CORPORATE AND PROFESSIONAL UPDATE JULY 6, 2016

Professional Update For the Day:

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DIRECT TAX:

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

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

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

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

INDIRECT TAX:

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

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

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

OTHER UPDATES:

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

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

KEY DATES :

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

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

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CORPORATE AND PROFESSIONAL UPDATE JULY 5, 2016

Professional Update For the Day:

blog-rja-with-imageDIRECT TAX:

Income Tax : Gujrat High Court held that the payment of stamp duty is not for business expediency but it is in the nature of a compulsory levy under the Bombay Stamp Act. It is legally settled that accounting practice cannot over rider the provisions of the Income Tax Act, 1961. Whole expenditure allowed as revenue expenditure. (M/s. Prithvi Associates Vs. ACIT)

Income Tax : ITAT Delhi in the given case held that business loss cannot be set off against the income assessed under the deeming provisions of section 68, which is not falling under any of the five heads of income.( ACIT, Circle, Haridwar Vs. M/s. Sant Steel & Alloys (P) Ltd.)

Income Tax: Transfer-fees from outgoing member not taxable for co-operative housing society applying ‘mutuality’  [TS-346-HC-2016(BOM)]

Income Tax:  AO isn’t required to furnish reasons for rejecting computation of assessee for determination of ALP
Philips Electronics Ltd. v. Assistant Commissioner of Income-tax, Circle-11, Kolkata
[2016] 70 taxmann.com 350 (Kolkata – Trib.)

Voluntary CSR Expense allowable as business expenditure. [ACIT vs. Jindal Power Limited (ITAT Raipur)].

INDIRECT TAX:

Vat & sales tax:  Uploading of notice on DVAT website in account of assessee is valid service of notice: HC Bajrang Fabrics (P.) Ltd. v. Commissioner of VAT [2016] 70 taxmann.com 348 (Delhi)

Excise: Onus of establishing that inputs have been received is on person taking credit and not on revenue. (Commissioner of Central Excise, Pune-II v. K.B. Chougula)

Custom : Clearance of bunker fuels to Indian ship/vessel carrying containerized cargo—reg. vide Circular No. 1034/22/2016-CX dated 1st July, 2016.

Excise: Buyer can take credit of excess duty paid by supplier as long as assessment at end of supplier isn’t modified Commissioner of Central Excise, Bhopal v. Hindustan Electro Graphite Ltd.
[2016] 70 taxmann.com 353 (New Delhi – CESTAT)

Service tax : Ministry of Finance has vide notification exempted the entire service tax leviable on taxable services provided by way of transportation of goods by a vessel from outside India upto the customs station in India with respect to which the invoice for the service has been issued on or before the 31st May, 2016. However, the exemption is subject to the condition that the import manifest or import report required to be delivered under Section 30 of the Customs Act, 1962 has been delivered on or before 31st May, 2016 and the service provider or recipient produces Customs certified copy of such import manifest or import report.

CENVAT: Canteen, Housekeeping & cleaning service- CENVAT credit allowed. [M/S. Tata Steel Ltd. Vs. Commissioner Of Central Excise & Service Tax, Jamshedpur (Cestat Kolkata)]

OTHER UPDATES:

Form MR-1 (Return of Appointment) not required to be filed for CEO, CS, and CFO w.e.f. 30.06.16. Companies (Appt. & Remuneration of Managerial Personnel) Amendment Rules, 2016.]

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

KEY DATES :

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

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

“Tough times are like physical exercise, you may not like it while you are doing it but tomorrow you’ll be stronger because of it.”

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CORPORATE AND PROFESSIONAL UPDATE JULY 4, 2016

Professional Update For the Day:

trademark-patent-startup-india-incentive-1050x600

DIRECT TAX:

Income Tax : Mumbai ITAT allows Sec.11 exemption on profits earned by assessee hospital from pharmacy business for AY 2006-07, upholds assessee’s claim that pharmacy business was an integral part of hospital business;  [TS-350-ITAT-2016(Mum)]

Income Tax : ITAT: Retention bonus for arresting employee attrition deductible as revenue expenditure [TS-349-ITAT-2016(DEL)]

Income Tax: Transfer-fees from outgoing member not taxable for co-operative housing society applying ‘mutuality’  [TS-346-HC-2016(BOM)]

CBDT issued 3rd clarification in the form of FAQs on the Income Declaration Scheme, 2016 Vide Circular No. 25 of 2016 dated 30.06.2016 Under the ‘Income Declaration Scheme’ tax of forty-five per cent of such undisclosed income is there. The IDS is effective from June 1, 2016 and will remain open up to September 30, 2016. The declarant is required to pay tax up to November 30, 2016. In the recent FAQs issued on June 30, 2016 the CBDT has clarified that once the person had declared undisclosed income, no question will be asked from where such income or tax is coming from. So the effective rate of tax will be 31% as you have to pay 45% on 145 i.e. amount declared and tax paid thereon.

