank account in accordance with Capital Gain Account Scheme, after the due date of filing of Return of Income u/s 139(1) but before the due date of filing the Revised Return u/s 139(5) would be eligible for exemption u/s 54G.  DCIT vs. M/s. Kilburn Engineering Ltd., ITAT – Kolkata.

CBEC has been the biggest litigant in the last three years, filing twice as many appeals in the Supreme Court than private co’s, a study by the govt. official auditor showed.

CBDT issued guidelines to ITOs that in case of individual not having business income, no further verification is required to be made in cash deposit is up to Rs 2.5 lacs and in case above 70 years of age, the limit is Rs 5 lacs.

The I-T department is likely to launch the second phase of ‘Operation Clean Money’ next month to close in on unaccounted money into banks but may ignore standalone deposits below Rs. 5 lakh for now.

Every person who has bank account but has not furnished his PAN number to the bank at the time of opening of bank account or subsequently is required to furnish PAN before 28.02.2017.

High Court held that opinion that such a huge tax evasion cannot be so lightly permitted on account of any hyper-technicality. The concept of lift or piercing of corporate veil, as sometimes referred to as cracking the corporate shell, is applied by the Courts sparingly. [Ajay Surendra Patel Vs DCIT (Gujarat High Court)]

Indirect Tax:

CBEC has issued a circular clarifying the Applicability of service tax on the services by way of transportation of goods by a vessel from a place outside India to the customs station in India w.r.t. goods intended for transshipment to any country outside India.

CESTAT Delhi rejects valuation adopted by Deputy Commissioner, Special valuation branch by way of backward calculation of related party imports, viz. making deductions from RSP/MRP of CVDs/DVDs so imported. It also holds that valuation mechanism adopted by Revenue is strictly not in accordance with Rule 7 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. [TS-55-CESTAT-2017-CUST]

FAQ on GST: 

Query: Will composition scheme be optional or compulsory?

 Answer: Optional

 Query: If an individual buys a car for personal use and after a year sells it to a car dealer. Whether this transaction will be a supply in terms of MGL?

Answer: No, this transaction is not be a supply because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was meant for non-business use.

GST Updates :

The last GST Council meeting (the eleventh since the Council’s inception), though scheduled for two days, got concluded in a day as the revised CGST and IGST Laws were approved by the Council.

Under GST No threshold for persons responsible for deduction or collection of tax at source under existing GSTIN or separately registered for TDS/TCS.

Under GST No refund shall be granted to deductor if TDS amount has been credited to Electronic Cash Ledger of the deductee.

RBI update:

RBI notified that The Government of India has prescribed the Master Directions on Issuance and Operation of Prepaid Payment Instruments in India. These Master Directions have been prepared to facilitate the Prepaid Payment Instrument Issuers, System Providers, System Participants and all other Prospective Prepaid Payment Instrument Issuers to have all the extant instructions on the subject at one place; vide notification no.  DPSS.CO.PD. No. /02.14.006/2016-17 dated 20th march,2017. (click here to view)

RBI has issued a Notification regarding Reimbursement of Merchant Discount Rate (MDR). The Govt of India has decided to absorb the Merchant Discount Rate charges in respect of debit card transactions while making payments to the Govt.

Foreign institutional investors (FPIs) issuing participatory notes (P-notes) have decided to impose a 7.5 per cent tax on those who want to use these off-shore derivative instruments to bet on India’s equity market.

MCA Updates:

MCA has empowered the Regional Director to prepare and maintain the Mediation and Conciliation Panel of eligible experts in pursuance of Rule 3(1) of Section 442 of the Companies Act, 2013 who are willing to be appointed as mediator or conciliator.

MCA has revised the versions of eForms – Form AOC-4, Form AOC-4 XBRL, Form GNL-2 w.e.f 17th February, 2017.

Companies being controlled and managed by same set of shareholders to be treated as AE. [2017] 78  57 (Bangalore – Trib.)

Other UPDATE

Indirect tax collections increase by 16.9 per cent in January and the government is on track to achieve its revised tax target for the current fiscal.

The Cabinet on Wednesday approved the proposed merger of State Bank of India (SBI) and five subsidiaries SBBJ, SBH, SBM, SBP and SBT — a combination that will create the first Indian lender to rank among the world’s top 50.

The Lok Sabha passed the Payment of Wages (Amendment) Bill, 2017 which allows for digital payment of salaries or through cheque.

Names of Audit Firms approved for appointment as Statutory Central Auditors in 25 Public Sector Banks for the year 2016-17

Key Due Dates:

Important dates for March 2017:

  • 6 March  : Service tax monthly deposit other than Ind, HUF & P.Firm
  • 7 March  : TDS/ TCS deposit
  • 15 March : Deposit of PF
  • 15 March : Payment of Advance Tax
  • 20 March : Monthly UP VAT return & tax
  • 21 March : Deposit of ESI
  • 31 March : E-payment of service Tax by all assesses Monthly/ Quarterly
  • 31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17
  • Return of TDS for dec quarter in DVAT 48 : 17:03:2017
  • E payment of DVAT & CST tax for Feb : 21:03:2017
  • Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.
  • E payment of service tax for quarter ended march : 31:03:2017
  • E payment of excise duty for quarter ended : 31:03:2017
  • Filing of ITR for AY 2016-17 without penalty & AY 2015-16 with penalty of 5000 : 31:03:2017
  • Payment of balance Advanve income tax by ALL (sec 234B&234C) : 31:03:2017
  • Issue of DVAT certificate for deduction made in feb : 03.2017

Waves are inspiring, not because they rise and fall but because they never fail to rise again.

