CORPORATE AND PROFESSIONAL UPDATE SEPT 15, 2016

Professional Update For the Day:

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Direct Tax:

ITAT Chennai in the below citied case held that exemption u/s 54F of the Act shall not be eligible for construction of swimming pool.( GuruprasadAngisetty, Chennai Vs. ITO, Non-Corporate Ward 1 (2), Chennai)

ITAT Banglore in the below citied case held that expenditure incurred on renovation of showroom was not incurred on any capital outlay. Therefore, the expenditure is revenue in nature  [M/s. Bellad and Co. Vs.DCIT, Hubli. and ACIT, Circle 1 (1) , Hubballi Vs. M/s. Bellad& Co.]

IT: Expenditure incurred on renovation of showroom was not incurred on any capital outlay. Therefore the expenditure is revenue in nature – Bellad and Co. Vs DCIT, Hubli. & ACIT, Cir-1(1), HubballiVsBellad& Co. (2016 (9) TMI 390 – ITAT Bangalore)

No penalty for short deduction of TDS on warehouse charges if applicability of sec. 194C or sec. 194-I is debatableHindustan Coca Cola Beverages (P.) Ltd. v. Joint Commissioner of Income-tax[2016] 73 taxmann.com 71 (Delhi).

Under Income Declaration Scheme 2016 no capital gains/TDS on transfer (without consideration) of declared benami property within 1 year to the Declarant.

Indirect Tax:

The Central Government issued a notification regarding provisions relating to Formation of GST Council comes into effect from 12-9-2016 – The Constitution (One Hundred and First Amendment) Act, 2016 vide Notification No.  S.O. 2915(E) dated 10/09/2016. The Central Government hereby appoints the 12th day of September, 2016 as the date on which the provisions of section 12 of the said Act shall come into force.

While interpreting an exemption notification there is no room of any intendment and regard must be had to the language used therein.( M/s. H.R. Steels Pvt. Ltd. Versus C.C.E. Jaipur)-I – 2016 (9) TMI 283 – CESTAT NEW DELHI – Central Excise

ST: There is no service tax liability on the appellant engaged in providing Mid Day Meals to various schools and are getting paid for the same from the Schools/Government – Suruchi Caterers Vs C.C.E., Mumbai (2016 (9) TMI 430 – CESTAT Mumbai)

Service tax exemption available on renting of religious place owned by a trust registered under Income Tax Act NOTIFICATION NO. 40/2016-Service Tax Dated 6th September, 2016

VAT & ST: Classification – bitumen and bitumen emulsion are one and the same commodity – C.C.T., U.P. Vs A. R. Thermosets (Pvt.) Ltd. (2016 (9) TMI 410 – Supreme Court)

Extension of credit period of sales to AE deemed as international transaction under transfer pricingTally Solutions (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle-12 (1), Bangalore[2016] 73 taxmann.com 70 (Bangalore – Trib.)

MCA Updates:-

MCA notified Section 227, Section 242 (1)(b), Section 242(2)(c)(g), Section 246, Section 337 to 341 (to the extent to their applicability for Section 246) vide Notification dated 09/09/2016

Spice Jet’ to refund amount received under share purchase agreement as it failed to allot shares : HCKal Airways (P.) Ltd. v. Spicejet Ltd.[2016] 73 taxmann.com 28 (Delhi).

MCA has issued circular regarding relaxation of additional fees for filing Form IEPF-1 vide General circular No- 10/2016 dated 07.09.2016.

MCA has amended the schedule v of companies act 2013 dated 12th sept. 2016 [F.No. 1/5/2013 CL-V].

MCA vide Notification notified that the Remuneration Limits for the Companies having no or inadequate profits can be enhanced without the Central Government approval, that is, Section II of Part II has been substituted.

