CORPORATE AND PROFESSIONAL UPDATE NOV 24, 2016

Professional Update For the Day:

Direct Tax:-

  • ITAT Amritsar in the belo mentioned case held that  Once the books of accounts has been rejected the Assessing Officer cannot fall back upon the same books for making addition on account of interest accrued on the FDRs reflected in the books of account.( M/s National India Construction Co. Vs. ACIT, Pathankot And ITO, Vs. M/s National India Construction Co.)
  • Supreme court in the below citied case held that   Rental Income from business of leasing out house properties taxable as business income.( M/s Rayala Corporation Pvt. Ltd. vs. ACIT)
  • ITAT Bangalore held that  When the transactions in question are falling under the ambit of definition of ‘international transaction’ as provided u/s.92B, then the AE being tax resident of India will not take out the matter from the purview of the Transfere Pricing  provisions.( United Engineers (Malasia) Berhad Quorum Vs. DCIT, (International Taxation), Bengaluru
  • IT : Preliminary expenses incurred by assessee-company in connection with issue of right shares qualify for benefit of section 35D(2)(c)(iv) Nitta Gelatine India Ltd. v. Assistant Commissioner of Income-tax, Circle 1(1), Ernakulam[2016] 75 taxmann.com 142 (Kerala)
  • CBDT notification on amendment in Rule 114B for compulsory quoting of pan in case of cash deposit exceeding 50k in a single day or aggregating to more than 2.5 lakh during the period 09.11.16 till 30.12.16
  • Amendment in Rule 114E for filing AIR report as required u./s 285BA w.r.t reporting by banking company and a cooperative bank on account of aggregate cash deposits in one or more current account of a person in excess of Rs12.5 lakhs OR Rs2.5 lakh or more in one or more account of a person during 09.11.16 till 30.12.16.
  • Income Tax dept starts issuing notices for cash deposits of more than Rs 250,000/- on or after 09/11/2016.
  • No tax on collection of contingent sales tax liability if same was refunded to customers
    Commissioner of Income-tax v. Khoday Breweries Ltd.[2016] 75 taxmann.com 155 (SC)

 

 

Indirect Tax:-

  • Export of Business Auxiliary Services under resulted in accumulation of un-utilized credit of service tax availed on input services. Appellants filed three separate refund claims which were rejected on the ground that these input services have been received by the appellants after the period of export of services. In case of Shell India Markets Pvt. Ltd. vs. CCE, Bangalore – 2012 (278) E.L.T 50 (Kar.)it was held that it is necessary to verify not only that particular input service is consumed for providing particular output service but also that eligible service received under various invoices have actually gone into consumption for providing impugned exported output service and not utilized for other purpose (M/s BNY Mellon International Operation (India) Pvt. Ltd. Vs. Commissioner of Central Excise (Appeals), Pune-III)
  • Existing dealers registered under VAT, Profession Tax, Luxary Tax etc in a state etc to get single Provisional Login ID for Enrolment under GST.
  • Filing of online return of VAT for second quarter of 2016-17 extension of period thereof. Dated 21.11.2016, CIRCULAR NO. (19 of 2016-17).

ESIC Update:-

The Employees’ State Insurance Corporation (ESIC) Raised The Monthly Wage Threshold Limit from Rs 15000 To Rs 21,000 wef October 1.

GST UPDATE:

  • Enrolment under GST is common for Central & State GST. There will be common Registration, Returns & Challan for CGST & SGST.
  • Under GST Class 2 /3 Digital Signature in Token can be used at www.gst.gov.in from Internet Explorer 10, Chrome 49  or Firefox 45 or higher versions.
  • Under GST Summary of invoices issued to be given in GSTR-1 and Every advance receipt against supplies shall get a transaction id which is to be mentioned against invoice issued later in GSTR-1.
  • GST desktop browser for accessing GST common portal www.gst.gov.in should be internet explorer 10, chrome 49 or firefox 45 or higher versions.
  • Enrolment  in GST begins at www.gst.gov.in. Delhi, Haryana, UP, Punjab from 16-31 Dec .  Gujarat, Maharastra 14-29 Nov. ST assessees in Jan 2017.