Be soft as a flower when it comes to kindness. But tough as thunder when it comes to principles.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com   Continue reading

CORPORATE AND PROFESSIONAL UPDATE MARCH 23, 2017

Professional Update For the Day:

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Direct Tax:

Assessing officer being a statutory authority under the Act is bound to respect all the laws may be made by the Parliament or may be made by the State Legislature. He has no jurisdiction to examine the constitutional validity of any Act or the statute or a subordinate legislation which creates statutory liability upon the assessee to make the payment by way of an expenditure incurred.[The Commissioner of Income Tax Vs M/s Karnataka State Beverages Corporation ltd. (Karnataka High Court)]

CBDT to honour honest taxpayers “Honest and Compliant” taxpayers from across the country who have paid their Income Tax dues diligently over the years.

The Finance Bill, 2017 passed with Changes:

  • Threshold limit prohibiting cash payments reduced from rupees three lakhs to two lakhs with equivalent penalty.
  • TCS on cash transactions scrapped from  1% on sale of jewellery above Rs five lakh.
  • Mandatory quoting of Aadhaar No for IT Return and PAN Application W.e.f.01/07/17.
  • Cap on political donations removed from Co. Under Companies Act, 2013 from up to 7.5% of their average profits.

Indirect Tax:

CESTAT Mumbai holds that exemption accorded to small scale industries under Notification No. 8/2001-CE cannot be denied because brand name used by assessee is registered with another person. It observes that such denial would constrain the exemption Notification and would be perilous for any small unit to use a brand unless registered in own name.

The contributions of the assessees to the Provident Fund are not a recognized Fund, the same are not eligible for deduction u/s. 80C (2) (vi) of the I.T. Act. M/s. Kodakkad Service Co-operative Bank Ltd. Vs The Income Tax Officer (TDS) (ITAT Cochin)

DVAT has extended the last date of filing of online/hard copy of third quarter return for the year 2016-17, in Form DVAT-16, DVAT-17 and DVAT-48 alongwith required annexures/enclosures to 17.03.2017Vide Circular No. 26 of 2016-17 dated 08.03.2017.

CESTAT rules that assembling various components into a computer system does not constitute ‘manufacture’, hence not liable to ‘excise duty’  [TS-43-CESTAT-2017-EXC]

Service receiver can’t change classification and categorization of services: Delhi CESTAT [2017] 79 198 (New Delhi – CESTAT)

FAQ on GST: 

Query: Can a return once uploaded be revised or rectified?

Answer: There is no provision for revision of any return under GST Law. The return once filed and matched will become final. The transactions which need revision in any return already filed will be considered in the next month’s return. In every monthly return, there is a table for entries in respect of the earlier returns filed.   

Query: What will be the implications if unregisterd dealers purchased goods?

 Answer: The receiver of goods would not get ITC.Further the recipients who are registerd under composition scheme would be liabale to pay tax under reverse charge.

Query: Under GST, if any perso is availing Composition Scheme, can he purchase goods and services from unregistered tax payers?

Answer: A Composition supplier is required to make purchases only from registered taxpayers. In case, a composition supplier makes any purchases from an unregistered taxpayer, he would be liable to pay tax on reverse charge basis on all his purchases made from unregistered persons.

GST Updates :

GST set to be rolled out from July 1, states have not made many changes in the indirect tax structure in their Budgets for 2017-18, assuming that adequate compensation would be provided to them for any shortfall in revenue receipts on this count.

RBI Updates :

RBI notified that Government of India has issued amendments in master direction on risk management and inter-bank dealings. Also, for providing operational flexibility to multinational entities and their Indian subsidiaries exposed to currency risk arising out of current account transactions emanating in India, the extant hedging guidelines have been amended as per the terms and conditions in the Annex I to this circular vide circular no. A.P. (DIR Series) Circular No. 41 dated 21st march, 2017.

SEBI Update: 

SEBI is evaluating the category of benchmarks being currently used to compare the returns of mutual fund (MF) schemes.

Govt considering allowing 100% Foreign Direct Investment (FDI) in insurance broking with a view to giving a boost to the sector at present, allows 49%.

MCA Updates:

MCA has issued  Companies (Indian Accounting Standards) Amendment Rules, 2017 vide notification dated 17th March, 2017.

Key Due Dates:

Important dates for March 2017:

  • 6 March  : Service tax monthly deposit other than Ind, HUF & P.Firm
  • 7 March  : TDS/ TCS deposit
  • 15 March : Deposit of PF
  • 15 March : Payment of Advance Tax
  • 20 March : Monthly UP VAT return & tax
  • 21 March : Deposit of ESI
  • 31 March : E-payment of service Tax by all assesses Monthly/ Quarterly
  • 31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17
  • Return of TDS for dec quarter in DVAT 48 : 17:03:2017
  • E payment of DVAT & CST tax for Feb : 21:03:2017
  • Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.
  • E payment of service tax for quarter ended march : 31:03:2017
  • E payment of excise duty for quarter ended : 31:03:2017
  • Filing of ITR for AY 2016-17 without penalty & AY 2015-16 with penalty of 5000 : 31:03:2017
  • Payment of balance Advanve income tax by ALL (sec 234B&234C) : 31:03:2017

Strive not to be a success, but rather to be of value.