It states that managerial person who is functioning in a professional capacity, no approval of Government is required if such managerial person is not having any interest in the capital of the Company, its holding company or any of its subsidiary companies during last 2 years on or after date of appointment and possesses graduate-level qualification and specialized knowledge in field of which the Company operates. Schedule V of the Companies Act, 2013 relating to the condition to be fulfilled for appointment of Managing Director/ Whole Time Director/ Manager has been amended.

GST UPDATE

GST: One step ahead – President Pranab Mukherjee gives assent to the Constitutional Amendment Bill y’day (08.09.2016) to enable the Central Govt. to bring GST Law in the winter session of Parliament.

Key Dates:

  • Issue of TDS certificate in case of payment/credit made in july for the purchase of property u/s 194IA- 14/09/2016
  • Deposit of DVAT/TDS for the month of August-15/09/2016
  • Payment of Advance Tax(Second Installment) for the A.Y. 2017-18.-15/09/2016
  • Last date of deposit of PF contribution by the employee;- 15/09/2016

Success comes to those who have the will power to win over their snooze buttons.

Life becomes interesting when you start speaking silently with your eyes, but life becomes more interesting when someone starts reading those eyes silently.

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:
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. Continue reading

10 things to know when Unauthorized banking transactions in banks resulting in erroneous debits to accounts of customers.

Unauthorized banking transactions: 10 things to know

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RBI has issued draft Circular to review the criteria for determining customer’s liability, considering the recent surge in unauthorized transactions in banks resulting in erroneous debits to accounts of customers.

The highlights of the draft circular are given here under:

  1. RBI has proposed zero liability for customers where fraud or negligence is on the part of bank.
  2. In case of third party breach (i.e., where the fault lies neither with the bank nor the customer but lies elsewhere in the system)the liability for customer is summarized as follows:
  3. A) Fraudulent transaction is reported Within 3 working days – Customer’s liability is zero
    B) Fraudulent transaction is reported Within 4-7 working days of receiving the communication – Customer’s liability is the transaction value or Rs 5,000 , whichever is lower
    C) Fraudulent transaction is reported Beyond 7 working days of receiving the communication – Customer’s liability is as per bank’s board approved policy
  4. Where negligence is on the part of customer, e.g., as where he has shared the payment credentials, he will bear the entire loss until he reports the unauthorized transaction to the bank. Any loss occurred after reporting of unauthorized transaction shall be borne by bank.
  5. Banks at their discretion may also waive off any customer’s liability in case of unauthorized electronic banking transactions even in cases of customer’s negligence.
  6. In case of zero liability or limited liability of customer, the bank shall credit the amount involved in the unauthorized electronic transaction to the customer’s accountwithin 10 days from date of notification by such customer.
  7. Burden of proving customer’s liability in case of unauthorized electronic banking transactions shall lie on the bank.
  8. Banks shall ask their customers to mandatorily register for alerts for electronic banking transactions. The alerts shall be sent to the customers through different channels(email or SMS) offered by banks.
  9. Banks must provide customers 24×7 access through multiple channels for reporting of fraudulent transactions.
  10. The loss or fraud reporting system shall also ensure that immediate response (including auto response) is sent to the customers acknowledging the complaint along with the registered compliant number.
  11. The communication system used by banks to send alerts and receive responses thereto must record the time and date of delivery of the message and receipt of customer’s response, if any, to them.

RBI Updates:-

RBI issued a Master Directions on Core Investment Companies (Reserve Bank) Directions, 2016 vide Master Direction DNBR. PD. 003/03.10.119/2016-17 dated 25/08/2016.

RBI issued a master direction on Exemption from the provision of RBI Act, 1934 vide Master Direction No. DNBR.PD. 001/03.10.119/2016-17 dated 25/08/2016.
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Annual Information Return under Income Tax Act, 1961 for A.Y 2016-17

Annual Information Return Income Tax Act, 1961 for A.Y 2016-17

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Section 285BA of the Income Tax Act, 1961, read with Rule 114E of the Income Tax Rules, 1962, mandates the filing of Annual Information Return (AIR) in respect of specified financial transactions carried out during the period from 01/04/2015 to 31/03/2016 upto 31st day of August 2016.

