HIGHLIGHTS RESULTS OF THE GST COUNCIL MEETING HELD ON 22-23 SEPTEMBER,2016:

HIGHLIGHTS RESULTS OF THE GST COUNCIL MEETING HELD ON 22-23 SEPTEMBER,2016:

www.carajput.com; GST

www.carajput.com; GST

  1. The threshold Annual Exemption Limit fixed at ₹ 20 Lac.
  2. The threshold limit for the north-eastern and hill states paged at ₹ 10 Lac.
  3. GST rates and tax slabs would be decided at three-day’s meeting during 17-19 Oct, 2016.
  4. GST rollout slated for 1st April, 2017.
  5. All cesses will be subsumed in the GST
  6. GST Council’s next meeting on 30th Sep, 2016 to finalise draft GST law / rules.
  7. The state authorities will have jurisdiction over assessees with annual turnover of less than ₹ 1.5 crore.
  8. Those with turnover of over Rs 1.5 Crores would be cross examination either by officers from the Centre or state to avoid dual control.
  9. The existing 11 Lac service tax assessees would continued to be assessed by the Centre.
  10. New assessees which would be added to the list would be divided between the Centre and the States.
  11. Council is working on a compensation law and draft compensation formula.
  12. The base year for calculating compensation would be 2015-16 and the formula for payment of compensation would be deliberated b/w the state and Central authorities.
  13. All decisions today by the GST Council were taken on the basis of consensus.

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

FOR FURTHER QUERIES CONTACT US:

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

Disclaimer: 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; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Any dishonest act of CA isn’t a professional misconduct if it is done in Individual capacity

 

www.carajput.com; CA

www.carajput.com; CA

Chartered Accountant Act, 1949: Where a CA sold his shares but continued to receive dividends declared by the Company by cheating upon transferee, such activity could not be said done in relation to practice as CA as such act of dishonesty was done in individual capacity. Thus, disciplinary committee’s proposal to remove CA’s name from registers of members of ICAI for 6 months was to be set aside.

Facts: 

  • A Chartered Accountant sold his shares in November 1999 however, share transfer deed for transfer of shares was lodged on November 04, 2004. In the meantime, CA continued to receive dividend declared by company for 5 years
  • The transferee made complaint about this conduct of CA before the Disciplinary Committee of the Institute of Chartered Accountants. The Disciplinary Committee found that the conduct of CA was wholly unworthy and amounted to professional misconduct.

On appeal the High Court held as under:

  1. In the instant case the respondent was acting as an individual in his dealings with the complainant which were purely commercial. While selling the shares held by him the respondent was not acting as a Chartered Accountant. He was not discharging any function in relation to his practice as a Chartered Accountant.
  2. In the decision reported as AIR 1958 SC 72 Council of Institute of Chartered Accountants & Anr. vs. B. Mukhreja, a Chartered Accountant who had been appointed as a liquidator was held liable for professional misconduct on the reasoning that Regulation 78 provided for a Chartered Accountant to act as a liquidator and thus while acting as a liquidator Sh. B. Mukhreja would be deemed to be in practice as a Chartered Accountant. The judgment brings out that the acts of omission or commission must relate to the offender acting as a Chartered Accountant and rendering service for remuneration and must be engaged in an activity which a Chartered Accountant would be entitled to be engaged in, wearing the hat of a Chartered Accountant.
  3. For example, a Chartered Accountant may drive rashly and negligently and in the process may kill a human being. This conduct would be an offence, but not a misconduct for the purposes of the Act
  4. The Disciplinary Committee’s proposal to remove CA’s name from registers of members of ICAI for 6 months was to be set aside. –[2016] 72 com 197 (Delhi)

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Disclaimer: 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; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST – A REALITY SOON

GST – A REALITY SOON

www.carajput.com; GST

www.carajput.com; GST

The 122ND Constitutional Amen tdment Bill for the introduction of Goods and Services Tax (GST) inhe Indian Constitution has been passed by the Rajya Sabha. The Bill has already passed by the Lower House (Lok Sabha) on 6th May 2015. Further, the Empowered Committee of the State Finance Ministers has released Model GST Law in June 2016. In order to have GST as the indirect Taxation Structure in force following steps needs to be followed:

Steps to convert GST a reality

  • 122nd Constitutional Amendment Bill to be ratified by at least 50% of the State Legislatures under Article 368 of the Constitution.
  • Assent by President of India to the 122nd Constitutional Amendment Bill will require.
  • After Constitutional amendment GST Council (GSTC) to be constituted within 60 daysunder Section 279A of the amended Constitution.
  • GSTC to recommend GST Law and procedure. IGST and CGST bill for Parliament/Centre and Model SGST bill for State Legislature.
  • CGST and IGST Laws to be introduced in Parliament and will require be passed by simple majority.
  • SGST Laws to be passed by concerned state legislatures.
  • Once Approval from Parliament and States, GSTN (GST network a Section 8 Company will launch the IT Platform for implementation of GST).