No denial of sec. 54F relief due to two houses if taxpayer had partial interest in one of the houses  Mrs. V.R. Usha v. Income-tax Officer, Business Ward-XV(1), Chennai[2016] 70 taxmann.com 340 (Chennai – Trib.)

Interest on FD was includible in operating profit as FD was made from advances received from buyers Deputy Commissioner of Income-tax, Circle- 8 (1), Mumbai v. Bunge India (P.) Ltd. [2016] 70 taxmann.com 323 (Mumbai – Trib.)

INDIRECT TAX:

Vat & sales tax : Dealers having gross turnover above Rs. 1 Cr in F.Y. 2015-16, are required to attach DSC with form DVAT 16/DVAT 17 for Q1 of 2016-17 and onwards. Notification of 1.6.16

Excise : CBEC specified the procedure and conditions for supply of bunker fuel without payment of Central Excise duty from the warehouse of the OMCs to the eligible ships/vessels Vide Circular No. 1034/22/2016 – CX dated 01.07.2016  Excise: The time limit for taking Central excise registration of an establishment by a jeweller  is being extended up to 31.07.2016.

Custom : Clearance of bunker fuels to Indian ship/vessel carrying containerized cargo—reg. vide Circular No. 1034/22/2016-CX dated 1st July, 2016.

Excise: Time limit for excise registration by jewellers extended up to July 31, 2016 Circular No. 1033/21/2016 – CX. Dated  July 1, 2016 F. No. 354/25/2016–TRUExcise: Refund of tax paid on non-taxable services is also governed by time limit of section 11B Giriraj Construction v. Commissioner of Central Excise & Customs, Service Tax, Nasik [2016] 70 taxmann.com 303 (Mumbai – CESTAT)

Service tax : No recovery of service tax without adjudication even if tax was collected from customers: HC  Union of India v. Mrs. Prashanthi [2016] 70 taxmann.com 346 (Karnataka)

OTHER UPDATES:

RBI: As per new guideline given by RBI spelling should be written in LAKH not LAC on cheque and Bank Mandate.

Companies  (Removal of difficulties) Third Order, 2016 released by MCA. MCA order dated 30.06.2016.

Bank of Baroda invites proposal for appointment of concurrent auditors of the bank for Branches/RBOs/CBOs/Other Units vide RFP for 545 of its Branches, 22 CBOS, 13 RBOs and 3 Other Units Last date : – 21/07/2016.

Employees drawing salary of Rs.1.2Cr p.a. / 8.5Lac p.m. to be disclosed in board report. Companies (Appt. and remuneration of managerial personnel) amendment rules, 2016.

Invalid transfer of shares didn’t become valid just because petitioner didn’t dispute her sign on transfer docs Ms. Sulochana Neelkanth Kalyani v. Takle Investments Co. [2016] 70 taxmann.com 351 (Bombay)

KEY DATES

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

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

“Knowledge is being aware of what you can do. Wisdom is knowing when not to do it.”

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CORPORATE AND PROFESSIONAL UPDATE JULY 2, 2016

 

Professional Update For the Day:

DIRECT TAX:

Income Tax : CBDT issues 3rd FAQs on Income Declaration Scheme, 2016, Circular No.25 of 2016 -Income Tax Dated 30th of June, 2016.

Income Tax : Explanation on disallowance of CSR exp. doesn’t have retro-effect, says ITAT Assistant Commissioner of Income-tax, Circle 1 (1), Bilaspur V. Jindal Power Ltd. [2016] 70 taxmann.com 389 (RAIPUR-TRIB)

Income Tax: TP provisions can be invoked even for 100% EOU enjoying tax holiday under sec. 10A Transcend MT Services (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle 16(1), New Delhi [2016] 70 taxmann.com 388 (Delhi – Trib.)

CBDT issued 3rd clarification in the form of FAQs on the Income Declaration Scheme, 2016 Vide Circular No. 25 of 2016 dated 30.06.2016

No denial of sec. 54F relief due to two houses if taxpayer had partial interest in one of the houses V.R. Usha v. Income-tax Officer, Business Ward-XV(1), Chennai[2016] 70 taxmann.com 340 (Chennai – Trib.)

INDIRECT TAX:

Excise : The liability for payment of Central excise duty will be with effect from 01.03.2016. The payment for excise duty for the month of March, April , May , June  is also extended to 31.07.2016.

Excise: The time limit for taking Central excise registration of an establishment by a jeweller  is being extended up to 31.07.2016.

Custom : Clearance of bunker fuels to Indian ship/vessel carrying containerized cargo—reg. vide Circular No. 1034/22/2016-CX dated 1st July, 2016.

Excise: CBEC has extended the time limit for taking central excise registration of an establishment by jeweler to31.07.2016. The liability for payment of central excise will be from 1st March, 2016. However the assessee jewelers may make the payment of excise duty for the months from March 2016 to June 2016 also extended upto31.07.2016. Vide Circular No. 1033/21/2016 – CX dated 01.07.2016.

