Monthly Archives: March 2017

03.31.17
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CORPORATE AND PROFESSIONAL UPDATE MARCH 31, 2017

Professional Update For the Day:

3 (2)

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.”

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

03.30.17
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CORPORATE AND PROFESSIONAL UPDATE MARCH 30, 2017

Professional Update For the Day:

asd

Direct Tax:

Last date for submission of a valid return for AY 2015-16 expires on 31st March 2017 u/s 139. Those taxpayers whose returns for AY 2015-16 have been declared invalid u/s 139(9) by CPC are requested to file their return u/s 139(4)/139(5) before 31 March.

As per the statutory provisions of the Motors Vehicle Act as well as the law laid down in judicial pronouncements that payments made for any purpose which is an offence or which is prohibited by law and which are not compensatory in nature cannot be allowed as a deduction u/s.37(1) Aparna Agency Ltd. v. Income-tax Officer (ITAT Kolkata)

 

Indirect Tax:

CESTAT holds that freight is not includible in assessable value where assessee clears pipes and fittings to own site for pipeline construction under composite contract and valuation is done in terms of Rule 8 of Central Excise Valuation Rules; However, CESTAT clarifies that freight cannot be claimed as applicable deduction where deduction method has been adopted [TS-66-CESTAT-2017-EXC]

RBI Update:

RBI advised all Agency Banks via circular DBR.No.Leg.BC.56/09.07.005/2016-17 dated March 24, 2017 to keep all their branches dealing with government business open on all days in the current financial year and on April 1, 2017 (including Saturday, Sunday and all holidays). 

 MCA update:

MCA has issued notification via No G-21018/17/2016-BGT regarding presenting of bill to pay and account officer for expenditure out of budget 2016-17 dated March 23,2017.

AQ on GST

Query: Will  Tobacco and Tobacco products come under the GST regime?

Answer: Tobacco and tobacco products would be subject to GST. In addition, the Centre have  power to levy Central Excise duty.

GST UPDATE

CGST, SGST, IGST AND UTGST passed by the Lok Sabha being the money bills need not require the approval of Rajya Sabha. Historical Reform of India after Independence.

MAJOR CHANGES IN GST BILL:

  1. Non-Applicability of GST Law in the State of Jammu and Kashmir.
  2. Change in the Scope of Taxable Event i.e. Supply.
  3. Removal of uncertainty relating to chargeability of GST on Supply of Immovable Property.
  4. Non Chargeability of GST on Actionable Claims.
  5. Fixing the Upper cap of GST rate at 20% in case of CGST Law, and 40% in case of IGST Law.
  6. Payment of GST by recipient under Reverse Charge in case of supply of taxable goods or services or both by a unregistered supplier to a registered person.
  7. Reduction in Composition rates, a welcome move for MSME sector.
  8. Requirement to seek permission from proper officer for composition scheme is dispensed with.
  9. Change in the provision for determining the liability to pay tax in case of Services (Time of Supply of Services).
  10. a) If the invoice is issued within the period prescribed, the date of issue of invoices or the date of receipt of payment, whichever is earlier;
  11. b) If the invoice is not issued within the period prescribed, the date of provision of services, or the date of receipt of payment, whichever is earlier;
  12. c) The date on which the recipient shows the receipt of services in his books of accounts, in a case where aforesaid clause (a) or (b) does not apply.
  13. Change in Actual Payment Condition for Non-reversal of Credits.
  14. Credit of Rent-a-cab, life insurance, and health insurance allowed, if used for making an outward taxable supply of same category.

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

Relationship with a nice person is like a Sugarcane. You break it, crush it, squeeze it even beat or grind it, still you will get only sweetness.

We believe that good luck will do some day, Something for us. But we don’t know good luck is also waiting that we do something  someday.

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

03.29.17
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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

03.28.17
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CORPORATE AND PROFESSIONAL UPDATE MARCH 28, 2017

Professional Update For the Day:

bigstock-D-Man-Tax-Help-44327380-resized-600

Direct Tax:

Compensation paid to employees on closure of business couldn’t be termed as VRS package for income-tax relief. [2017] 79  298 (Madras)

Mere signing of ‘Sauda Chitthi’ wouldn’t prove that assessee had received consideration from sale of land: HC [2017] 79  237 (Gujarat)

CBDT Stipulates Guidelines For Waiver Of Interest Charged U/s 201(1A)(i) Of The Income-Tax Act, 1961 For TDS Default.  Circular No. 11/2017 dated 24.03.2017

Sec. 50C couldn’t be applied to determine profits where assessee was engaged in business of sale of flats: HC  [2017] 79  238 (Bombay)

Cost of material reimbursed to AE without any profit was to be excluded while computing profit margin under TP study. [2017] 79  232 (Delhi – Trib.)