GST Council Formation Approved – A Step Forward :  Another step has been taken by the government on the right direction for the implementation of biggest tax reform. The Constitution (One Hundred and Twenty¬ second Amendment) Bill, 2014, for introduction of Goods and Services tax in the Constitution of the country was accorded assent by the President on 8th September, 2016, and the same has been passed as the Constitution (One Hundred and First Amendment) Act, 2016.

Today, i.e. on 12th September 2016, the union Cabinet has approved the setting up of the GST Council (Section 279A) and its secretariat with the following details:

  • Union Finance minister will be the Chairperson with state finance ministers as members to the GST council
  • Setting up of Secretariat of GST council with its office at New Delhi
  • Appointment of the secretary (Revenue) as the Ex-Officio Secretary to the GST Council.
  • Inclusion of the Chairperson, CBEC as a permanent invitee (non-voting) to all the proceedings of the GST Council
  • Create one post of Additional Secretary to the GST Council in its secretariat (at the level of Additional secretary to the Government of India), and four post of the Commissioner in its secretariat (at the level of Joint secretary to the Government of India)

The Finance Minister has also decided to call the first meeting of the GST Council on 22nd and 23rd September 2016 in New Delhi.

The GST Council shall make recommendations on tax rates, cesses, exemptions, threshold limit, and other provisions.

GST Constitutional Amendment Bill gets Presidential assent:  Honorable The President of India gave assent to the 122nd Constitutional Amendment Bill 2014 on Goods and Services Tax (GST) and now it becomes One Hundred and First Amendment Act, 2016, a major milestone for the introduction of the Goods and Services Tax (GST) expected to be implemented by 1st April 2017.

For your information, The Bill was passed unanimously by both the houses of Parliament in august 2016 and ratified by the legislative assemblies of more than 50% of the states. Assam was the first state to ratify the Bill and the other states which have passed the legislation include Bihar, Jharkhand, Chhattisgarh, Himachal Pradesh, Gujarat, Madhya Pradesh, Delhi, Nagaland, Maharashtra, Haryana, Sikkim, Mizoram, Telangana, Goa, Odisha and Rajasthan.

Going forward, GST Council will be formed within 60 days of the enactment of One Hundred and First Amendment Act, 2016. CGST and IGST laws will be introduced in Parliament and SGST Laws in State Legislative Assemblies for the rollout of GST.

Article on Supply without Consideration under GST : (Permanent transfer/ disposal of business assets and Temporary application of business assets to a private or non- business use)

With the passage of 122nd Constitutional Amendment Bill as One Hundred and First Amendment Act, 2016 in both the houses of Parliament by full majority and the release of Draft GST Model in June 2016 by the Empowered Committee of State Finance Ministers, it is expected that the GST will be in force very soon.

The Team DYKS has been analyzing the Draft GST Model deeply and initiated a Series of Articles on the issues emerging from the analysis.

Goods and Services Tax whether in the form of CGST, SGST or IGST will be levied on the“supply” of goods or/and services. Supply is defined in the Section 3 of the Draft Model Act which will also include a supply as mentioned in Schedule I even without consideration.

We have come up with an Article to analyse two transactions which are mentioned in the Schedule I i.e.

  • Permanent transfer/ disposal of business assets
  • Temporary application of business assets to a private or non- business use.

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Disclaimer: 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; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE SEPT 20, 2016

Professional Update For the Day:

29

DIRECT TAX:

CBEC has issued a clarification regarding supply of goods manufactured by EOUs without payment of central excise duty against advance licence/authorisation vide circular No. 1046/34/2016-CX  dated on 16/09/2016.

CBDT’s reiteration of maintaining strict confidentiality of the declarant and the declaration so made vide its press release dated 15-09-2016.

CBDT clarifies on last date to avail Direct Tax Dispute Resolution Scheme, 2016, to be 31st December, 2016.

