ICAI Announcement for Student: ICAI cancelled CA May 2020 Examination

Examination Department
The Institute of Chartered Accountants of India
3rd July 2020
IMPORTANT ANNOUNCEMENT

1. The students are aware that vide Announcement dated 15th June 2020, the Institute, after taking in account the academic interests and health safeguards of students intending to appear in May 2020 Examinations, had enabled them to change their centre for appearance in May/ July 2020 Examination and/or to decide, at their free will, to “Opt-Out” of the May/ July 2020 Examinations with the carryover of all benefits including the fee paid and exemptions. The announcement also stated that Institute will review the situation of pandemic (COVID cases, MHA guidelines, Centre and State Government directions) in the first week of July 2020 and the conduct of examinations commencing from 29th July 2020 was to be strictly dependent upon prevailing Government’s advisories for the area in which a particular Centre is situated and, in any eventuality, the students were to be accommodated to November 2020 Examination cycle.

2. Further Announcement dated 17th June 2020 provided for FAQ’s relating to conduct of May/ July 2020 Examinations, change in centre and operation and procedure for Opt-Out to address the queries raised by the students. Announcements dated 20th June 2020 and 26th June 2020 extended the availability of the facility to “opt-out” to allow the students to make their decision which facility is available to the students even as on date.

Further Developments:

  • A. With Unlock1, the severity of COVID 19 Pandemic was expected to subside from the later part of June 2020, but has rather become more severe and, therefore a Review as per announcement dated 15 June 2020 has become necessary.
  • B. Ministry of Home Affairs, Government of India vide its Guidelines dated 29th June 2020 has extended the closure of all schools & academic Institutions and academic congregations till 31st July 2020. Select State Governments have put extended prohibitions in their respective States. Post the said Notification dated 29th June 2020, many Schools/ Academic Institutions have expressed their inability to provide their premises to conduct the Examinations.

On a review of above developments and in order to ensure the interest of its students and their well-being, the Institute has decided to cancel May 2020 Examinations and merge the May 2020 attempt with November 2020 Examinations, with a due carryover of all benefits already available to students including the fee paid and exemptions. The students who have made an application for May 2020 Examinations will have an option to change the group(s) of their appearance and centre of Examinations at the time of making a fresh application for November 2020 Examinations, which, subject to conditions prevailing at the relevant time, will start from 1st November 2020. It is again clarified that in this schema, the students will be free to exercise the options afresh for the groups that they intend to appear in the November 2020 examinations.

The students are advised to stay in touch with the Institute’s website www.icai.org for further announcements relating to November 2020 Examinations and in case of any queries can write at may2020exam@icai.in.

(S. K. Garg)
Additional Secretary (Exams)
Announcement – PDF Version

https://carajput.com/Admin/ProImage/icai-announcement-for-student-icai-cancelled-ca-may-2020-examination.pdf

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 26, 2017

PROFESSIONAL UPDATE FOR THE DAY

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Direct Tax:

Bogus purchases: In view of the Supreme Court’s order in Vijay Proteins Ltd vs. CIT whereby the verdicts of the Gujarat High Court in Sanjay Oilcake Industries vs. CIT 316 ITR 274 (Guj) and N.K. Industries Ltd vs. Dy. CIT were confirmed, the AO has to accept the law and verify whether the transaction is genuine or not on the basis of the aforesaid three judgments CIT vs. M/s Carpet Mahal (Rajasthan High Court)

ITAT Kolkata held that in absence of fresh material indicating escaped income, the AO cannot assume jurisdiction to reopen already concluded assessment. A.C.I.T., Circle-2(1) Vs M/s. BNK E Solution Pvt. Ltd. (ITAT Kolkata)

 Indirect Tax:

SC dismisses assessee’s SLP, thereby upholds levy of service tax on commission received by automobile dealer from Maruti Finance, a unit of Maruti Udyog Ltd. (Maruti) under ‘business auxiliary service’ (BAS) u/s 65(105) of Finance Act, 1994; HC had earlier dismissed assessee’s writ petition rejecting his plea that, since Maruti had already deposited service tax amount, hence, it (i.e. assessee) cannot be asked to satisfy outstanding demand as same would amount to ‘double taxation’  [TS-127-SC-2017-ST]

FAQ on GST

Query:  What is the time limit for issuance of invoice in case of supply of service stopped before completion of the service?