CBDT has issued guidelines for waiver of interest charged under section 201(1A) (i) of the Income Tax Act, 1961 via circular no. 11/2017 dated 24th march, 2017.

ITAT Mumbai held that unless during the relevant previous year, assessee earns any exempt income no disallowance under section 14 A r/w 8D can be made. [Red Chillies entertainment pvt. Ltd. Vs Asstt. Commissioner of Income Tax]

Indirect Tax:

Madras High Court held that fly ash generated during generation of electricity by burning of pulverized coal does not involve any manufacturing activity and therefore, does not fall within the purview of “excisable goods” under section 2(d) of central excise act. [TS-561-HC-2016(MAD)-EXC]

FM approves the re-organisation of the field formations of the Central Board of Excise & Customs (CBEC) for the iplementmation of Goods & Services Tax (GST); CBEC is being renamed as the Central Board of Indirect Taxes & Customs (CBIC), after getting legislative approval.

Reimbursement of expenditure not liable to service tax if gross earning are shared between parties: Delhi CESTAT. [2017] 79  218 (New Delhi – CESTAT)

FAQ ON GST: 

Query :     Is it permissible to amend the Registration Certificate?

Answer: Yes. In terms of Section 20, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars in the manner and within such period as may be prescribed. It is to be noted that permission of the proper officer for making amendments will be required for only certain core fields of information, whereas for the other fields, the registrant can himself carry out the amendments.

GST UPDATE

CGST, IGST, UTGST & Compensation bills introduced in Lok Sabha On (27.3.17). IGST & CGST Bills Not Applicable to the State of Jammu & Kashmir.

Under GST Check Migration status using PAN, Indirect Tax Registration No or Provisional ID: https://services.gst. gov.in/services/check-registration-status

RBI Updates:

RBI notified that the government of India issued a circular via circular no. DPSS.CO.CHD.No./2695/03.01.03/2016-17 dated 25th march, 2017 regarding payments systems to remain open for public on all days from march 25th, 2017 to april 1st , 2017.

Other Update :

Profit/Loss arising out of Investment in Equity Participation is ‘Revenue’ in nature: Case Principal CIT v. Industrial Finance Corporation of India Ltd: Delhi High Court.

IASB of ICAI is organising Certificate Course on Concurrent Audit of Banks at Ghaziabad from April 29 2017. For Regn visit at , http: //resource.cdn.icai.org/44969iasbghz.pdf

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

Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no help at all.

Difficulties are viewed differently by different people, For some, these are speed breakers & for others, these are opportunities to jump.

Behaviour is sometimes Greater than Knowledge, Because There are many Situations, Where Knowledge Fails But Behaviour can handle Everything.

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   Continue reading →

03.27.17
by

CORPORATE AND PROFESSIONAL UPDATE MARCH 27, 2017

Professional Update For the Day:

1 (2)

Direct Tax:

Provision made by the assessee for payment of any gratuity, that has become payable during the year is allowable. In fact the CBDT has also clarified the introduction of section 40A(7) that the provision made for payment of gratuity that has become payable during previous year is allowable. Therefore the liability accrued on account of the gratuity which became payable during the year on account of the employees who retired during the year itself is allowable  [DCIT Vs M/s. Reliance Jute Mills International Ltd (ITAT Kolkata) ]

CBDT Stipulates Guidelines For Waiver Of Interest Charged U/s 201(1A)(i) Of The Income-Tax Act, 1961 For TDS Default.  Circular No. 11/2017 dated 24.03.2017.

Insurance & Travelling Expenses incurred in Foreign Currency needs to be Excluded from both Export and Total Turnover for the purpose of section 10A Calculations. [M/s. Sunquest Information Systems India Pvt. Ltd. Vs JCIT (OSD) (ITAT Bangalore)]

Indirect Tax:

CESTAT 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; CESTAT 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 [TS-57-CESTAT-2017-EXC]

Finance ministry on Saturday approved the re-organisation of the indirect tax wing renaming the Central Board of Excise and Customs (CBEC) as the Central Board of Indirect Taxes and Customs (CBIC).