A strong positive self-image is the best possible preparation for success.

The best day of your life is the one on which you decide that your life is your own and you alone are responsible for the quality of it.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com

CORPORATE AND PROFESSIONAL UPDATE MARCH 22, 2017

Professional Update For the Day:

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Direct Tax:

  • Royalty and fee for technical assistance paid in pursuance of the license agreement are revenue expenditure and not capital in nature – CIT, Noida Vs H-One India Pvt. Ltd. (2017 (3) TMI 396 – Allahabad HC).
  • CBDT issued guidelines to ITOs that in case of individual not having business income, no further verification is required to be made in cash deposit is up to Rs 2.5 lacs and in case above 70 years of age, the limit is Rs 5 lacs.
  • Society running an educational institute to impart education to youth is entitled to sec. 12A registration. [2017] 78 com179 (Chandigarh – Trib.)
  • CBDT rolled out Prosecution Module under Income Tax Business Application.
  • Finance Ministry seeks to limit cash transactions at Rs 2 lakh in Finance Bill amendment. Effective from01.04.2017.
  • 30 individuals on I-T Deptt radar for Tax evasion to the tune of Rs.500 Cr. established during demonetization and planning to initiate criminal prosecution against them.
  • CBDT vide notification no 10/2017 dated 14th February, 2017 notifies the amended India-Israel DTAA signed on 14th October, 2015.
  • CBDT has issued a circular via circular no. 08 of 2017 dated 23rd February, 2017 regarding clarification of determination of Place of Effective Management (POEM) of a Company, other then an Indian company.
  • New versions of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) are applicable from February 23, 2017.
  • No TDS liability if payee not identifiable at time of making provision for expenditure at year end. [2017] 78 com195 (Delhi – Trib.)

Indirect Tax:

  • CBEC launches a Mobile Application for GST to inform the taxpayers of the latest updates on GST among others.
  • The clearances to 100% EOU is to be treated as export – Refund of accumulated CENVAT credit availed on input services allowed – CCEC&ST Vs Nash Ind. India Pvt. Ltd. (2017 (3) TMI 351 – CESTAT Bang.).

GST Update :

  • No GST on Education & Health Care provided by Government or its Authority, Local Authority (Schedule IV). Those provided by others may attract GST.
  • Central Board of Excise and Customs (CBEC) has started Migration to GST on or before 31st March 2017. Log on to  to aces.gov.inobtain Provisional ID and password.  Use it to enroll at www.gst.gov.in. Call Help Desk No 1800 1200 232 or mail to cbecmitra.helpdesk@icegate.gov.in.
  • GST Council to approve Composition, Valuation, Input Tax Credit & Transition Rules on Council Meeting on 31-3-17. Other Rules already approved.
  • For B2C supplies, invoice wise details in GSTR-1 for interstate sales of more than 2.50 lacs & State wise total for sales up to 2.50 lacs.
  • Under GST separate invoice to be issued for reverse charge and forward charge goods & services. Both cannot be clubbed together in single invoice.

SEBI UPDATE :

  • SEBI increased the investment ceiling of debt mutual funds in housing finance cos from 10 per cent to 15 per cent,” Under the current guidelines, the sectoral exposure for debt mutual fund schemes is 25 per cent.

RBI UPDATE

  • RBI services offered through eBiz portal will be migrating to a new platform from 27th February, 2017.
  • RBI has issued a Master direction on Money Transfer Service Scheme (MTSS) of transferring personal remittances from abroad to beneficiaries in India.

Other update :

  • Companies (Indian Accounting Standards) Amendment Rules 2017 effective from 1.4.2017.
  • Standard Operating Procedure (SOP) to be followed by the AOs in verification of Cash transactions relating to demonetization – Inst No. 03/2017, dt. 21 FEB 2017.
  • Parliament passes Maternity Benefit Bill to provide 26-weeks paid leave, creche in office, to be effective once the President gives his assent.
  • Supreme Court directed all industrial units situated in severely polluted areas across the country to install primary effluent treatment plants (PETP) within three months, failing which they will be shut down.
  • Labour Ministry has doubled the Gratuaty amount to Rs 20 Lacs for the employees of Private Companies.
  • State Bank of India is going to shut down 47% of associate banks’ offices (SBBJ, DBOH, SBOP, SBOT & SBOM) post-merger .Out of five head offices of the associate banks, will retain only two. All banks branches to operate under SBI w.e.f. 1.4.2017.

Key Due Dates:

Important dates for March 2017:

6   March  : Service tax monthly deposit other than Ind, HUF & P.Firm

7   March  : TDS/ TCS deposit

15 March : Deposit of PF

15 March : Payment of Advance Tax

20 March : Monthly UP VAT return & tax

21 March : Deposit of ESI

31 March : E-payment of service Tax by all assesses Monthly/ Quarterly

31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17

Return of TDS for dec quarter in DVAT 48 : 17:03:2017

E payment of DVAT & CST tax for Feb : 21:03:2017

Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.

