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.”

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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. Continue reading

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CORPORATE AND PROFESSIONAL UPDATE JULY 20, 2016

Professional Update for the Day:

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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

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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. 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:

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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.”

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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 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”

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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 9, 2016

Professional Update For the Day:

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DIRECT TAX:

Income Tax : Cash deposits in bank can’t be held as undisclosed income without verifying source of deposits Gurpal Singh v. Income-tax Officer, Ward-1, Kapurthala Income-tax Officer, Ward-1, Kapurthala

Income Tax : Chennai ITAT denies Sec 11 exemption to assessee ,an educational trust  with respect to income earned from renting of ‘auditorium hall’ during AY 2010-11.It observed that exemption u/s 11(4) is available on income derived from business held under trust and the words ‘property held under trust’ includes business undertaking held under trust. [TS-364-ITAT-2016(CHNY)]

Income Tax:  Hyderabad ITAT rules that compensation received by assessee ,an India based publication house,in terms of settlement  agreement for not using the trademark obtained from a London based company – Longman Communications Ltd.  which was taken over by Pearson Group, UK,  is a non-taxable capital receipt for AY 2008-09. [TS-363-ITAT-2016(HYD)]

INDIRECT TAX:

Service tax :   Calcutta high court in the case of Saurav Ganguly held that there is no service tax for writing artlcles, anchoring TV shows, playing IPL matches & Brand Endorsement.( Sourav Ganguly -Vs.- Union of India & Ors.)  

    Service tax : Consultancy service availed to procure finance for business is eligible input service Commissioner of Central Excise Bangalore II Commissionerate v. Sanmar Speciality Chemicals Ltd.[2016] 71 taxmann.com 10 (Karnataka)

Excise : Supreme Court in the judgment of the given case held that Subsidy by way of refund of excise duty and interest for setting up a new industrial undertaking is a capital receipt & not taxable as income. Alternatively, such receipts are “derived” from the industrial undertaking and are deductible u/s 80-IB.( CIT Vs. Shree Balaji Alloys)

Custom : Karnataka HC upholds Tribunal order denying exemption u/s 5(2) of CST Act on lease transactions effected by Hewlett Packard (assessee) with local customers on ground that same did not constitute ‘sale in course of import. [TS-268-HC-2016(KAR)-VAT]

OTHER UPDATES:

Banks need not report details about invocation of bank guarantee for service imports RBI/2016-17/8  A.P. (DIR Series) Circular No. 1 Dated July 07, 2016

Time period u/s 139 to comply with provisions of rotation, changed to 1st AGM held after 3yrs from commencement of Companies Act, 2013. Removal of Difficulties 3rd Order, 2016.

Where appellant holding merely eight shares objected to scheme of amalgamation which had been approved by all shareholders, secured and unsecured creditor, objection of appellant was malicious and mala fide as he was disqualified from continuing as statutory auditor of company – [2016] 70 taxmann 394 (Delhi)

KEY DATES :

Excise return in Form ER-1 for non SSI assessee for the month of June: 10/07/2016

Excise Return in Form ER-2 for EOUs for the month of June: 10/07/2016

Submission of Excise Return in ER-3 by SSI unit for June quarter: 10/07/2016

“No masterpiece was ever created by a lazy artist”

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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 7, 2016

Professional Update For the Day:

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DIRECT TAX:

Income Tax : Deduction u/s 80HH of the Act in respect of profit and gains from newly established industrial undertaking in backward areas would be given subject to fulfillment of certain conditions as provided in sub section (2) of the said provision. Indian Railway Const. Co. Ltd. Vs. IAC (A) -ITAT Delhi

Income Tax : Bangalore ITAT upholds capital gains addition in respect of sale of various lands held by assessee, engaged in buying / selling of immovable properties, during AY 2007-08, rejects assessee’s claim of exemption on the ground that land was agricultural land and falls under exclusion clause (iii) to Sec 2(14). [TS-360-ITAT-2016(Bang)]

Income Tax:  ITAT in the given case held that the ‘upfront fee’ paid to Central Bank of India on loan taken from it is allowable as a deduction from the assessee’s income. ( DCIT, Mumbai Vs. M/s Videocon Industires Ltd.)

Income Tax:  Income Computation and Disclosure Standards (ICDS) are to be applicable from 1.4.2016 i.e. previous year 2016-17 (AY 2017-18), postponed by one year.