Answer: In situation when supply of service cease under a contract before completion of supply. The invoice would be issued to the extent of supply which has been made before such cessation.

Other Updates

Central Government directed Income-tax authorities under section 116 of the Income-tax Act, 1961, having headquarters at the places specified, to exercise the powers and perform the functions of the ‘Authority’ under the Prohibition of Benami Property Transactions Act, 1988.

Under GST Casual taxable person or Non-resident taxable person cannot opt for Composition scheme under GST. (Rule 3(1) (a) of Composition Rules).

GST Council may reconsider the proposed 43 per cent tax on hybrid cars at its meeting next week after the auto industry voiced disappointment over the steep rate hike.

RBI issued Regulatory requirements for issue of Pre-paid Payment Instruments by Co-operative Banks which have installed ATMs and issued ATM cum Debit cards to introduce semi-closed Prepaid Payment Instruments (PPIs) for payment of utility bills / essential services up to a limit of Rs.10, 000.

Union Cabinet scrapped the 25-year-old Foreign Investment Promotion Board (FIPB), which has been overseeing foreign direct investment (FDI) proposals requiring government approval.ICAI issued Important Clarification on Amendment to Paragraph 17 of Revised Guidance Note on Audit of Consolidated Financial Statements.

LIVE Webcast on SFT in Form 61A under Rule 114E on 26.5.17 from 3-5 PM addressed by DIT (I&CI) -organized by DTC, ICAI. Visit www.icai.org

Key dates:

Advance Information for 1st fortnight of June functions with booking cost > Rs. 1 lakh in Banquet Halls, hotels etc. in DVAT: 27/05/2017

Issue of TCS Certificates by collectors for quarter ended March: 30/05/2017

Issue of TDS certificate to employee:31/05/2017

TDS returns for march quarter by ALL deductors:31/05/2017

Quote of the Day:

“Remember your yesterdays, dream your tomorrows and live your todays..”

” The biggest challenge in life is being yourself… In a world trying to make you like everyone else.”.”

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

FOR FURTHER QUERIES CONTACT US:

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Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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.

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 25, 2017

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Direct Tax:

ITAT Delhi held that Medical illness and that to be in the nature of the typhoid fever and UTI is definitely reasonable cause for non- appearing on the date and therefore, no penalty should be levied u/s 271(1)(b) in such circumstances as the same is covered under exception of ‘reasonable cause’ as enshrined in section 273B. Sangeeta Sawhney Vs. ACIT (ITAT Delhi)

Delhi High Court held that Addition is justified for Voluntarily admitted tax liability retracted after 2 years PR. CIT (C)-2 Vs Avinash Kumar Setai (Delhi High Court)

 Indirect Tax:

  • High court held that Section 35L is being amended so as to clarify that determination of disputes relating to tax ability or excisability of goods is covered under the term ‘determination of any question having a relation to rate of duty’ and hence, appeal against Tribunal orders in such matters would lie before the Supreme Court. Commissioner Service Tax Vs DLF Golf Resorts Ltd. (Punjab & Haryana High Court)
  • MCA has revised the versions of e Forms – Form DIR-3C and Form RD – 1 (Applications made to Regional Director) are being revised w.e.f. 11th May, 2017.

Key dates:

Advance Information for 1st fortnight of June functions with booking cost > Rs. 1 lakh in Banquet Halls, hotels etc. in DVAT: 27/05/2017

Issue of TCS Certificates by collectors for quarter ended March: 30/05/2017

 Other Updates:

Takeaways of Final GST Rules passed by GST Council:

 

In its 14th meeting in Srinagar on 18th and 19th May,2017 the all-powerful GST council cleared seven rules pertaining to different aspects of GST. These rules relate to Registration, Input Tax Credit, Payment, Refund, Invoice, Valuation and Composition and have paved the way for the rollout of GST from July 1, 2017. The key highlights of these final GST Rules are as follows:

Registration:

1)  PAN is mandatory for taking registration under GST. PAN will be validated by CBDT. After successful validation, registration will be granted.