Excise: Refund of tax paid on non-taxable services is also governed by time limit of section 11B Giriraj Construction v. Commissioner of Central Excise & Customs, Service Tax, Nasik [2016] 70 taxmann.com 303 (Mumbai – CESTAT)

Excise: Extension of time-limit for refund claim would also be applicable on time-barred claims Nobel Art & Craft House v. Commissioner of Central Excise, Jaipur-II [2016] 70 taxmann.com 315 (New Delhi – CESTAT

OTHER UPDATES

RBI: The Reserve Bank of India has released the Financial Stability Report (FSR) June 2016The FSR reflects the overall assessment on the stability of India’s financial system and its resilience to risks emanating from global and domestic factors. Besides, the Report also discusses issues relating to development and regulation of the financial sector.

Companies  (Removal of difficulties) Third Order, 2016 released by MCA. MCA order dated 30.06.2016.

KEY DATES

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

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

“Dreams are the seeds of change. Nothing ever grows without a seed and nothing ever changes without a dream. Dream on, move on and change the world.”

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CORPORATE AND PROFESSIONAL UPDATE JULY 1, 2016

Dear   Professional Colleagues,
Heartiest greetings on CA Day!

6

Professional Update For the Day:

DIRECT TAX:

Income Tax : CBDT issues 3rd FAQs on Income Declaration Scheme, 2016, Circular No.25 of 2016 -Income Tax Dated 30th of June, 2016.

Income Tax : Explanation on disallowance of CSR exp. doesn’t have retro-effect, says ITAT Assistant Commissioner of Income-tax, Circle 1 (1), Bilaspur V. Jindal Power Ltd. [2016] 70 taxmann.com 389 (RAIPUR-TRIB)

Income Tax: TP provisions can be invoked even for 100% EOU enjoying tax holiday under sec. 10A Transcend MT Services (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle 16(1), New Delhi [2016] 70 taxmann.com 388 (Delhi – Trib.)

CBDT has issued Income Tax (18Th Amendments) Rules, 2016 vide Notification No. -54/2016 dated27.06.2016. These rules will be applicable from 1st day of April, 2017. In the Income-tax Rules, 1962 , after rule 127, Foreign tax credit Rule has been inserted in Rule 128.Further,  in Appendix-II, after Form No.66, Form 67 has also been inserted.

Central Government appoints the 27th day of June, 2016, as the date on which the provisions of Part I of Chapter XII of Finance Act 2016 shall come into force vide Notification No. S.O. 2214(E) dated 27.06.2016.

New versions of e-TDS/TCS Return Preparation Utility (RPU) & File Validation Utilities (FVUs) available at TIN website applicable W.e.f. 28.06.16.

INDIRECT TAX:

 Excise : Delay in filing appeal condoned on payment of costs though no detailed explanation given by assessee for delay Sivalogam Steels (P.) Ltd. v. Customs Excise & Service Tax Appellate Tribunal [2016] 70 taxmann.com 301 (Madras)

Excise: Cenvat credit – the question of taking credit on POY contained in certain waste arising in process of manufacture of polyester texturised yarn would also not arise. Nowhere Rule 9A of CENVAT Credit Rules, 2002 contains anything to the contrary – Tri

Custom : Tariff notification in respect of fixation of tariff value of Edible Oils, Brass scrap, poppy seeds, Gold and Silver-92/2016-Dated 30-6-2016-custom.

Custom: Assessee can’t pursue writ when appellate remedy is available Socomec Innovative Power Solutions (P.) Ltd. v. Commissioner of Customs (Appeals), Chennai [2016] 70 taxmann.com 344 (Madras)

CBEC has given an Instruction of Inclusion of Show Cause Notices issued in relation to sub-section (11) of Section 28 of the Customs Act, 1962 on the competency of officers of DGDRI, DGCEI and Customs (Prev.), in the “Call Book” vide F.No.276/104/2016-CX.8A (Pt.) dated 29.06.2016 .

Under Excise Act service of notice by registered post without acknowledgement due is not valid.( HC RP Casting (P.) Ltd. v. Customs, Excise & Service Tax Appellate Tribunal) New Delhi

OTHER UPDATES : 

ICAI has issued FAQs regarding requirements to prepare consolidated Financial Statement dated on 24.06.2016. These FAQs on Consolidated Financial Statements have been issued by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI). The purpose of these FAQs is to illustrate and to assist in clarifying the requirements regarding preparation of Consolidated Financial Statements.

RBI: The Reserve Bank of India has released the Financial Stability Report (FSR) June 2016The FSR reflects the overall assessment on the stability of India’s financial system and its resilience to risks emanating from global and domestic factors. Besides, the Report also discusses issues relating to development and regulation of the financial sector.