Payment made to agencies for services of Toll collection would attract sec. 194C TDS and not sec. 194H TDS Deputy Commissioner of Income-tax, Circle-3(1), (TDS), Vijayawada v. Project Director, NHAI [2016] 71 taxmann.com 7 (Visakhapatnam – Trib.)

INDIRECT TAX:

CENVAT : CENVAT Credit on Canteen Services and House Keeping/Cleaning Services availed in office building are admissible to Assessee when same was situated within licensed factory premises of Assessee.( M/S. Tata Steel Ltd. Vs. Commissioner Of Central Excise & Service Tax, Jamshedpur (Cestat Kolkata)

 Vat & sales tax:  Joint Commissioner has to decide VAT proceedings without any interference of other authority Tanuj Agency (P.) Ltd. v. State of Gujarat [2016] 71 taxmann.com 4 (Gujarat)

OTHER UPDATES:

COMPAT quashes CCI’s penalty order of Rs. 6.75 crores on India Trade Promotion  Organization India Trade Promotion Organization v. Competition Commission of India , New Delhi [2016] 71 taxmann.com 71 (CAT – New Delhi).

Time period u/s 139 to comply with provisions of rotation, changed to 1st AGM held after 3yrs from commencement of Companies Act, 2013. Removal of Difficulties 3rd Order, 2016.

KEY DATES :

Submission of form 27C (TCS) received in the month of June: 07/07/2016

Payment of TDS for the month of June: 07/07/2016

“There was never a night that could defeat sunrise, as equally there is never a problem that could defeat hope. Hope for the best always.”

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 6, 2016

Professional Update For the Day:

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DIRECT TAX:

Income Tax : ITAT in the given case held that-as the international transactions of payment of royalty and fees for technical services are separate transactions and not closely linked with the other transactions with which the assessee has merged them, we cannot permit such merger or aggregation for the purpose of the determining their ALP on entity level under TNMM. (Gruner India Pvt. Ltd. Vs. DCIT, New Delhi)

Income Tax : S. 37(1): Expenditure on Corporate Social Responsibility (CSR), though voluntary, is allowable as business expenditure. Explanation 2 to s. 37(1) inserted w.e.f. 01.04.2015 is not retrospective. It applies only to CSR expenditure referred to in s. 135 of the Companies Act and not to voluntary CSR expenditure ACIT vs. Jindal Power Limited (ITAT Raipur)

Income Tax: No notional interest on belated payments by AE when assessee allows credit period to non-AEs as well GSS Infotech Ltd. v. Assistant Commissioner of Income-tax, Circle-2(2), Hyderabad [2016] 70 taxmann.com 356 (Hyderabad – Trib.)

Income Tax: Apex Court admits SLP of revenue against ‘Vodafone India’ to decide taxability of transfer of call option rights
Commissioner of Income-tax-3 v. Vodafone India Services (P.) Ltd. [2016] 70 taxmann.com 383 (SC).)

INDIRECT TAX:

Vat & sales tax: Department of Trade & Taxes has issued a circular regarding description of goods /Items along with their item codes vide circular No. 10 /2016-17 dated 01.07.2016.All registered dealers of Delhi are mandatorily required to file their returns as per the list made by the department for the tax period commencing from 1st April, 2016 and all subsequent tax periods. The list along with item codes has been uploaded on the website of the department.

Vat & sales tax: Department of Trade & Taxes has issued a notification regarding filling of return through Digital Signature vide notification No. F3 (643)/Policy/VAT/2016/419-31 dated 01-07-2016 The dealers with gross turnover exceeding one crore rupees, shall furnish their returns in Form DVAT 16 or in Form DVAT 17, as the case may be with digital signatures in accordance with the provisions of the Information Technology Act, 2000 for the tax period 1st April, 2016 to 30th June, 2016 and subsequent tax periods.

CBEC has issued a circular regarding recovery of confirmed demands during the pendency of stay application vide circular No. 1035/23/2016-CX dated 04-07.2016.

OTHER UPDATES:

COMPAT quashes CCI’s penalty order of Rs. 6.75 crores on India Trade Promotion Organisation India Trade Promotion Organisation v. Competition Commission of India , New Delhi [2016] 71 taxmann.com 71 (CAT – New Delhi)

Time period u/s 139 to comply with provisions of rotation, changed to 1st AGM held after 3yrs from commencement of Companies Act, 2013. Removal of Difficulties 3rd Order, 2016.

KEY DATES :

E- Payment of service tax for June: 06/07/2016

Payment of TDS for the month of June: 07/07/2016

“Trust because you are willing to accept the risk, not because it’s safe or certain.”

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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