2)  If a person has a SEZ unit, then he is required to make separate registration application for that unit. Similarly, a separate application of registration is required for becoming Input Service Distributor.

3)  A non- resident seeking registration under Non-Resident Taxable Person has to appoint an authorized signatory who will sign the application of registration. That person must be resident of India having a valid PAN.

4)  A person registered under GST is required to display his certificate of registration at a prominent location at his principal place of business and GST Number on the name board at entry of his principal place of business.

5)  Physical verification of place of business will not be conducted to grant registration under GST. But officer can do physical verification after granting of registration, if he is satisfied that it is necessary to do the same. He must upload verification report on GST Portal within 15 working days after verification.

Invoice:

6)  Tax invoice in case of supply of taxable services must be issued within 30 days of date of supply of services. However, time limit for banking company, insurance company or financial institutions is 45 days.

7)  The invoice shall be in triplicate for Supply of Goods and in duplicate for Supply of Services.

8)   The serial number of invoices issued will be furnished electronically on GST Portal.

9)  On receiving advance, Receipt Voucher will be issued. If rate is not determinable, tax is to be paid at 18%. If nature of supply is not determinable, it will be treated as Inter-State Supply.

10)  If reverse charge is applicable, the recipient will issue Payment Voucher.

Payment:

11)  Electronic Liability Register shall be maintained for each person liable to pay tax on the GST Portal.

12)  Electronic Credit Ledger and Electronic Cash Ledger shall also be maintained on the GST Portal for the person eligible for input tax credit and for person liable to pay tax respectively.

13)  Tax will be paid only through internet banking, RTGS, NEFT or Debit and Credit Cards. However, over the counter payment is allowed through authorized banks for the amount up to Rs.10,000 per challan per tax period.

Refund:

14)  A separate formula is prescribed for Maximum Refund in case of inverted duty structure, i.e., GST rate is higher on Inputs than on Output Supply.

15)  Refund application shall be filed electronically on GST Portal.

16)  The grant of provisional refund shall be made if person clamming refund has not been prosecuted during any period of 5 years preceding the tax period for which refund is claimed. However, the following 2 condition mentioned in Draft Refund rules have been deleted:

a)     The assessee should have a GST compliance rating of not less than

b)     The assessee should not have any pending proceeding or appeal on any issue.

17  17)   If Commissioner wants to withhold refund, order must be issued along with reasons of withholding refund.

Valuation:

18)  The value of supply made by principal to its agent or made to any related person shall be 90% of price charged for the supply of like kind and quality to unrelated person.

19)  The value of a token, coupon or a voucher shall be equal to the money value of goods redeemable against such token or voucher or coupon.

20)  The expense incurred by a supplier as a pure agent will not form value of supply and shall be excluded. The supplier will be treated as pure agent on complying with following three conditions:

a)     He makes payment to third party on authorization by such recipient.

b)     The payment made by pure agent on behalf of recipient has been shown separately on invoice.

c)     The supplies procured from third party by pure agent on behalf of recipient are in addition to services he supplies on his own account.

Earlier, in draft rules, 8 conditions were prescribed. Now, only these three conditions have to be fulfilled.

Input Tax Credit:

21)  The person eligible to take credit in respect of input of goods held in stock after registration is required to file a declaration on GST Portal that he is eligible for input tax credit within 30 days.

22)  ITC would not be available to registered person if tax has been paid by supplier after issuing demand order on account of fraud, wilful misstatement or suppression of facts.

23)  The time limit to claim input tax credit is not applicable to re-claim credit reversed earlier due to non-payment of consideration to supplier.