Following class of companies are required to file Annual Information Return:

 

S.No  (1)             Class of Person            (2)             Nature and Value of transaction            (3)

             

            1. A Company or institution issuing bonds or debentures. Receipt from any person of an amount of Rs 500,000/- or more for acquiring bonds or debentures issued by the Company or institution.
            2. A Company issuing shares through public or rights issue. Receipt from any person of an amount of Rs 100,000/- or more for acquiring shares issued by the Company.

 

Penalty for failure to furnish statement of financial transaction or reportable account

 

Section 271FA If a person who is required to furnish return under section 285BA, fails to furnish such  return within the time prescribed (i.e. 31st August of the following Financial year), the income-tax authority may direct that such person shall pay, by way of penalty, a sum of Rs. 100/- for every day during which such failure continues.

 

Provided that where such person fails to furnish the return within the period specified in the notice issued under sub-section (5) of section 285BA, he shall pay, by way of penalty, a sum of Rs. 500/- for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the statement expires.

 

NOTE: Due date &  amount of penalties for filing Annual Information Report for A.Y 2017-18  have been changed vide  Notification no. 95/2015 [F.No.142/28/2012­(SO)TPL] dated 31­/12/­2015.

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CORPORATE AND PROFESSIONAL UPDATE SEPT 8, 2016

Professional Update For the Day:

Untitled8DIRECT TAX:

Rajasthan High Court in the below citied case held that once it has been held as deemed income of the assessee or an addition u/s.68, has been made the character of the said amount/addition will not remain as a loan or deposit and section 269-SS will not be applicable. Hence no penalty u/s 271D shall be imposed. (Gyarsi Lal Vijay Vs. CIT & Others)

Madras High Court in the below citied case held that In between agricultural land and the nearest municipality, if there is a mountain, or lake or private lands or government properties, and in such other cases, where the public has no access to reach the municipality, the distance has to be measured only through the access road and not in a straight line or horizontal plane.(The CIT, Chennai Vs. Dr. R. Rangarajan)

CBDT has entered 20 unilateral advance pricing agreements (APAs) with Indian taxpayers on 29-30 Aug 2016 in order to reduce litigation by providing certainty in transfer pricing.

INDIRECT TAX:

CBEC amended the Notification No. 25/2012- Service Tax dated 20/06/2012 vide Notification no. 39/2016 dated on 02/09/2016. In the said notification, in the first paragraph, in entry 62, for the words and figures “during the financial year 2015-16”, the words, figures and letters “during the period prior to 1st April, 2016” shall be substituted. (Click here to view)

Where only service of Clinical Research is provided then such service would be not taxable under the Act in light of Rule 3 of the Place of Provision of Services (POP) Rules 2012 as the applicant renders said services to its customers and the place of provision is located outside India (M/s Steps Therapeutics Limited, Hyderabad Versus Commissioner of Customs)-2016 (9) TMI 143 – AUTHORITY FOR ADVANCE RULINGS – Service Tax

All religious places shall be considered to fall within the purview of clause (a) of entry 5 of Notification No. 25/2012- Service Tax, to be exempted from payment of service tax. No. 40/2016-Service Tax.  [F. No.3354/45/2016 -TRU]

MCA UPDATE:

MCA: The Ministry of Corporate Affairs has amended the Investor Education and protection Fund Authority (Appointment of Chairperson and Members, holding of meeting and provision for offices and officers) Rules, 2016. These rules may be called the Investor Education and protection Fund Authority (Appointment of Chairperson and Members, holding of meeting and provision for offices and officers) Amendment Rules, 2016. They shall come into force on the date of their publication in the Official Gazette. In the said rule after rule 3, Rule 3A inserted.

“3A. The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power to acquire, hold and dispose of property both movable and immovable, and to contract and shall, by the said name, sue or be sued.”

MCA: IEPF Forms are likely to be available on the IEPF portal w.e.f 7th Sep 2016.

