CORPORATE AND PROFESSIONAL UPDATE MARCH 29, 2017

Professional Update For the Day:

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

Direct Tax:

Share application money received from bogus shareholders, ITO to reopen assessment of such shareholders and not to add the same to the assessee’s income as unexplained cash credit – CIT-1 Vs Gagandeep Infrastructure Pvt. Ltd. (2017 (3) TMI 1263 – Bombay High Court).

Lessee can’t claim depreciation on reimbursement of construction cost to lessor: Apex Court [2017] 79 375 (SC)

Fine for traffic violation isn’t deductible as business expenditure: Kolkata ITAT .[2017] 79 240 (Kolkata – Trib.).

Recruitment services to foreign co. using information technology wouldn’t be eligible for benefit u/s 10A, SLP granted .[2017] 79  255 (SC)

Materials confiscated due to contravening excise rules could be retained by assessee on payment of redemption fine. [2017] 79 262 (Madras).

Out of pocket expenses which are in nature of conveyance, travel, mobile expenses etc. cannot be included for purpose of levy of service tax under category of management consultant. [2017] 7 196 (New Delhi – CESTAT).

The Central Board of Direct Taxes (CBDT) on March 24 issued a circular for waiver of interest in disputed tax demand in different scenarios.

Govt. can make Aadhar must for ITRs, PAN, Bank A/cs, etc. except welfare schemes – Supreme Court of India.

Share application money rec’d from bogus shareholders, ITO to reopen assessment of such shareholders and not to add the same to the assessee’s income as unexplained cash credit – CIT-1 Vs Gagandeep Infrastructure Pvt. Ltd. (2017 (3) TMI 1263 – Bombay High Court).

CBDT has issued a notification via notification no. 17/2017/F.No. 370142/4/2017-TPL dated 23rd march,2017declaration of Income tax ( 3rd Amendment) Rules, 2017.

ITAT Mumbai held that TDS is not applicable on Hotel Rent in absence of any contract . Red Chillies Entertainment Pvt. Ltd. Vs ACIT.(TDS) (ITAT Mumbai)

ITAT Mumbai held that Rule-8D is not attracted and applicable in a situation, where, the assessee has voluntarily computed the disallowance as per Rule-8D of the Rules. M/s Shapoorji Pallonji & Co. Ltd Vs. DCIT (ITAT Mumbai)

Rajasthan High Court held that notice issued by the authority asking the assessee to file the returnwithin fifteen days under section 158BC is not in accordance with the provisions of the Income-tax Act and therefore it is invalid. Kumawat Udyog Bus Stand Vs CIT (Rajasthan High Court)

Indirect Tax:

DVAT has prescribed the procedure  to be adopted for de-selling of the business premises, which are sealed in the event of Enforcement Survey etc. by the officers of the Department of Trade & TaxesVide Circular No. 27 of 2016-17 dated 08.03.2017. (Click here to view)

CBEC has issued Master Circuar on Show Cause Notice, Adjudication and Recovery Vide Circular No. 1053/02/2017-CX dated 10.03.2017.

CBEC has issued a circular via circular no. 205/3/2017 – service tax dated 27th march, 2017 regarding extension of e-payment deadline and of banking hours.

CESTAT Mumbai held that enhanced duty inapplicable on goods loaded on ship for export, before enhancement of duty; Accepts assessee’s contention that, checklist of shipping bill indicates that permission has been granted on each day when loading has taken place, therefore, enhanced rate of duty would be applicable only to consignments loaded after issue of notification. [TS-567-CESTAT-2016-CUST]

FAQ ON GST: 

Query: 

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

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

Query: Under reverse charge, what is the time of supply of service?

Answer: The time of supply will be the earliest of the following dates:

  1. a) date of receipt of services;
  2. b) date on which payment is made;
  3. c) date of receipt of invoice;
  4. d) date of debit in the books of accounts by supplier.

GST UPDATE

GST Peak rate kept at 40% in the Bill to obviate the need to approach Parliament for changing tax rates in case of exigencies or when the Cess is removed.