Composition:

24)  Following persons will not be eligible for composition scheme:

a)     Casual taxable person or non-resident taxable person

b)     Person having goods in stock which were purchased in course of inter-State trade or from unregistered person

25)  Rates of Taxes for Composition Levy

a)     Manufacturers, other than manufacturers of such goods as may be notified by the Government – at 1%

b)     Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II – at 2%

c)     Any other supplier – at 0.5%

Quote of the Day:

“Take rest; a field that has rested gives a bountiful crop.”

We look forward for your valuable comment 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 May 3, 2017

Professional Update for the day:

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Direct Tax: 

  • ITAT Mumbai held that the activities of Banquet Hall Hiring, Hospitality (Restaurants) and Permit Room (Bar) are prima facie in the nature of carrying on trade, commerce, or business for consideration and are hit by the proviso to s. 2(15). If the receipts from these activities are in excess of the minimum prescribed threshold limit, the DIT is required to conduct detailed enquiry and examination as to the nexus between the activities and trade, commerce or business. [MIG Cricket Club Vs DIT (E)]
  • Adhaar card and Pan linking option now activated on income tax website whereby now, name as per Adhaar card also to be given. Both get linked even if there is difference in name.

Indirect Tax: 

  • A educational coaching is covered by the expression “coaching centre” as defined in section 65(26) and (27). That it is not on commercial basis or predominantly for profit is the only argument canvassed throughout. On some occasions in the past, it was accepted but after the insertion of the explanation even that is unavailable. Now, irrespective of profit motive and so long as such service is rendered for consideration, it falls within the purview of the service tax. [Chanakya Mandal Vs Union of India (Bombay High Court)]

GST Update

  • GST Migration for existing taxpayers has been temporarily discontinued by GSTN w.e.f. 1st May 2017.
    No need for Traders dealing only in petrol, diesel & other exempt or zero-rated goods to register under GST. Register if deal in other goods also.
  • Round-the-clock presence of Central Excise officers in the cigarette factories is not mandatory but directory. Circular No. 1055/04/2017-CX dated 1st May, 2017.

Key dates:

  • E- Payment of service tax for April by Cos: 05.2017
  • Submission of forms received in April to IT Commissioner: 05.2017
  • Payment of TDS/TCS deducted/collected in April: 05.2017
  • Return of non – SSI assesses for april: 05.2017
  • Return by units paying duty > 1 crore (CENVAT + PLA) for April: 05.2017

FAQ on GST

What will be status of Tobacco and Tobacco products under the GST regime?

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

Which authority will levy and administer GST?

Answer: Centre will levy and administer CGST & IGST while respective states will levy and administer SGST.

Other Updates: 

  • About 900,000 registered companies do not file annual returns and are potential sources of money laundering. Govt. pitched for the country’s top anti-financial crime agency to be used “expeditiously” against tax cheats.
  • RBI has issued Guidelines on Merchant Acquisition for Card Transactions. Co-operative banks have been permitted to install both onsite/offsite ATM networks and can issue debit cards.
  • CA Students Appearing for exam can send Their Observations of the question papers of CA exams-May, 2017  to the notice of the Exam Department, by e-mail at examfeedback@icai.in or by Speed Post.
  •  SEBI has issued a Consultation Paper on permitting Category III Alternative Investment Funds (AIFs) in the commodity derivatives market.
  • CPT Exam June-2017 last date extended for examination application forms to 6th May, 2017.

Quotes of the Day:

“In order to succeed your desire to success  should be greater than fear of failure.”

“Believing in yourself is the first secret of success.”

We look forward for your valuable comment 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 FEBRUARY 13, 2016

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 13, 2016

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STAY OF DEMAND UNDER THE INCOME TAX ACT 1961, PRACTICAL APPROACH, JUDICIAL CASES &  DEPARTMENTAL CIRCULARS/INSTRUCTIONS:-

It is quite common for the Assessing Officers to make high-pitched assessments determining taxable incomes many times more than those returned by the assessees. When this is done, the assessees are put to considerable hardship as demands beyond the capacity of the assessee to pay are pressed for payment. In such situations, the only course open to the taxpayers is to seek stay of disputed demands.