MCA: The Central Govt. designates as Special Courts for Chhattisgarh, Rajasthan, Punjab, Haryana, UT of Chandigarh, UT of Puducherry, Manipur and some Distrct of Tamilnadu for the purposes of providing speedy trial of offences punishable with imprisonment of two years or more under the Companies Act, 2013 – F. No. 01/12/2009-CL-I (Vol-IV), dt.01.09.2016.

MCA made Annual filing forms available for Companies Act, 1956 – Form 23AC, Form 23ACA, Form 23B, Form 20B, Form 21A, Form 66 on MCA21 Forms Download page. Further, IEPF Forms are likely to be available on the IEPF portal with effect from 07.09.2016.

Provisions of Companies Act, 2013 relating to IEPF (Investors Education and Protection Fund) to be effective from 07.09.2016.

CLB if inclined to injunct appellants from using information derived from statutory records, would have to first deal with the submission that it would have no jurisdiction to prevent them from using information. [Jasmohan Singh vs. Freeze King Ind (P.) Ltd. High Court Of Delhi].

GST UPDATE:

Under GST, registration required in each state from where supplies to be made. File 3 Returns p.m. for each Registration & 1 Annual Return. (Min 37 per regn)

Under GST, Department  to nominate Chartered / Cost Accountant for Special Audit if in scrutiny etc it seems that value has not been correctly declared or excess credit is availed.

Under GST, mandatory audit of books of account of all registered persons shall be carried on by Chartered/ Cost Accountant, if the turnover in Financial Year exceeds the specified limit.

OTHER UPDATE

DIPP has clarified that Internet broadcasting companies shall also come under the purview of statutory licensing under section 31D of the Copyright Act.

ESIC raises wage threshold to Rs 21,000 w.e.f 1st October, 2016.

IDBI entitled to auction property if it had issued notice to borrower prior to attachment order passed by TRO Suresh Kumar Goyal v. Chief Commissioner of Income-tax-2 [2016] 73 taxmann.com 10 (Delhi)

COMPAT rejected time barred complaint of unfair trade practices Wing Commander S.K. Puri v. Swatantra Land & Finance (P.) Ltd. [2016] 72 taxmann.com 336 (CAT – New Delhi)

Appellant couldn’t be held guilty of unauthorized dealing in Forex in absence of any evidence Prakash Bafna v. Special Director , Directorate of Enforcement [2016] 72 taxmann.com 354 (ATFFE – New Delhi)

DGFT has amended the Clause 3(1)(i)(h) of Foreign Trade to allow individuals to import CIF value of consumer electronic items at any one time for personal use upto Rs. 50,000/-.

Last date for MEF 2016-17 is 10.09.16. Members are requested to apply at www.meficai.org.

Key Dates:

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

ER-1 Return for Non SSI assessee for the month of August: – 10/09/2016

ER-2 Return for EOUs for the month of August: – 10/09/2016

TDS Return for June quarter in DVAT-48:- 10/09/2016

The key to happiness is not that you never get angry, upset, frustrated, irritated or depressed it is actually, how fast you get out of it.

Education is the key to unlock the golden door of freedom.  – George Washington Carver

Our hopes and dreams should be like hair and nail, no matter how many times they get cut, but they never stop growing.

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:
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.

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CORPORATE AND PROFESSIONAL UPDATE SEPT 5, 2016

Professional Update For the Day:

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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:
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. Continue reading

CORPORATE AND PROFESSIONAL UPDATE SEPT 3, 2016

Professional Update For the Day:

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Direct Tax:

IT: TDS u/s 194C – non tds on Vehicle / dumper Hire Charges – No contract either verbal or written is entered into with the owners / drivers in these cases of purely temporary transporting arrangements – No disallowance – ACIT, Cir-1, Asansol Vs. Raja Transport (2016 (8) TMI 1046 – ITAT Kolkata)

CBDT: Income Tax Notices mandatorily to have email IDs & contact details to reduce interaction with the officials.