CBDT has issued a office memorandum vide F. No. 225/233/2016-ITA II dated 15/09/2016 that the last date for making declaration under the Income Declaration Scheme 2016 is 30th September ,2016 hence the declaration can be filed till the midnight of the day.

ITAT Mumbai in the below case held that deduction will be allowed Where assessee is carrying out CGS activities which is nothing but infrastructure facility as defined under section 80IA(4).( ACIT-2 (1) , Mumbai Vs. Ameya Logistics P Ltd, Mumbai and Ameya Logistics P Ltd Vs. ACIT -2 (1) , Mumbai)

Indirect Tax:

CBEC seeks to amend Form ARE-2 vide Notification No. 44/2016 dated 16/09/2016.

Cbec has issued a clarification regarding rebate of duties paid on raw materials used in manufacture or processing of export of goods and admissibility of dutydraw back in such cases vide circular No. 1047/35/2016-CX  dated on 16/09/2016.

MVAT rate has been increased wef. From 17/09/2016, under schedule C except declared goods from 5.5% to 6% and under schedule E from 12.5% to 13.5% [Notification no, VAT.1516/CR-31/Taxation-1].

MCA has released the revised the versions of e-Forms –

FORM NAMES PARTICULAR
Form CRA-2 Form of intimation of appointment of cost auditor by the company to Central Government
Form CRA-4 Form for filing Cost Audit Report with the Central Government
Form SH-8 Letter of offer for Buy-Back
Form CHG-4 Form for Satisfaction of Charge thereof
Form MR-2 Form of application to the Central Government for approval of appointment or reappointment and remuneration or increase in remuneration or waiver for excess or overpayment to managing director or whole-time director or manager and commission or remuneration to directors

The revised forms will be available on the portal on the portal w.e.f 22nd September, 2016 of MCA. Stakeholders are advised to download the latest version before filing. Form- wise date of last version change is available at on the website of MCA.

MCA has released the revised the versions of e-Forms – Form CRA-2, Form CRA-4, Form SH-8,  Form CHG-4, Form MR-2. The revised forms will be available on the portal on the portal w.e.f 22nd September, 2016 of MCA. 

GST UPDATES  

GST Payment by Internet banking, Dr/Cr Card, NEFT, RTGS or challan upto 10,000 & not  by Book Entry/Adjustment or Debit to Export Scrips.

GST Abatement for crucial services e.g. life or medical insurance expected to avoid significant increase in overall burden on consumers.

Under GST By Oct end, GSTIN & Passwords to be issued to exisiting Assessees who will have to update Address, Names of Owners / Directors etc & Bank details.

Under GST apply for registration in 30 days from becoming liable, to claim ITC of inputs in stock  on  date preceding  date of liability.

RBI & SEBI UPDATE

SEBI made Unique Client Code (UCC) and Permanent Account Number (PAN) mandatory for all the persons transacting on commodity exchanges.

Key Dates:

Return of TDS for June quarter in DVAT-48- 19/09/2016

“Motivation is what gets you started. Habit is what keeps you going.”

“There is no chance, no destiny, no fate, that can hinder or control the firm resolve of a determined soul .”

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

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com E: info@carajput.com T: 011-233-4-3333, 9-555-555-480

Disclaimer: 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; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE SEPT 5, 2016

Professional Update For the Day:

Untitled7

DIRECT TAX:

SAFEMA : It is only when link or nexus of properties with convict/detenue or to income from such illegal activity is established, properties standing even in name of a relative can be forfeited Competent Authority v. M. Khader Moideen[2016] 72 taxmann.com 283 (Madras)

IT: Eligibility of exemption u/s 54F(4) – the entire amount which was subject to capital gain tax had not been utilized for the purpose of construction of new house nor were the unutilized amounts deposited in the notified Bank Accounts – No exemption – Humayun Suleman Merchant Vs The CCIT-XVII, Mumbai and Anr. (2016 (9) TMI 70 – Bombay High Court)

IT: Without using the services of the directors the key decisions of the business cannot be taken. Therefore it is essential to give remuneration as per Rules and Regulations of the company. In view of this expenditure is allowable as business expenditure – Rangoli Projects Pvt. Ltd. Vs ITO, Ward-15 (2), New Delhi (2016 (9) TMI 67 – ITAT Delhi)

University not wholly or substantially financed by government is not eligible for exemption u/s 10(23)(iiiab). [Visvesvaraya Technological University vs. ACIT (Supreme Court of India)].