The CGST Bill keeps TCS not >1% of the net value of taxable supplies out of payments to vendors of goods or services through e-Commerce companies portal.

SEBI Updates:

SEBI has further extended the period by three months to the Exclusively Listed Companies (ELCs) on the Dissemination Board (DB) till June 30, 2017.

MCA Update:

MCA has revised the versions of eForm – Form 20B, Form PAS-3 and  Form 23ACA, will be available on the portal w.e.f  29th  March 2017.

Other Update :

ICAI is organising Master in Business Finance Certificate Course (MBFCC) – Registrations opened. http://resource.cdn.icai.org/44930cma34840.pdf. Cntct-0120-3045905 / cma@icai.in

Key Due Dates:

Important dates for March 2017:

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

The Secret of Health for both mind and body is, not to mourn for the Past, worry about the Future or anticipate Troubles, but to live in the Present Moment wisely and earnestly.

The pain you feel today is the strength you feel tomorrow.

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 23, 2017

Professional Update For the Day:

12063638_638617379575160_6969933422362888076_n

Direct Tax:

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

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

The Finance Bill, 2017 passed with Changes:

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

Indirect Tax:

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

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

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

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

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

FAQ on GST: 

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

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

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

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

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

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

GST Updates :

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

RBI Updates :

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

SEBI Update: 

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

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

MCA Updates:

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

Key Due Dates:

Important dates for March 2017:

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

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

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

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

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

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

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CORPORATE AND PROFESSIONAL UPDATE DEC 13, 2016

Professional Update for the Day:

images (2)

Direct Tax:-

  • Reopening u/s 147 of the assessment is not valid if the reasons recorded are incoherent and do not indicate what the basis for reopening is – Delhi High Court in Sabharwal Properties Ind Pvt. Ltd vs. ITO.
  • Continuous payments made to transporters would be aggregated to consider TDS limit under sec. 194C Sri Shivamurthy v. Additional Commissioner of Income-tax, Shimoga Range, Shimoga [2016] (Bangalore – Trib.)
  • No benchmarking at entity level when assessee was earning more than 50% of revenue from Non-AE clients AXA Technologies Shared Services (P.) Ltd. v.Deputy Commissioner of Income-tax, Circle-11(1), Bangalore [2016] (Bangalore – Trib.)
  • HC : Reverses ITAT; Concealment penalty unsustainable on DRE-deduction claim despite earlier year disallowance [TS-650-HC-2016(BOM)]

Indirect Tax:-

  • CBEC has issued instructions dated 9th December, 2016 for the use of digital mode of payment while making financial transactions as this will disclose all financial transactions and hence enhanced turnover might get reflected in the Books of Accounts.

Companies Act  Update:-

  • Of India issued report on Companies Amendment Bill, 2016.
  • MCA has notified the Companies (Transfer of Pending Proceedings) Rules, 2016 which shall come into force w.e.f 15th December, 2016 except rule 4, which shall come into force from 1st April, 2017.

Other Update:-

  • Senior IRS officer Rajendra Kumar appointed as the new member of the CBDT, the policy making body for the Income Tax Department.

Key Dates:-

  • Payment of Advance Income Tax for all assessees (75%) : 15/12/2016.
  • E-Payment of PF for Nov: 15/12/2016.
  • Payment of DVAT TDS for Nov : 15/12/2016.
  • Issue of TDS certificate in case of payment/credit made in Oct for purchase of property u/s 194IA : 15/12/2016.

“Beautiful relation is like a ring when you wear it, it will hold your finger tightly, and when you remove it, it will surely make you feel it’s absence with a mark.”

“No candle loses its light while lighting another candle. So never stop sharing and helping others because it makes your life more meaningful.”