KEY DATES

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

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


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REAL ESTATE BILL

real-estate-bill-2015

POWER TO BUYER – THE NEW REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

The real estate sector in India, in the recent times, has been plagued with lack of transparency, unregulated and unscrupulous activities of developers, oppressed and highly dissatisfied consumers and lack of timely and cost effective remedies. The arm twisting tactics and unethical business practices followed by many real estate developers have led to skyrocketing prices of real estate and a pool of consumers which is repelled by such high pricing and absence of proper check on developers. As a result, a large section of our population still dreams of owning a home.

In order to address the aforesaid issues affecting the real estate sector in the country, the Real Estate (Regulation And Development) Act, 2016 (“RERA”) has been brought into force. RERA received Presidential assent on March 26, 2016 and the Ministry of Housing and Urban Poverty Alleviation (“MHUPA”), vide its notification dated April 26, 2016, appointed May 1, 2016 as the date for coming into effect of 69 out of total 92 sections of RERA.

The rules for giving effect to the provisions of RERA are to be formulated and notified within a period of 6 (six) months from the date of commencement of the Act by respective State Governments (for each Sate), MHUPA (for  Union Territories  except Delhi  and Puducherry), Ministry of Urban Development (for Delhi) and Union Territory Government (for Puducherry).

RERA aims at putting institutional infrastructure in place in the country for the purpose of ensuring uniform regulatory environment, protection of consumer interest, quick adjudication/ resolution of disputes and overall development of the real estate sector.

THE SALIENT FEATURES OF RERA ARE DISCUSSED HERE UNDER:

Uniform Applicability: The provisions of RERA extend to whole of India  (except  Jammu  and  Kashmir)  and  are  applicable  to commercial as well as residential real estate projects. The said feature of RERA will be crucial in ensuring its uniform applicability and preventing any real estate project from escaping the provisions of RERA, unless expressly exempted, by the reason of said project being commercial or residential. Constitution of Regulatory Authority: RERA provides for constitution of Real Estate Regulatory  Authority (“Regulatory Authority”) for all States and Union Territories, as regulator for real estate projects, within a period of one year from the date of coming into effect of the Act. The said Regulatory Authority will perform such duties and exercise such powers as are assigned to it under RERA, including but not limited to granting registration to real estate  projects/real estate agents, maintaining database of projects/ promoters/ real estate agents, issuing orders/directions to ensure compliance of RERA, imposing penalty for offences, etc. Registration of Real Estate Projects: All real estate projects shall be required to be registered with the concerned Regulatory Authority if the area of land proposed to be developed therein exceeds 500 square meters, or the number of apartments proposed to be developed therein exceeds 8 (inclusive of all phases), or if the completion certificate with respect to such project has not been obtained on the date of commencement of the Act,. The said application shall be filed within a period of 3 (three) months from the date of commencement of this Act with respect to ongoing projects.

Undertaking marketing/sale with respect to a real estate project will not be permissible for promoters till necessary registration has been obtained under RERA.

Disclosures by Promoters: While filing an application for registration of a real estate project, promoters are required to provide disclosures with respect to all the details of the project and give declaration with respect to completion schedule and title of the land for the project. The period within which a promoter undertakes to complete the project under its application of registration is the period for which the registration for the said project shall be valid under RERA .Agreement with Buyers: RERA mandates the promoters to first enter into a written agreement for sale with the buyers and register the said agreement before accepting any advance payment or application fee (not exceeding 10% percent of the cost). Further, the said agreement for sale shall be in the prescribed form in order to prevent promoters from drafting one-sided agreements in their favour. Maintenance of Project Receivables in a Separate Account: RERA directs promoters to deposit and maintain at least 70% (seventy percent) of the amounts realised for the real estate project from the allottees, from time to time, in a separate account to be maintained in a scheduled bank, to be withdrawn in proportion to percentage of completion of project for covering the cost of construction and the land cost. The said requirement has been incorporated in RERA in order to prevent diversion/misappropriation of funds so obtained by promoters from allottees of a real estate project. Check on Promoters’ Powers: RERA imposes several checks on powers/activities of promoters, including but not limited to the requirements of seeking prior consent of at least two third allottees before altering sanctioned plans/common areas of a project and/or transferring the project to a third party, rectifying structural/ workmanship/ quality defects within a period of 30 days of being notified, maintaining insurance with respect to land and building of the project, refunding the money or paying monthly interest, as the allottee may desire, in the event of delay in completion, etc. Registration of Real Estate Agents: RERA has mandated all real estate agents to get themselves registered with the Regulatory Authority before facilitating any real estate transaction. Further, RERA incorporates a provision that requires real estate agents to facilitate possession of all necessary documents that an allottee is entitled to and perform all such other function as may be prescribed under the rules. Buyers’ Rights: RERA grants several rights to the buyers, including but not limited to right to have access to database of promoters/projects/real estate agents, right to claim refund/monthly interest in the event of delay, right to claim compensation for any loss caused due to defect in title of project land, etc. Time Bound Dispute Resolution Mechanism: In addition to constitution of Regulatory Authorities, RERA also provides that appropriate Government shall constitute an Appellate Tribunal (“Appellate Tribunal”) within a period of 1 (one) year from the date of commencement of the Act for hearing appeals against the orders of Regulatory Authority that are preferred within a period of 60 (sixty) days from the date of receipt of copy of concerned order.