LEGAL NITTY GRITTIES OF SECTION 14A r.w.r 8D OF THE INCOME TAX RULES’ 1962 :

It is quite common for the Assessing Officers to mechanically apply  Section 14A r.w.r 8D of the Income Tax Rules, 1962 during the assessment proceedings and make huge additions irrespective of the fact as to whether there is any exempt income or not. The introduction of Section 14A (2) & (3) and further Rule 8D as prescribed by CBDT has complicated the calculation of the amount related to exempt income. It has given birth to a lot of anomalies and a handle for the Assessing Officer to make unwanted additions.

NEW ICAI PRESIDENT WANTS PANEL FOR BANK AUDIT APPOINTMENTS:

The Institute of Chartered Accountants of India (ICAI) is recommending a revamp of the auditor appointment system for banks, both for central statutory and branch-level audits, its new President, M Devaraja Reddy, said.

Reddy, who assumed office on Friday after emerging victorious in the institute’s intensely fought annual elections, said the current system, wherein the management of a bank directly selects and appoints the auditor from a list provided by the Reserve Bank of India (RBI), could have indirectly caused the current  non-performing assets (NPAs) crisis.

NPAs reported by public sector banks have ballooned after RBI tightened provisioning norms in December. According to a recent news report in The Indian Express, 29 state-owned banks wrote off a total of Rs 1.14 lakh crore of bad debt between financial years 2013 and 2015, much more than they had done in the preceding nine years.

“There is a concern that independence of auditors is eroding. It is a delicate issue. Everybody is not virtuous,” Reddy said. A fellow member of the institute, Reddy has 28 years’ professional experience and has held several positions in the ICAI hierarchy. He was vice-president for 2015-16.

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 9555555480

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 FEBRUARY 11, 2016

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 11, 2016

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DIRECT TAX:

Reassessment   u/s 147 not permissible merely on change of opinion –ITAT. [ACIT vs. Reliance Industrial infrastructure Ltd.(ITAT Mumbai) I.T.A. No.5872/M/2012].

Penalty under Customs can be imposed simultaneously on firm and its partners: Larger bench of HC[2016] 66 taxmann.com 49 (Bombay) Amritlakshmi Machine Works v. Commissioner of Customs (import)

Deductor to get interest on TDS refund from date of filing claim and not from date of deposit of TDS [2016] 66 taxmann.com 50 (Bombay) Sunflag Iron & Steel Co. Ltd. v. CBDT

Govt. allows credit of commission agent’s services; overrules judgment of Gujarat HC

CBEC eases procedure to claim excise duty refund on cars for physically handicapped persons

No separate deduction of expenditure while computing income on presumptive basis under sec. 44BB [2016] 66 taxmann.com 19 (Mumbai – Trib.) Fugro Rovtech Ltd. v. Assistant Director of Income-tax (International Taxation)

Sum spent on education of father of Church is deemed as spent on charitable purpose as he works as teacher in School[2016] 66 taxmann.com 7 (Amritsar – Trib.) Assistant Commissioner of Income-tax, Hoshiarpur Circle v. Carmelite Charitable Society

Entitlement to Exemption u/s -11, Sum spent on education of father of Church is deemed as spent on charitable purpose as he works as teacher, supervisor & principals etc. in School, run by the assessee. [Assistant Commissioner of Income Tax ,Hoshiarpur vs. M/s. Carmelite  Charitable Society-2016(2) TMI 226 -ITAT AMRITSAR.

Place of registration of motor vehicle would be deemed as place of sale: Apex Court (Commissioner of Commercial Tax v. K.T.C. automobiles.)

 No addition for change in valuation of stock, where method is changed in compliance of ICAI Accounting Standard. [ACIT vs. M/s J.K. Synthetics Ltd. (ITAT Lucknow), ITA

Addition in already assessed income is not sustainable, in absence of any incriminating material found during search.[Shri Vimal Kumar Rathi vs DCIT Mumbai.

