CORPORATE AND PROFESSIONAL UPDATE May 25, 2017

1 (2)

Direct Tax:

ITAT Delhi held that Medical illness and that to be in the nature of the typhoid fever and UTI is definitely reasonable cause for non- appearing on the date and therefore, no penalty should be levied u/s 271(1)(b) in such circumstances as the same is covered under exception of ‘reasonable cause’ as enshrined in section 273B. Sangeeta Sawhney Vs. ACIT (ITAT Delhi)

Delhi High Court held that Addition is justified for Voluntarily admitted tax liability retracted after 2 years PR. CIT (C)-2 Vs Avinash Kumar Setai (Delhi High Court)

 Indirect Tax:

  • High court held that Section 35L is being amended so as to clarify that determination of disputes relating to tax ability or excisability of goods is covered under the term ‘determination of any question having a relation to rate of duty’ and hence, appeal against Tribunal orders in such matters would lie before the Supreme Court. Commissioner Service Tax Vs DLF Golf Resorts Ltd. (Punjab & Haryana High Court)
  • MCA has revised the versions of e Forms – Form DIR-3C and Form RD – 1 (Applications made to Regional Director) are being revised w.e.f. 11th May, 2017.

Key dates:

Advance Information for 1st fortnight of June functions with booking cost > Rs. 1 lakh in Banquet Halls, hotels etc. in DVAT: 27/05/2017

Issue of TCS Certificates by collectors for quarter ended March: 30/05/2017

 Other Updates:

Takeaways of Final GST Rules passed by GST Council:

 

In its 14th meeting in Srinagar on 18th and 19th May,2017 the all-powerful GST council cleared seven rules pertaining to different aspects of GST. These rules relate to Registration, Input Tax Credit, Payment, Refund, Invoice, Valuation and Composition and have paved the way for the rollout of GST from July 1, 2017. The key highlights of these final GST Rules are as follows:

Registration:

1)  PAN is mandatory for taking registration under GST. PAN will be validated by CBDT. After successful validation, registration will be granted.

2)  If a person has a SEZ unit, then he is required to make separate registration application for that unit. Similarly, a separate application of registration is required for becoming Input Service Distributor.

3)  A non- resident seeking registration under Non-Resident Taxable Person has to appoint an authorized signatory who will sign the application of registration. That person must be resident of India having a valid PAN.

4)  A person registered under GST is required to display his certificate of registration at a prominent location at his principal place of business and GST Number on the name board at entry of his principal place of business.

5)  Physical verification of place of business will not be conducted to grant registration under GST. But officer can do physical verification after granting of registration, if he is satisfied that it is necessary to do the same. He must upload verification report on GST Portal within 15 working days after verification.

Invoice:

6)  Tax invoice in case of supply of taxable services must be issued within 30 days of date of supply of services. However, time limit for banking company, insurance company or financial institutions is 45 days.

7)  The invoice shall be in triplicate for Supply of Goods and in duplicate for Supply of Services.

8)   The serial number of invoices issued will be furnished electronically on GST Portal.

9)  On receiving advance, Receipt Voucher will be issued. If rate is not determinable, tax is to be paid at 18%. If nature of supply is not determinable, it will be treated as Inter-State Supply.

10)  If reverse charge is applicable, the recipient will issue Payment Voucher.

Payment:

11)  Electronic Liability Register shall be maintained for each person liable to pay tax on the GST Portal.

12)  Electronic Credit Ledger and Electronic Cash Ledger shall also be maintained on the GST Portal for the person eligible for input tax credit and for person liable to pay tax respectively.

13)  Tax will be paid only through internet banking, RTGS, NEFT or Debit and Credit Cards. However, over the counter payment is allowed through authorized banks for the amount up to Rs.10,000 per challan per tax period.

Refund:

14)  A separate formula is prescribed for Maximum Refund in case of inverted duty structure, i.e., GST rate is higher on Inputs than on Output Supply.

15)  Refund application shall be filed electronically on GST Portal.

16)  The grant of provisional refund shall be made if person clamming refund has not been prosecuted during any period of 5 years preceding the tax period for which refund is claimed. However, the following 2 condition mentioned in Draft Refund rules have been deleted:

a)     The assessee should have a GST compliance rating of not less than

b)     The assessee should not have any pending proceeding or appeal on any issue.