  • Our main business is not to see what lies dimly at a distance, but to what clearly lies at hand.
  • Anxiety, doubt and uncertainty about future are three worst enemies for anybody to grow in life. Let us resolve to do our work in hand rather than be under stress and waste our precious time.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com

CORPORATE AND PROFESSIONAL UPDATE MARCH 21, 2017

Professional Update For the Day:

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Direct Tax:

Bombay court held that TDS cannot be Adjusted against Tax payable under VDIS, 1997Earnest Business Services Pvt.  Ltd., Vs The Commissioner  of Income  Tax (Bombay High Court)

ITAT Delhi held that Capital gains on transfer by a foreign company of shares in another foreign company holding assets in India is taxable in India Cairn U K Holdings Limited V DCIT (International Taxation) (ITAT Delhi)

CBDT has asked its field formations to concentrate on recoveries of arrears and pending tax demands in the remaining two weeks of the fiscal.

W.e.f. 01.04.2017, Cash transactions above Rs 3 lakhs to be done through banking channels only. Budget 2017.

Income tax department released a list of 29 entities owing Rs 448.02 crore in *taxes as part of its strategy to name and shame large defaulters.

CBDT has notified The Income Tax (2nd Amendment) Rules, 2017 which shall come into force on the date of their publication in the Official Gazette. The Amendment has been made to provide new procedure and common application form for allotment of PAN and TAN.

The Income Tax Department has issued refunds amounting to Rs.1.42 lakh crore in the current fiscal so far, 41.5% higher than last year.

Indirect Tax:

HC finds no merit in writ petition, upholds confirmation of service tax demand against assessee thereby rejecting contention that show cause notice was issued without application of mind and in violation of law; Since the said notice had not been set aside by Court in earlier writ petition, being issued on the basis of cogent material and evidence, it was no longer open to assessee to complain about legality and validity thereof [TS-48-HC-2017(CAL)-ST]

CBEC clarified that the ‘Saree’ which has undergone further processing will be classifiable as ‘Saree’ under Chapter 50, 52 and 54 of the Central Excise Tariff Act, 1985 depending upon the material of the fabrics, and not as made-ups under Chapter 63 of the said Act Vide Circular No. 1054/03/2017-CX dated 15.03.2017. (Click here to view)

GST Update :

Cabinet approves CGST, IGST, UTGST & Compensation bills. Lok Sabha to pass them as Money Bills in Budget Session. No need for Rajya Sabha approval.

GST council is considering setting up a centralized assessment interface for service-oriented industries such as banking, telecom, insurance and information technology.

TDS to be deducted on basic amount & not on GST. Issue TDS certificate in 5 days of deposit of TDS. Late fee of 100 per day (Max 5000) (Sec 46).

DVAT Filing of online return for 3rd quarter of 2016-17 extension of period thereof up to 28-02-2017.

FAQ on GST: 

Query: Are there different valuation provisions for Goods and Services and CGST, SGST and IGST?

Answer:  No, section 15 is common for goods and services and all three taxes.

Query: Can composition scheme be availed if the taxable person effects inter state supplies?

Answer: No, composition scheme is applicable only if taxable person doesnot effects any inter state supplies.

 SEBI UPDATE :

The SEBI Board in its last meeting has taken various decisions to improve the facilities being offered to the stakeholders.

Other update :

ICAI membership last date for retrospective restoration of membership and COP removed during the year 2016-17 is 31st march, 2017.

ICAI new Fee: Annual Membership, COP and Restoration Fee. (Entrance Fee – ACA Rs.2000, FCA Rs.2500. Annual Membership Fee – ACA Rs.1500, FCA Rs.3000, COP Fee – ACA – Rs.3000, FCA Rs.4000. with effect from 1st April, 2017.).

Key Due Dates:

Important dates for March 2017:

6   March  : Service tax monthly deposit other than Ind, HUF & P.Firm

7   March  : TDS/ TCS deposit

15 March : Deposit of PF

15 March : Payment of Advance Tax

20 March : Monthly UP VAT return & tax

21 March : Deposit of ESI

31 March : E-payment of service Tax by all assesses Monthly/ Quarterly

31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17

Return of TDS for dec quarter in DVAT 48 : 17:03:2017

E payment of DVAT & CST tax for Feb : 21:03:2017

Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.

You must not lose faith in humanity. Humanity is like an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty.

Failure is a great learning experience. Perhaps, a nature’s way to teach us something profound. Remember, failure is the fertilizer for success.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com   Continue reading

CORPORATE AND PROFESSIONAL UPDATE MARCH 20, 2017

Professional Update For the Day:

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DIRECT TAX:

  • HC held that where a power has been conferred upon a holder of public office, such authority cannot sit over matter for time immemorial and the person who suffers on account of inaction of authority cannot be denied a benefit which would have been admissible if approval is granted, by keeping matter pending for a long time and failing to take a decision. M/S Shrikar Hotels  Pvt. Ltd. Vs CIT (Allahabad High Court)
  • No penalty when bank deposit was disclosed in revised return prior to initiation of reassessment proceedings. [2017] 79 com102 (Mumbai – Trib.)
  • TPO couldn’t reject principle of aggregation accepted in earlier years without any change in circumstances.  [2017] 79 com105 (Ahmedabad – Trib.)
  • Search was justified if certain records were not produced even after repeated directions: HC [2017] 79com111 (Orissa)
  • No TDS liability on payment to harvesting-gang-labourers and transporters on behalf of farmers who had tax exempt agricultural income for purchase of sugarcane. [2017] 79 com88 (Visakhapatnam – Trib.)
  • If the investments or deposits are made by charitable trust are in violation of section 11(5) of the Act, the benefit of exemption u/s. 11 of the Act would not be denied on the entire income of the assessee. It is only the investments or deposits made in violation of provisions of section 11(5) of the Act that would attract maximum marginal rate of tax as per the provisions of law. ito (Exemption), Vs Progressive Education Society, (ITAT Pune)
  • CBDThas clarified the new provision regarding chargeability of tax on jewellery which is being introduced through Taxation Laws (Second Amend) Bill, 2016 to enhance the tax rate from 30% to 60% plus surcharge of 25% and cess thereon.
  • The new software developed by the branch office in India and then transmitted to the head office situated outside India on arm’s length price will amount to export sale under Section 10A. DDIT vs. Virage Logic International, High Court of Delhi.
  • The public need not worry about harassment from Income Tax officials as their discretionary powers in the scrutiny of cases are limited, the cases for scrutiny will be chosen by machines and all the procedures surrounding the income tax notices will be done through machines.
  • Capital goods are goods capitalized in books of accounts of person claiming credit and used/intended to be used in course or furtherance of business.
  • Bombay HC  held that the expenditure incurred on corporate advertisement and for promotion of a corporate brand as it was in the nature to maintain the brand and/or corporate image was to be allowed as revenue expenditure. [CIT v/s Asian Paints (India) Ltd.]
  • Cash purchases of jewellery will attract 1 per cent tax collected at source from April 1 if the amount exceeds Rs. 2 lakh, against the current threshold of Rs. 5 lakh.

INDIRECT TAX:

  • CESTAT holds that activity of spot-billing of electricity meters for Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) is taxable as “business auxiliary service” under clause (vii) of Section 65(19) of Finance Act being service incidental / auxiliary to activity of sale of goods produced / provided by / belonging to client[TS-54-CESTAT-2017-ST]
  • HC dismisses writ petition, holds that area based excise duty exemption under Notification No. 50/2003-CE not extendable to National Calamity Contingent Duty (NCCD) and Cesses thereon [TS-53-HC-2017(UTT)- EXC]

MCA UPDATE:

CLT Tribunal can compound the offence even though the prosecution is pending against the applicants and prior permission is not necessary to compound the offence. NCLT Bengaluru Bench, In Re : Tejas Networks Ltd. and Ors. [2017].

FAQ ON GST: 

Query:  Whether input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?

Answer: Yes, in terms of section 2(54), 2(55) & 2(20) of the MGL respectively. It may be noted that credit of tax paid on capital goods also is permitted to be availed in one instalment.

Query:  Who will levy and administer GST ?

Answer: Centre will levy and administer CGST & IGST while respective states will levy and administer SGST.

SEBI AND OTHER UPDATE :

SEBI has permitted to Indian entities issuing rupee denominated bonds abroad also permit Multilateral and Regional Fi-nancial Institutions where India is a member country, to invest in rupee denominated bonds

SEBI issued guidelines for mutual fund advertisements, allowing use of celebrities to increase awareness of the Rs. 17.9 lakh crore industry. The regulator also tweaked the performance disclosure requirement.

FSSAI: Food Safety and Standards Authority of India has notified the Final Food Safety and Standards (Food Product Standards and Food Additives) *Amendment Regulation, 2017 in the official gazette of India w.r.t oils, fats, oats and pasta applicable from 1st July, 2017.

Key Dates:

  • Important dates for March 2017:

6   March  : Service tax monthly deposit other than Ind, HUF & P.Firm

7   March  : TDS/ TCS deposit

15 March : Deposit of PF

15 March : Payment of Advance Tax

20 March : Monthly UP VAT return & tax

21 March : Deposit of ESI

31 March : E-payment of service Tax by all assesses Monthly/ Quarterly

31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17

E payment of DVAT & CST tax for Feb : 21:03:2017

Payment of ESI of Feb : 21:03:2017

Success is like a train having several compartments like Hard work, Focus, Luck, Commitment etc. led by the engine of Confidence.

Success has only one amazing formula, stop thinking in terms of limitations, and start thinking in terms of possibilities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com

CORPORATE AND PROFESSIONAL UPDATE March 18, 2017

Professional Update For the Day:

8-Tips-Biz-Name

DIRECT TAX:

  • Entitlement for deduction U/s 80IB – amount under the head VKGUY [Vishesh Krishi Gram Udhyog Yojana] and on account of DEPB – these benefits do not form part of the net profits of eligible industrial undertaking for the purposes of Sections 80I/80IA/80IB – ITAT Jaipur in case of [M/s Neel Kanth Gum & Chemicals Vs. ACIT].
  • New India Assurance to refund TDS amount to claimant as it had wrongly deducted TDS on compensation: HC[2017] 79 76 (Gujarat)
  • Expenditure incurred for re- possession of the club – capital or revenue in nature – when as per the JDA, the ownership is vested in the assessee and the plot owners have no right in the assets of the club, it cannot be said that creating the asset of the club is a revenue expenditure – ITAT Bangalore in case of [G.R. Developers Vs. The ACIT, Circle-3 (1) , Bangalore].
  • Operation Clean Money; Income Tax Department identifies 17.92 Lakh persons whose tax profiles were not in line with the cash deposits made by them during the demonetization period.
  • CBDT reported the direct tax collections up to February 2017 to witness steady growth trend. The collection net of refunds stands at Rs. 6.17 lakh crore which is 10.7% more.