RERA also provides that the proceedings of Regulatory Authority and Appellate Tribunal shall be completed within a period of 60 (sixty) days from the date of receipt of complaint or appeal, as the case may be.

Offences and Penalties: Failure of any promoter to get its real estate project registered in compliance with section 3 of RERA may result in levy of penalty up to 10% of the estimated cost of the project along with imprisonment for a term up to 3 (three) years in the event of continued default. Further, in the event of any promoter failing to provide correct information for registration or failing to adhere to any other provision of RERA, apart from section 3, such promoter shall be liable to a penalty up to 5% of the estimated cost of the project.

The Central Government has, as of now, notified 69 out of the total 92 sections under RERA. However, the 22 sections that are yet to be notified, such as prior registration of real estate projects; registration of real estate agents; duties/ obligations of promoters, are essential for regulating the activities of promoters and achieving the key objective of bringing transparency in the real estate sector.

Until the said remaining sections are notified, constitution of Regulatory Authority and framing of necessary rules under RERA will not result in achievement of desired results of transparency, accountability and timely handovers. Therefore, it will have to be seen as to how much time the Government takes before notifying the remaining sections and, accordingly, makes it obligatory for the promoters to ensure full compliances of their duties under the Act.

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HOW TO FILE TDS RETURN ONLINE?

USUAL MANUAL FOR CHANGED PROCEDURE FOR FILING OF E-TDS QUARTERLY STATEMENT W.E.F. 01 MAY 2016

how to file tds returns online

WITH EFFECT FROM 01 MAY 2016 ETDS QUARTERLY STATEMENT / RETURNS SHALL BE UPLOADED AT TRACES TDSCPC WEBSITE AND NOT ON TIN NSDL WEBSITE.

TDS STATEMENT UPLOAD: User Manual

  • Pre-Requisites for Uploading TDS Statement
  • To upload TDS, user should hold valid TAN and should be registered in e-Filing
  • Statement should be prepared using the Return Preparation Utility (RPU) and validated using the File Validation Utility (FVU). The utilities can be downloaded from tin-nsdl website (https://www.tin-nsdl.com/).
  • Valid DSC should be registered in e-Filing.
  • Upload TDS/TCS Statement

STEPS in Uploading TDS Statement:

Step 1: In e-Filing Homepage, Click on “Login Here”

Step 2: Enter User ID (TAN), Password, and Captcha. Click Login.

Step 3: Post login, go to TDS   Upload TDS.

Step 4: In the form provided, select the appropriate statement details from the drop down boxes for:

  • FVU Version
  • Assessment Year
  • Form Name
  • Quarter
  • Upload Type

Note:

  • TDS can be uploaded from Asst. Year 2011-12
  • Only Regular Statements can be uploaded, the Correction statement can be uploaded only through tin-NSDL portal.

Step 5: Click Validate to Validate Statement details.

Step 6: “Upload TDS ZIP file”: Upload the TDS/TCS statement (Prepared using the utility downloaded from tin-NSDL Website)

Step 7: “Attach the Signature file” Upload the signature file generated using DSC Management Utility for the uploaded TDS ZIP file. For further details on generating Signature file click here. Navigate to Step by Step Guide for Uploading Zip File (Bulk Upload)

Step 8: Click on “Upload” button.

Once the TDS is uploaded, success message will be displayed on the screen. A confirmation mail is sent  to the registered email id.

View Filed TDS Statement – the steps are as below:

Step 1: Login to e-Filing, Go to TDS

Step 2: In the form provided, select the details from the drop down boxes for Assessment Year, Form Name and Quarter respectively for which the TDS was uploaded.

Step 3: Click on “View Details”.

Step 4: The status of the TDS uploaded is displayed.

  • Once uploaded the status of the statement would be “Uploaded”. The uploaded file will be processed and validated. Upon validation the status will be either be “Accepted” or “Rejected” and would be reflected within 24 hours from the time of upload. In case if “Rejected”, the rejection reason will be displayed.
  • If the status is “Rejected”, click on the Token Number to view the error details.
  • Reason for rejection would be displayed as below:

Step 6: If the status is “Accepted”, click on the Token Number to see the details of acknowledgement of the statement uploaded for all future reference. 

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GOODS AND SERVICE TAX (GST)

gst

GST is levied only at the Destination point, It is taxed only at the value addition at each stage and supplier at each stage is permitted to set off through tax credit mechanism which would eliminate all cascading effect. There will be a no distinction between goods and services. 