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

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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 JULY 22, 2016

Professional Update for the Day:

8-Tips-Biz-Name

DIRECT TAX:

Income Tax: ITAT Ahemdabad confirmed the addition of unexplained investments in purchase of agricultural land u/s 69 as the co-purchaser admittedly is not entitled to purchase agricultural lands. It has been observed that even he had purchased the land in assessee’s name, the latter is the sole owner thereof as per the provisions of the Benami transations (Prohibition) Act 1988. (Shri Chandrakant N. Patel Vs. The ITO, Ahmedabad) Continue reading

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CORPORATE AND PROFESSIONAL UPDATE JULY 21, 2016

Professional Update for the Day:

1 (2)DIRECT TAX:

Income Tax:  Interest paid by contractor to finance its business wasn’t includible in cost of inventory; No understatement of WIP Deputy Commissioner of Income-tax, Central Circle 2(2), Bangalore v. JSR Constructions (P.) Ltd. [2016] 71 taxmann.com 184 (Bangalore – Trib.)

Income tax : ITAT Chennai in below citied case held that Continuance of registration u/s 12AA – The beneficiaries is only the members and benefit is not passed on to the public at large in any way. – Therefore, the objects and activities of the applicant cannot be called as “charitable” within the definition of main provision of section 2(15) –( ITAT Chennai in case of [M/s. Aiema Technology Centre Vs. The DIT, (Exemptions)]

Income tax : ITAT C Ahmedabad in below citied case held that Valuation u/s 50C is a deeming provision and it extends only to land or building or both. – Rights in the land cannot be equated to land or building or both and therefore section 50C is not applicable on transfer of such rights –( ITAT Ahmedabad in case of [Smt. Devindraben I. Barot Vs. ITO, Ahmedabad])

INDIRECT TAX:

Excise : Where assessee manufactured two machineries and used same within its factory for manufacturing of final products and subsequently it cleared these machineries to its job worker and for discharging duty liability on machineries calculated assessable value of machineries by availing benefit of depreciation, availing of depreciation was in consonance with law – [2016] 71 taxmann.com 122 (Bangalore – CESTAT)

Service tax : Where assessee provided site formation and clearance and excavation services to one ‘S’ and ‘S’ in terms of agreement supplied explosives and diesel oil free of cost to assessee for rendering services and also paid bonus to it for a good performance, Adjudicating Authority was wrong in including value of explosives and diesel oil and bonus received by assessee in assessable value of services – [2016] 71 taxmann.com 175 (Bangalore – CESTAT)

COMPANY LAWUPDATES :

Query:   What shall be treatment of reserves in case we convert our Private Limited company to LLP?

Answer:   In case of conversion of Private company into LLP, reverves can be treated in two ways. – for the treatment of reserves subsisting in the Balance sheet of Company, either distribute the reserves among the partners in their capital sharing ratio or the same would be transferred in the reserves account of the LLP under the head Reserves & Surplus.

Use latest version of e-Forms INC-23, MR-1 and MR-2, which are likely to be revised on MCA Portal by 21.07.2016. 

OTHER UPDATES:

The recommendation of the Supreme Court-constituted special investigation team (SIT) to ban cash transactions above Rs.3 lakh and capping cash holdings of companies and individuals at Rs.15 lakh will be detrimental for India’s traditional economy, according to a leading traders body.

KEY DATES:

Payment of ESI for the month of June-21/07/2016

E-payment of DVAT & CST for the month/quarter ended June-21/07/2016

Time limit for payment of tax and penalty under the Income Declaration Scheme 2016 extended to 30.09.2017. CBDT Press Release dated 14.07.16

“Those who cannot renounce attachment to the results of their work are far from the path.”

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 JULY 20, 2016

Professional Update for the Day:

Untitled18A

DIRECT TAX:

Income Tax: CBDT has notified the transfer pricing- computation of arm length price .It notified percentage under third proviso to section 92C vide Notification No. 57/2016 dated 14th July 2016.The Central Government hereby notifies that where the variation between the arm’s length price determined under section 92C and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one percent of the latter in respect of wholesale trading and three percent of the latter in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price for Assessment Year 2016-2017.

