CORPORATE AND PROFESSIONAL UPDATE May 23, 2017

PROFESSIONAL UPDATE FOR THE DAY12036518_636965443073687_8061467608404050178_n

Direct Tax:

  • Allahabad High Court held that Gain on sale of Shares held for 16 years as investment cannot be treated as business income The Commissioner Of Income Tax Vs M/S Jindal Poly Films Ltd. (Allahabad High Court)
  • Kolkata ITAT rules that remission of employee training expenses to Chinese parent by assessee (an Indian company engaged in construction of integrated steel plant) for payment to a Chinese training agency (i.e. third party) for AY 2010-11, not reimbursement [TS-190-ITAT-2017(Kol)]
  • CBDT releases New Rules under Sec 115BA(4) & Form10-IB for Startups to Opt for Lower Tax Rate.
  • IT: Non deduction of TDS – the word payable u/s 40(a)(ia) also covers the cases where the amount is actually paid during the year – Palam Gas Service Vs CIT (2017 (5) TMI 242 – Supreme Court).
  • CBDT releases Draft Rules for Valuation of Unquoted Equity Shares

Indirect Tax:

Delhi High Court held that Practice of taking “undated cheques” by      excise department is illegal Digipro Import & Export Pvt. Ltd Vs            Union of India & Ors. (Delhi High Court)

 FAQ on GST

Query:  A person has a balance of Rs 1 lakh in his electronic credit ledger as on 1st December but on 2nd Dec, the goods subsequently become exempt from the levy of tax. What would be the treatment of balance Input Tax Credit lying in his electronic ledger?

Answer:  Once the goods or services or both supplied by a registered person become wholly exempt under the law, then the person would be required to pay, by debiting to electronic cash ledger or electronic credit ledger, an amount equivalent to the credit of input tax credit in respect of

  1.  Inputs held in stock, and
  2.  Inputs contained in semi-finished or finished goods held in  stock, and
  3.  Capital goods

on the day immediately preceding to the date of such exemption of goods or services or both. After payment of amount by way of debit to the electronic cash ledger or credit ledger, balance of input tax credit, if any, lying in his electronic credit ledger shall lapse.

Other Updates

  • Bogus share capital: AO must scrutinize documents produced by assessee, addition cannot be done merely on report of investigation wing -Pr. Commissioner of Income Tax Vs. Laxman Industrial Resources Pvt. Ltd. (Delhi High Court)
  • Tax on financial services transactions will rise from the current 15% to 18% as the goods and services tax (GST) kicks in on 1 July, making them marginally costlier.
  • Arbitrator cannot Lift Corporate Veil:  Case Name: Sudhir Gopi Vs Indira Gandhi National Open University and ANR. (Delhi High Court).
  • MCA has notified Exit Scheme for LLP. The Central Government has amended the Rules by notified the Limited Liability Partnership (Amendment) Rules, 2017, which shall come into force with effect from 20th May, 2017.
  • WTO has called a review meeting to promote connectivity through digital trade in developing countries amid strong opposition by India owing to apprehensions among experts that this may be a back door attempt to push e-commerce.
  • of India has notified the Companies (Transfer of Proceedings) Rules, 2016. Through these rules all matters relating to winding up and amalgamation has been transferred from High Courts to NCLT.

Key dates:

  • Issue of DVAT certificates for deduction made in April:22/ 05/2017
  • Advance Information for 1stfortnight 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

Quote of the Day:

“Even if you’re on the right track, you’ll get run over if you just sit there.”

“Challenges are what make life interesting And overcoming them is what makes life meaningful”.”

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 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

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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.

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

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CORPORATE AND PROFESSIONAL UPDATE OCT 24, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 24, 2016