INDIRECT TAX:

  • CBEC has issued Master Circular providing the clarity and uniformity on the issue dealing with show cause notice, adjudication of proceedings and recovery.
  • Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017vide circular 28 dated 17.03.2017.
  • Date of filing of DVAT Return in Form 16, 17 & 48 for Q-3, 2016-17 has been extended up to 17.03.2017 vide Circular No. 26 dated 08.03.2017.
  • CBEC vide Circular No. 1053/02/2017-CX dated March 10, 2017 has issued the Master Circular providing the clarity and uniformity on the issues dealing with Show Cause Notice, Adjudication Proceedings and Recovery of duty.
  • The Income Tax Appellate Tribunal (ITAT) has ordered UK’s Cairn Energy Plc to pay Rs 10,000 crore capital gains tax on transfer of ownership from Cairn UK Holdings to Cairn India .http://economictimes.indiatimes.com/articleshow/57574668.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
  • Penalty u/s. 271(F) – non furnishing the return within the due date – There was reasonable cause for the failure of the assessee to comply with the provisions of the Act – No penalty -ITAT Mumbai in case of [Kripa Shanakar Singh Vs. ITO Cir 21 (1) (2). Mumbai]
  • AO cannot examine sec. 37 conditions on “Privilege fees” paid for renewal of liquor Licence: HC 79125 (Karnataka)
  • Where landowner sold land to various purchasers and purchasers entered into agreement with assessee for construction of building as per their plan at their own money and assessee had no share in constructed area, it was a case of mere ‘works contract'; assessee was not eligible for deduction under section 80-IB. [2017] 79 10 (Chennai – Trib.)
  • Where AA had levied upon assessee composite penalty both under section 11AC of Central Excise Act and under rule 173Q of Central Excise Rules, Tribunal was not justified in setting aside it on ground that composite levy of penalty was not permissible. [2017] 79 23 (Gujarat)
  • Date of filing of DVAT Return in Form 16, 17 & 48 for Q-3, 2016-17 has been extended up to 17.03.2017 vide Circular No. 26 dated 08.03.2017.
  • Gold, Silver and Diamond bearing watches classifiable as Jewellery under Gujarat VAT: HC [2017] 78345 (Gujarat)

GST UPDATES

  • Parliament to pass CGST, IGST, UTGST & Compensation bills already approved by GST Council in Budget session. States to pass respective SGST bills.
  • GST Council cleared a proposal to cap the cess on luxury cars and aerated drinks at 15 per cent over the peak rate of 28 per cent

RBI UPDATES

  • RBI issued clarification regarding mentioning Reference No. on Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 that needs to be quoted on Form V while uploading the same to the Income tax Authorities.

SEBI UPDATES

  • SEBI has issued circular for Redressal of complaints against Stock Brokers and Depository Participants through SEBI Complaint Redress System (SCORES).

Key Dates:  Due dates for the month of March 2017:

6 March : Service tax monthly deposit other than Ind,HUF & P.Firm

7 March  : TDS/ TCS deposit

15 March : Deposit of PF

15 March :Payment of Advance Tax

20 March : Monthly UP VAT return & tax

21 March : Deposit of ESI

31 March : E-payment of service Tax by all assesses Monthly/ Quarterly

31 March :Filing of Belated Income.Tax returns for the A/Y 15-16 & A/Y 16-17

Payment of Advance Income Tax by all assesses (100%): 15.03.2017

E-payment of PF for Feb: 15.03.2017

The difference between a successful person and others is not lack of strength, not lack of knowledge, rather it is a lack of will.

If you are perfect and right, complaints are like strokes that check your patience and integrity. They will then confirm your perfection.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com

CORPORATE AND PROFESSIONAL UPDATE March 17, 2017

Professional Update For the Day:

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Direct Tax

CBDT has signed 10 more unilateral Advance Pricing Agreements (APAs) with Indian taxpayers as it looks to reduce litigation by providing certainty in transfer pricing.

Income tax penalty cannot be levied for Bonafide mistakes in making wrong claim. Case name : Wadhwa Estate & Developers India pvt. Ltd vs ACIT (ITAT Mumbai)

The Income Tax Department has issued as many as 4,000 notices to firms over unusual surge in cash deposits in their bank accounts to the tune of 1.2 lakh crore during the demonetization drive.

Income Tax Department in its latest drive has started de-activating PAN of all Income Tax assesses who were allotted more than one PAN at anytime in the past.

Capital gain u/s 45 arises in the year of execution of deed and not when the same was registered with the office of the Sub-Registrar. Reopening of assessment is invalid – Rajendra Kantilal Patel Vs ITO (2017(3)TMI268- Gujarat High Court)

CBDT has signed 10 more unilateral Advance Pricing Agreements (APAs) with Indian taxpayers as it looks to reduce litigation by providing certainty in transfer pricing.