STRUCTURE OF GST IN INDIA: 

  • INTRA STATE TAXABLE SUPPLY: Excise and service tax will be known as CGST.
  • Local VAT and other taxes will be known as SGST.
  • INTER STATE TAXABLE SUPPLY: CST will be replaced by integrated GST (IGST).
  • IMPORT FROM OUTSIDE INDIA: In this case custom duty like CVD, SAD etc. IGST will be charged 

FEATURES, REGISTRATION & RETURNS UNDER GST:

  • GST shall have two component one levied by the central and the other levied by the states .Rates for GST would be prescribed appropriately reflecting revenue consideration and acceptability.
  • IGST is applicable on the import of goods & services and inter-state stock transfer of goods & services and is levied and collected by the central.
  • The taxpayer would need to submit periodical return, in common format as far as possible , to both central GST authority and to the concerned state GST authorities
  • Export of goods and services are zero rated.
  • Each taxpayer would be allotted a PAN linked identification number with a total of 13-15 digits. This would bring the GST PAN-linked system in line with in existing PAN based system for income tax facilitating data exchange and taxpayer compliance.
  • The taxpayer would need to submit periodic return to both the central GST authority and to the concerned state GST authority. ITC credit can also be verified on the basis of return filed and revenues reconciled against challan data from bank.
  • Current threshold limit under central excise duties is RS 1.50 lacs and that under service tax is RS 10 lacs. Whereas the threshold limit under state VAT is between 10 lacs to 20 lacs.
  • Constitutional amendment bill is required to be passed in both the house of parliament. The CG has full majority in lok sabha however a lot depend on how the CG will ensure safe passage of the bill in rajya sabha , where it does not have the sufficient majority.

Hope GST Bill is approved in this monsoon session of Parliament: Arun Jaitley The finance minister 

Contributed by: Team Rajput Jain & Associates, Chartered Accountants–Managing Partner, Swatantra Singh

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GUIDELINES FOR FOREIGN INVESTMENT IN THE E-COMMERCE SECTOR

GUIDELINES FOR FOREIGN INVESTMENT IN THE E-COMMERCE SECTOR:

FDi in E Commerce www.carajput.com

E-commerce in recent times has been growing rapidly in India. By 2020, the e-commerce market size is expected to reach USD80 billion1, showing year on year growth in the range of 30 to 35 percent. This growth is likely to sustain for the next few years as e-commerce continues to reach new geographies, encompass new markets and provide greater benefits to e-retailers, consumers in terms of providing a large number of traders an additional source of sales, providing consumer greater convenience and access to a large number of products, etc.  The key features of the press note issued by Department of Industrial Policy and Promotion in this regard are enumerated below:

  • Foreign investment will not be allowed in the inventory based model of e-commerce.
  • 100 per cent foreign investment will be allowed under the automatic route in an entity undertaking sale of service through e-commerce.
  • 100 per cent foreign investment will be allowed under the automatic route in market place-based model subject to the following conditions :
  • Permission to marketplace e-commerce entity to enter into B2B transactions with sellers registered on its platform.
  • The marketplace may provide support services to a seller in respect of warehousing, logistics, order fulfillment, call centre, payment collection and other services.
  • Sales from one vendor or its group companies should not exceed 25 per cent of the sales affected through the marketplace.
  • Website should clearly provide name, address and other contact details of the seller.
  • Post sale, delivery of goods to the customer, customer satisfaction, warranty/guarantee of goods and services sold will be the responsibility of the seller.
  • The marketplace will not exercise ownership over the inventory for sale may be facilitated in conformity with the guidelines of the Reserve Bank of India.
  • E-commerce entities will not directly/indirectly influence the sale price of goods or services and shall maintain a level playing field.

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CORPORATE AND PROFESSIONAL UPDATE JUNE 29, 2016

Professional Update For the Day:

29

DIRECT TAX:


Income Tax: Amounts deposited in “golaks” in Gurudwara doesn’t amount to anonymous donations but charity [TS-343-ITAT-2016(ASR)]

Income Tax: CBDT issued an addendum circular to Circular No. 22/2016 clarifying that no TCS u/s 206C(1D) will be levied if the cash receipt does not exceeds two lakh even if the sale consideration exceeds two laks rupees and also the tax is required to be collected at source on cash component of sale consideration not on whole of sale consideration. Vide Circular No. 23/2016 dated 24.06.2016.