FAQ on GST: 

Query: If taxable person affects inter state supplies, can he availed composition scheme?

 Answer: If taxable person does not affects inter state supplies,then he cannot avail composition scheme.

GST Update

GST Provisional IDs not used till 31.3.17 may be cancelled as not needed. All existing indirect tax assessees migrate to GST by 31st March, 2017.

The CBIC will have 21 zones, 101 GST tax payer services commissionerates comprising 15 sub-commissionerates, 768 divisions, 3,969 ranges, 49 audit comm and 50 appeals Commissionerates.

RBI UPDATE

RBI issued notification that All Agency Banks to remain open for public on all days from March 25, 2017 to April 1, 2017.

Other Update

ICAI invites applications for suitable positions at various levels for Financial Reporting Domain of its Technical Directorate on full time / contractual basis for its Mumbai location. www.icai.org

The Ministry of Labour and Employment has notified the draft Contract Labour (Regulation and Abolition) Central Amendment Rules, 2017. It provides employers to pay wages to its employees through cheque or e-payment.

The Comptroller and Auditor General of India (CAG) plans to audit the impact of note ban and the affect it has had on government tax revenues, said CAG Shashi Kant Sharma.

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

There is a thin line dividing self-confidence and overconfidence. Hence, be careful.

Self-confidence is key to success. It’s four components are: Feel Good, Take Responsibility, Be Accountable and Develop Skills.

Life isn’t about getting and having, it’s about giving and being.

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   Continue reading →

03.25.17
by

CORPORATE AND PROFESSIONAL UPDATE MARCH 25, 2017

Professional Update For the Day:

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

Direct Tax:

Advertisement expenses incurred to publicize change of name from UTI bank to Axis Bank allowable as revenue exp. [2017] 79  187 (Ahmedabad – Trib.)

Sum paid for right to use software without any copyright won’t fall within the purview of royalty.[2017] 79  206 (Kolkata – Trib.)

Payment made by assessee to ICC as ‘Rights fee’ was exclusively for use of Marks of ICC for purposes of promotion and advertisement and not for manufacture and sale of licensed products, hence, not in nature of ‘Royalty’ or ‘Fees for technical services’. [2017] 79  271 (Delhi – Trib.

Interest rate prevailing in country where loan is consumed to be used to determine ALP of loan granted to AE. [2017] 79  215 (Mumbai – Trib.)

Pradhan Mantri Garib Kalyan Yojna to declare Black Money is going to end on 31.03.2017. Either Pay Tax @ 49% or @ 77% along with penalty, prosecution and enforcement actions after this Scheme. 

The Lok Sabha passed the Finance Bill, Starting from April 1, 2017:

  1. A) The tax rate on income between Rs. 2.5-5 lakh will be 5 per cent from 10 per cent.
  2. B) A 10 per cent surcharge for individuals having income from Rs. 50 lakh to 1 crore.
  3. C) A simple one-page ITR form for individuals having a taxable income up to Rs. 5 lakh other than business income.
  4. D) No deduction will be allowed for investment in Rajiv Gandhi Equity Saving Scheme from Assessment Year 2018-19.
  5. E) Income tax officials can reopen tax cases for up to 10 years if search operations reveal undisclosed income over Rs. 50 lakh.

F)Taxpayers who do not file their returns on time will have to shell out a penalty of up to Rs. 10,000 from AY 2018-19.

  1. F) The holding period of a property for qualifying as long-term gains will be reduced to two years, from three years.
  2. G) The government has cut down tax benefits borrowers enjoyed on properties let out on rent up to Rs. 2 lakh.
  3. H) Individuals will be required to deduct a 5 per cent TDS for rental payments above Rs. 50,000 per month fromJune 1, 2017.
  4. I) Partial withdrawals from National Pension System (NPS) will not attract tax.
  5. J) Aadhaar number will be a must while applying for PAN as well as filing of income tax returns fromJuly 1.

K)limit on cash transactions has been set at Rs. 2 lakh from proposed Rs. 3 lakh.

Indirect Tax:

Input service availed by wholly owned Subsidiary Company allowable as credit to Holding company:[2017] 79  217 (New Delhi – CESTAT)

Consumables used in provision of services can’t be treated as sales; not liable to VAT. [2017] 79 195 (Delhi)

GST Updates :

All existing indirect tax assessees to migrate to GST in next 7 days as 31.3.17 is the last date shown on www.gst.gov.in for this purpose.

