Professional Update For the Day:
Direct Tax:
Supreme court held that premium collected by assessee on its subscribed share capital doesn’t constitute capital employed in the business of the company for computing deduction under section 35D. [TS-120-SC-2017]
Indirect Tax:
CBEC has notified via notification no. 10/2017 – Customs dated 28th march, 2017 to impose basic customs duty of 10% on wheat and Tur, with immediate effect.
CBEC has issued a circular via circular no. 10/2017-Cus dated 30th march, 2017 regarding export of carpets under duty drawback.
CBEC issued a circular via circular no. 09/2017 dated 29th march, 2017 regarding Disposal of seized/confiscated cigarettes of foreign origin vis-à-vis provisions of the Cigarettes and other Tobacco products (Packaging and Labelling) Rules, 2008.
FAQ on GST:
Query: We have a query regarding GST implication as in case goods are supplied on hire purchase basis, then will it be treated as supply of goods or supply of services. Kindly clarify
Answer: Supply of goods on hire purchase shall be treated as supply of goods as there is transfer of title, albeit at a future date.
GST Update:The GST Council will meet in April to thrash tax rate for upto 5,000 commodities and services under GST. Services will not be taxed more than 18 per cent under GST.Today is the last date for payment of tax for March 2017 is 31.03.17, please schedule Central Excise Duty/ Service Tax payment well in advance to avoid last minute rush.
GST Network extends deadline for Migration of Registration till April 30 for firms to register as only 54 lakhs businesses, out of the estimated 80 lakhs. Date of GST Migration extended to 30th April 2017 by GST Network. (Source- Indian Express) 1. Changes in IT law wef 1-4-2017: |
(A) Limit for payment of expenses by cash (both, capital and revenue expenditure) reduced from Rs.20000 to Rs.10000 per day in aggregate per person.
(B) No person shall receive an amount of two lakh rupees or more, by cash (Sec. 269ST).
(C) For below Rs.2 crores turnover cases – For Non Cash Sales (through Digital, Online, cheque, Bank etc.) : Net Profit will be taken as 6% of Turnover/Gross Receipt. For Cash Sales it’s 8%.
(D) Tax Exemption limit is Rs.2,50,000/- (same as earlier) After that, upto Rs.5 lakh, Tax Rate is 5% (earlier it was 10%).
(E) Payment of Rent – Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirements) – deduct TDS @ 5%.
(F) Capital Gain in respect of Land & Buildings period reduced from 3 years to 2 years and Base year shifted from 01.04.1981 to 01.04.2001.
(G) Corporate tax rate for the account year 2017-18 for companies with annual turnover upto Rs. 50 crores (in the account year 2015-16) is reduced to 25%. No change in firm tax rate of 30%.
(H) Donations made exceeding Rs.2000 will be not be eligible for deduction under section 80G.
(I) Sale of unquoted shares to be taxed at (deemed) fair value.
(J) In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.
(K) From financial year 2017-18, if Return is not filed within due date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000 thereafter.
(L) Where Sec.12AA registered trusts modify their objects clause, they need to apply within 30 days to CIT for approval.
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
- 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.
- While filing appeal before CESTAT, parties to declare that such matter isn’t pending in other forums. CESTAT CIRCULAR NO.01(05)/CIRCULAR/CESTAT/2017, DATED 27-2-2017
“Courage is not the absence of fear, but rather the judgment that something else is more important than fear.”
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