CORPORATE AND PROFESSIONAL UPDATE August 26, 2017

CORPORATE AND PROFESSIONAL UPDATE August 26, 2017

Image result for corporate images hdDirect Tax:

  • Delhi ITAT upholds assessee’s Resale Price Method (RPM) over TPO’s TNMM for AYs 2003-04 to 2005-06 for benchmarking purchases of finished goods from AE for resale, holds that RPM is most appropriate method absent any value addition by assessee[TS-661-ITAT-2017(DEL) -TP]
  • The income tax department is open to lowering the withholding tax rate for foreign companies which have income in India, says CBDT chairman Sushil Chandra.
  • Supreme Court ruling the right to privacy as a fundamental right under the Constitution has triggered uncertainty over the mandatory linking of Aadhaar for stock trading brokers said they will now wait for the SC judgment that will test the validity of Aadhaar.

Indirect Tax:

  • CBEC made amendment in the Integrated Goods and Services Tax Act by way of notification no 8/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28th June, 2017. Vide notification no 354/173/2017 –TRU, dated 22th August 2017.

GST Update

  • GST Authorities have issued clarification w.r.t selling of space for advertisement in print media on the basis of the queries being raised regarding GST applicability on the same. The rate is @ 5%.
  • IT Minister launched a GST filing and reconciliation solution product named ‘XaTTaX’. The product, developed by Sailotech, simplifies the filing of GST returns, claims for refund, raising invoices with comfort from home or workplace.

FAQ on GST

Query: What is the time limit beyond which the inputs/capital goods sent for job work shall be treated as supply?

Answer:The time limit prescribed for return of goods sent to job work under the exemption route is 1 year of being sent out (for inputs) and 3 years of being sent out (for capital goods). Therefore, if the inputs/ capital goods are returned to the principal after 1 year/ 3 years (as applicable), then such return of goods to the principal after the said period would be treated as ‘supply’. This time limit is not applicable to moulds and dies, jigs, fixtures, and tools

Corporate Law:

  • MCA made companies (Arrests in connection with Investigation by serious Fraud Investigation Office) Rules, 2017 which shall come into force on the date of their publication in the Official Gazette.Vide notification no ur2l20r3 cL-V, dated 24th august 2017
  • MCA amend the National Company Law Appellate Tribunal Rules, 2O16. These rules may be called the National Company Law Appellate Tribunal (Amendment) Rules’ 2O17 which shall come into force on the date of their publication in the official Gazette. Vide notification no 1/30/2013-CL-V, dated 23th August 2017
  • The Cabinet has approved a framework to speed up mergers of public sector banks, the first of which could take place by March. The mergers will not involve any cash but only share swaps.

Quotes of the day

“Plant your garden and decorate your own soul, instead of waiting for someone to bring you flowers.”

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 May 25, 2017

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Direct Tax:

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

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

 Indirect Tax:

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

Key dates:

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

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

 Other Updates:

Takeaways of Final GST Rules passed by GST Council:

 

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

Registration:

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

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

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

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

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

Invoice:

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

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

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

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

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

Payment:

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

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

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

Refund:

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

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

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

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

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

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

Valuation:

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

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

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

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

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

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

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

Input Tax Credit:

 

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

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

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

Composition:

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

a)     Casual taxable person or non-resident taxable person

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

25)  Rates of Taxes for Composition Levy

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

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

c)     Any other supplier – at 0.5%

 

 

Quote of the Day:

 

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

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Disclaimer:

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

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

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CORPORATE AND PROFESSIONAL UPDATE JAN 2, 2017

Professional Update for the Day:

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Direct Tax:-

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

Indirect Tax:-

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

MCA Update:-

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

Other Update:-

Salient Points of Hon. PM’s speech:

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

Key Dates:-

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

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

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

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

FOR FURTHER QUERIES CONTACT US:

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

Disclaimer:

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

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

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CORPORATE AND PROFESSIONAL UPDATE DEC 21,2016

Professional Update For the Day:

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Direct Tax:-

  • ITAT Delhi held that the Long-term capital gain earned by the assessee non resident on off market sale of shares of listed Indian Company is taxable @ 10% under the proviso to section 112 and proviso to section 112(1) does not state that an assessee, who avails benefit of the first proviso to section 48, is not entitled to the benefit of lower rate of tax at 10%. [DDIT Vs Mitsubishi Motors Corporation]

Indirect Tax:-

  • Ministry of Finance (Department of Revenue) has notified via notification no. 53/2016dated 19thDecember, 2016 to amend Service Tax Rules, 1994 so as to allow a person located in non taxable territory providing online information and database access or retrieval services to a non-assessee online recipient to issue online invoices not authenticated by means of a digital signature for a period upto 31st January, 2017.
  • CESTAT Mumbai held that CENVAT credit of goods and services used to build an immovable property can be availed when such property has been given on rent and service tax liability is discharged on such rent received. [Nirlon Ltd. Vs Commissioner of Central Excise].