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

 

A seed grows with no sound, but a tree falls with huge noise. Destruction has noise, but creation is silent. Grow Silently.

You can never cross the ocean until you have the courage to lose sight of the shore.

 

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

 

03.23.17
by

CORPORATE AND PROFESSIONAL UPDATE MARCH 23, 2017

Professional Update For the Day:

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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

03.22.17
by

CORPORATE AND PROFESSIONAL UPDATE MARCH 22, 2017

Professional Update For the Day:

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Direct Tax:

  • Royalty and fee for technical assistance paid in pursuance of the license agreement are revenue expenditure and not capital in nature – CIT, Noida Vs H-One India Pvt. Ltd. (2017 (3) TMI 396 – Allahabad HC).
  • CBDT issued guidelines to ITOs that in case of individual not having business income, no further verification is required to be made in cash deposit is up to Rs 2.5 lacs and in case above 70 years of age, the limit is Rs 5 lacs.
  • Society running an educational institute to impart education to youth is entitled to sec. 12A registration. [2017] 78 com179 (Chandigarh – Trib.)
  • CBDT rolled out Prosecution Module under Income Tax Business Application.
  • Finance Ministry seeks to limit cash transactions at Rs 2 lakh in Finance Bill amendment. Effective from01.04.2017.
  • 30 individuals on I-T Deptt radar for Tax evasion to the tune of Rs.500 Cr. established during demonetization and planning to initiate criminal prosecution against them.
  • CBDT vide notification no 10/2017 dated 14th February, 2017 notifies the amended India-Israel DTAA signed on 14th October, 2015.
  • CBDT has issued a circular via circular no. 08 of 2017 dated 23rd February, 2017 regarding clarification of determination of Place of Effective Management (POEM) of a Company, other then an Indian company.
  • New versions of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) are applicable from February 23, 2017.
  • No TDS liability if payee not identifiable at time of making provision for expenditure at year end. [2017] 78 com195 (Delhi – Trib.)

Indirect Tax:

  • CBEC launches a Mobile Application for GST to inform the taxpayers of the latest updates on GST among others.
  • The clearances to 100% EOU is to be treated as export – Refund of accumulated CENVAT credit availed on input services allowed – CCEC&ST Vs Nash Ind. India Pvt. Ltd. (2017 (3) TMI 351 – CESTAT Bang.).

GST Update :

  • No GST on Education & Health Care provided by Government or its Authority, Local Authority (Schedule IV). Those provided by others may attract GST.
  • Central Board of Excise and Customs (CBEC) has started Migration to GST on or before 31st March 2017. Log on to  to aces.gov.inobtain Provisional ID and password.  Use it to enroll at www.gst.gov.in. Call Help Desk No 1800 1200 232 or mail to cbecmitra.helpdesk@icegate.gov.in.
  • GST Council to approve Composition, Valuation, Input Tax Credit & Transition Rules on Council Meeting on 31-3-17. Other Rules already approved.
  • For B2C supplies, invoice wise details in GSTR-1 for interstate sales of more than 2.50 lacs & State wise total for sales up to 2.50 lacs.
  • Under GST separate invoice to be issued for reverse charge and forward charge goods & services. Both cannot be clubbed together in single invoice.

SEBI UPDATE :

  • SEBI increased the investment ceiling of debt mutual funds in housing finance cos from 10 per cent to 15 per cent,” Under the current guidelines, the sectoral exposure for debt mutual fund schemes is 25 per cent.

RBI UPDATE

  • RBI services offered through eBiz portal will be migrating to a new platform from 27th February, 2017.
  • RBI has issued a Master direction on Money Transfer Service Scheme (MTSS) of transferring personal remittances from abroad to beneficiaries in India.

Other update :

  • Companies (Indian Accounting Standards) Amendment Rules 2017 effective from 1.4.2017.
  • Standard Operating Procedure (SOP) to be followed by the AOs in verification of Cash transactions relating to demonetization – Inst No. 03/2017, dt. 21 FEB 2017.
  • Parliament passes Maternity Benefit Bill to provide 26-weeks paid leave, creche in office, to be effective once the President gives his assent.
  • Supreme Court directed all industrial units situated in severely polluted areas across the country to install primary effluent treatment plants (PETP) within three months, failing which they will be shut down.
  • Labour Ministry has doubled the Gratuaty amount to Rs 20 Lacs for the employees of Private Companies.
  • State Bank of India is going to shut down 47% of associate banks’ offices (SBBJ, DBOH, SBOP, SBOT & SBOM) post-merger .Out of five head offices of the associate banks, will retain only two. All banks branches to operate under SBI w.e.f. 1.4.2017.