8-Tips-Biz-Name

Direct Tax:-

  • Sum paid to brothers for vacating house held as cost of improvement of house
    Nanubhai Keshavlal Chokshi HUF v. Income-tax Officer, Ward- 6 (2), Ahmedabad
    [2016] 74 taxmann.com 113 (Ahmedabad – Trib.)
  • Discrepancies in docs under penultimate sales would also lead to denial of export exemption
    Commissioner of Commercial Tax v. Shakti Containers[2016] 74 taxmann.com 39 (Gujarat)
  • ITAT denies set-off of speculative loss when assessee misstated that it was connected with brokerage businessCommissioner of Income-tax, Kol-II v. Eureka Stock & Share Broking Services Ltd.[2016] 74 taxmann.com 114 (Calcutta)
  • IT:Notice u/s 148 for reopening assessment by the very same officer who executed the scrutiny assessment and granted exemption U/s 11- It is a case of change of opinion – Notice quashed – Gujarat State Board of School Textbooks Vs ACIT (2016 (10) TMI 775 – Gujarat High Court)
  • Attachment order had be lifted when ITAT deleted all tax demand and revenue didn’t apply for stayShangkalpam Industries (P.) Ltd. v. Income Tax Officer, Company ward VI(1), Chennai
    [2016] 74 taxmann.com 102 (Chennai – Trib.)
  • The Delhi High Court in Pr CIT vs. Samcor Glass Ltdhas warned the department not to harass taxpayers by reopening assessments u/s 147/148 in a mechanical and casual manner. Pr CIT directed to issue instructions to AOs to strictly adhere to the law explained in various decisions and make it mandatory for them to ensure that an order for reopening of an assessment clearly records compliance with each of the legal requirements. AOs also directed to strictly comply with the law laid down in GKN Driveshafts 259 ITR 19 (SC) as regards disposal of objections to reopening assessment.
  • The Karnataka High Court inColumbia Sportswear Company vs. DIT has held that a liaison office of a foreign co which identifies a manufacturer in India, negotiates the price, helps in choosing raw material to be used, ensures compliance with quality and gets material tested is not a ‘permanent establishment’ under Article 5 of India-USA DTAA.
  • CBDT vide Notification No. 95/2016 notified director, vigilance and anti-corruption bureau, Kerala U/s. 138(1)(a)(ii) to whom in public interest disclosure of information respecting assessees can be made by income tax Department.

Indirect Tax:-

  • HC dismisses writ petition, denies assessee cross examination of Chemical Examiner of Central Revenue Control Laboratory who gave sample testing report of imported goods; Person whom assessee seeks to cross examine is an officer / Govt. servant who was discharging statutory duty and therefore, not a witness to the proceedings. [TS-415-HC-2016(MAD)-CUST]
  • HC dismisses writ petitions, refuses to interfere with order of Settlement Commission that directed payment of excise duty liability against removal of leather goods by assessee by indulging in manipulation of records of sister concerns and job-workers to avail SSI exemption. [TS-414-HC-2016(MAD)-EXC]
  • ST:Activity of toll collection on commission basis would not fall under the category of business auxiliary services so as to make the same liable to service tax – service not liable to tax -Prakash Asphal Ting & Toll Highways (India) Ltd. Vs CCE, Jaipur-II (2016 (10) TMI 746 – CESTAT New Delhi)
  • VAT:Taxability of a Car Stereo System – electronic goods falling under Entry 75 or motor vehicle falling under Entry 18 – It cannot be gainsaid that a car stereo does add to the comfort for the use of a motor vehicle – car stereo held as accessory – to be taxed accordingly – Sony India Pvt. Ltd. Vs CIT & Anr. (2016 (10) TMI 720 – Allahabad High Court)
  • Quarterly returns under DVAT Act and CST Act for dealers registered in Delhi for the 2nd quarter of 2016 ended on 30.09.2016 is due to be filed on or before 28.10.2016.
  • Body building of buses on job-work basis should be valued under rule 10A of Excise
    HMM Infra Ltd. v. Commissioner of Central Excise, Panchkula[2016] 74 taxmann.com 86 (SC)
  • Discrepancies in docs under penultimate sales would also lead to denial of export exemption
    Commissioner of Commercial Tax v. Shakti Containers[2016] 74 taxmann.com 39 (Gujarat)

RBI UPDATE :

  • The Reserve Bank of India decided to allow foreign investment up to 100 per cent under the automatic route in ‘other financial services’.
  • RBI issued operational guidelines for sovereign gold bonds 2016-17 series III vide notification No.RBI/ 2016-17/ 99I DMD. CDD.No.894 /14.04.050/2016-17 October 20, 2016.

 

MCA UPDATE :

  • MCA has recently revised Forms CHG-8, AOC-4 and 20-B. Stakeholders are advised to check the latest version before filing.
  • MCA:MGT-07/20B filed but the same has not been taken on records due to non-submission/non-uploading of CD are requested to upload the data in excel sheet by 07th November 2016.