ESIC Update:-

  • ESIC: Employees & Employers Contribution rate reduced to 1% & 3%.

Other Update:-

  • PAN mandatory if credit in your account after 9/11/2016 is more than Rs 2,00,000 including cheque credit/online transfer /cash deposit or credit by any other means and your account balance is more than Rs 5,00,000 then no debit transaction shall be allowed without PAN.
  • ICAI has asked the government to put in place a more transparent process in selecting auditors in banks, saying its demand is particularly relevant in the context of high probability of frauds in the lending institutions in the aftermath of demonetisation.

Key Dates:-

  • E- Payment of DVAT & CST for Nov: 21.12.2016.
  • Issue of DVAT Certificate for Deduction made in Nov: 22.12.2016.

“When you are in the light, everything follows you. But when you enter into the dark, even your own shadow doesn’t follow you.”

“Success does not consist in never making mistakes but in never making the same one a second time.”

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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Should You File Tax Return Even Without Taxable Income?

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As the last day of filing income tax return is coming near, it’s finally time for tax payers to do what they haven’t from so far. The question is it still mandatory to file return if the income is below the taxable limit of Rs. 2.5 lakh per annum. The answer is yes; under certain circumstances it is beneficial to file return even then. There are certain cases which are mandatory while others have benefits of filing return.

One of the biggest benefits of filing return is that it helps in applying for loan in future or applying for visa etc. For clearance of any loan by lender or bank for say home loan, car loan or any vehicle loan, they ask for proof of tax return statements of past three years.

So for instance, if you have monthly income of Rs. 20000 which amounts to less Rs. 2.5 lakh in a year, you are not obliged to file income tax return. But doing so can be beneficial in a long run to provide as a proof of your finances. Filing income tax returns act as a proof of your income when applying for loan as a co-borrower too.

Also, from the year 2012 it has been made mandatory for individual holding a foreign asset to file for income tax return if the asset has no yield. A foreign asset may refer to any foreign account, immovable property, partnership firm etc.

What happens when you file an income tax return?

Let’s take an example of a senior citizen who has an income of 7 lakh which is nontaxable, in the form of tax free shares. Her taxable income is Rs. 14000 which comes below the taxable limit of Rs. 2.5 lakhs. However, she is advised to file return for the same to have it as a proof that she has an income, though not taxable. When you fill a ITR form, it has a column where you are required to show your nontaxable income.

Filing for tax returns also helps in claiming tax returns or to set off the losses. You can set off the losses that may have incurred in share marketing by carrying forward them to the next year. This can be done by filing for a refund even if your annual income is less than Rs. 2.5 lakh.

Even in cases of tax deducted at source or in case of income earned through freelancing, you can file for income tax return for claiming it.

Last Date of filling of ITR for the A.Y. 2016-17 is 05 August 2016.

“Anger comes alone but takes away all our good qualities. Patience too comes alone but brings all the good qualities for us. Choice is our so have patience.”

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Get your Income Tax Return Filled by 31 July 2016.

How to file income Tax Return?

This was the most common question in the comments section of my post on e-Filing Income Tax Procedure of AY 2015-16. In spite of easy ITR form and quick e-filing option we can make mistakes. One may miss to add tax saving deductions  in ITR form. We may miss to account capital loss to carry forward. We may also fill gross salary in place of taxable income. We may also fill the home loan interest in positive value.

RJA is here to help you to avoid all these errors and let all your Tax related worries simply fly.

taxThere are two types of tax levy one is direct tax second one is indirect tax. Income tax is a direct tax which is directly attributable on the income of the assessee.

Income which is generated from various head of income viz. Salary, House property, Business, Capital Gain and Income from other sources.

Assessee have to pay Income tax if his total Income after allowing Chapter VI-A Deduction is more than the taxable income limit.