17  17)   If Commissioner wants to withhold refund, order must be issued along with reasons of withholding refund.

Valuation:

18)  The value of supply made by principal to its agent or made to any related person shall be 90% of price charged for the supply of like kind and quality to unrelated person.

19)  The value of a token, coupon or a voucher shall be equal to the money value of goods redeemable against such token or voucher or coupon.

20)  The expense incurred by a supplier as a pure agent will not form value of supply and shall be excluded. The supplier will be treated as pure agent on complying with following three conditions:

a)     He makes payment to third party on authorization by such recipient.

b)     The payment made by pure agent on behalf of recipient has been shown separately on invoice.

c)     The supplies procured from third party by pure agent on behalf of recipient are in addition to services he supplies on his own account.

Earlier, in draft rules, 8 conditions were prescribed. Now, only these three conditions have to be fulfilled.

Input Tax Credit:

 

21)  The person eligible to take credit in respect of input of goods held in stock after registartion is required to file a declaration on GST Portal that he is eligible for input tax credit within 30 days.

22)  ITC would not be available to registered person if tax has been paid by supplier after issuing demand order on account of fraud, wilful misstatement or suppression of facts.

23)  The time limit to claim input tax credit is not applicable to re-claim credit reversed earlier due to non-payment of consideration to supplier.

Composition:

24)  Following persons will not be eligible for composition scheme:

a)     Casual taxable person or non-resident taxable person

b)     Person having goods in stock which were purchased in course of inter-State trade or from unregistered person

25)  Rates of Taxes for Composition Levy

a)     Manufacturers, other than manufacturers of such goods as may be notified by the Government – at 1%

b)     Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II – at 2%

c)     Any other supplier – at 0.5%

 

 

Quote of the Day:

 

“Take rest; a field that has rested gives a bountiful crop.”

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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 MARCH 15, 2017

Professional Update For the Day:

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

DIRECT TAX:

·        CBDT clarified that Existence of undisclosed bank deposits non-mandatory on the date of PMGKY payment.

·        CBDT has asked Taxmen to Fast track cases against shell firms also to file prosecution cases against those companies which claimed bogus long-term capital gains. While the SFIO has filed cases against 49 shell companies, Rs 3,900 crore is believed to have been laundered by 559 persons with the help of 54 professionals. Also, Rs 1,238 crore cash has been deposited in shell co’s, post demonetization.

·        Penalty can’t be imposed u/s 271(1)(c) of the Income Tax Act, 1961, where substantial question of law had been admitted by the High Court in respect of quantum proceedings. CIT Vs. Advaita Estate Dev. Pvt. Ltd., High Court of Bombay.

·        ITAT Ahmedabad held that forfeiture of share application money which has been duly received by the appellant in terms of prospect and credited to capital reserve account was a capital receipt and is not taxable. DCIT(OSD) Vs Mahalaxmi Rubtech Ltd. (ITAT Ahmedabad).

·        Sec. 271(1)(c): If the quantum appeal is admitted by the High Court, it means that the issue is debatable and penalty cannot be levied. Argument of the Dept that Nayan Builders 368 ITR 722 (Bom) does not lay down this proposition is not correct. CIT Vs Advaita Estate Development Pvt. Ltd (Bombay High Court)

·        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 taxmann.com 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:

·        Excise: CBEC issued Master Circular providing the clarity and uniformity on the issues dealing with Show Cause Notice, Adjudication Proceedings and Recovery of duty vide Circular No. 1053/02/2017-CX dated March 10, 2017. CESTAT allows assessee’s appeal, remands issue for determination whether Food Processor accessories are assessable at MRP u/s 4A or at the transaction value u/s 4 of Central Excise Act, when same not cleared as part of package containing Food Processor [TS-47-CESTAT-2017-EXC]

·        Service Tax: In the absence of a statutory provision which prescribes that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the committed a serious error in rejecting the claim for refund on the ground which is not existence in law. Commissioner, Service Tax Vs M/S Pangea 3 Legal Database Systems Pvt. Ltd. (Allahabad High Court)

·        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.