Income tax : Receipts from mobilization of vessel are parts of contract for seismic data processing; includible in sec. 44BB profits Western Geco International Ltd. v. Assistant Commissioner of Income-tax [2016] 71 taxmann.com 166 (Delhi – Trib.)

INDIRECT TAX:

Excise : Where assessee manufactured two machineries and used same within its factory for manufacturing of final products and subsequently it cleared these machineries to its job worker and for discharging duty liability on machineries calculated assessable value of machineries by availing benefit of depreciation, availing of depreciation was in consonance with law – [2016] 71 taxmann.com 122 (Bangalore – CESTAT)

Excise : No extended period when dept. itself is unclear on classification of goods Zenith Spares v. Commissioner of Central Excise, Bhopal [2016] 71 taxmann.com 148 (New Delhi – CESTAT)

Service tax : Where assessee, a restaurant, opted to pay tax under Composition Scheme, whereas Assessing Authority passed reassessment order on assessee and denied him benefit of Composition Scheme based on ground that during year he purchased from outside State tiles and since they were ‘goods in stock’, there was a violation of conditions and restrictions imposed under rule 135(2), as tiles were fixed in floor of restaurant, they could not be said to be ‘goods in stock’ –  [2016] 71 taxmann 77 (Karnataka)

COMPANY LAW UPDATES :

Query:  What are the requirements and consequence provided in the Act in respect of licences, permits, approvals etc obtained by a firm, private company or an unlisted public company, prior to its conversion into LLP?

Answer:  On conversion of a firm/private company/unlisted public company into LLP, any approval, permit or licence issued to the firm/private company/unlisted company under any other Act shall, subject to the provisions of such other Act under which such approval, permit or licence was issued, be transferred in the name of converted entity viz LLP.

 OTHER UPDATES:

SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2016 – Insertion of Regulation 43A – NOTIFICATION NO.SEBI/LAD-NRO/GN/2016-17/008, DATED 17-6-2016

KEY DATES:

Payment of ESI for the month of June-21/07/2016

E-payment of DVAT & CST for the month/quarter ended June-21/07/2016

“Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else, but you are the one who gets burned.”

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.
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 JULY 18, 2016

Professional Update For the Day:

trademark-patent-startup-india-incentive-1050x600

DIRECT TAX:

Income Tax : No denial of Sec. 54F relief if taxpayer is unable to get possession of flat due to builder’s fault
Rajeev B. Shah v. Income-tax Officer, Ward-19 (2) (1), Mumbai
[2016] 71 taxmann.com 198 (Mumbai – Trib.)

Income Tax: The Government of India has given Relaxation of time schedule for making payments under the Scheme the Income Declaration Scheme 2016: (I) a minimum 25% of the tax, paid by 30.11.2016; (ii) further 25% by 31.3.2017; and balance on or before 30.9.2017.

Income tax : In a bid to end taxpayers harassment, the CBDT has prescribed revised format for Scrutiny Notice u/s 143(2) of the Income Tax Act’1961 in “three new formats” that will clearly stipulate if the inquiry against them is “limited, complete or manual”. All scrutiny notices, shall henceforth, be issued in these revised formats. Further, Taxpayers residing in cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai can opt for paperless/E-Assessment (if their case falls under scrutiny) as part of a new pilot project that the CBDT is running in this regard.

Income tax : Where activities of assessee-society in organising seminars/conferences and Auto Expo were performed with prior object of promotion of growth of automobile industry in India which is an object of general public utility, such activities would not come within ambit of proviso to section 2(15) even if some income was generated from such activities – [2016] 71 taxmann.com 138 (Delhi – Trib.)