Income Tax Forms for e-filling and Due Dates of Income Tax for AY 2016-17.

Department has made new ITR forms in various format viz PDS, Java utility, Excel utility on income tax website for AY 2016-17.

Be ready to file your tax return before deadlines.

There are different category of taxpayer viz. Individual, HUF, Firm, LLP, Company, Trust and AOP/BOI. Due Date is different according to audit or non-audit case of such categories as defined in section 139(1).time

Last Date of Filing Income Tax Return

  • 31st July – Last Date of Return Filling for non-audit cases.
  • 30th September – Last Date of Return Filling for audit cases.

Advance Taxes of Income Tax for AY 2017-18

If the tax liability is more than Rs 10,000 in a financial year then advance tax needs to be paid by assessee.

Capture

 

 

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CORPORATE AND PROFESSIONAL UPDATE APRIL 1, 2016

CORPORATE AND PROFESSIONAL UPDATE APRIL 1, 2016

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DIRECT TAX

  • Income Tax: Fee for technical servicesWhere assessee-foreign company provided data processing support service to Indian bank and it was argued that no technical services were rendered in India whereas only processing of data was done and that too at Hong Kong and therefore, payment made by bank could not be taxed in India, since matter was remitted by co-ordinate bench of Tribunal in assessee’s own case for earlier assessment year having similar issue, matter for present assessment year had to be remanded – [2016] 67 taxmann 277 (Mumbai – Trib.
  • Income Tax: Computation ofWhere assessee did not disclose income from house property in respect of his six immovable properties, Assessing Officer could not make addition to assessee’s income merely on basis of notional rent on cost of properties without computing income in accordance with provisions of sections 22 and 23 – [2016] 67 taxmann 269 (Mumbai – Trib.)
  • Income Tax : Immovable propertyWhere assessee sold two flats during relevant year acquired out of his undisclosed income, since said amount had already been added to assessee’s income earlier in block assessment proceedings, Assessing Officer could not make addition again under section 68 in respect of sale consideration in question – [2016] 67 taxmann 269 (Mumbai – Trib.)

 INDIRECT TAX

  • Service Tax : There is no distinction between ‘providers of education’ and ‘commercial coaching or training institution'; hence, even providing of computer education online is covered with commercial coaching or training and liable to tax.
  • Excise & Customs-Unjust enrichment applies to : (a) ‘captive consumption’ of, as well as (b) ‘indirect passing on of burden of duty’, as well as (c) duty paid under protest; hence, mere payment of duty under protest on captively consumed goods does not rule out unjust enrichment 2016] 67 taxmann.com 314 (Madras)

Key Dates

  • MCA notifies CARO, 2016, applicable for FY beginning on or after April 1, 2015.

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  9555555480 Continue reading

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Amendments vide Finance Bill, 2016 applicable wef. 1st April. 2016

Amendments vide Finance Bill, 2016 applicable wef. 1st April. 2016

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The Finance Bill, 2016 which was brought into by the Union Budget, 2016-17 come out with no. of amendments applicable from varied dates. Changes which were effective from the 1st day of April, stands imbibed are listed as follows:-

Change relating to Mega Exemption Notification 

Exemptions Withdrawn

  • Exemption in respect of Services provided by a senior advocate to an advocate or partnership firm of advocates withdrawn
  • Services of transport of passengers by ropeway, cable car or aerial tramway withdrawn

Exemptions Introduced

  • Services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development & Entrepreneurship
  • Services provided by way of skill/vocational training by Deen Dayal Upadhyay Grameen Kaushalya Yojana training partners
  • The threshold exemption limit of consideration charged for services provided by a performing artist in folk or classical art forms of music, dance or theatre, increased from Rs 1 lakh to Rs 1.5 lakh per performance.
  • Services of life insurance business provided by way of annuity under the National Pension System (NPS) regulated by Pension Fund Regulatory and Development Authority (PFRDA) of India
  • Services of general insurance business provided under “Niramaya” Health Insurance scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability in collaboration with private/public insurance companies.
  • Services provided by Employees’ Provident Fund Organisation (EPFO) to employees.
  • Services provided by Insurance Regulatory and Development Authority (IRDA) of India.
  • Services provided by Securities and Exchange Board of India (SEBI) set up under SEBI Act, 1992, by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market.
  • Services provided by National Centre for Cold Chain Development under Department of Agriculture, Cooperation and Farmer’s Welfare, Government of India, by way of knowledge dissemination
  • Services provided by Biotechnology Industry Research Assistance Council (BIRAC) approved biotechnology incubators to the incubatees.

