Professional Update For the Day:


Direct Tax:

ITAT Chennai in the below citied case held that exemption u/s 54F of the Act shall not be eligible for construction of swimming pool.( GuruprasadAngisetty, Chennai Vs. ITO, Non-Corporate Ward 1 (2), Chennai)

ITAT Banglore in the below citied case held that expenditure incurred on renovation of showroom was not incurred on any capital outlay. Therefore, the expenditure is revenue in nature  [M/s. Bellad and Co. Vs.DCIT, Hubli. and ACIT, Circle 1 (1) , Hubballi Vs. M/s. Bellad& Co.]

IT: Expenditure incurred on renovation of showroom was not incurred on any capital outlay. Therefore the expenditure is revenue in nature – Bellad and Co. Vs DCIT, Hubli. & ACIT, Cir-1(1), HubballiVsBellad& Co. (2016 (9) TMI 390 – ITAT Bangalore)

No penalty for short deduction of TDS on warehouse charges if applicability of sec. 194C or sec. 194-I is debatableHindustan Coca Cola Beverages (P.) Ltd. v. Joint Commissioner of Income-tax[2016] 73 71 (Delhi).

Under Income Declaration Scheme 2016 no capital gains/TDS on transfer (without consideration) of declared benami property within 1 year to the Declarant.

Indirect Tax:

The Central Government issued a notification regarding provisions relating to Formation of GST Council comes into effect from 12-9-2016 – The Constitution (One Hundred and First Amendment) Act, 2016 vide Notification No.  S.O. 2915(E) dated 10/09/2016. The Central Government hereby appoints the 12th day of September, 2016 as the date on which the provisions of section 12 of the said Act shall come into force.

While interpreting an exemption notification there is no room of any intendment and regard must be had to the language used therein.( M/s. H.R. Steels Pvt. Ltd. Versus C.C.E. Jaipur)-I – 2016 (9) TMI 283 – CESTAT NEW DELHI – Central Excise

ST: There is no service tax liability on the appellant engaged in providing Mid Day Meals to various schools and are getting paid for the same from the Schools/Government – Suruchi Caterers Vs C.C.E., Mumbai (2016 (9) TMI 430 – CESTAT Mumbai)

Service tax exemption available on renting of religious place owned by a trust registered under Income Tax Act NOTIFICATION NO. 40/2016-Service Tax Dated 6th September, 2016

VAT & ST: Classification – bitumen and bitumen emulsion are one and the same commodity – C.C.T., U.P. Vs A. R. Thermosets (Pvt.) Ltd. (2016 (9) TMI 410 – Supreme Court)

Extension of credit period of sales to AE deemed as international transaction under transfer pricingTally Solutions (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle-12 (1), Bangalore[2016] 73 70 (Bangalore – Trib.)

MCA Updates:-

MCA notified Section 227, Section 242 (1)(b), Section 242(2)(c)(g), Section 246, Section 337 to 341 (to the extent to their applicability for Section 246) vide Notification dated 09/09/2016

Spice Jet’ to refund amount received under share purchase agreement as it failed to allot shares : HCKal Airways (P.) Ltd. v. Spicejet Ltd.[2016] 73 28 (Delhi).

MCA has issued circular regarding relaxation of additional fees for filing Form IEPF-1 vide General circular No- 10/2016 dated 07.09.2016.

MCA has amended the schedule v of companies act 2013 dated 12th sept. 2016 [F.No. 1/5/2013 CL-V].

MCA vide Notification notified that the Remuneration Limits for the Companies having no or inadequate profits can be enhanced without the Central Government approval, that is, Section II of Part II has been substituted.

It states that managerial person who is functioning in a professional capacity, no approval of Government is required if such managerial person is not having any interest in the capital of the Company, its holding company or any of its subsidiary companies during last 2 years on or after date of appointment and possesses graduate-level qualification and specialized knowledge in field of which the Company operates. Schedule V of the Companies Act, 2013 relating to the condition to be fulfilled for appointment of Managing Director/ Whole Time Director/ Manager has been amended.


GST: One step ahead – President Pranab Mukherjee gives assent to the Constitutional Amendment Bill y’day (08.09.2016) to enable the Central Govt. to bring GST Law in the winter session of Parliament.

Key Dates:

  • Issue of TDS certificate in case of payment/credit made in july for the purchase of property u/s 194IA- 14/09/2016
  • Deposit of DVAT/TDS for the month of August-15/09/2016
  • Payment of Advance Tax(Second Installment) for the A.Y. 2017-18.-15/09/2016
  • Last date of deposit of PF contribution by the employee;- 15/09/2016

Success comes to those who have the will power to win over their snooze buttons.

Life becomes interesting when you start speaking silently with your eyes, but life becomes more interesting when someone starts reading those eyes silently.

We look forward for your valuable comments.

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