CBDT to make separate wing to probe Benami, black money and issued warning against those who undertake Benami transactions as this would invite Rigorous Imprisonment (RI) of up to seven years under the normal I-T Act.

Income Tax Department will issue statutory notices u/s 133(6) to all those who have failed to respond to its SMS and e-mail queries seeking explanation on bank deposits made after demonetization.

Amount received as forfeiture of share application money for issue of share warrants is capital receipt, not taxable: ITAT Ahmedabad.

CBDT clarified that Place of Effective Management (POEM) guidelines shall not apply to company other than an Indian company having turnover or gross receipts of Rs 50 crores or less in a financial year. CIR NO.8 OF 2017 [F.NO.142/11/2015-TPL]

Indirect Tax

Date of filing of DVAT Return in Form 16, 17 & 48 for Q-3, 2016-17 has been extended up to 17.03.2017vide Circular No. 26 dated 08.03.2017.

CENVAT credit – input services used for setting up modernization renovation of a factory will be allowed even if not directly related – Sankei Giken (India) Pvt. Ltd. Vs CCE, Delhi (2017 (3) TMI 300 – CESTAT Chandigarh)

Extension to 08.03.17 of last date to file DVAT-16, DVAT-17 & DVAT-48 for Q3 of 2016-17.CIRCULAR NO. 25 of 2016-17.

Retired VAT Officer can be appointed as member of VAT Tribunal: Case Name: Bihar Value Added Tax Act Vs Commercial Taxes Bar Association (Patna High Court)

CBEC has launched a mobile application for Goods and Services Tax. The mobile application enables taxpayers to be well informed of the latest updates on GST.

Ministry of Finance has withdrawn Service Tax Exemption to Education Institutions other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. The new amendment will be applicable from 1st day of April, 2017.

CBEC chairman said pinning hopes on global Trade Facilitation Agreement (TFA) in goods to boost India’s trade flows implementing the deal would not be a problem for India.

Delhi High Court Judgment: Property in the consumables chemicals used in the process of cleaning does not transfer to the contractee and therefore the said goods are not eligible to tax.

GST Update:

GST Council clears final draft of CGST & IGST law. UTGST & SGST bills to be finalised at next meeting of Council on 16 March 2017.

GST Council decided on a 5% Levy on dhabas and small restaurant under GST. They also approved the CGST and IGST Law. The Government will now seek Parliamentary approval once the budget session resumes on March 9.

GST council approved two crucial bills — State and Union Territory GST — paving the way for tabling of the GST bills in the current session of parliament and respective state assemblies and introduction of the new indirect taxation system from july.

In GST law, supplier has to issue credit/ debit note, in case of incorrect amount of supplies or GST, return of goods or deficiency in supplies.

Under GST Purchaser to inform in GSTR-2, amount of ineligible input tax credit on inward non-taxable supplies or those for non business purposes.

GST council is likely to retain a clause in the law that will require service providers to register in every state where they operate, despite recent representations.

The proposed GST Legislation appears to deny tax credit in relation to input services for which payments are made after three months of the date of the invoice of the supplier.

UGST law proposed for implementation of GST in Union Territories like Andaman & Nicobar Islands, Chandigarh etc. as SGST not applicable to them

Govt. notifies new rules on Trade Marks to be applicable w.e.f. 06.03.2017. The govt brought down the number of forms required for filing an application from 74 to eight and almost halved the application fees.

MCA UPDATE :

MCA has issued show-cause notices to 1,018 companies for non-compliance of CSR norms even as a parliamentary panel has suggested putting in place a stricter monitoring and compliance mechanism.

MCA has amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. They shall come into force from the 28th February, 2017.

SEBI UPDATE :

SEBI issued guidelines for mutual fund advertisements, allowing use of celebrities to increase awareness of the rs. 17.9 lakh crore industry. The regulator also tweaked the performance disclosure requirement.

The government will consider the demands made by foreign retailers for allowing nonfood items such as home care products under the foreign direct investment (FDI) policy, Union minister.

SEBI has permitted Foreign Portfolio Investors to invest in corporate debt securities and notified the SEBI (Foreign Portfolio Investors) (Second Amendment) Regulations, 2017.

The government has asked all banks to provide mobile banking facility to all customers by March 31 in a bid to push digital transactions.

SEBI has amended various regulations to enable the market participants to make payments to it through digital mode as well, the regulator said in a notification dated March 6.

OTHER UPDATE :

LAST DATE FOR *RETROSPECTIVE RESTORATION OF MEMBERSHIP* AND COP REMOVED DURING THE YEAR 2016-17 IS 31ST MARCH, 2017

ICAI has submitted Post-Budget Memorandum to the Government and suggested certain amendments to the proposals contained in the Finance Bill, 2017 which would help the government to achieve the desired objectives.

Key Dates:  Due dates for the month of March 2017:

6 March : Service tax monthly deposit other than Ind,HUF & P.Firm

7 March  : TDS/ TCS deposit

15 March : Deposit of PF

15 March :Payment of Advance Tax

20 March : Monthly UP VAT return & tax

21 March : Deposit of ESI

31 March : E-payment of service Tax by all assesses Monthly/ Quarterly

31 March :Filing of Belated Income.Tax returns for the A/Y 15-16 & A/Y 16-17

Payment of Advance Income Tax by all assesses (100%): 15.03.2017

E-payment of PF for Feb: 15.03.2017

When you talk, you are only repeating what you already know. But if you listen, you may learn something new.