Now system generated letters can be sent to non-filers of returns using address given in last return/AIR

Rental income from a fully furnished house is taxable as income from other sources if composite rent is inseparable[2016] 66 taxmann.com 99 (Delhi – Trib.) ACIT v. Ajay Kalia

INDIRECT TAX:

Service Tax: Definition of ‘clearing and forwarding agent’ nowhere requires clearing to be effected from factory; hence, taxability under said service would arise even if such agent does not effect clearing of goods from factory of client[2016] 66 taxmann.com 79 (New Delhi – CESTAT) Somani Agencies v. Commissioner of Central Excise & Service Tax

Time-limit for taking credit of duty paid on inputs : As per proviso to rule 4(1) and sixth proviso to rule 4(7) of Cenvat Credit Rules (inserted w.e.f. 1-9-2014), Cenvat credit should be taken within six months from date of issue of any duty paying document.

Time limit is only for ‘taking credit’, There is no time limit for utilisation of Cenvat credit. Once Cenvat credit is taken in your records, it can be utilized any time without any time limit.

Cenvat credit is allowable to input service distributor even if it is not registered, provided assessee has  maintained all records for verification by revenue.

Re-packing and labelling activities amounts to manufacture under EXIM policy [2016] 66 taxmann.com 100 (Mumbai – CESTAT)  Keva Fragrances (P.) Ltd. v. Commissioner of Central Excise

COMPANY LAW:

Proposed CARO, 2016 brings additional reporting requirements

MCA proposed new CARO, 2016 On 9th February. The newly proposed draft of CARO, 2016 contains 15 clauses, out of which some clauses have been carry forwarded from present CARO, 2015. The draft, if approved, shall be applicable for FY 15-16 onwards.
In comparison to CARO (2015), CARO (2016) proposes few additional reporting requirements and eliminates some of the reporting requirements.

OTHER UPDATE

Online application are invited from CA Firms/LLP from 1st January 2016 to 15 February 2016 for empanelment for appointment as auditors of government Companies/Corporations for the year 2016-2017

ICAI notifies Manner of Signing of Certificates by Chartered Accountants.Name of the CA Firm ,FRN, Name of member, Designation & Membership number.click here

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 9555555480

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 FEBRUARY 09, 2016

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 09, 2016

6

DIRECT TAX:

Exemption u/s 11& 12 : Merely because an institution, which otherwise is established for a charitable purpose, receives income that would not make it any less a charitable institution, denial of exemption should only be to the extent of income which was violative of section 13(1) (d) and not the total denial of exemption u/s. 11 – Tribunal. [Institute of Haematology vs ADIT (E) , Trust Circle-II, New Delhi – 2016 (2) TMI 380 – ITAT DELHI]

IT: Exemption u/s 11& 12 – Denial of exemption should only be to the extent of income which was violative of Section 13(1) (d) and not the total income – Institute of Haematology Vs. ADIT, Trust Circle-II, New Delhi (ITAT Delhi).

Penalty upheld as assessee citing financial hardship for non-payment of ST pleaded for ‘ignorance of tax’ as well [2016] 66 taxmann.com 114 (Gujarat) Raval Trading Company v. Commissioner of Service Tax

IT: Recording of satisfaction by Assessing Officer having jurisdiction over person searched to effect that money, bullion or jewellery etc, found from person searched belong to ‘other person’ is an essential and prerequisite condition for bestowing jurisdiction to Assessing Officer of ‘other person’ under section 153C [2016] 66 taxmann.com 107 (Delhi – Trib.)  Satkar Fincap Ltd. v. ACIT

Deemed dividend under sec. 2(22)(e) : Initially, the assessee has chosen to declare the deemed dividend in his hand, later come with different explanation at different levels , the additional income offered should be telescoped against the deemed addition made under sec. 2(22)(e) –  Tribunal.[M. Amareswara Rao, Hyderabad vs DCIT, Central Circle, Vijayawada – 2016 (2) TMI 379 – ITAT VISAKHAPATNAM]