Sum received from developer due to hardship caused on redevelopment of flat not a revenue receipt Jitendra Kumar Soneja v. Income-tax Officer, Ward 6(3)(3), Mumbai[2016] 72 taxmann.com 318 (Mumbai – Trib.)

Sec. 50(1)(iii) doesn’t contemplate usage of acquired property falling within the block of assets Indogem v. Income-tax Officer- 19 (1) (5), Mumbai [2016] 72 taxmann.com 315 (Mumbai – Trib.).

Secured asset rightly taken by Commissioner as tenant failed to show that tenancy existed prior to mortgage Otoklin Global Business v.State of Maharashtra [2016] 72 taxmann.com 213 (Bombay).

No tax on income from offshore supplies as supplier had no agency PE in India Ion Geophysical Corporation v. Deputy Commissioner of Income-tax, Circle-2, Dehradun [2016]2 taxmann.com 298 (Delhi – Trib.)

 IT: Reopening of assessment – the information was available only in the valuation report. Giving the information in this manner shall be of no help to the appellant as the AO was not expected to go through the said information available in the valuation report for the purpose of ascertaining the actual construction of the plot – M/s Girilal & Company Vs. ITO, Mumbai & Others (2016 (8) TMI 1010 – Supreme Court).

IT: Addition u/s 68 – the loan which has been returned to the respective creditors cannot be taxed in the hands of assessee as its income – DCIT, Cir-6(1), New Delhi Vs. Minda Investment Ltd. and Vica-Versa (2016 (8) TMI 1007 – ITAT Delhi)

SC dismisses Revenue’s appeal against Rajasthan HC ruling in Hissaria Brothers deleting penalty u/s 271D/E for Sec 269SS/T default (accepting/repaying loan in cash). HC had held that penalty order was barred by limitation under clause (c) of Sec. 275(1) which prescribes six months’ time-limit rejecting Revenue’s contention that the case would fall under clause (a) of Sec. 275(1) which provides for extended period of limitation commensurating with completion of appellate proceedings.[TS-471-SC-2016]

IT: Addition u/s 145A – inclusion of service tax as part of trading receipts – ection 145A of the Act would have no application in cases where service is provided by the Assessee – CIT-2, Mumbai Vs Knight Frank (India) Pvt. Ltd. (2016 (8) TMI 1096 – BOMBAY HIGH COURT)

IT: Exemption u/sec. 54F – net consideration computation to be invested or value fixed u/s 50C as stamp valuation – Under provisions of Sec. 54F of the Act net consideration has to be invested in the Residential property but not the deeming value being fiction – Shri. R. Srinivasan (HUF) Vs ITO, Ward-I (1), Trichy (2016 (8) TMI 1092 – ITAT CHENNAI

Indirect Tax:

ST: CENVAT credit CHA services are utilized by the appellant before the goods were loaded on to the ship and therefore the same falls within the definition of input services- Kennametal India Ltd. Vs. CST, Large Taxpayers Unit (2016 (8) TMI 1031 – CESTAT Bangalore)

No penalty will be imposed on non filling of ER-5 and ER-6 returns within the period prescribed – contravention is only a procedural violation and subsequently the required return has been filed.(M/s Dharampal Satyapal Ltd. Versus C.C.E. Delhi-II) – 2016 (8) TMI 1021 – CESTAT NEW DELHI – Central Excise

HC rules in favour of assessee, directs unconditional release of seized imported goods u/s 110(2) of Customs Act absent show cause notice within 6 months from seizure as contemplated u/s 124(a); Rejects Revenue’s ‘strange’ stand that there was no seizure at all and hence, the limitation for notice would not apply, in view of the order passed in application for provisional release u/s 110-A. [TS-336-HC-2016(MAD)-CUST]

FAQ on Company Law:

Query :  One of our client companies is a section 8 company, and its AGM is scheduled to be conducted in September, and company has sent notice of AGM with proxy form. A member of the company has appointed another as proxy to present in AGM on his behalf and such person is not a member of the section 8 company. Whether such person can be appointed as proxy or membership is precondition to be eligible to be proxy ?