RBI Updates:

  • 500 / 1000 Monetization: Small cash deposit into the Bank upto Rs.2.5Lac not to face any Enquiry – FM.
  • RBI: No limit on deposit of Rs.500 / 100 Currency Notes into the Bank. Please check your books for cash in hand before doing so.
  • RBI: Banks to remain open for public on SAT (12Nov) & SUN (13Nov) as normal working including RTGS / NEFT transactions.

Other Update

  • ICAI has released the 5th Edition (November 2016) of the guidance note on report under Section 92E of the Income Tax Act, 1961.
  • No charges on use of ATM between 10.11.2016 to 30.12.2016,[ Circular no DPSS.CO.PD.No.1240/02.10.004/2016-2017].
  • Supreme Court refuses stay against Demonetisation notification. Refuses to even consider validity of notification. On pleading by Kapil Sibal, restricts scope to public inconvenience. Asks govt to file status report.

The Dollar after US Presidential Elections : The dollar was expected to weaken with a Republican Party victory as it was surmised that Donald Trump would turn protectionist which would not be good for the economy. However, the dollar has been strengthening relentlessly since then; and while domestic fundamentals have played their part at times for specific countries, in general currencies have been weakening against the dollar as the table below shows. To maintain comparability the periods chosen are 7 trading sessions before the Elections i.e. 8 th of November and a similar number of sessions post- 8 th November (ending 18th November). Some major countries have been selected and the changes in their currencies relative to the dollar have been tabulated for the two time periods. The numbers in red represent appreciation in the currency vis-à-vis the dollar. The changes are reckoned on a point on point basis for these 17 currencies.

Key Dates:

Issue of DVAT certificate for the deduction made in the month of October in Form DVAT-43 – 22.11.2016

Advance Information for 1st fortnight of Dec of functions with booking cost more than Rs. 1 Lakh in banquet halls,hotels etc.- 27.11.2016

“Even though the future seems far away, it is actually beginning right now.”

“To be a great leader of people – inspire them to follow you, not your rules.”

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

FOR FURTHER QUERIES CONTACT US:

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Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

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CORPORATE AND PROFESSIONAL UPDATE NOV 11, 2016

Professional Update For the Day:

8-Tips-Biz-Name

Direct Tax:-

  • CBDT issued clarification regarding Chapter VI-A deduction on enanced profits vide Circular No. 37/2016 dated 02/11/2016.(Click here to view)
  • Kerala High Court in the below citied case held that the assessment proceedings generated by the issuance of a notice u/s 153A (1)(a) can be concluded against the interest of the assessee including making additions even without any incriminating material being available against the assessee in the search u/s 132 –  [E.N. Gopakumar Vs. CIT (Central)]
  • HC allows withdrawal of oppression petition as other shareholders approached CLB on similar issue Karnataka Theaters Ltd. v. Ratnavarma Padival [2016] 74 taxmann.com 230 (Karnataka)
  • CBDT:Deduction under Chapter VI-A is admissible on the Enhanced profits  by the disallowance made under sections 32, 40(a)(ia), 40A(3), 43B, etc. –  Circular # 37, dt.02.11.2016.
  • IT:Expenditure related to exempted income – Provisions of Sec.14A are clearly applicable to the investment made in a EOU covered under u/s 10B – Riviera Home Furnishings Pvt. Ltd. Vs ACIT, Range-15, New Delhi (Vice Versa) (2016 (11) TMI 256 – ITAT Delhi)
  • IT:Disallowance of expenditure on advertisement on television – the corporate advertisement expenditure facilitates the business having a direct impact on sales and profitability of the Assessee – CIT, Mumbai Vs Asian Paints (India) Ltd. (2016 (11) TMI 258 – Bombay High Court)
  • Validity of reopening of assessment – Since this is a case of original non-scrutiny assessment, the concept of change of opinion cannot be applied – Gujarat High Court in case of [Gujarat State Board of School Textbooks Vs. ACIT Gandhinagar Circle].
  • Capital gain tax will be paid by the partners of the dissolved partnership firm on the sale of its assets.{Vatsala Shenoy Vs. JCIT, Supreme Court of India}..
  • Since no material whatsoever was found in the course of search, the question of allowing additional depreciation or not could not have been subject matter of proceedings u/s 153A of the Act – ITAT KOLKATA in case of [M/s. Ujjal Transport Agency Vs.  CIT, Kolkata].
  • Mere default in furnishing Form 15G/15H doesn’t call for sec. 40(a)(ia) disallowance. Assistant Commissioner of Income-tax, Circle 1(1), Tirupati v. Chittoor Dist. Co-operative Central Bank Ltd. [2016] 74 taxmann.com 202 (Hyderabad – Trib.).
  • ITAT kolkata in the below citied case held that Since no material whatsoever was found in the course of search, the question of allowing additional depreciation or not could not have been subject matter of proceedings u/s 153A of the Act [M/s. Ujjal Transport Agency Vs.  CIT, Kolkata].