INDIRECT TAX:

Refund will be allowed where the contract is for a fixed amount and it has been categorically recorded in the impugned order that no excise duty incidence has been passed on by the respondent to NHAI. NHAI also categorically certified to that effect. (CCE, Raipur Versus M/s Ircon International Ltd.)- 2016 (8) TMI 1022 – CESTAT NEW DELHI – Central Excise

where on account of delay in delivery of manufactured goods is liable to pay a lesser amount that the generically agreed price as a result of a clause (in the agreement), stipulating variation in the price, on account the liablility to “liquidated damages”, irrespective of whether the clause is titled “penalty” or “liquidated damages”, the resultant price would be the “transaction value.( M/s Kalpana Chemicals Versus CCE, C & ST, Hyderabad – III) – 2016 (8) TMI 1024 – CESTAT HYDERABAD – Central Excise

ST: CENVAT credit – an assessee cannot be denied the benefit of Cenvat Credit of duty on the ground that no manufacturing activity was involved when the assessee has admittedly cleared its final product on payment of duty – M/s. Hindustan Unilever Ltd. Versus C.E. & S.T. Jabalpur (2016 (9) TMI 96 – CESTAT New Delhi)

Full receipt of Singaporean sub-contractor to develop ‘T3 Terminal’, Delhi Airport is taxable AUTHORITY FOR ADVANCE RULINGS (INCOME TAX) NEW DELHI MERO Asia Pacific (P.) Ltd., In re[2016] 73 taxmann.com 17 (AAR – New Delhi)

GST UPDATE

GST exemption for traders having turnover up to 25 lakhs: Revenue Secretary Source: www.businesstoday.in

RBI UPDATES:-

RBI on Thursday directed credit information companies (CIC) to provide free credit reports in full to individuals whose credit score is maintained with the agency, effective January 1.

RBI has issued a master circular – Non-Banking Financial Company –Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 vide Master Direction No.  DNBR.PD.007/03.10.119/2016-17 dated 01/09/2016.

RBI has issued a master circular – Non-Banking Financial Company-Systemically Important Non-Deposit taking Company and deposit taking company (Reserve Bank) Directions, 2016vide Master Direction No.  DNBR.PD.008/03.10.119/2016-17 dated 01/09/2016.

MCA UPDATE:

Ministry of Corporate Affairs vide General Circular No. 8/2016 dated 29.07.2016, has extended the date to file financial Statements or Annual Returns on or before 29.10.2016, where due date for holding of AGM is on or after 1st April, 2016, without payment of additional fees.

KEY DATES:

E-Payment of Service Tax for August by Companies: 06/09/2016

E-Payment of TDS/TCS deduced/collected for the month of August: 07/09/2016

Submission of Form No. 27C (TCS) received in August to IT Commissioner:- 07/09/2016

Intelligence is the ability to adapt to change.       -Stephen Hawking

We make a living by what we get, but we make a life by what we give.

Discipline is the bridge between goals and accomplishment.        -Jim Rohn

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

FOR FURTHER QUERIES CONTACT US:

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

Disclaimer: 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; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE SEPT 2,2016

Professional Update For the Day:

Untitled21A

DIRECT TAX:

No tax on income from offshore supplies as supplier had no agency PE in India.

No cancellation of trust’s registration just because its main income was from interest and miscellaneous receipt.

CBDT Extends due date for quarterly furnishing of Form 15G/155H

Income Tax Authorities must mention official e-mail Ids & phone/fax no in all notices/letters issued to taxpayers. F No 225/214/2016/ITA.II of 30-8-2016.

No tax on income from offshore supplies as supplier had no agency PE in India.

The CBDT vide Circular no. 30/2016 dated. 26 Aug. 2016 has streamlined the process for ‘Port Clearance/ No Objection Certificates and Voyage Return/ Assessment’ in the case of foreign shipping companies

No cancellation of trust’s registration just because its main income was from interest and miscellaneous receipt.

Extension of due dates of Form 15G/H received during 1.10.2015- 31.3.2016 & for Q1 of 2016-17, to31.10.2016; & for Q2 of 2016-17, to 31.12.2016. CBDT notification no 10/2016.