·        In the absence of a statutory provision which prescribes that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the committed a serious error in rejecting the claim for refund on the ground which is not existence in law.Commissioner, Service Tax Vs M/S Pangea 3 Legal Database Systems Pvt. Ltd. (Allahabad High Court)

·        CESTAT allows assessee’s appeal, remands issue for determination whether Food Processor accessories are assessable at MRP u/s 4A or at the transaction value u/s 4 of Central Excise Act, when same not cleared as part of package containing Food Processor [TS-47-CESTAT-2017-EXC]

 OTHER UPDATES

·        RBI has cancelled the certificate of registration of some NBFC in of the powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934.

·        RBI issued notification that Section 269SS and 269T of the Income Tax Act, 1961 would be applicable to all NBFCs with immediate effect. Currently, the relevant threshold is Rs 20,000 Vide Notification No. DNBR (PD) CC.No.086/03.10.001/2016-17 dated 09.03.2017.

·        RBI notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2017 which shall come into force from the date of their publication in the Official Gazette. Vide Notification No. FEMA.387/2017-RB dated 09.03.2017.

Key Dates:

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

E-payment of PF for Feb: 15.03.2017

“Our hopes & dreams should be like hair & nail. No matter how many times they are cut, but they never stop growing.”

Life shrinks or expands in proportion to one’s courage.

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CORPORATE AND PROFESSIONAL UPDATE JAN 09, 2017

Professional Update for the Day:

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Direct Tax:-

  • Bombay High Court in the below cited case held that when the assessee’s volume of purchasing & selling shares is quite high with higher frequency of buying and selling with holding 75 days or less then its prima facie indicate that it is engaged in trading of shares unless the assessee provide a sound reasoning that why transactions should not be considered as trading activity. [Pine Tree Finserve Pvt. Ltd. Vs CIT]
  • CBDT notification no. 2/2017 Report cash deposit in Bank & Post Office A/c’s between 01.04.2016 to 09.11.2016.

Indirect Tax:-

  • SC dismisses assessee’s SLP for lack of merit against HC order denying service tax refund under Notification No. 41/2007-ST absent inclusion of exported services from date of issue of Notification[TS-1-SC-2017-ST]
  • Delhi HC shows leniency to assessee, reduces penalty levied u/s 78 of Finance Act to 25% of entire tax due on deposit of balance amount within 30 days, where assessee failed to obtain registration or file ST returns despite liability [TS-555-HC-2016(DEL)-ST]
  • CBEC notified that overseas companies providing online information and database access (‘OIDAR’) services will have to pay service tax from December 1, 2016.

MCA Update:-

  • MCA, in the interest of public, directs that certain provisions of Companies Act, 2013 shall not apply or shall apply with some exceptions, modifications and adaptations to an unlisted company which is licensed to operate by RBI or SEBI or IRDA located in an approved multi services SEZ set-up Vide Notification.

Other Update:-

  • Black money would be taxable at higher rates; Finance Minister Mr. Jaitley said on Demonetization, IDS & Cashless Economy.
  • Causal taxable person or non-resident taxable person must apply for registration at least 5 days before actual commencement of business.

Key Dates:-

  • Return by units paying duty > 1 crore (CENVAT + PLA) for December – 10.01.2017.
  • Return of Non SSI assesses for December – 10.01.2017.
  • Return of SSI assesses for quarter ending December – 10.01.2017.
  • Return for EOUs for December – 10.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“Nothing is interesting if you are not interested.”

“Expectation is a gift, not a burden. When people expect something from you, it means you have given them reasons to believe in you.”

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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 JAN 07, 2017

Professional Update for the Day:

tp-and-business-restructuring_raw

Direct Tax:-

  • CBDT issues circular for TDS on salary for FY 2016-17 Vide Circular No 01/2017. Circular contains rates of deduction of income-tax on income chargeable under the head “Salaries” and provide illustrations on calculation of tax liability.
  • CBDT issues Press release regarding India and Kazakhstan signing Protocol to amend the Double Taxation Avoidance Convention (DTAC).
  • In revised GST Model Law, business vertical has been defined in sec 2(18) itself & reference to AS-17 (Segment Reporting) has been removed.