Changes wrt. Reverse Charge mechanism

  • Liability to pay service tax on any service provided by Government or a local authority to business entities shall be on the service recipient.
  • Services by Mutual Fund Agents to Asset Management Co. put under reverse charge

Amendments wrt. Abatement Notification no. 26/2012-ST vide Notification no. 08/2016-ST dt. 01.03.2016

  • Construction of a complex, building, civil structure or a part thereof:- Uniform abatement @ 70% is now being prescribed, subject to fulfillment of the existing conditions.
  • Services by a tour operator:- Only two abatement rates introduced @ 90% and 70% for the purposes of booking accommodation & for other services, respectively. Definition of package Tour deleted
  • Transport of goods in a vessel:- Credit of input services could be availed now
  • Transport of Passengers, with or without accompanied belongings, by-
    – a stage carriage: Added now, earlier not existed in this abated entry
  • Services provided by a foreman of chit fund in relation to chit:- Newly inserted entry, however, earlier said entry existed which was omitted wef. 1st April, 2015; abatement @ 30% without availment of any credit
  • Services of goods transport agency in relation to transportation of used household goods:- Newly Inserted; abatement @ 60 % without allowing any credit
  • Services of goods transport agency in relation to transportation of goods other than used household goods:- Substituted for “Services of goods transport agency in relation to transportation of goods”.
  • Transport of passengers, with or without accompanied belongings by rail: CENVAT credit of input services being allowed now
  • Transport of goods in containers by rail by any person other than Indian Railways:- Newly introduced; abatement @ 60% ; Credit allowed for input services
  • Transport of Goods by Rail:- No change in Rates ; CENVAT Credit wrt. Input service now being allowed

Changes to Service tax Rules, 1994

  • Service tax liability on single premium annuity (insurance) policies is being rationalized and the effective alternate service tax rate (composition rate) now being prescribed at 1.4% of the total premium charged
  • Benefit of (a) quarterly payment of service tax being extended to OPC and HUF and (b) payment on receipt basis being extended to OPC.

Changes in CENVAT Credit Rules, 2004

  • Change in the definition of Capital Goods:- Wagons of sub heading 8606 92 of the Central Excise Tariff and equipment and appliance used in an office located within a factory are being included
  • CENVAT credit on inputs and capital goods used for pumping of water, for captive use in the factory, is being allowed
  • Capital goods having value up to Rs. ten thousand per piece are being included in the definition of inputs
  • Service by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India is being excluded from the definition of, “exempted service CENVAT Credit for radio-frequency spectrum, mines etc.
  • Provisions related to calculation of CENVAT Credit attributable to exempted services has been redrafted
  • Change in manner of distribution of CENVAT Credit by Input Service Distributor (ISD) Insertion of new Rule 7B for multiple manufacturing units to maintain a common warehouse for inputs.
  • Change in method for determining whether a particular credit has been utilized vide Rule 14(2) of CCR, 2004
  • Annual Return prescribed for manufacturer of final products or provider of output services vide Rule 9A

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  9555555480

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CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 31, 2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 31, 2016

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DIRECT TAX

  • Income Tax: Reopening of assessment – receipt of accomadation enteries – without forming a prima facie opinion on the basis of such material that income has escaped assessment the AO can not assume valid jurisdiction to initiate proceedings and to issue notice u/s 147/148 – Notice u/s 148 quashed- (Marathon Finlease Ltd. Versus ITO, Ward – 6 (2) , New Delhi – 2016 (3) TMI 923 – ITAT DELHI).
  • Income Tax: Penalty levied u/s 271(1)(c) – excess claim of deduction u/s 35(2) – the assessee has made a bonafide legal claim which cannot be said to be fallacious or flippant and malafide – no penalty- (The D.C.I.T, Central Circle – 9 (1) , New Delhi Versus M/s SRF Limited – 2016 (3) TMI 921 – ITAT DELHI)
  • Income Tax : f notice u/s 143(2) – no notice u/w 143(2) was served upon the assessee which a mandatory conditions – impugned assessment order dated 28.12.2011 is quashed being bad in law and void ab initio- (ITO, Ward – 1, Uaar Pradesh Versus Shah Javed Saddat and Vica-Versa – 2016 (3) TMI 919 – ITAT DELHI)