 

Indirect Tax:-

  • CBEC issued a Defferd payment of Import duty Rules vide Notification No. 134/2016 dated on02/11/2016.(Click here to view)
  • Valuation – inclusion of royalty in the value of imports – Running royalties are condition of sale for the transaction value and thus needs to be added in the value for the purpose of payment of Customs duty. – Tri – Customs. Commissioner of Central Excise, Mumbai Versus Herbalife International India Pvt. Ltd. – 2016 (9) TMI 830 – CESTAT MUMBAI
  • VAT:Nothing prevents a constitutional court from granting interest on refund in extraordinary circumstances where the money has been withheld by the State for a long period of time without any authority in law – Indian Farmers Fertiliser Co.Op. Ltd. Vs State of Guj. (2016 (11) TMI 215 – Gujarat HC).
  • VAT:4% or 12.50% – tissue paper napkin, toilet paper rolls etc. retain the essential characteristics of paper – to be taxed at 4% – S. R. Foils & Tissue Ltd. Vs The State of Haryana & Anr (2016 (11) TMI 216 – Punjab & Haryana High Court)
  • Import of cosmetics and exporting the same after reassembling tantamounts to manufacturing
  • Commissioner of Customs v. Baccarose Perfumes & Beauty Products Ltd. [2016] 4 taxmann.com 222 (SC)
  • Penalty could be levied under omitted provision which was validated retrospectively Bharat Steel Rolling Mills v. Commissioner of Central Excise [2016] 74 taxmann.com 259 (SC)

GST UPDATE

  • GST Registration started from today (08.11.2016) at www.gst.gov.in. Assessees with verified PAN are allowed to fill details and submit proofs.
  • Under  GST GSTIN generated in phased manner. Already done for 20 lac VAT assessees in 8 states. Others to get later. ST Assessees to get in Jan’17.

OTHER UPDATE

  • HC rejects PIL for scrapping of notification on demonetization.)
  • Payment Systems (RTGS, NEFT, Cheque Clearing, Repo, CBLO and Call markets) to remain open on Saturday, November 12 and Sunday, November 13, 2016
  • No cash refund for Rail ticket cancellation of Rs.10,000­ & above
  • Updated Point of Taxation Rules, 2011 {Notification No. 18/2011-S.T., dated 1-3-2011)
  • PNB invites applications from CA /Advocates for empanelment as (i) Tax Retainer; and (ii) Tax Consultants.
  • PNB invites applications from practicing ‘Partnership firms of CA in India’  to have their Firms empanelled as Revenue Auditors of branches.

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

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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CORPORATE AND PROFESSIONAL UPDATE NOV 10, 2016

Professional Update For the Day:

Untitled33

Direct Tax:-

Delhi High Court held that in case of assessees engaged in providing telecom services deduction under Section 80IA shall be allowed in respect of even those incidental incomes earned during the course of telecom business not derived from core business operations. (Pr. CIT vs. Bharat Sanchar Nigam Ltd. (Delhi High Court)

ITAT Delhi Held that  Section 14A of Income Tax Act,1961 cannot be invoked, where no regular activities were undertaken by the Assessee in respect of the investments to earn exempt income and no change in the investments during the year (M/s Power Grid Corporation of India Ltd. Vs DCIT (ITAT Delhi))

Bad-debts and its provision should be considered for computing margin of comparable companies Sum Total Systems India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle 3 (2), Hyderabad [2016] 74 taxmann.com 247 (Hyderabad – Trib.)

No disallowance of scientific research exp. just because benefit of research not shown in relevant year FFC Aromas (P.) Ltd. v. Income-tax Officer, Ward 8(1)(4), Mumbai [2016] 75 taxmann.com 4 (Mumbai – Trib.)