Indirect Tax:-

  • CESTAT Mumbai held that as per rule 11(1) of CENVAT Credit Rules, 2004 read with Notification 23/2004 – CE, the amount of credit earned by the manufacturer under CENVAT Credit Rules, 2002, which existed prior to 10.09.2004, can be utilized by them as per transitional rule 11 of the new CENVAT Credit Rules, 2004. [ Arbes Tools Pvt. Ltd. Vs CCE ]
  • Madras High Court has held that the assessee is entitled to Service Tax Credit on catering services. M/s IP Rings Ltd v. CESTAT Chennai.

Other Update:-

  • SEBI relaxes rules for angel funds to boost start-up funding .To give a fillip to start-up funding; markets regulator SEBI has relaxed its rules for investment by angel funds.
  • Securities and Exchange Board of India (SEBI) has issued much awaited guidance note on board evaluation.

Key Dates:-

  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017.
  • Return by units paying duty > 1 crore (CENVAT + PLA) for December – 10.01.2017.
  • Return of Non SSI assesses for December – 10.01.2017.
  • Return of SSI assesses for quarter ending December – 10.01.2017.
  • Return for EOUs for December – 10.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.”

“Birth & Death are two fixed ends, the game is in between. It’s not that you have to win every time, but more important is how you participate.”

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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 JAN 06, 2017

Professional Update for the Day:

Company-name-approval-in-india-venture-care-750x422

Direct Tax:-

  • CBDT has issued press circular regarding signing of three more Advance Pricing Agreements (APAs). These agreements pertain to the Engineering goods & Shipping sectors of the economy. The international transactions covered in these agreements include Intra-group services & support services.
  • Punjab & Haryana Court in the below cited case held that deduction under section 80IB is allowable over the period of 6 years which follows that conditions for claiming deduction must remain fulfilled in all years for which deduction being claimed.
  • Supreme Court in Gopal and Sons(HUF) vs. CIT Kolkata-XI has held that even if a HUF itself is not a registered shareholder, the provisions of deemed dividend are attracted once the payment is received by the HUF, and shareholder is a member of the said HUF and has substantial interest in it.

Indirect Tax:-

  • CBEC has issued a circular via circular no. 1/2017- Customs regarding extending the Single Window Interface for Facilitation of Trade (SWIFT) to Exports.
  • Supreme court in the below cited case held that in case the goods are purchased from other states or are imported from outside the country for the purpose of only using in the works contract, then the transaction would be covered under the Central Sales Tax Act and not liable to tax under local VAT act. [Commissioner, Delhi Value Added Tax Vs M/s. ABB ltd.]

GST Update:-

  • GST aggregate turnover includes exports, exempt (including non-taxable) & inter-state supplies calculated PAN wise on all India basis.

Other Update:-

  • Finance Minister expressed confidence that direct and indirect tax mop-up will surpass budget estimate of Rs.16.3 lakh crore by March-end.
  • SEBI issued Guidelines for participation/functioning of Eligible Foreign Investors (EFIs) and FPIs in International Financial Services Centre (IFSC).
  • ICAI  issued exposure draft standard on auditing (SA) 720 (Revised) The auditor’s responsibilities relating to other information.

Key Dates:-

  • E-Payment of Service Tax for the month of December – 06.01.2017.
  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“Infuse your life with action. Don’t wait for it to happen. Make it happen. Make your own future. Make your own hope.”

“There is nothing called “Darkness”, It’s just absence of light.similarly,  there is nothing called “Problem”. It’s just Absence of an idea to find solution.”