Import of medical equipment: As per the technical definition “Gastro Intestinal Video Endoscope”, it is nothing but Gastroscope using video technology. The present equipment is based on wireless capsule and which covers not only throat but also entire gastro intestinal tract. Benefit of exemption allowed. –Tribunal. [Commissioner of Customs (Airport) Chennai vs Vishal Surgical Equipment Co. (P) Ltd. – 2016 (2) TMI 356 – CESTAT CHENNAI]

Director would be disqualified on attaining age of 70 yrs even if he is appointed before 1-4-2014 [2016] 66 taxmann.com 167 (Bombay) Sridhar Sundararajan v. Ultramarine & Pigments Limited

Procedure, Formats and Standards for ensuring secured transmission of electronic communication including scrutiny assessment u/s 143(3) – Circular – Dated 3-2-2016

Disallowance u/s 14A : no separate books of account are maintained for taxable income and exempt income, some expenditure on account of administrative expenses has to be disallowed on reasonable estimate basis – Tribunal.[M/s. Coated Fabrics Pvt. Ltd. vs ACIT,Circle-1 (1) , Pune – 2016 (2) TMI 373 – ITAT PUNE]

Deemed dividend under sec. 2(22)(e) – Initially the assessee has chosen to declare the deemed dividend in his hand later come with different explanation at different levels – additions confirmed-(M. Amareswara Rao, Hyderabad Versus DCIT, Central Circle, Vijayawada – 2016 (2) TMI 379 – ITAT VISAKHAPATNAM)

Exemption u/s 11& 12 – Merely because an institution which otherwise is established for a charitable purpose receives income that would not make it any less a charitable institution – denial of exemption should only be to the extent of income which was violative of Section 13(1) (d) and not the total denial of exemption u/s. 11- (Institute of Haematology Versus ADIT (E) , Trust Circle-II, New Delhi – 2016 (2) TMI 380 – ITAT DELHI)

INDIRECT TAX:

ST: Refund – unjust enrichment – the impugned amount was deducted by Revenue from the refunds of BHEL in terms of the powers u/s 87(d) of Finance Act 1994 and BHEL recovered the said amount from the appellant by deducting the same from the payments due to the appellant for providing security services – refund allowed – CCE&ST, Bhopal Vs. Central Industrial Security Force (CESTAT New Delhi)

CBEC: CBEC has amended Notification No.12/2013-ST, dt. 1 JUL 2013, now the SEZ Unit or the Developer shall be entitled to refund of the Swachh Bharat Cess paid on the specified services.

Admissibility of credit of service tax paid on input service used in the manufacture of exempted as well as dutiable goods, as the credit has been reversed before utilization, the demand of interest is unsustainable. –Tribunal. [M/s. Grasim Bhiwani Textiles Ltd. vs CCE, Rohtak – 2016 (2) TMI 361 – CESTAT NEW DELHI]

Transshipment of goods without charging duty: The fact that the goods cleared under transshipment permit are required for the intended purpose is clear from the facts that the essentiality certificate has been issued. Whether it is issued under Notification No. 17/2001 or 21/2002 is immaterial, benefit of notification cannot be denied – Tribunal. [M/s Frontier Aban Drilling (India) Ltd. vs Commissioner of Customs, Mumbai – 2016 (2) TMI 358 – CESTAT MUMBAI]

Demand of service tax – Activity of Erection of Tele-communication towers for BSNL – taxability prior to 01/6/2007 – certain basic facts like the actual supply of materials in the execution of contract to establish the composite nature of contract requires verification by the Original Commissioner of Central Excise, Lucknow Versus M/s KK Telecom, M/s Surya Construction, M/s Parijat Construction, M/s S.K. Construction And Vica-Versa – 2016 (2) TMI 331 – CESTAT ALLAHABAD

Condonation of delay in filing an appeal before Commissioner (Appeal) – writ petition – the law does not come to the aid of indolent tardy or lethargic litigant. The conduct of the petitioner would dissuade us from entertaining these petitions – (NICE CONSTRUCTION Versus UNION OF INDIA AND 2 – 2016 (2) TMI 255 – GUJARAT HIGH COURT)

Now Courier entities in Delhi to file quarterly return for delivering goods above Rs 10,000 under DVAT.