Apex Court dismissed appeal as tax effect for filing appeal was less than prescribed limit Shirish Madhukar Dalvi v. Assistant Commissioner of Income-tax [2016] 75 taxmann.com 11 (SC)

Interest exp. should be allowed if it was incurred for arranging deposit for rental business premises; SLP dismissed Jalan Distributors (P.) Ltd. v. Commissioner of Income-tax, Kolkata
[2016] 75 taxmann.com 13 (SC)

CBDT has issued Circular on 2nd Nov 2016 on Chapter VI-A deduction on enhanced profits, by virtue of which expenditure disallowed if related to the business activity against which the Chapter VI-A deduction has been claimed, the deduction needs to be allowed on the enhanced profits.

Capital gain tax will be paid by the partners of the dissolved partnership firm on the sale of its assets.{Vatsala Shenoy Vs. JCIT, Supreme Court of India}.

Indirect Tax:-|

Allahabad High Court held that the assessee cannot be forced to pay entire disputed amount when the assessment proceedings are pending and The department can only take action to ensure compliance of order passed by the Court.(Prosper Build Home Pvt. Ltd. V/s. Union Of India (Allahabad High Court))

Authority of Advance Rulings held that a revenue sharing arrangement by creating a partnering person shall be liable to service tax if the partners are providing taxable service to one another in execution of partnering purpose even if the purpose of creating partnering person is non-taxable. (Re M/s Choice Estates and Constructions Ltd (Authority for Advance Rulings))

US Presidential Elections and Indian markets :-There is always room for speculation as to how would markets be affected by the outcome of the USA Presidential Elections. The last 5 Elections generally indicate that while there could be disturbances in the stock market movements, GSec yields and exchange rate have followed trends as they are driven probably mainly by fundamentals. The stock market too has shown continuity over months, though there could be deviations at times. One may hence be tempted to conclude that the Indian markets may be relatively less affected by the outcome. But it should also be noted that the Elections this time are being contested by candidates who have strong differing views on the economy and globalization, which can have deeper impact on global markets – not witnessed before in the last 5 Elections in case the Republican party comes to power.

RBI UPDATE

RBI allowed banks to issue rupee-denominated bonds or Masala bonds in the overseas market to shore up their capital base as well as for financing infrastructure and affordable housing.

GST UPDATE

Under GST Upto 10 bank accounts can be added during enrolment. Proof of Bank A/c No,  Branch, Address of A/c holder & few transaction details required.

GST Portal (www.gst.gov.in) has been launched Today. The Registration for Northern Region, viz. Delhi, Chandigarh, Haryana, Punjab, Himachal Pradesh & Jammu & Kashmir shall commence on 16 DEC 2016 and will end on 31 DEC 2016.

Enrolment  in GST begins at www.gst.gov.in. Delhi, Haryana, UP, Punjab from 16-31 Dec .  Gujarat, Maharastra 14-29 Nov. ST assessees in Jan 2017.

OTHER UPDATE :

Rs.500 &1000 currency notes acceptable at certain Govt. places(hospitals, Milk booths, rail & Airline ticket counters, buses , Fuel stations)till 11.11.16 midnight.

Please deposit Rs.500/1000 note at Bank branch upto 30.12.16. Exchange upto Rs.4000, withdraw upto Rs.10000 at Branch from 10.11.16 or Rs.2000 at ATM from 11.11.16.

Tolls are Free till 11 Nov 16 and banks will remain open on saturday andsunday.

MCA issues The Companies (Registration Offices and Fees) Second Amendment Rules, 2016, effective from 07.11.16.

Key Dates:

E.R-1 Return for Non-SSI assessee for October-10.11.2016

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

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.
The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.

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CORPORATE AND PROFESSIONAL UPDATE NOV 5, 2016

-Professional Update For the Day:

Untitled5

Direct Tax:-

CBDT has issued Circular on 2nd Nov 2016 on Chapter VI-A deduction on enhanced profits, by virtue of which expenditure disallowed if related to the business activity against which the Chapter VI-A deduction has been claimed, the deduction needs to be allowed on the enhanced profits.