GST UPDATE :

  • Under GST proposed GST Rates. Food items-Exempt, Gold, Silver-4%, Essential items-6%, Luxury items, FMCG, cigarettes-26%+cess, most items-18%, Others-12%.
  • Under GST w.e.f.  8/11/16, existing 80 lac assessees will be able to access their data migrated to GSTN, make necessary corrections & upload relevant documents.
  • GSTCouncil to meet on 3-4 Nov to consent on Rates, Draft Bill, Etc.

Key Dates:

  • Issue of DVAT Certificate for deduction made in the month of September-22/10/2016
  • E-return of DVAT for the quarter ended September(Form 61 and CST-1)-25/10/2016
  • Filling of half yearly service tax return-25/10/2016

Everyone has two eyes. But no one has the same view. So always try to prove that you are right but never attempt to prove that others are wrong.

The kite gives us a nice & wonderful message. Fly high & high. But stay connected to the ground to our roots or else you will be lost.

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, 9-555-555-480

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 Continue reading

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CORPORATE AND PROFESSIONAL UPDATE OCT 4, 2016

Professional Update For the Day:

29

Direct Tax:-

Mumbai ITAT grants stay extension to ICICI Securities for outstanding demand of 4.31 crores [TS-536-ITAT-2016(Mum)]

ITAT allows MTM losses; Follows SC ruling in Woodward Governor over subsequent CBDT Instruction [TS-537-ITAT-2016(Mum)]

IDS’ 2016: ₹ 65,250 Crores surrendered through 64275 declarations under IDS’ 2016 and the Govt. to collect ₹ 29,362 Crores by way of tax, interest & penalty.

CBDT issued New Income Computation & Disclosure Standards (*ICDS*) to be effective from *AY 2017-18*. Old ICDS notified in 2015 rescinded – Notification # 29/2016, dt.29.09.2016.

IT: Deduction u/s 10AA eligibility – activities of getting manufactured goods from outside sources on job work basis are also covered under manufacturing activities – ITO, W-8(3), Surat Vs Pramukh International (2016 (10) TMI 8 – ITAT Ahmedabad)

CBDT notified revised income computation and disclosure standards ICDS to be followed by all assessees (other than an individual or HUF who is not required to get his accounts Audited u/s 44AB of the said Act).

Section 234E Fee cannot be levied on TDS deducted prior to 1.6.2015 [Sri Fatheraj Singhvi & Ors Vs. Union of India & Ors (Karnataka HC)].

Indirect Tax:-

Valuation – Once the transaction value was rejected and as the appellant did not want any show cause notice or hearing nothing unsustainable found in the adjudication order which determined the value on the basis of value of contemporaneous imports of similar goods enhanced value sustained. Customs (M/s Rim Zim Textile Versus CC, New Delhi – 2016 (9) TMI 124 – CESTAT NEW DELHI – Customs)

ST: Goods Transport Agency service (GTA) – the issuance of a consignment note is essential characteristic – No consignment note – No ST liability – C.C.E. & S. Vs Jaikumar Fulchand Ajmera  (2016 (10) TMI 42 – CESTAT Mumbai)

ST: Arrest in case of ST default for an amount exceeding Rs. 2 Crores and the default is more than 6 months from the date of amount due – CBEC Circular # 201/11/2016 ST, dt.30.09.2016

Service Tax Return (ST-3) for April 2016 to September,2016 period is  available from 1st October,2016,  for e-filing by the assessees in both offline and online modes. The last date for filing the returns for the said period is 25th October, 2016.

VAT & ST: Input Tax Credit – discount/incentive received – sale of goods at a rate lower than the price shown in the VAT invoice – ITC cannot be disallowed – AC Cir-A, Commercial Taxes, Bharatpur (Raj) & Ors Vs Bhagwati Building Material Store & other (2016 (10) TMI 13 – Rajasthan High Court)

GST UPDATE:-

Under GST payment challan GST PMT-4 generated at GST Common Portal shall be valid for 15 days. Generate fresh challan if not paid in 15 days.

For payment through Debit or Credit card, prior registration of card at GST Common Portal through authorized bank is necessary.

FAQ on Company Law:

Query: In case of Re-appointment of independent director for second term, whether ordinary or special resolution is required to be passed?

Answer: As per the provisions of section 149 (10), an independent director shall hold office for a term up to five consecutive years on the Board of a company, but shall be eligible for reappointment on passing of a special resolution by the company and disclosure of such appointment in the Board’s report.