Income tax : CBDT issued Income Tax (16th amendments) Rules, 2016 vide Notification No. 49/2016 dated 22th June 2016.CBDT made the amendment in Rule 10U Application of general Anti Avoidance Rule of Income tax Rules, 1962. As per the Amendments made in the 10U (1)(d) the date “30th August 2010” has been substituted with “1st day of April 2017”. Similarly, In Rule 10U (2) the date “1st day of April 2015” has been substituted with the date “1st day of April 2017”

Reopening invalid if AO records satisfaction in mechanical manner & without application of mind via {M/S Banke Bihari Properties Pvt. Ltd Vs ITO (ITAT New Delhi)}

Demolition/Redevelopment not amounts to transfer, so no withdrawal of 54F via {Shri Dilip Manhar Parekh Vs The Dy. CIT}

No TDS on commission paid outside India for services received outside India by Non-Residents via {DCIT vs. M/s Sess Resources Ltd. (ITAT Panaji)}

Denies Sec. 80P deduction to labour cooperative society outsourcing labour work [TS-342-HC-2016(P & H)]

Income Tax: Where assessee sold shares in a company and Assessing Officer, after considering all relevant facts relating to sale price of shares, taxed gain from such sale as capital gain, reopening of assessment on ground that part of consideration received by assessee was non-compete fee assessable as business income, was not justified – [2016] 70 taxmann 258 (Delhi)

Income Tax: Failure to issue notice under sec. 143(2) couldn’t be cured by resorting to deeming fiction of sec. 292BB Sanjeev Aggarwal v. Deputy Commissioner of Income-tax, Circle-1(1), Chandigarh [2016] 70 taxmann.com 265 (Chandigarh – Trib.)

Income tax : New monetary threshold for filing appeals before High Court is also applicable to pending cases Commissioner of Income-tax v. Smt. Manbhar Devi Meena [2016] 70 taxmann.com 275 (Rajasthan)

Income Tax: For purpose of considering whether shares acquired by assessee by way of gift, are long-term capital assets or not, date on which donor acquired shares is relevant and not date on which assessee acquired shares in question – [2016] 70 taxmann 258 (Delhi)

The Hon’ble Bombay High Court in the case of co-owner Smt. Chhaya B Parekh in Income Tax Appeal No. 1583 of 2012 vide judgment dated 24th January, 2013 had held that demolition of residential bungalow will not tantamount to transfer and hence the same will not be hit by provisions of section 54F(3) of the Act.( Shri Dilip Manhar Parekh Vs The Dy. CIT)

CBDT has issued Income tax (17th Amendment) Rules, 2016. It has provided  conditions for relaxation of higher TDS U/s 206AA of the Income Tax Act for  non availability of PAN card in case of Non Resident/Foreign Companies.

Income Tax : ITAT Mumbai held that CIT cannot revise assessment for making afresh examination of an issue already examined by the AO who has taken one of the possible views because there has been no erroneous order which could ordered to be revised. (M/s. Rachana Finance & Investments Pvt. Ltd. vs. CIT ) ITAT Mumbai

Income Tax : No TDS on commission paid outside India for services received outside India by Non-Residents.[DCIT vs. M/s Sess Resources Ltd. (ITAT Panaji)].

Income Tax : CBDT has issued clarification on the Income declaration scheme, 2016. Queries have been received from the public about various provisions of the Scheme. The Board has considered the same and the clarifications issued vide Circular No. 24/2016 dated 27.06.2016

Income Tax: No TDS u/s 206AA on some payments to non-residents without PAN if TIN & other specified details & documents furnished. Notification 53 of  Dated :24.6.16.

 Auditor’s opinion on Section 80P interpretation cannot be a information for reopening u/s 147. [Jaipur Sahakari Kraya Vikraya Samiti Ltd. vs. ITO (ITAT Jaipur)].

INDIRECT TAX:


Excise : Goods bearing brand name of others are ineligible for SSI-exemption and are liable to duty; hence, SSI-units can avail exemption for unbranded goods simultaneously with Cenvat credit against duty-paid on branded goods – [2016] 70 Taxmann 244 (Punjab & Haryana)

Excise : Simultaneous availment of SSI exemption on unbranded goods and credit of duty on branded goods aren’t barred  Commissioner, Central Excise Commissionerate, Panchkula v. Cure Quick Remedies (P.) Ltd. [2016] 70 taxmann.com 244 (Punjab & Haryana)

Service tax : CBEC has exempt service tax on taxable services by way of transportation of goods by a vessel from outside India up to customs station in India with respect to which the invoice for the service has been issued on or before 31st May, 2016 subject to the condition of production of customs certified copy of the import manifest or import report required to be delivered under section 30 of the Customs Act, 1962 vide Notification No. 36/2016dated 23.06.2016

Service tax : CBEC has exempt the taxable services from whole of the Krishi Kalyan Cess leviable thereon with respect to which the invoice for the service has been issued on or before 31st May, 2016 subject to the condition that the provision of the service has been completed on or before 31st May, 2016 vide Notification No. 35/2016 dated23.06.2016

CST & vat : Where against assessment order, assessee filed writ petition and High Court declined to interfere on ground that alternative remedy under VAT Act was available and no questions of law were involved, since questions raised by assessee were pure questions of law, same could be gone into a writ petition and High Court should have decided matter – [2016] 70 Taxmann 274 (SC)