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.

  • Our main business is not to see what lies dimly at a distance, but to what clearly lies at hand.
  • Anxiety, doubt and uncertainty about future are three worst enemies for anybody to grow in life. Let us resolve to do our work in hand rather than be under stress and waste our precious time.

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

03.21.17
by

CORPORATE AND PROFESSIONAL UPDATE MARCH 21, 2017

Professional Update For the Day:

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Direct Tax:

Bombay court held that TDS cannot be Adjusted against Tax payable under VDIS, 1997Earnest Business Services Pvt.  Ltd., Vs The Commissioner  of Income  Tax (Bombay High Court)

ITAT Delhi held that Capital gains on transfer by a foreign company of shares in another foreign company holding assets in India is taxable in India Cairn U K Holdings Limited V DCIT (International Taxation) (ITAT Delhi)

CBDT has asked its field formations to concentrate on recoveries of arrears and pending tax demands in the remaining two weeks of the fiscal.

W.e.f. 01.04.2017, Cash transactions above Rs 3 lakhs to be done through banking channels only. Budget 2017.

Income tax department released a list of 29 entities owing Rs 448.02 crore in *taxes as part of its strategy to name and shame large defaulters.

CBDT has notified The Income Tax (2nd Amendment) Rules, 2017 which shall come into force on the date of their publication in the Official Gazette. The Amendment has been made to provide new procedure and common application form for allotment of PAN and TAN.

The Income Tax Department has issued refunds amounting to Rs.1.42 lakh crore in the current fiscal so far, 41.5% higher than last year.

Indirect Tax:

HC finds no merit in writ petition, upholds confirmation of service tax demand against assessee thereby rejecting contention that show cause notice was issued without application of mind and in violation of law; Since the said notice had not been set aside by Court in earlier writ petition, being issued on the basis of cogent material and evidence, it was no longer open to assessee to complain about legality and validity thereof [TS-48-HC-2017(CAL)-ST]

CBEC clarified that the ‘Saree’ which has undergone further processing will be classifiable as ‘Saree’ under Chapter 50, 52 and 54 of the Central Excise Tariff Act, 1985 depending upon the material of the fabrics, and not as made-ups under Chapter 63 of the said Act Vide Circular No. 1054/03/2017-CX dated 15.03.2017. (Click here to view)

GST Update :

Cabinet approves CGST, IGST, UTGST & Compensation bills. Lok Sabha to pass them as Money Bills in Budget Session. No need for Rajya Sabha approval.

GST council is considering setting up a centralized assessment interface for service-oriented industries such as banking, telecom, insurance and information technology.

TDS to be deducted on basic amount & not on GST. Issue TDS certificate in 5 days of deposit of TDS. Late fee of 100 per day (Max 5000) (Sec 46).

DVAT Filing of online return for 3rd quarter of 2016-17 extension of period thereof up to 28-02-2017.

FAQ on GST: 

Query: Are there different valuation provisions for Goods and Services and CGST, SGST and IGST?

Answer:  No, section 15 is common for goods and services and all three taxes.

Query: Can composition scheme be availed if the taxable person effects inter state supplies?

Answer: No, composition scheme is applicable only if taxable person doesnot effects any inter state supplies.

 SEBI UPDATE :

The SEBI Board in its last meeting has taken various decisions to improve the facilities being offered to the stakeholders.

Other update :

ICAI membership last date for retrospective restoration of membership and COP removed during the year 2016-17 is 31st march, 2017.

ICAI new Fee: Annual Membership, COP and Restoration Fee. (Entrance Fee – ACA Rs.2000, FCA Rs.2500. Annual Membership Fee – ACA Rs.1500, FCA Rs.3000, COP Fee – ACA – Rs.3000, FCA Rs.4000. with effect from 1st April, 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.

You must not lose faith in humanity. Humanity is like an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty.

Failure is a great learning experience. Perhaps, a nature’s way to teach us something profound. Remember, failure is the fertilizer for success.

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   Continue reading →