INDIRECT TAX:

Service tax : While dismissing appeal as time-barred, appellate authority cannot go into merits; hence, if appellate authority, while dismissing appeal as time barred, has entered into merits of case and dismissed same, on merits, then, such an act of appellate authority would be an illegality, which can be set aside in writ – [2016] 71 taxmann.com 113 (Madras)

Vat & sales tax : TEAM STBA with their efforts has done:(i) CDT Form 9, For 2015-16 put on site, also allows forms details of 12-13, 13-14 & 14-15 to be filed.(ii) Like 2013-14 VATO allowed to correct 2A/2B details of 2014-15 where Name/TIN needs correction without change in amount

COMPANY  LAW UPDATES :

Query: In one of our Company, shareholders have appointed their respective nominees as per Section 72 of the Companies Act 2013. Now, one of the shareholder died and his nominee wants to transfer shares to third party. Now, our question is – Can the nominee sell the shares without registration in `his favour. If yes, what is the procedure?

Answer: Yes, a nominee can sell the shares to a third party, without registration of shares in his favour. However, the usual procedure for transfer of shares will have to be followed.

OTHER UPDATES:

SEBI : Carrying on CIS on or after 25-1-1995 without obtaining registration certificate has been prohibited: SAT
Securities and Exchange Board of India v. Gaurav Varshney
[2016] 71 taxmann.com 197 (SC)

SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2016 – Insertion of Regulation 43A – NOTIFICATION NO.SEBI/LAD-NRO/GN/2016-17/008, DATED 17-6-2016

KEY DATES:

Payment of ESI for the month of June-21/07/2016

E-payment of DVAT & CST for the month/quarter ended June-21/07/2016

“If you can’t explain it simply, you don’t understand it well enough”

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.
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 JULY 16, 2016

Professional Update For the Day:

blog-rja-with-image

DIRECT TAX:

Income Tax : Penalty levied for excess claim of unabsorbed depreciation u/s 115JB; ITAT denies theory of carry backward of losses SBI DFHI Ltd. v. Assistant Commissioner of Income-tax, Range-2 (1), Mumbai [2016] 71 taxmann.com 178 (Mumbai – Trib.)

Income Tax : Sec. 11 amendment which debars dual deduction to trust on purchase of asset doesn’t have retro-effect Commissioner of Income-tax (Exemptions), Bangalore v. Bangalore Baptist Hospital Society [2016] 71 taxmann.com 192 (Karnataka)

Income Tax: Exemption u/s 11 will be allowed on the income generated out of the auditorium which is held under trust of the society for the purpose of generating fund. ITAT Chennai held that the income generated out of the auditorium was used to the objects of the trust. [M/s The Association of Surgeons of India, C/o Shri S. Sridhar, Advocate Vs. The DDIT (Exemptions) – I, Chennai]

INDIRECT TAX:

Excise : CBEC has issued a circular on procedure regarding duty free shop vide circular no. 32/2016 dated 13.07.2016. It may be noted that the Special Warehouse (Custody & Handling of Goods) Regulations, 2016 prescribe maintenance of a computerized system for accounting. Accordingly, a system of accounting of receipt, storage, operations and removal of goods with regard to Duty Free Shops is prescribed in the notification.

Service tax : No service tax on profit earned by principal as it can’t be said to be promoting business of job worker Radico Khaitan Ltd. v. Commissioner of Service Tax, Delhi [2016] 71 taxmann.com 141 (New Delhi – CESTAT)

COMPANY ACT UPDATE :

MCA21 will remain temporarily unavailable from 9:00 PM (16 July) to 9:00 AM (17 July). Stakeholder are advised to plan accordingly.

E-Form AOC-04 for filing Annual Financial Statement is likely to be amended w.r.t filing of CSR expenditure details. The revised AOC-04 E-Form is likely to be available on MCA portal by 3rd week of Jul-2016. Stakeholders are requested to note that filing CSR details are mandatory. Therefore, Annual filing may be planned as per revised AOC-04.

OTHER UPDATES:

SEBI : SEBI has made an amendment in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2016 vide notification No. SEBI/ LAD-NRO/GN/2016-17/008 dated 08/07/2016.SEBI introduce regulation relating to “Dividend distribution Policy”.