When you have to make a decision, it’s like holding your breath..But once made, you can Breath again. Don’t fear the outcome. Doors will open & tide will turn. Believe the best is yet to come.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com

CORPORATE AND PROFESSIONAL UPDATE March 16, 2017

Professional Update For the Day:

12742418_685376608232570_407065997594926807_nDirect Tax

Non-refundable deposits received by Club for providing facilities to its members taxable as revenue receipt. [2017] 78 338 (Mumbai – Trib.)

The tax demand raised by the authorities under the proposed GST regime can be paid in monthly installments for up to two years, in case of financial hardship

Income Tax Department in its latest drive has started de-activating PAN of all Income Tax assesses who were allotted more than one PAN at anytime in the past.

CBDT clarified that Place of Effective Management (POEM) guidelines shall not apply to company other than an Indian company having turnover or gross receipts of Rs 50 crores or less in a financial year. CIR NO.8 OF 2017 [F.NO.142/11/2015-TPL]

CBEC has launched a mobile application for Goods and Services Tax. The mobile application enables taxpayers to be well informed of the latest updates on GST.

Indirect Tax

Delhi VAT: Denial of Input Tax Credit on the ground that the transactions were reflected in retail invoices and not tax invoices and therefore did not qualify for credit is not valid as the strict interpretation of Section 50(2) was unwarranted. Credit allowed. Revenue’s appeal dismissed. (J C Decaux Advertising I P Ltd. – Delhi High Court. January 9, 2017).

Limitation period of one year is not applicable for claiming refund of Excise taxes paid under protest. High Court of Punjab and Haryana in the case of CCEC Chandigarh-1 Vs. Ind. Swift Lands Ltd.

Extension to 08.03.17 of last date to file DVAT-16, DVAT-17 & DVAT-48 for Q3 of 2016-17.CIRCULAR NO. 25 of 2016-17.

Retired VAT Officer can be appointed as member of VAT Tribunal: Case Name: Bihar Value Added Tax Act Vs Commercial Taxes Bar Association (Patna High Court)

GST Update:

GST to be implemented from 1st July! As informed by Economic Affairs Secretary Shaktikanta Das, all the states have agreed for the GST implementation from the said date.

GST Late Returns would attract fee @ Rs.100 per day subject to maximum of Rs.5000. This fee is separate for each return i.e. GSTR-1, 2, 3 etc.

UGST law proposed for implementation of GST in Union Territories like Andaman & Nicobar Islands, Chandigarh etc. as SGST not applicable to them

Under GST Composition Scheme in 17-18 for most Manufacturers & Restaurants @ 5% & Traders at 2% if turnover upto 50 lacs in 16-17. NA for Service sector.

MCA UPDATE:

MCA has amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. They shall come into force from the 28th February, 2017.

SEBI UPDATE:

SEBI has made various amendments to the existing norms for settlement of administrative and civil proceedings, to streamline and strengthen the settlement process.

OTHER UPDATE

India´s revised tax treaty with Singapore, aimed at checking round tripping of funds, has come into force. The principal clause allowing levy of capital gains tax on investments routed through Singapore will come into force from April 1.

E-Filling New TM Govt Fees Rs.4500 for individual/ startup/ Small Business. For Others Rs.9000. Physical filing Fees Rs.5000 for individual/ startup/ Small Business and for Others Rs.10000.

The head quarters of all PSU banks subject to audit, are expected to get a comprehensive list of firms for allotment from RBI from 06-03-2017. In turn banks are supposed to complete the allotment procedure by 16th March, 2017.

ICAI has submitted Post-Budget Memorandum to the Government and suggested certain amendments to the proposals contained in the Finance Bill, 2017 which would help the government to achieve the desired objectives.

ICAI ARF hereby invites proposals from eligible Chartered Accountants to be associated for handling its upcoming project of Indian Railways for conversion of its books of accounts from hybrid to accrual accounting. The firms satisfying the eligibility criteria may fill their particulars latest by 20th March, 2017.

The government will consider the demands made by foreign retailers for allowing nonfood items such as home care products under the foreign direct investment (FDI) policy, Union minister.

Govt. notifies new rules on Trade Marks to be applicable w.e.f. 06.03.2017. The govt brought down the number of forms required for filing an application from 74 to eight and almost halved the application fees.

Key Dates:  Due dates for the month of March 2017:

6 March : Service tax monthly deposit other than Ind,HUF & P.Firm

7 March  : TDS/ TCS deposit

15 March : Deposit of PF

15 March :Payment of Advance Tax

20 March : Monthly UP VAT return & tax

21 March : Deposit of ESI

31 March : E-payment of service Tax by all assesses Monthly/ Quarterly

31 March :Filing of Belated Income.Tax returns for the A/Y 15-16 & A/Y 16-17

Payment of Advance Income Tax by all assesses (100%): 15.03.2017

E-payment of PF for Feb: 15.03.2017

Love doesn’t mean to win someone, but it means to lose yourself for someone. It is not done by the excellence of mind, but done by the purity of heart.

Only two types of persons are happy in this world. First is Mad and second is Child. Be Mad to achieve what you desire & be a Child to enjoy what you have achieved.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com