Capital gain tax will be paid by the partners of the dissolved partnership firm on the sale of its assets.{Vatsala Shenoy Vs. JCIT, Supreme Court of India}. High Court disallows travel exp. of wife who went with director on business tour Commissioner of Income-tax (Central), Ludhiana v.Hero Cycles Ltd.
[2016] 74 taxmann.com 254 (Punjab & Haryana)

Sec. 80P relief available if society provides credit to its members alone and it doesn’t receive deposits from public Commissioner of Income-tax, Circle-I, Vellore v.Kalpadi Co-operative Township Ltd. [2016] 74 taxmann.com 226 (Madras)

Application for sec. 10(23C) relief can be made even prior to April 1 of AY for which exemption is sought Shri Guru Ram Dass Ji Educational Trust v. Chief Commissioner of Income-tax, Amritsar [2016] 74 taxmann.com 220 (Punjab & Haryana)

Delhi High Court in the below citied case held that even if the claim for s. 80-IA deduction is contrary to Pandian Chemicals 262 ITR 278 (SC) and Liberty India 317 ITR 218 (SC), the assessment cannot be reopened (beyond 4 years) in the absence of tangible material. The reasons recorded for the reopening cannot be improved or supplemented later.(Woodword governer (India) Ltd. Vs. ACIT)

In valuing the shares of a privately held co, the “enterprise valuation” has to be taken by valuing even the assets held by subsidiaries of the Company. It is common for the sellers to charge a “controlling premium” for the sale of the shares. Such transfers to enable restructuring and re-aligning the shareholding pattern are genuine and bona fide. The alleged excess consideration for the sale of the shares cannot be treated as “unexplained income”.(Amritlal T Shah Vs. ITO Mumbai)

Electric bikes assembled from parts procured from China held as manufacturing for sec. 80-IC relief Assistant Commissioner of Income-tax, Circle Palanpur v. Accura Bikes (P.) Ltd. [2016] 74 taxmann.com 200 (Ahmedabad – Trib.)
Mere default in furnishing Form 15G/15H doesn’t call for sec. 40(a)(ia) disallowance Assistant Commissioner of Income-tax, Circle 1(1), Tirupati v. Chittoor Dist. Co-operative Central Bank Ltd. [2016] 74 taxmann.com 202 (Hyderabad – Trib.)

HC allows withdrawal of oppression petition as other shareholders approached CLB on similar issue Karnataka Theaters Ltd. v. Ratnavarma Padival [2016] 74 taxmann.com 230 (Karnataka)

SC to decide whether ‘Ansal Housing’ is liable to pay tax on flats lying unsold; SLP admitted Ansal Housing & Construction Ltd. v. Commissioner of Income-tax-1 [2016] 74 taxmann.com 245 (SC)

Indirect Tax:-

CESTAT upholds transaction value declared by assessee during import of electric motors of assorted KW from China, absent evidence of any additional flow back of money to foreign supplier. [TS-436-CESTAT-2016-CUST]

CESTAT grants refund of 4% SAD paid during import of Set Top Boxes (STBs) by DTH service provider despite subsequent sale to distributors in packaged form as ‘antenna system & accessories. [TS-437-CESTAT-2016-CUST]

Dept. can initiate recovery proceeding even after declaring return as invalid due to short-payment of tax: HC Shakti Bhog Foods Ltd. v. Deputy Commissioner of Income-tax [2016] 74 taxmann.com 204 (Delhi)

Mumbai CESTAT grants partial respite to assessee, holds no excise duty payable on debit notes raised on purchaser towards excess amount of material used during manufacture of electrical transmission towers, during the period April 1999 to June 2000; Perusing the provisions of old Section 4 of Central Excise Act, CESTAT holds that contracted value between the parties would constitute ‘normal price’ u/s 4(1)(b) and hence, no addition would be required even if debit note was issued for excess material consumed. [TS-429-CESTAT-2016-EXC]

FAQ on Company Law:

Query : One of our client company is a foreign company based in Japan. Now it has passed resolution which is in Japanese language. Now our query is that is it valid or we could only file resolution in English language?

Answer: As per Rule 10 of the Companies (Registration of Foreign Companies) Rules 2014, all the documents required to be filed with the Registrar by foreign company shall be in English language and where any such document is not in English language, there shall be attached a translation thereof in English language duly certified to be correct in the manner given in the rules.

GST UPDATE :

Under GST Upto 10 bank accounts can be added during enrolment. Proof of Bank A/c No,  Branch, Address of A/c holder & few transaction details required.

Under GST no physical documents for enrolment. Soft copy in jpeg or pdf format, upto 1 mb acceptable. Photos can be in jpeg format, upto 100 kb.