MCA Updates:

Revised integrated incorporation form for companies notified vide the Companies (Incorporation) fourth Amendment Rules, 2016 dated 1st October 2016 viz. “Simplified Proforma for Incorporating Companies Electronically (SPICe-INC 32)” along with electronic MoA (SPICe MoA-INC 33) and electronic AoA(SPICe AoA-INC 34). (Click here to view)

Key Dates:

Excise payment for Non SSI for the month of September by G.A.R.- 7 challan(6th if paid electronically)-05/10/2016

Service tax payment for company for the month of September by G.A.R.- 7 challan(6th if paid electronically)-05/10/2016

Service tax payment for Individuals/Proprietory/ Partnership Firms for the quarter ended by G.A.R.- 7 challan(6th if paid electronically)-05/10/2016

Payment of TDS/TCS challan No. 281-07/10/2016

The greatest deception men suffer is from their own opinions. ~ Leonardo da Vinci

Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience and the passion to reach for the stars to change the world.

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. Continue reading

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CORPORATE AND PROFESSIONAL UPDATE SEPT 27, 2016

Professional Update For the Day:

6Direct Tax:-

IT: Assessee has directly deposited cash in the supplier’s account and has produced the bills, no evasion of tax by claiming the bogus expenditure in cash – Arun Kumar Mondal Vs ITO, W-2(2), Burdwan (2016 (9) TMI 995 – ITAT Kolkata)

SC modifies Karnataka HC order on the issue of taxability of amount received by assessee-company (engaged in real estate business) on account of share capital from various share-holders. ITAT has held that share capital received by the assessee was in the nature of  of capital receipt and cannot be treated as business income despite the same having been received towards allotment of flats/ units. [TS-513-SC-2016]

Indirect Tax:-

CBEC has made amendments in various notification u/s 25(1) in Custom Act 1962 vide Notification No. 52/2016 –Custom-Tariff  dated 23/09/2016.(Click here to view)

Reg. Service Tax exemption on advancement of Yoga [Notification No. 42/2016-Service Tax]

In the below citied case petitioner had calculated and deposited tax 10.3% whereas the tax had to be calculated 12.36% as per department.Delhi high court held that here is no provision in the VCES which permits correction of errors of this nature by the Petitioner.It was not obligatory for the Respondent to inform the Petitioner what the correct rate of service tax was. It was for the Petitioner to have ascertained the correct rate of tax and calculated the service tax.(Techno Concept India Pvt. Ltd. Versus The Deputy Commissioner of Service Tax, Delhi)

GST UPDATES

Under GST,all cesses to be subsumed in GST. Only 5% assessees would be audited in GST regime, against 70-80% by some states now.

FAQ as Issued by CBEC

Q . How to compute ‘aggregate turnover’ to determine eligibility for composition scheme?

Ans. The methodology to compute aggregate turnover is given in Section 2(6). Accordingly, ‘aggregate turnover’ means ‘Value of all supplies (taxable and non-taxable supplies + Exempt supplies + Exports) and it excludesTaxes levied under CGST Act, SGST Act and IGST Act, Value of inward supplies + Value of supplies taxable under reverse charge of a person having the same PAN.

Q . What are the penal consequences if a taxable person violates the condition and is not eligible for payment of tax under the Composition scheme?

Ans. Taxable person who was not eligible for the composition scheme would be liable to pay tax, interest and in addition he shall also be liable to a penalty equivalent to the amount of tax payable. (Section 8 (3) of the MGL).

Q . What is the minimum rate of tax prescribed for composition scheme?

Ans. 1%

Q . When exemption from whole of tax collected on goods and/or services has been granted unconditionally, can taxable person pay tax?

Ans. No, the taxable person providing such goods or services shall not collect the tax on such goods or services.

FAQ on Company Law:

Query: In case of a right issue of shares by a private limited company for which board meeting we should file MGT 14 u/s 179(3)(c). Is it for the Board Meeting where rights issues offer is made or the Board Meeting where rights issue shares are issued and allotted?

Answer: In case of Rights issue, you shall be required to file Form MGT-14 under section 179(3) within 30 Daysof passing the Board Resolution in which Shares are issuedand allotted and put its SRN in Form PAS 3 accordingly.

MCA UPDATE

MCA has made an amendment to the Companies (Management and Administration) Rules, 2014. These rules may be called the Companies (Management and Administration) Amendment Rules, 2016 which shall come into force on the date of their publication in the Official Gazette.