Excise & Customs : When net duty demand (after adjusting credit) was reduced to Nil, then, since there was no outstanding duty payable, question of payment of interest and penalty would not arise[2016] 66 taxmann.com 116 (Madras)  Vikash J. Shah v. Commissioner (appeals)

COMPANY LAW:

Query:  We are incorporating a Foreign Company. Do we need to apply for the DIN for directors of foreign company as well. Please guide.

Answer:  There is no need to apply and obtain DIN for directors of foreign company but the DSC of authorized representative is mandatory, which again is not required to be registered with the MCA Portal.

Query:  Kindly guide us regarding the registration of Part – I Company with the ROC.

Answer: In order to register Part I Company, you are required to file Form INC-1 for name availability. After approval of the same, applicant is required to file Form No. URC-1 (with all attachments) along with filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.

OTHER

ICAI: AASB revised Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013.

ICAI: AASB released 2016 Guidance Note on Audit of Banks.

ICAI: The Council elects CA M. Devaraja Reddy (Hyderabad) as President and CA Nilesh S. Vikamsey(Mumbai) as Vice President of ICAI for 2016-17.

KEY DATES:

Deposit of DVAT TDS for Jan: 15.02.2016

Issue of Quarterly TDS certificates for Dec Quarter by Govt Deductors: 15.02.2016

E-payment of PF for Jan (No grace of 5days): 15.02.2016

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 955555480

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 INDUSTRY HIGHLIGHT

INTERNAL FINANCIAL CONTROL SYSTEMS- COMPANIES ACT 2013

Untitled22AVide Section 143 (3)(i) of the Companies Act, 2013 the Auditor is required to be report as follows:- “Whether the company has adequate internal financial controls system and the operating effectiveness of such controls”. However, vide notification dated 14.10.14 the reporting requirement under this clause has been made relaxed for FY 2014-15 and accordingly Rule 10A of Companies (Audit and Auditors) Rules, 2014 report by Auditors on 143(3) (i) has been made applicable for financial years commencing on or after 01.04.2015. (For FY 2014-15 the same is voluntary).

The word “Internal Financial Control” (IFC) has not been defined in the Companies Act, 2013 except in Section 134 (5)(e):-

IFC means the policies and procedures adopted by the Company for ensuring:-

  1. The orderly and efficient conduct of its business,
  2. Including adherence to company’s policies,
  3. The safeguarding of its assets,
  4. The prevention and detection of frauds and errors,
  5. The accuracy and completeness of the accounting records, and
  6. The timely preparation of reliable financial information.

The ICAI has issued a Guidance Note on Audit of IFC over Financial Reporting.

The ICAI has issued a Guidance Note on Audit of IFC over Financial Reporting.

Key Impacts

  • Section 177 (4) (vii) Evaluation of IFC by Audit Committee

Every Audit Committee shall act in accordance with the terms of reference specified in writing by the Board which shall inter alia and include evaluation of internal financial controls and risk management systems.

  • Schedule IV (II)(4) Integrity of Financial Statements to be validated by Independent Directors

Independent Directors shall satisfy themselves on the integrity of financial information and that of financial controls.

  • Section 134 (5) (e) BoD to ensure implementation of adequate IFC

The report by the Board of Directors (BoD) shall include a statement ensuring implementation of adequate internal financial control and adherence of policy and procedures adopted by the company and other matters specified.

  • Section 143 (3) (i) Auditor’s Report to state adequacy and effectiveness of IFC

Whether the company has adequate internal financial controls system and the operating effectiveness of such controls.

  • Section 134 (8) Consequences of non compliances with required provisions

If a Company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both

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 9555555480

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)