MCA UPDATE :

MCA has notified that revised Form MGT – 7 and Form GNL-4 are likely to be revised on MCA21 w.e.f 3rd November, 2016.

RBI UPDATE :

RBI allowed banks to issue rupee-denominated bonds or Masala bonds in the overseas market to shore up their capital base as well as for financing infrastructure and affordable housing.

RBI has directed banks to put entire banking areas under the CCTV surveillance and keep all the recordings.

ICAI Updates:-

ICAI Has issued a guidance note on Report u/s 92E of the Income Tax Act (Transfere Pricing) dated on 02-11-2016

Key Dates:

E-payment of service tax for the month of October by companies-06-11-2016

Payment of TDS/TCS deducted and collected in the month of October-07-11-2016

Submission of form No. 27C(TCS)  received in October to IT Commissioner-07-11-2016

Courage is resistance to fear, mastery of fear–not absence of fear.

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

The starting point of all achievement is desire.  -Napoleon Hill

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 011-233 433 33

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CORPORATE AND PROFESSIONAL UPDATE NOV 4, 2016

Professional Update For the Day:

Untitled21ADirect Tax:-

  • Karnataka High Court in the below citied case held that Sale consideration received by the assessee is entitled to benefit under Section 54 of income tax act 1961, even though the transaction for purchase of new property was not completed and possession was also not handed over to the assessee within 2 years. ( CIT Vs Mrs. Shakuntala Devi .)
  • ITAT Visakhapatnam in the below citied case held that Since, the assessee failed to appear before the CIT, the CIT cannot presume things which is in the minds of assessee, as such opined that CIT has rightly assumed his jurisdiction to revise the assessment order based on the information available on record. (Sannareddy Sudheer Kumar Vs. ITO, Visakhapatnam)
  • Income from sub-letting held as house property income as sub-letting wasn’t business activity of lessor Prolific Consultancy Services (P.) Ltd. v. Income-tax Officer, Ward 8 (2) (4), Mumbai [2016] 74 taxmann.com 203 (Mumbai – Trib.)
  • SC to decide applicability of deemed dividend on sum lent to payee having indirect interest in lender-company Principal Commissioner of Income-tax-4 v. Rajeev Chandrashekar [2016] 74 taxmann.com 194 (SC)
  • CBDT issued clarification regarding Chapter VI-A deduction on enanced profits vide Circular No. 37/2016 dated 02/11/2016.
  • Kerala High Court in the below citied case held thatthe assessment proceedings generated by the issuance of a notice u/s 153A (1)(a) can be concluded against the interest of the assessee including making additions even without any incriminating material being available against the assessee in the search u/s 132 –  [E.N. Gopakumar Vs. CIT (Central)]
  • IT: Addition u/s 68 – cash credits – The amount of share capital was not doubted – Only amount of premium was doubted – No additions – Hariom Concast and Steel Pvt. Ltd. Vs ITO, Ward-2(2), Hyderabd (2016 (10) TMI 920 – ITAT Hyderabad)

Indirect Tax:-

  • CBEC issued a Defferd payment of Import duty Rules vide Notification No. 134/2016 dated on02/11/2016.
  • Valuation – inclusion of royalty in the value of imports – Running royalties are condition of sale for the transaction value and thus needs to be added in the value for the purpose of payment of Customs duty. – Tri – Customs. Commissioner of Central Excise, Mumbai Versus Herbalife International India Pvt. Ltd. – 2016 (9) TMI 830 – CESTAT MUMBAI
  • Effect of the words Subject to the provisions contained in Section 11AB inserted in section 11AA – The contention therefore that for applying section 11AA all conditions provided in section 11AB must be satisfied is devoid of any merits. – HC – Central Excise. GUJARAT NARMADA VALLEY FERTILIZERS CO. LTD. AND 1 Versus UNION OF INDIA AND 1 – 2016 (10) TMI 276 – GUJARAT HIGH COURT
  • Mode and manner of refund – whether the rebate claims of the assessee(s) were to be allowed in cash or sanctioned by way of re-credit – the duty paid through actual credit or deemed credit account on the goods exported has to be refunded only in cash – HC – Central Excise. Commissioner of Central Excise Versus M/s Auro Weaving Mills M/s Auro Textile Ltd., M/s Auro Spinning Mills – 2016 (10) TMI 275 – HIMACHAL PRADESH HIGH COURT
  • DVAT: Date of filing of DVAT Returns in Form-16, 17 & 48 for Q2 of FY2016-17 has been extended upto 14 NOV 2016. Circular No.17, dt.28.10.2016.
  • ST: Refund of service tax / cenvat credit – export of goods – Notification No. 41 of 2007 dated 6th October 2007 – the Revenue in this case can raise a plea that the merchant exporter was not entitled to seek refund – CST-V Vs Vijay Cotton and Fibre Co. (2016 (10) TMI 917 – Bombay High Court)