Key Dates:

  • Advance information in BE_2  Formf or 1st fortnight of Oct of functions with booking cost more than rs 1 lakh in Banquet Halls, hotels etc. in Delhi for DVAT-27/09/2016
  • Return by banks in Form no. 26QAA for interest upto Rs. 5000 for September quarter.-30/09/2016
  • E-filling of reconciliation return of statutory forms for the year ending 2015-16-30/09/2016
  • Payment of TDS for the purchase of property for the month of August-30/09/2016
  • Due date for income declaration scheme  2016 is 30th September, no extension expected.

“In order to carry a positive action we must develop here a positive vision.”

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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. Continue reading

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FAQ on GST

FAQ on GST

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The Central Board of Excise and Customs has issue FAQ on GST. We are looking for your comments

FAQ on GST

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

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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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GST – DRAFT RULES AND FORMATS

GST – DRAFT RULES AND FORMATS

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The Central Board of Excise and Customs has issue few draft Rules and Formats. We are looking for your comments in it by 28th September 2016 and we will forward the same to CBEC and GSTN.

The following drafts are attached for your reference:

  1. Draft Registration Rules
  2. Draft Registration formats
  3. Draft Payment Rules
  4. Draft Payment formats
  5. Draft Invoice Rules
  6. Draft Invoice formats

Respective changes in the Model GST Law are being going on separately.

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

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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 SEPT 26, 2016

Professional Update For the Day:

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Direct Tax:-

IT: Penalty u/s 271B – assessee firm could not get the accounts audited within time limit prescribed u/s 44AB – there is no mala fide reason for not obtaining the accounts audited in time and penalty u/s 271B should not be imposed – M/s. Gemorium Vs ITO Ward-5(1), Jaipur (2016 (9) TMI 962 – ITAT Jaipur)

CBDT has issued office memorandum regarding withdrawal of notifications granting approval  u/s 35(1)(ii) of the Income-tax Act, 1961 in some cases.{ notification.No.203/09/2015/ITA.II  dated 21/09/2016}

IT: Late filing fee u/s 234E – late filing of TDS return prior to 01 JUN 2015 – demand notices u/s 200A for intimation for payment of fee u/s 234E can be said as without any authority of law and the same are quashed and set aside to that extent – Sri Fatheraj Singhvi & Others Vs Union of India & Others (2016 (9) TMI 964 – Karnataka High Court)

IT: Adjustment in respect of levy of fees U/s 234E was indeed beyond the scope of permissible adjustments contemplated U/s 200A – Little Servants of Divine Providence Charitable Trust Vs ITO (TDS), Alappuzha (2016 (9) TMI 960 – ITAT Cochin)

IT: Penalty u/s 271B – assessee firm could not get the accounts audited within time limit prescribed u/s 44AB – there is no mala fide reason for not obtaining the accounts audited in time and penalty u/s 271B should not be imposed – M/s. Gemorium Vs ITO Ward-5(1), Jaipur (2016 (9) TMI 962 – ITAT Jaipur)

IT: Assessee has directly deposited cash in the supplier’s account and has produced the bills, no evasion of tax by claiming the bogus expenditure in cash – Arun Kumar Mondal Vs ITO, W-2(2), Burdwan (2016 (9) TMI 995 – ITAT Kolkata)

INDIRECT TAX:-

ST: Reimbursable expenses cannot be added in the assessable value of the C&F, ST tax is payable only on the commission and not on the reimbursable expenses  – CCE, Indore Vs Virmani Enterprises (2016 (9) TMI 1025 – CESTAT New Delhi)

VAT & ST: Sale of apartment – petitioner doesn’t become works contractor unless it had already entered into a contract with potential purchasers – Oceanus Dwellings Pvt. Ltd. Vs C.T.O. & Ors (2016 (9) TMI 971 – Kerala High Court)

VAT & ST: Sale of apartment – petitioner doesn’t become works contractor unless it had already entered into a contract with potential purchasers – Oceanus Dwellings Pvt. Ltd. Vs C.T.O. & Ors (2016 (9) TMI 971 – Kerala High Court)

GST Updates:-

Under GST compounding dealer can switch to normal dealer during the year but he can’t change again to compounding dealer during same year.

GST: CBEC released Frequently Asked Questions (FAQ) on GST on 21.09.2016. Link athttp://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/faq-on-gst.pdf

GST CBEC issues FAQ’S on Registration, Valuation, ITC, Assessment, Audit, Refund, Demand & Recovery, Appeals, Advance Ruling, Offence & Penalties etc.