 INDIRECT TAX

  • Excise & Customs : Where assessee has furnished relevant certificate from relevant authority, exemption intended for laudable object of controlling cataract blindness, cannot be denied for procedural violation viz. absence of counter-signing of such certificate. [2016] 67 taxmann.com 272 (Chennai – CESTAT)
  • Auro Lab v. Commissioner of Central Excise
  • EXCISE : The Union Budget 2016-17 has proposed to impose a 1% excise duty (without input tax credit) and 12.5 % (with input tax credit) on articles of jewellery excluding silver jewellery, other than studded with diamonds/other precious stones. A higher threshold exemption upto Rs. 6 crore of clearances in a year subject to previous year clearances not exceeding Rs. 12 crore has been extended.

Key dates 

  • Today (03.2016) is last date for filing of ITR for A.Y. 2015 – 16 without penalty and for A.Y. 2014 – 15 with penalty of Rs. 5000.
  • Today (03.2016) is last date for e-payment of service tax and excise duty for the month / quarter ending in March 2016.
  • Today (03.2016) is last date for filing of WT return in Form BB for A.Y. 2014 – 15.

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 9555555480

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CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 30, 2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 30, 2016

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DIRECT TAX

  • Income Tax: Where assessee claimed deduction of secret commission paid to employees of different companies who had given business to assessee, since assessee had not kept any accounts as to where and to whom such commission was paid, Tribunal was justified in allowing assessee’s claim to extent of one per cent of total sales – [2016] 67 taxmann 257 (Gujarat)
  • Income Tax: TDS on sale of property u/s 194IA : CPC-TDS has enabled functionality for online correction in form 26QB (challan / statement) with effect from 29/02/2016.

INDIRECT TAX

  • SERVICE TAX : Where assessee is engaged in promoting brand of foreign holding company and receives consideration from foreign holding company, then : (a) since services are provided on principal-to-principal basis, such services cannot be regarded intermediary services; (b) their Place of Provision would be location of service recipient, viz., outside India; and (c) same would amount to export of service and not liable to service tax – [2016] 67 taxmann 324 (AAR – New Delhi)
  • DELHI VAT : Deputy Chief Minister Manish Sisodia presented a ‘zero tax budget’ Monday aimed at rationalizing Delhi’s Value Added Tax (VAT) structure. The budget implies cheaper sweets, namkeen, watches, readymade garments, shoes and school bags, even as the government continues to focus on education, health and transport sectors.
  • DELHI VAT : Education, health, and transport sectors are likely get a major allocation of funds in the Delhi Budget, which will be tabled in the assembly Monday by Deputy Chief Minister Manish Sisodia. Sisodia, who holds the finance and education portfolios, is likely to allocate 25 per cent of the total budget to the education sector
  • EXCISE : Refund claim – pre-deposit – As soon as the order appropriating such fine was set aside they became eligible to refund of the deposits made during the investigations – refund allowed with Interest- (M/s Shoreline Hotel Pvt. Ltd. Versus Commissioner of Central Excise, Mumbai-I And Vice-Versa – 2016 (3) TMI 806 – CESTAT MUMBAI)

MCA  UPDATES 

  • COMPANY LAW : Where appellants did not impugn either allotment of Rights Issue or their removal from Board of Directors at relevant time and raised such grievances only when company’s economic difficulties were over and it was on path of substantial progress, appellant’s interest in company was limited to their initial shareholding and nothing more – [2016] 67 taxmann 263 (Delhi)
  • COMPANY LAW : Where Single Judge dismissed earlier winding up petition filed by appellant with a liberty to bring fresh action in accordance with law and respondent was not prepared to deposit sum due, second winding up petition filed by appellant was not barred by res judicata and same was to be admitted – [2016] 67 taxmann 262 (Calcutta)

Key Dates

  • E-Payment of Service Tax for the month/quarter ended March: 31/03/ 2016
  • E-Payment of Excise duty for the month/quarter ended March: 31/03/ 2016
  • Last date of filing of ITR for A.Y. 2015-16 without penalty & A.Y. 2014-15 with penalty of Rs. 5000: 31/03/2016
  • Last date for filing Wealth Tax return for A.Y. 2014-15: 31/03/2016
  • Payment of balance advance income tax by all: 31/03/2016
  • Reconciliation return of statutory forms for the year 2014-15: 31/03/2016
  • 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 9555555480

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