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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 JAN 03, 2017

Professional Update for the Day:

11987074_919610658111019_5991428056741075136_n

Direct Tax:-

  • CBDT has issued a press release regarding signing of Third Protocol between India and Singapore for amending the Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation & prevention of fiscal evasion with respect to taxes on income.
  • Gujarat High Court held that a reference to the Transfer Pricing Officer(TPO) can be made only after passing a speaking order disposing of the objections raised by the assessee. In this case, the reference was made without passing such a speaking order, the reference so made was invalid. [M/s Alpha Nipon Innovatives Ltd. Vs CIT]
  • Income from vacant house property – income would not be assessed under Section 23(1)(c) but under Section 23(1)(a) – Punjab And Haryana High Court in case of [Susham Singla Vs. The CIT, Patiala].
  • Whether the provisions of Section 36 and Section 43-B are mutually exclusive and the Assessee is legally entitled to claim deduction of employees’ contribution to provident fund and ESI u/s 43-B as amended vide FA, 2003, even if the said deduction was not admissible u/s 36(1)(va) – Held Yes – Allahabad High Court in case of [Sagun Foundry Private Limited Vs. CIT, Kanpur].

Indirect Tax:-

  • Punjab & Haryana High Court has held that Input Tax Credit cannot be disallowed merely for a technical defect in the VAT Invoice such as not mentioning of words “ Input Tax Credit is available to a person against this copy” as per Rule 54 of the Punjab VAT Rules, 2005. [M/s Avdesh Tracks Pvt. Ltd. Vs State of Punjab & another]
  • Service tax dept. pulled up for unfair arrest of Make My Trip top officials; HC ordered tax refund. Makemytrip (India) (P.) Ltd. v. Union of India [2016] (Delhi).

MCA Update:-

  • MCA has notified the Companies (lncorporation) Fiffh Amendment Rules, 2016 which shall be applicable with effect from 1st Day of January, 2017.

ESIC Update:-

  • ESI applicability salary limit increased from Rs 15,000 PM to Rs 21,000 PM.

RBI Update:-

  • RBI has issued clarification on Interest Subvention Scheme for Short Term Crop Loans during the year 2016-17.

Other Update:-

  • In exercise of the powers conferred by Subsection (c) of Section 199B of the Finance Act, 2016 (28 of 2016),the Central Government in consultation with the Reserve Bank of India notified the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGK), 2016.
  • NRIs and Indians returning from abroad will have to physically show the junked 500 and 1,000 rupee notes to Customs officials at the airport and get a declaration form stamped before they can deposit the demonetized currency in RBI during the grace period.

Key Dates:-

  • E-Payment of Service Tax for the month of December – 06.01.2017.
  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“In my experience, there is only one motivation, and that is desire. No reasons or principle contain it or stand against it.”

“Speaking lips can reduce many problems. Closed lips can avoid some problems. But smiling lips can solve all problems.”

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

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com             E: info@carajput.com            T: 011-233-4-3333 , 9-555-555-480

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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FREQUENTLY ASKED QUESTIONS ON GST LAW

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Query:

Please clarify what is the taxable event under GST?

Answer:

The taxable event under GST shall be the supplyof goods and / or services made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxableevent known as ‘supply’.

 

Query:

One of my client is already registered under Vat law and Service Tax law. Whether he have to obtain fresh registration under GST law?

Answer:

No. GSTN shall migrate all such assessees or dealers to the GSTN network and shall issue GSTIN number and password. They will be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in cancellation of GSTIN number. The service tax assessees having centralized registration will have to apply afresh in the respective states wherever they have their businesses.

 

Query: 

If the appellate or revisional order goes in favour of the assessee, whether refund will be made

in GST? What will happen if the decision goes against the assessee?

Answer:

The refund shall be made in accordance with the provisions of the earlier law only. In case any recovery is to be made then it will be made as an arrear of tax under GST.

 

Query:

Whether any person, who is not liable to pay GSTor not liable to get registered himself, can voluntarily get himself registered?

Answer: 

Yes. The person can get himself registered voluntarily even though he is not liable to be registered and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.

 

Query:

Please explain the procedure for registration of non-resident taxable person?

Answer:

Every Non-resident taxable person is required to submit an E-application for registration in Form –GST REG 10 at least 5 days prior to commencement of the business. Such person shall be given a temporary identification number by the Common Portal for making an advance deposit of tax under section 19A and the acknowledgement in Form GST REG-2  in shall be issued thereafter.

 

Query:

If a person, who has taken voluntary registration, can seek cancellation of his registration?

Answer:

Any person who has taken voluntary registration can also seek cancellation of his registration but not before one year of such registration. There should be a gap period of 1 year from effective registration in case of voluntary registration.