SEBI Updates:-

 SEBI has issued circular in respect of Permission for trading in futures contracts and modification in contract specifications at exchange level.

SEBI has issued a clarification that ‘Income from Operations’ may be disclosed inclusive of excise duty, instead of net of excise duty, as specified in the Companies Act, 2013.

FAQ on Company Law:

Query:  Can a Pvt. Ltd. Company pay remuneration to its Ordinary Director (other than M.D/WTD) on Monthly, Quarterly or yearly basis apart from 1% or 3% of Net Profit as provided under Section 197 of The Companies Act, 2013?

Answer: Private Company can pay remuneration to director (other than M.D/WTD) without any limit subject to provisions contained in the Articles of Association of the Company. However by passing a board resolution you can fix/revise the remuneration of the directors in private company. 

MCA Update :

MCA released Companies (Management and Administration) Amendment Rules, 2016 vide Notification dated 23.09.2016.  : The Ministry of Corporate Affairs (MCA) has made an amendment to the Companies (Management and Administration) Rules, 2014. These rules may be called the Companies (Management and Administration) Amendment Rules, 2016 which shall come into force on the date of their publication in the Official Gazette.

Amendment is made to clarify the provision of Section 93 of the Companies Act, 2013 under which every listed company is required to file with the Registrar, a return in Form No. MGT.10, with respect to changes in the shareholding position of promoters and top ten shareholders of the company, in each case, representing increase or decrease by two per cent or more of the paid-up share capital of the company, within fifteen days of such change.

Further, Form MGT-6 which is Return to the Registrar in respect of declaration of beneficial interest in shares under section 89 by the company has also been revised.

OTHER UPDATES:-

The Union Cabinet has approved today the proposal of the merging of Union Finance Budget and Railway Budget. Now a Consolidated Budget shall be presented on February 1 every year instead of the last day of the month of February.

Cabinet approves Agreement between India and Samoa for exchange of information with respect to Taxes – See more at: http://taxguru.in/income-tax/cabinet-approves-agreement-samoa-tax-info-exchange.html#sthash.njfis8w1.dpuf

Cabinet approves extension of the validity of Central Orders dated 28.09.2015 in respect of edible oils and edible oilseeds and Central Order No. S.O. No. 2857(E) dated 18.10.2015 in respect of pulses from01.10.2016 to 30.09.2017.

Today is last date for e-payment of ESI, and for DVAT & CST pertaining to august, 2016.

ICAI Updates:-

ICAI: Please pay your Membership and COP fee for 2016-17 before 30 SEP 2016.

Key Dates:

Advance information in BE_2  Formf or 1st fortnight of Oct of functions with booking cost more than rs 1 lakh in Banquet Halls, hotels etc. in Delhi for DVAT -27/09/2016

Time, power, money & body may not cooperate every time in life but Good nature, good understanding, spiritual path & true spirit will always cooperate in life.

Silence is the strong fence around wisdom, If your foot slips, You can re-gain your balance, but if your tongue slips, you can never re-build your image again.

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

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HIGHLIGHTS RESULTS OF THE GST COUNCIL MEETING HELD ON 22-23 SEPTEMBER,2016:

HIGHLIGHTS RESULTS OF THE GST COUNCIL MEETING HELD ON 22-23 SEPTEMBER,2016:

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  1. The threshold Annual Exemption Limit fixed at ₹ 20 Lac.
  2. The threshold limit for the north-eastern and hill states paged at ₹ 10 Lac.
  3. GST rates and tax slabs would be decided at three-day’s meeting during 17-19 Oct, 2016.
  4. GST rollout slated for 1st April, 2017.
  5. All cesses will be subsumed in the GST
  6. GST Council’s next meeting on 30th Sep, 2016 to finalise draft GST law / rules.
  7. The state authorities will have jurisdiction over assessees with annual turnover of less than ₹ 1.5 crore.
  8. Those with turnover of over Rs 1.5 Crores would be cross examination either by officers from the Centre or state to avoid dual control.
  9. The existing 11 Lac service tax assessees would continued to be assessed by the Centre.
  10. New assessees which would be added to the list would be divided between the Centre and the States.
  11. Council is working on a compensation law and draft compensation formula.
  12. The base year for calculating compensation would be 2015-16 and the formula for payment of compensation would be deliberated b/w the state and Central authorities.
  13. All decisions today by the GST Council were taken on the basis of consensus.

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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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