Key dates :

Payment of ESI for the month of June-21/07/2016

E-payment of DVAT & CST for the month/quarter ended June-21/07/2016

“The search for happiness is the main reason for unhappiness. Accept life the way it comes, as a result, you will find happiness in every moment of your life.”

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.

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 JULY 15, 2016

Professional Update For the Day:

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DIRECT TAX:

Income Tax : No penalty on firm when it agreed to treat partner’s contribution as its income to buy peace Choupal Plywood v. Income-tax Officer, Ward-3, Yamunanagar [2016] 71 taxmann.com 135 (Chandigarh – Trib.)

Income Tax : Non-issuance of SCN prior to rejection of refund would render adjudication order as void D.E. Shaw India Software (P.) Ltd. v. commissioner of Customs, Central Excise and Service Tax, Hyderabad-II [2016] 71 taxmann.com 94 (Hyderabad – CESTAT)

Income Tax:   Amount set-aside for Debenture Redemption Reserve is to be added back for computing book profits Assistant Commissioner of Income-tax, Circle-4, Ahmedabad v. Genus Electrotech Ltd. [2016] 71 taxmann.com 101 (Ahmedabad – Trib.)

Income Tax: NCLT can’t deal with an asset whose property rights are in dispute before a Civil Court Vinod Muktinath Sharma v. Sharma Realty (P.) Ltd. [2016] 71 taxmann.com 144 (NCLT-New Delhi )

Income Tax: The Government of India has given Relaxation of time schedule for making payments under the Scheme the Income Declaration Scheme 2016:  (I) a minimum 25% of the tax, paid by 30.11.2016; (ii) further 25% by 31.3.2017; and balance on or before 30.9.2017.

In a bid to end taxpayers harassment, the CBDT has prescribed revised format for Scrutiny Notice u/s 143(2) of the Income Tax Act’1961 in “three new formats” that will clearly stipulate if the inquiry against them is “limited, complete or manual”. All scrutiny notices, shall henceforth, be issued in these revised formats. Further, Taxpayers residing in cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai can opt for paperless/E-Assessment (if their case falls under scrutiny) as part of a new pilot project that the CBDT is running in this regard.

INDIRECT TAX :

HC allows Revenue appeal, sets aside CESTAT order which allowed CENVAT credit on entire Captive Power Plant without examining eligibility of individual components used therein as “inputs” or “capital goods”. Revenue also raised substantial question whether credit could be availed on items such as angles, beams, channels, ladder trays, joists supporting structures, steel structures, which are neither “inputs” nor “capital goods” as per definitions under CENVAT Credit Rules 2004. Madras High Court

Excise : CBEC has issued a circular on procedure regarding duty free shop vide circular no. 32/2016 dated 13.07.2016. It may be noted that the Special Warehouse (Custody & Handling of Goods) Regulations, 2016 prescribe maintenance of a computerized system for accounting. Accordingly, a system of accounting of receipt, storage, operations and removal of goods with regard to Duty Free Shops is prescribed in the notification.

Service tax : Service-tax paid wrongly under reverse charge is refundable without bar of unjust enrichment ICOMM Tele Ltd. v. Commissioner of Customs, Central Excise & Service Tax, Hyderabad III [2016] 71 taxmann.com 95 (Hyderabad – CESTAT)

OTHER UPDATES:

SEBI : SEBI has notified the amended the Securities And Exchange Board Of India (Listing Obligations And Disclosure Requirements) (Second Amendment) Regulations, 2016 to introduce regulation  relating to ‘Dividend Distribution Policy’.

Forms FC-2, FC-4, MGT-10, MR-1, SH-7 and Refund Form are likely to be revised on MCA21 Company Forms Download page w.e.f 13th July 2016. Stakeholders are advised to check the latest version before filing.

E-Form AOC-04 for filing Annual Financial Statement is likely to be amended w.r.t filing of CSR expenditure details. The revised AOC-04 E-Form is likely to be available on MCA portal by 3rd week of Jul-2016. Stakeholders are requested to note that filing CSR details are mandatory. Therefore, Annual filing may be planned as per revised AOC-04.