 

Query:

Whether a person is eligible for input tax credit on inputs from the date when he applies for registration or from the date when registration is granted. Please clarify.

Answer: 

The person  is eligible for input tax credit on inputs held in stock and inputs contained in semi-finished or finished goods held in stock from the date when registration is granted.

 

Query:

what are included as “Place of Business” under GST ?

Answer:

Place of Business includes the following places:-

(a)  Place of ordinary business

(b)  Warehouse, Godown & other place for storage goods or place to provide services

(c)  Place of Maintenance of Books of accounts

(d)  Place of any agent conducting the business

 

Query:

Sir if a person is operating in two different states, with the same PAN , Can he obtain a single Registration under GST?

Answer:

No, every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST.

 

Query: 

Is there any provision for a taxable person to pay tax on provisional basis under GST law?

Answer:

Yes, taxable person can make payment on provisional basis but only after the permission of the Proper Officer & only in such cases where he is unable to determine:

  1. a) the value of goods or services to be supplied by him, or
  2. b) determine the tax rate applicable to the goods or services to be supplied by him.

 

Query:

Whether an agreement to supply goods at future date can be considered as contract of supply for the purpose of GST? How will hire purchase transaction be treated?

Answer:

The definition of ‘supply’ in Model GST law includes all forms of supply of goods made or agreed to be made for consideration. Thus, an agreement of supply at a future date will constitute an agreement of supply of goods.

 

Query:

Can a taxpayer use digital signature in the GSTN registration?

Answer: 

Taxpayers have the option to sign the submitted application using valid digital signatures (if the applicant is required to obtain DSC under any other prevalent law then he will have to submit his registration application using the same). For those who do not have a digital signature, alternative mechanisms will be provided in the GST Rules on Registration.

 

Query:

A person has one place of business in Delhi with turnover of Rs. 13 lakhs and other place of business in Manipur with turnover of Rs 4 lakhs. What would be the threshold limit in this case for registration?

Answer: 

In this case, the person’s aggregrate turnover in the state of Delhi will be Rs. 17 lakhs (i.e. Rs 13 + Rs 4 lakhs) which is less than the threshlod limit of Rs 18 lakhs. Thus he is not liable for registration in Delhi. But he is liable for registration in Manipur as the aggregrate turnover excceds the threshold limit of Rs 9 lakhs.

 

Query:

What is the difference between Annual Return & Final return?

Answer: 

Yes, Annual Return has to be filed by every taxable person who is registered and paying tax as per normal or compounding scheme. Final Return has to be filed only by those registered taxable persons who have applied for cancellation of registration. This has to be filed within three months of the date of cancellation or the date of cancellation order.

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

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com                 E: info@carajput.com            T: 011-233-4-3333, 9-555-555-480

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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FREQUENTLY ASKED QUESTIONS ON COMPANIES LAW

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Query : 

One of our client companies is a private company wants to make political contribution during the current financial year and has been in existence for 5 years, seeks advice regarding the provisions related to political contribution. Kindly advice.

Answer: 

As per Section 182 of Companies Act 2013, a company other than Government company and a company which has been in existence for less than 3 financial years, may contribute directly or indirectly to the political party.

But such amount shall not exceed 7.5 % of the average of net profits during the 3 immediately preceding financial years and such amount shall be shown on the expense side of profit and loss account.

Provided that such proposal shall be authorized by AOA and resolution be passed by board in the board meeting

 

Query:

Our client company had convened General Meeting last week and appointment of 2 directors on single motion and some directors raised objection regarding appointment of directors should be voted individually. The company seeks advice whether their objection is tenable or not ?

Answer:

As per section 162 of Companies Act 2013, a motion for appointment of 2 or more persons as directors by a single resolution shall not be moved unless such proposal is passed by unanimously in the same meeting.

However, Section 162 shall not be applicable to wholly owned government company or any subsidiary of wholly owned government company and also to private limited company.

Therefore, by virtue of exemption, private company may appoint directors by a single vote and hence, their objection is not tenable.

 

Query:

Whether advance taken from customers by real estate company on which no interest has been paid will be treated as advance or deposit as per the Companies Act, 2013?