CST : Where ‘C’ Form had been validly issued to a dealer and subsequently Commissioner cancelled said Form, there is no statutory power under CST Act that permit Commissioner cancellation of ‘C’ Form that has been validly issued – [2016] 70 Taxmann 255 (Delhi)

Excise: As per rule 9(5), onus of establishing that inputs have been received is on person taking credit; hence Commissioner (Appeals) cannot place onus on revenue to establish that inputs have not been received. – [2016] 70 Taxmann 279 (Mumbai – CESTAT)

Custom: DGFT vide Notification No. 12/2015 dated 24.06.2016 has made prohibition on import of milk and milk product from China. The prohibition on import of milk and milk products (including chocolates and chocolate products and candies/ confectionary/ food preparations with milk or milk solids as an ingredient) from China ineffective till 23/06/16 as per the Notification.

Excise : In exercise of power conferred under section 9(2) of Central Excise Rules 2002 the Central Board of Excise and Customs hereby specifies that A person who is registered as First Stage Dealer shall not be required to take registration as an Importer or A person who is registered as Importer shall not be required to take registration as First Stage Dealer.

Custom : HC allows duty drawback of Basic Customs Duty on export of final product, though import duty on inputs and raw materials utilized therein paid through debit in Duty Entitlement Pass Book scrip. Gujrat High Court  [TS-250-HC-2016(GUJ)-CUST]

OTHER UPDATES :


MCA : Forms AOC-4 XBRL, GNL-1, INC-6, INC-2 and CRA-2 are likely to be revised on MCA21 Company Forms Download page w.e.f 25th June 2016. Stakeholders are advised to check the latest version before filing.

Annual filing forms for Companies Act, 1956 – 23AC, 23ACA, 23B, 20B, 21A are likely to be available on MCA21 portal by mid-August 2016.

Interest rate on PPF retains at 8.1% for quarter ending September, 2016, same as stayed in 1st Quarter of 2016-17.

MCA has changed Version of e-forms MR-1 (Return of Appointment of MD/WTD/Manager), CHG-1 (Application for Registration of Creation, Modification of charge other than those related to debenture), CHG-4 (Particulars for satisfaction of charge thereof), MGT-14 (Filing of Resolutions and Agreements to the Registrar) w.e.f 7th June, 2016. The form has been updated on MCA Portal. Only new version of e-form will be acceptable. Stakeholders are requested to plan accordingly and ensure that latest version of form is downloaded for e-filing. Form- wise date of last version change is available at on the website of MCA.

RBI: RBI has issued a Circular dated 23rd June, 2016 and detailed the format/requirements of submission of Proforma Ind AS Financials. The RBI had directed banks to submit Proforma Ind AS Financial Statements from the half-year ended September 30, 2016, latest by November 30, 2016. Banks will be guided by the Ind AS notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and the Report of the Working Group on “Implementation of Ind AS by Banks in India”.

ICAI has issued FAQs regarding requirements to prepare consolidated Financial Statement dated on 24.06.2016. These FAQs on Consolidated Financial Statements have been issued by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI). The purpose of these FAQs is to illustrate and to assist in clarifying the requirements regarding preparation of Consolidated Financial Statements.

RBI: RBI has issued a Circular dated 23rd June, 2016 and detailed the format/requirements of submission of Proforma Ind AS Financials. The RBI had directed banks to submit Proforma Ind AS Financial Statements from the half-year ended September 30, 2016, latest by November 30, 2016. Banks will be guided by the Ind AS notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and the Report of the Working Group on “Implementation of Ind AS by Banks in India”.

ICAI has issued FAQs regarding requirements to prepare consolidated Financial Statement dated on 24.06.2016. These FAQs on Consolidated Financial Statements have been issued by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI). The purpose of these FAQs is to illustrate and to assist in clarifying the requirements regarding preparation of Consolidated Financial Statements.

RBI: The Reserve Bank of India has released the Financial Stability Report (FSR) June 2016The FSR reflects the overall assessment on the stability of India’s financial system and its resilience to risks emanating from global and domestic factors. Besides, the Report also discusses issues relating to development and regulation of the financial sector.

KEY DATES :


Advance Information for 1st fortnight of July of functions with booking cost more than Rs. 1 lakh in Banquet halls; hotels etc. in Delhi in form No. BE-2 under DVAT Act. – 27-06-2016

Return in the form 26QAA by Banks for interest up to Rs. 5000 for March Quarter in Income Tax Act-30.06.2016

E-Filling of form 15G/H in respect of the period 01.10.2015 to 31.03.2016 in Form 15G/H in Income tax act-30.06.2016

Pay difference of service tax deposited on provisional basis and actual annual service tax (Where both taxable & exempt service tax provided and input credit taken on provisional basis) in challan No. GAR-7 in Service Tax Act-30.06.2016

“Life is very similar to a boxing match. Defeat is not declared, when you fall down. It is declared, when you refuse to RISE UP.”

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