Key dates :

TCS Return by all deductors: 15.07.2016

E-Payment of PF for the month of June: 15.07.2016

E-filing of form 15G/H for June Quarter: 15.07.2016

“Thinking should become your capital asset, no matter whatever ups and downs you come across in your life.”

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.
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 JULY 11, 2016

Professional Update For the Day:

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DIRECT TAX:

Income Tax : Where assessee trust was carrying on micro finance business in a commercial manner so as to earn profit and there was no iota of charity carried on by assessee, exemption under section 11 could not have been granted to assessee .( Assistant Commissioner of Income-tax v. Grama Vidiyal Trust)

Income Tax : Mesne profits (amount received from a person in wrongful possession of property) is a capital receipt and not chargeable to tax either as income or as “book profits” u/s 115JB. As the department has implicitly accepted Narang Overseas vs. ACIT 100 ITD (Mum) (SB), it cannot file an appeal on the issue in the case of other assessees. (CIT Vs. Goodwill Theaters Pvt. Ltd. (Bombay High Court)

Income Tax:   Slot hire facility is an integral part of contract for carriage of goods by sea and, thus, such an activity is also entitled to treaty protection under article 8 from source taxation of income arising from transportation of goods by operation of ships in international traffic, irrespective of whether or not such ships were owned or chartered by assessee – [2016] 70 taxmann 402 (Ahmedabad – Trib.)

INDIRECT TAX:

Excise : Exporter can claim credit of duty paid to job-worker even if he performs only testing and packing of goods Commissioner of Central Excise, Chennai III Commissionerate v. Braked India Ltd. [2016] 71 taxmann.com 103 (Madras)

Service tax : Services received from agents carrying out ‘sales promotion’ as well as ‘sale’ of products manufactured by assessee, are eligible for input service credit.- [2016]- 71 taxman 12 ( Banglore CESTAT)

Vat : Haryana Govt. specifies 15 days deadline to clear application for amendment in VAT certificate NOTIFICATION NO.15/ST-1/H.A. 6/2003/S.60/2016, DATED 25-5-2016

Excise : Where assessee was engaged in manufacturing of powder at its factory and it cleared said powder from factory in bulk without putting any brand name thereon and sent same to its godown, where it was repacked in containers of 200 gms and labelled with brand name and cleared therefrom, powder cleared from factory would be covered under Chapter Heading 2108.91- (2016) 71 taxman 5 (New Delhi) CESTAT

Custom : Where Customs Department directed bank to keep amounts frozen in current account of assessee, then, in absence of valid directions from assessee to transfer said amount in Fixed Deposit, bank cannot be expected to transfer same in Fixed Deposit; hence, assessee cannot claim ‘unearned interest’ on frozen amounts -[2016] 71 taxmann 9 (Bombay)

OTHER UPDATES:

SEBI : The Securities and Exchange Board of India has issued Consultation paper for Disclosure of financial information in offer document/ placement memorandum and for Valuation in respect of SEBI (Infrastructure investment trusts) Regulations, 2014. The SEBI (Infrastructure investment trusts) Regulations, 2014 (InvIT Regulations) were notified on September 26, 2014, thereby providing a regulatory framework for registration and regulation of InvITs in India. The regulations, inter alia, prescribe conditions for making a public offer and private placement and broad guidelines for making initial and continuous disclosures including disclosures of financials of the InvIT.

HC held that when assessee participated in reassessment proceedings by furnishing the required documents and challenges the reopening subsequently before the high court by filing a writ petition then it would be not be appropriate for the high court to exercise its exclusive jurisdiction because the assessee has already chosen AO to exercise jurisdiction in the matter and to challenge his order before the appropriate appellate forum provided under the Act.

“Quality is never an accident. It is always the result of high intention, sincere effort, intelligent direction, and skillful execution. It represents the wise choice of many alternatives”

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.

Continue reading

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