Answer:

As per the Rule 2(xii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of, or for the purposes of the business of the company – as advance, accounted for in any manner whatsoever, received in connection with consideration for property under an agreement or arrangement is exempted from the definition of the Deposits but if such advance is not adjusted against the property in accordance with the terms of agreement or arrangement then it will be treated as deposit.

Further, whether interest is charged or not is immaterial. Thus, advance taken from customers by real estate company shall not be considered as deposits. But if it is not adjusted against the property in accordance with the terms of agreement or arrangement, then it will be treated as deposit.

 

Query: 

One of our clients is an individual and is holding directorship in 17 companies ( 10 pvt. cos. & 7 public cos.) and is desirous to become director in other companies , he seeks advice regarding whether he may appoint in other companies or not ?

Answer:

As per Section 165 of the Companies Act 2013, an individual shall hold office as director including alternate directorship for maximum 20 companies subject to maximum ceiling of 10 public companies, therefore he shall not hold office as director for more than 10 public companies at the same time.

Provided that this section is not applicable to Section 8 companies and directorship in dormant company shall not be included.

Therefore, he may be appointed as director for maximum 3 public companies or private companies.

 

Query: 

How we can record the names of the directors who has attended the meeting through video- conferencing or how the directors participating in a meeting by video conferencing sign the attendance register?

Answer: 

The following provisions in the rules ensure the correct recording of the names of directors who are present through video conferencing:

Rule 3(4) of the Companies (Meetings of Board and its Powers) Rules, 2014 provides that at commencement of the meeting, a roll call shall be taken by the chairperson when every director participating through video conferencing or other audio visual means shall state, for the record, inter-alia, name and location from where the director is participating.

Further Rule 3(11)(b) of the Companies (Meetings of Board and its Powers) Rules, 2014 provides that the minutes shall disclose the particulars of the directors who attended the meeting through video conferencing or other audio visual means.


Query:
 

Whether the company has to compulsory send the notice of the Board meeting to the director who has waived his right to receive the notice?

Answer: 

As per Section 173 of Companies Act, the company has to send notice to all the directors including interested director, original director & alternate director at their addresses registered with the company even if any director has waived his right to receive the notice.

 

Query: 

A company has outstanding debt instruments and wants to roll over them  for further period of time and is regularly paying interest obligations. As an expert , kindly advice on other conditions required for such roll over ?

Answer: 

A company may roll over its outstanding securities any time after complying with following conditions :

  • Consent of atleast 75 % holders shall be there in writing.
  • Such trust deed shall contain provisions for roll over otherwise new trust deed shall be executed.
  • New security shall be mortgaged if older one is not capable to make roll over successful.
  • Payment to those holder who did not give their assent to roll over, at the time of maturity of such debt instrument.

 

Query:

We have a query as in case a Director A is appointed on 1st April, Director B is appointed on 18th April, and Director C ceases to be associated with the company w.e.f. 18th April. In such a case can we file one e form DIR 12 for all the three events or we are required to file different forms with the ROC. Please clarify.

Answer: 

As in your case, details of all the three changes can be filed through the same Form DIR-12 only if the Form is filed on or before 1st May, as all the events fall within 30 days. However, if the company files the e-Form DIR-12 on 10th of May, then details in a separate e-Form would be required to be filed in respect of Director A and accordingly.

 

Query:

In case a company is having a paid-up share capital of ten crore rupees or more, whether such a company requires prior approval of members by special resolution to enter any contract with any related party.

Answer:

In terms of the Companies (Meetings of Board and its Powers) Second Amendment Rules, 2014, the limit of paid-up capital of ten crore rupees for the purpose of requiring prior approval of members by special resolution for entering any contract with related party has been removed. The company is required to comply with the provisions of section 188 read with rule 15 of the Companies (Meetings of Board) Rules, 2014 for entering into any contract or arrangement with a related party.