Answer : As per SS-2, a member of section 8 company may appoint proxy on his behalf to another person if such person is also a member of the section 8 company, no other person can be appointed as proxy if such person is also not a member.

Therefore, only a member of the section 8 company may be appointed as proxy for another member.

Here, in this case, member of the company cannot appoint such person.

Query:   An Indian registered Private Limited company has transferred their shares, which were rightly held by its two directors equally, to an Australian company and company further wants to issue shares to that Australian company also, means FDI which is covered under automatic route.

Now my question is whether company required to open share application account separately for that transaction or can get share capital in its current account. Is it mandatory to open share application account?

Answer:  After the transfer of shares to that Australian company, that company has become the shareholder of the company.

Now, if company allots further shares to it through Rights issue of shares, then there shall not be any requirement of opening any account separately.

But if company wants to allot shares through Private placement, then as per section 42(6) of the companies act 2013, monies received on application shall be kept in a separate bank account in scheduled bank and which shall not be utilized for any purpose other than –

(i)    For adjustment against allotment of securities; or

(ii)  For the repayment of monies where the company is unable to allot securities.

Key Dates:

Filing of ITR returns by Individuals, HUF (With Audit): 30/09/2016

Filing of ITR returns by all companies (except TP audit): 30/09/2016

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

E-Payment of TDS for August : 07/09/2016

Success is not Accidental, It Is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing.

Everyone may not be nice but there is something nice in everyone.

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, 9-555-555-460

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. Continue reading

REQUIREMENT OF REGISTRATION LIABILITY UNDER GST LAW (SCHEDULE III) :

REQUIREMENT OF REGISTRATION LIABILITY UNDER GST LAW (SCHEDULE III) :GST FIRST LOOK

  1. Every supplier shall be liable to be registered under GST Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds [Rs. 9 (Nine) lakh] [The threshold limit of Rs. 4 (four) lakh will apply only if the taxable person conducts his business in any of the North East States including Sikkim.]

North Eastern State includes Seven Sister States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura), and the Himalayan state of Sikkim.

The supplier shall not be liable to registration if his aggregate turnover consists of only goods and/or services which are not liable to tax under this Act.

  1. Every person who is already registered or holds a license under an earlier law (like Excise Law, VAT Law, CST Law etc), shall be liable to be registered under this Act with effect from the appointed day.
  1. The following categories of persons shall be compulsorily  required to be registered under GST Act: (Limit of Rs.9 lakh /4 lakh is not available to following)

(i) persons making any inter-State taxable supply,

(ii) casual taxable persons,

(iii) persons who are required to pay tax under reverse charge,

(iv) non-resident taxable persons,

(v) persons who are required to deduct tax under section 37;

(vi) persons who supply goods and/or services on behalf of other registered

taxable persons whether as an agent or otherwise,

(vii) input service distributor;

(viii) persons who supply goods and/or services, other than branded services, through electronic commerce operator,

(ix) every electronic commerce operator,

(x) an aggregator who supplies services under his brand name or his trade name, irrespective of the threshold limit of 9 lakh/4 lakh and

(xi) such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

GST OTHER UPDATE

Under GST, apply for registration in 30 days to get input tax credit for period prior to registration. Else get ITC from data of registration.

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 no refund up to 1000 in GST. Only declaration for refund less than 5 lacs. Prescribed documents for refund of 5 lacs & above.

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.

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

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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.

GOODS AND SERVICES TAX CONSTITUTIONAL AMENDMENT BILL (GST BILL), ONE STEP FORWARD

GOODS AND SERVICES TAX CONSTITUTIONAL AMENDMENT BILL (GST BILL), ONE STEP FORWARD

India, how beneficial is it with goods and service tax(GST)

Till now 16 states have ratified the GST Constitutional Amendment Bill (GST Bill) after it was passed in the RAJYA SABHA on 3 August. Just 2 away from the magic number of 16 required to complete this step of constitution amendment process. Next Step, assent by President of India.