SC dismisses review petition against its earlier order dated April 22, 2016 denying exemption u/s 10(23C)(iiiab) to Visvesvaraya Technological University (‘VTU’ ) on the ground that it doesn’t satisfy the condition of being an institution ‘wholly or substantially financed by the Govt.’ for AYs 2004-05 to 2009-10. It Rejected VTU’s contention that ‘fees of all kinds collected’ must be regarded as receipts from Govt.[TS-465-SC-2016]

ITAT pune in the below citied case held that The payments made by assessee to Gensler-USA were merely for project specific drawings & designs without transfer of technology or know-how or even title in drawing & designs and not in the nature of “Royalty” or “Fee for Technical Services u/s 195.[Gera Developments Pvt. Ltd. Vs. DCIT, (Int. Tax), Pune]

INDIRECT TAX:

Recovery of CENVAT credit imposition of interest and penalty machine tool accessories, tips and Inserts CHA service for export of goods Held that – the ownership of the goods and the risk related thereto remains with the appellant up to the loading of the goods on the ship at the port of shipment. Further, Section 4 of the Central Excise Act, 1944, inter alia, states that the place of removal is any other place from where the excisable goods are to be sold after the clearance from the factory. ( Kennametal India Ltd. Versus Commissioner of Central Excise, Large Taxpayers Unit) – 2016 (8) TMI 1031 – CESTAT BANGALORE – Service Tax

Cenvat credit – manpower supply services – availed the input service in their manufacturing activity – whether 75% of service tax payable by the respondent should be considered as ineligible for credit when the provider of service was to pay only 25% of service tax having been paid 100 of the service tax – Held that – 75% of the service tax, which is sought to be denied is admittedly paid to the Government by the provider of service instead of recipient of service.( M/s. Prime Ispat Ltd. Versus CC and CE, Raipur) – 2016 (8) TMI 1026 – CESTAT NEW DELHI – Central Excise

The state of Jammu & Kashmir CBDT further extends the ‘due-date’ for filing Return of Income from 31st August, 2016 to 30th September, 2016.

COM VAT issued the notification:

  • Order dt.31/8/16 enhancing DVAT Refunds jurisdiction of AO’s, Addl. Com/JC’s & Spl.Com.
  • No.658 dated 24/8/16 reg. Withdrawal of mandatory requirement of filing DVAT return with Digital Signatures.
  • Circular No.13 dated.31/08/2016 extending the Q1 2016-17 DVAT returns up to 10/09/2016.

DVAT Last date extended for filing the return for Q1 2016-17 by 10 days and also to find out the ways to improve the system STBA.

GST UPDATE

GST: The Central Govt. is planning to advance the winter session of parliament to pass GST Bill as the ratification of the GST Constitutional Amendment Bill by at least 50% States is expected to be completed by 10th Sep’ 2016. Eight States have already ratified the same. The State of West Bengal has put on HOLD the ratification indefinitely.

GST: With Odisha has become the 16th States to ratify the GST Constitutional Amendment Bill on 01.09.2016, the Central Govt. may seek President’s assent on it. The complete list of States are: 1. Assam; 2. Bihar; 3. Jharkhand; 4. Himachal Pradesh; 5. Chhattisgarh; 6. Gujarat; 7. Madhya Pradesh; 8. Delhi; 9. Nagaland: 10. Maharashtra; and 11. Haryana; 12. Telengana; 13. Mizoram; 14. Sikkim; 15. Goa; and 16. Odisha.

Under GST; TDS @ 1% will be applicable on notified supplies for contracts exceeding Rs. 10 lacs in value. TDS deposit by 10th of next month.

Under GST, refund of ITC allowed at end of Tax Period for exports & where ITC accumulated due to input tax rate higher than output tax rate.

GST will make consumer goods cheaper, boost jobs: CBEC Spelling out benefits of the Goods and Services Tax (GST), the revenue department on Monday said it will make consumer goods cheaper, increase consumption and generate more employment by enhancing economic activity.

FAQ on Company Law:

Query:  One of our client company has appointed Additional Director during the year subject to vacation of office upto ensuing annual general meeting of the company. AGM of the company was scheduled to be called on 15th Sept, but due to unforeseen reasons, company was not able to conduct AGM till 30th September. Our query is whether such Additional Director may hold office afterwards as well as AGM has not been held?

Answer:  As per the provision of Section 161 of Companies Act 2013, the articles of a company may confer on its Board of directors the power to appoint, other than person who fails to get appointed as a director in general meeting, as an Additional Director at any time who shall hold office upto the date of next annual general meeting or the last date on which Annual general meeting should have been held, whichever is earlier.

Here, in this case, AGM was not held upto due date of AGM, i.e 30th September but as per provisions, he may hold office upto the date of AGM or the day on which AGM should have been held , whichever is earlier. Therefore, he shall not hold office afterwards.