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

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com                 E: info@carajput.com            T: 011-233-4-3333, 9-555-555-480

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 JAN 2, 2017

Professional Update for the Day:

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Direct Tax:-

  • SC dismisses Revenue’s SLP challenging Bombay HC order quashing CIT’s order u/s 263 (revision proceedings) for AYs 2007-08 and 2008-09; CIT (A) had set aside assessment orders due to lack of sufficient enquiries by the AO in respect of the genuineness of the gifts received by the assessee (individual) while directing the AO to invoke Sec. 68 in case gifts are found to be non-genuine [TS-686-SC-2016]
  • Delhi ITAT held that Penalty can be imposed only on disproved claim of expenditure and not unproved claim of expenditure. Arun Duggal Vs. DCIT (ITAT Delhi)

Indirect Tax:-

  • Delhi High Court declared Rule 5A(2) of the Servcie Tax Rules, as amended, to the extent that it authorizes the officers of the Serviec Tax Department, the audit party deputed by a Comissioner  or the CAG to seek production of the documents mentioned therein on demand, as ultra virus the Finance Act and therefore, struck it down to that extent. Union of India Vs. Mega Cabs Pvt. Ltd. (Supreme Court)
  • Service tax dept. pulled up for unfair arrest of Make My Trip top officials; HC ordered tax refund Makemytrip (India) (P.) Ltd. v. Union of India [2016] (Delhi)

MCA Update:-

  • MCA vide Notification has issued an amended rules for Incorporation to make compulsory using of SPICE procedure for Incorporation of Companies wef 1.1.2017.

Other Update:-

Salient Points of Hon. PM’s speech:

  • Two new housing schemes for poor.
  1. Lower interest rates for urban housing Loans of less than 12lakhs.
  2. Lower interest rates for rural house development loans up to 2lakhs.
  • Farmers get 2 months of interest waiver on select crops.
  • 6000/- to be given to every pregnant woman.
  • FD interest to be min 8% for senior citizens for deposits up to 7.5lakhs.
  • Please use BHIM app.
  • Loan up to 2 CR with govt guarantee. No 3rd party guarantee required.
  • Only 6% of total revenue collected digitally will be assumed to be income as compared to present 8%.

Key Dates:-

  • E-Payment of Service Tax for the month of December – 06.01.2017
  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017

“The winner is the chef who takes the same ingredients as everyone else and produces the best results.”

“Positive attitude and self motivation are two significant traits to achieve excellence.”

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

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com             E: info@carajput.com            T: 011-233-4-3333 , 9-555-555-480

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 DEC 27, 2016

Professional Update for the Day:

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Direct Tax:-

  • ITAT Bench Jaipur in the below cited case held that if the assessee has treated the securities as investment and not as stock in trade earlier years, the revenue is not permitted to take a contrary view in the present years to claim that the security is stock in trade. [The DCIT Circle-2 Vs Shri Mahender Kumar Bader]
  • CBDT has issued an Office Memorandum stating that it has set up a committee of high-ranking officials to provide advice on re-engineering the assessment procedure and to arrive at a definite standard assessment procedure through an e-system.

Indirect Tax:-

  • CESTAT Ahemdabad held that the requirement under Rule 6(4A) and 6(4B) of the service tax rules, 1994 to intimate the department regarding adjustment of excess service tax paid is only procedural in nature and such infringement of the procedure is not serious enough to deny the benefit of suo motto adjustment of excess service tax paid. [M/s. L&T Sargent & Lundy Ltd Vs Commissioner of Central Excise & S.T, Vadodara]

GST Update:-

  • In GST Enrollment, Aadhar No of primary Authorized Signatory must be given if we want to use E-sign facility for signing enrolment and other forms.

Other Update:-

  • SEBI has issued circular regarding filing of forms PAS-4 and PAS-5 in case of issuance of Debt Securities on private placement basis.
  • Cheque bounce is a bailable offence under the current law, which enables defaulters to stay away from jail as long as the trial is on, the government could make the law a non-bailable offence.

Key Dates:-

  • Payment of TDS for purchase of property for Nov: 12.2016 .

“Self confidence is a small lamp in a dark tunnel. It does not show everything at once, but gives enough light for the next step.”

“Being happy doesn’t mean that everything is perfect. It means that you’ve decided to look beyond the imperfections.”

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

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com             E: info@carajput.com            T: 011-233-4-3333 , 9-555-555-480

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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