FAQ on Company Law:

  • Query: We want to strike off the name of a Private Limited company having two director one of whom expired last month. Now the other director don’t want to continue the working in that company. Kindly advice

Answer: You may file Form FTE attaching Affidavit & Indemnity Bond from one director and enclosing the copy of Death Certificate of other director for striking off the Company throufh FTE mode.

ICAI Updates:-

ICAI issued FAQS regarding dividend distribution tax dated on 03/11/2016.

ICAI issued guidance note on report u/s 92E of the Income Tax Act,1961 dated on 02/11/2016.

ICAI Issued FAQ on Elaboration of terms ‘infrequent number of sales’ or ‘insignificant in value’ used in Ind AS 109 dated on 03/11/2016.

Key Dates:

E-payment of service tax for the month of October by companies-06-11-2016

Payment of TDS/TCS deducted and collected in the month of October-07-11-2016

Submission of form No. 27C(TCS)  received in October to IT Commissioner-07-11-2016

It is true that every effort is not converted into success. But it is equally true that success does not come without effort.

Bad attitude is just like bad engine oil. The longer you keep it running through your system, more damage it does to your drive.

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 011-233 433 33

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CORPORATE AND PROFESSIONAL UPDATE NOV 1, 2016

CORPORATE AND PROFESSIONAL UPDATE NOV 1, 2016

34Direct Tax:-

  • CBDT has issued a  clarification regarding taxability of the compensation received by the land owner for the land acquired under the right to fair compensation and transpereancy in land acquisition , rehabilitation and resettlement act, 2013 vide Circular No. 36/2016 dated 25/10/2016.Compulsory acquisition of non-agricultural land is also tax-free under new Land Acquisition Act.
  • CBDT has issued prohibition of Banami Property Transaction Rules,2016 vide Notification No. 99/2016 dated 25/10/2016.They shall come into force on the 1st day of November, 2016. (Click here to view)
  • Computerized machines not eligible for depreciation@ 60%, [T.C.A.No.624 of 2016, Decided on 02.09.2016].
  • Sale consideration received by the assessee is entitled to benefit under Section 54 of income tax act 1961, even though the transaction for purchase of new property was not completed and possession was also not handed over to the assessee within 2 years. ( CIT Vs Mrs. Shakuntala Devi (Karnataka High Court)).
  • 10B relief allowable even if assessee had substantial unabsorbed losses for set-off against EOU; SLP dismissed Commissioner of Income-tax v. BEHR India Ltd. [2016] 74 taxmann.com 171 (SC)
  • No penalty due to delay in filing TDS return as it was first year of introduction of e-TDS return Nav Maharashtra Vidyalaya v. Additional Commissioner of Income-tax (TDS), Range, Pune [2016] 74 taxmann.com 240 (Pune – Trib.)
  • HC allows retrenchment compensation paid to employees of transferee-co. under transfer agreement Wallace Flour Mills Co. Ltd. v. Commissioner of Income-tax, Central circle-I [2016] 74 taxmann.com 174 (Bombay)
  • Pune ITAT deletes penalty levied u/s 272A(2)(k) for belated filing of TDS returns/statements for AY 2011-12, grants immunity u/s 273B as ‘reasonable cause’ established. [TS-571-ITAT-2016(PUN)]

Indirect Tax:-

  • Mumbai CESTAT restores Custom House Agent’s license, states that even though clearance of imported consignments was violative of declaratory provisions of Customs Act, there is no evidence on record to show that such agent was aware of the intent / modus adopted by client / customer to evade customs duty. [TS-426-CESTAT-2016-CUST]
  • Refund claim – claim filed after about 10 years from the relevant date – unutilized Modvat credit in Modvat account which could not be used for payment of duty as the final product has become exempted – claim of refund rejected – Tri – Central Excise. M/s M.P. State Co-operative Oilseed Grower’s Federation Limited Versus CCE, Bhopal – 2016 (9) TMI 840 – CESTAT NEW DELHI