Query:  We have a query as whether a company is required to consolidate the financials of LLP, which is its subsidiary, along with its financials?

Answer:   As per Rule 6 of Companies (Accounts) Rules, 2014, it is provided that consolidation of financial statements of a company shall be done in accordance with the provisions of Schedule III to the Companies Act, 2013 and the applicable Accounting Standards.

As per the definition of subsidiary as defined under Accounting Standard (AS) 21, an enterprise controlled by the parent is required to be consolidated. The term ‘enterprise’ includes a company and any enterprise other than a company. Therefore, under AS also, LLPs and partnership firms are required to be consolidated.

Query:  Whether Form DIR-11 is required to be filed in case of vacation of director under Se3ction 167 of Companies Act 2013?

Answer: No, as per  Section 168 (1) of the Companies Act, 2013 read with Rule 16 of Companies (Appointment and Qualification of Directors) Rules, 2014,  Form DIR-11 is required to be filed in case of resignation of director from his office within a period of thirty days from the date of resignation.

RBI UPDATE

RBI has issued Master Directions for NBFC Cos on six subjects. The subjects on which Master Directions have been issued are Exemptions from the provisions of RBI Act, 1934.

ICAI Update

Last date for MEF 2016-17 is 10/09/16. Members are requested to apply at www.meficai.org.

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

FOR FURTHER QUERIES CONTACT US:

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

Disclaimer: 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; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE MAY 27, 2016

Professional Update For the Day: 

Untitled18ADirect Tax:

Domestic black money to be declared to jurisdictional principal CIT or CIT: CBDT clarifies

No disallowance could be made on estimated basis without rejecting books of account of Assessee 

The demolition of the structure would not constitute a transfer of the assets in terms of Section 54(3) of the Act in view of the decision of the Apex Court in the matter of Vania Silk Mills P. Ltd. v. CIT, reported in 191 ITR 647. In the above case, the Apex Court has held that when an asset is destroyed, there is no question of transfer taking place under the Act. The Apex court held that in terms of the Act that the words ‘Extinguishment of any right’ in Section 2(47) of the Act, does not include an extinguishment of right on account of destruction. It has to be an extinguishment of right on account of transfer. Thus, a destruction of assets when not on account of any transfer would not be hit by Section 54F(3) of the Act.(Dilip Manhar Parekh Vs. DCIT) ITAT Mumbai

HC disallows input tax credit to Karnataka Dealer for its default in maintaining books and producing tax invoices[2016] 69 taxmann.com 299 (Karnataka)Nav Bharat Steel v. State of Karnataka 

High court had allowed Sec 10A benefit to assessee sub-contracting part of its software development work (‘onsite work’) to AEs abroad. High court had rejected Revenue’s contention that Sec 10A benefit should be denied as onsite work was not performed in a free trade zone or through assessee’s own personnel / employees. High court had held that Sec 10A nowhere provides that ‘onsite’ work of software development should be carried out by assessee’s own personnel. HC had further held that the “on-site” work done under the direct supervision and control of assessee “would be nothing but on behalf of the assessee ‘itself'”(MphereSoftware)

Indirect Tax:

CBEC has issued a circular no. 19/2016 dated 20.05.2016 In furtherance to the proposal that each warehouse be allotted a unique warehouse code so that importers can declare the warehouse in which goods shall be deposited, at the into-bond bill of entry stage, CBEC explains the module developed at ICES to capture details of customs bonded warehouses licensed in each Commissionerate. Unique warehouse code generated shall be published on ICEGATE website for information of trade. Declaration of Warehouse Code in Bill of Entry would become mandatory for filing Into-Bond and Ex-Bond Bill of Entry from June 20, 2016

Company Law:

Query: – In case status of the Company is non-active on MCA portal, can it make active and apply under fast track exit mode?

Answer: In case ROC has sent notices to the Company under Section 560 (1) or 560 (2) or 560 (3) of the Companies Act 1956, then such Company needs to make an application to the Registrar of Companies, in writing, that it proposes to strike off the name of the Company by following the procedure under Fast Track Exit mode and submit the documents requisite under fast track exit mode. Further procedure will be initiated by the Registrar in this regard.

Key Dates:

Issue of TDS/TCS certificates for March quarter by all deductors/collectors: 30.05.2016

Extension to 27.05.16 of last date to file DVAT-16, DVAT-17 & DVAT-48 for Q4 of 2015-16.circular no. 7 of 2016-17 dated 23.5.16.

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If you want a quality, act as if you already had it.   -William James

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