RBI Update

  • RBIpermits Startup Enterprises to access loans under ECB framework – P. (DIR Series) Circular No.13, dt.27.10.2016.
  • RBI has issued a circular allowing 100% FDI through the automatic route to NBFC Cos other than banks or insurance companies.
  • RBI to support financing for start-ups, issued rules permitting these to raise external commercial borrowings (ECB).

SEBI Update

  • SEBI has issued circular on detailed requirements and guidelines for disclosure of financial information in offer document/ placement memorandum for InvITs.
  • SEBI has issued a circular freezing of promoter group demat accounts for non compliance with certain provisions of SEBI.

MCA Update

  • MCA extends last dates for filing of Annual Filing Forms without payment of additional fee of filing of e-Forms AOC-4, AOC-4 XBRL, AOC – 4 CFS and MGT-7 under the Companies Act, 2013 upto 29th November, 2016.
  • NCLT allows compounding of offence for delay in appointment of women director
    Jalpower Corporation Ltd. v.Registrar of Companies [2016] 74 taxmann.com 201 (NCLT – Hyd.)

GST Update

  • Under GST value and taxable value have to be given in GST returns as they may be different. Taxable value is to be given even if there is no consideration.
  • GST paid on reverse charge will also be eligible for Input tax credit if goods or services are used or intended to be used for business.
  • Under GST Co, LLP etc to use DSC to sign application for enrolment of exisiting assessees in GST REG-20. others with valid aadhar can use e-signature also.

GST UPDATE :

Returns Process and matching of Input Tax Credit

  • What is the purpose of returns?
  • a)  Mode for transfer of information to tax administration;
  • b)  Compliance verification program of tax administration;
  • c)  Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;
  • d)  Providing necessary inputs for taking policy decision;
  • e)  Management of audit and anti-evasion programs of tax administration.
  • Who needs to file Return in GST regime?
  • Every registered taxable person – who crosses the threshold limit for payment of taxes. A supplier needs to be registered when the aggregate turnover crosses Rs. nine lacs but he become taxable person ONLY when he crosses Rs. ten lacs. So he will be required to file returns when he crosses the threshold limit of Rs. ten lacs. There are some other class of persons who need to be registered and therefore will have to file returns like interstate suppliers, TDS deductors, e-commerce operators, suppliers supplying goods through e-commerce operators etc (reference Schedule-III and Question 6 of the Registration Chapter).
  • What type of outward supply details are to be filed in the return?
  • A normal registered taxpayer has to file the outward supply details in GSTR-1 in relation to various types of supplies made in a month, namely outward supplies to registered persons, outward supplies to unregistered persons (consumers), details of Credit/Debit Notes, zero rated, exempted and non-GST supplies, exports, and advances received in relation to future supply.
  • Is the scanned copy of invoices to be uploaded along with GSTR-1?
  • No, scanned copy of invoices is to be uploaded. Only certain prescribed fields of information from invoices need to be uploaded.
  • Whether all invoices will have to be uploaded?
  • No. It depends on whether B2B or B2C plus whether Intra-state or Inter-state supplies.
  • For B2B supplies, all invoices, whether Intra-state or Inter- state supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients, invoice matching is required to be done.
  • In B2C supplies, uploading in general may not be required as the buyer will not be taking ITC. However still in order to implement the destination based principle, invoices of value more than Rs.2.5 lacs in inter-state B2B supplies will have to be uploaded. For intra-state invoices below Rs. 2.5 lacs and all intra-state invoices, state wise summary will be sufficient.

Other Update :

  • Central government hereby appoints the 1st day of November, 2016 as the date on which provisions of Benami transaction (Prohibition) Amendment Act, 2016 shall come into force

Key Dates:

  • Benami Transaction Amendment Act would be effective from Nov. 1, 2016
    NOTIFICATION NO. SO 3289(E) [NO.98/2016 (F.NO.149/144/2015-TPL (PART-II)], DATED 25-10-2016.
  • MCA has revised Form AOC-4 with effect from 27th October 2016.

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