Constitutional Amendment Bill on 01.09.2016, the Central Govt. may seek President’s assent on it. Let’s take a stock of which all states have ratified the GST Bill and where are the remaining states in terms of ratifying the GST Bill. 14 states that have ratified the Bill include

1. Assam,
2. Bihar,
3. Jharkhand,
4. Himachal Pradesh,
5. Chhattisgarh,
6. Gujarat,
7. Madhya Pradesh,
8. Delhi,
9. Nagaland,
10. Mahrashtra,
11. Haryana,
12. Telangana,
13. Mizoram,
14. Sikkim

15 . Goa

16 Odisha

 

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.

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

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

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.

 

CORPORATE AND PROFESSIONAL UPDATE SEPT 2,2016

Professional Update For the Day:

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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:

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

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. Continue reading

CORPORATE AND PROFESSIONAL UPDATE Aug 26,2016

Professional Update For the Day:

1DIRECT TAX:

  • CBDT prescribes the Class or classes of buyers to whom provisions of sub-section (1D) of section 206C shall not apply [CBDT Notification dated 19.08.2016].
  • The assesses applying for registration/ approval under section 12AA, 80G and 10(23C)(iv), (v), (vi) & (via) have option to apply in form 10A/ 10G/ 56/ 56D of the I. T. Rules, 1962 either manually or through e-filing, which will get barred by limitation on 31.08.2016
  • The functionality for approval of hospital u/s 17(2) of the IT Act and for registration of tax practitioner will be available in administration module of ITBA  w.e.f  22.08.2016.
  • Company’s only income is from leasing property, then it should be taxed under the head PGBP [SC Judgment, Rayala Corporation Ltd vs. Asst Commissioner]
  • No compensation from Insurance Co. if there is theft without a forcible entry: Apex Court
    [2016] 72 taxmann.com 296 (SC) Industrial Promotion & Investment Corporation of Orissa Ltd. v. New India Assurance Co. Ltd.
  • ITAT Kolkata in the below citied case denied the continuance of registration u/s 12A. if it is found that the assessee was accepting bogus donations, then that fact can only lead to an inference that the activities of the trust are not genuine or are not carried out in accordance with the objects of the trust than registration will be cancelled(Dr. B.G. Memorial Trust Vs. CIT)

 INDIRECT TAX:

  • Contractors providing the service of construction of tube wells for the Government have been considered to be liable to pay service tax [Circular No. 199/09/2016-Service Tax].
  • CESTAT Allahabad in the below citied case held that Cenvat credit – availed on transportation charges in the process of cleaning and disposal of waste – the disposal of hazardous waste by the appellant is an essential activity, without which, the final products being excisable insecticides, cannot be manufactured. Hence credit will be allowed.(India Pesticides Ltd. Versus Commissioner of C. Ex. & S.T., Lucknow)- 2016(8) TMI 724- Service Tax)
  • CESTAT Chennai in the below citied case held that service tax credit will be allowed for- insurance premium having been paid for the health insurance of the employees of the factory and Pest Control Service availed to protect the property of the company.(Sundaram Fasteners Ltd. Versus Commissioner of C. Ex., Chennai-II- 2016 (8) TMI 723-Service tax)
  • Delhi Govt. does away with requirement of digital sign for filing DVAT returns
  • VAT Dept issued notification dated 24.08.2016 regarding withdraw of mandatory requirement of DSC in filing DVAT returns.

 

GST UPDATES :

  • Under GST:
    • Composition Supplier can register in multiple states if total sales up to 50 lacs, no Inter state sale. Scheme must for all businesses having PAN.
    • Selling milk, eggs, chickens taxable under GST as dairy/poultry farming not part of agriculture. Vegetables not taxable but their saplings are taxable.
  • Under GST for sale of even a rupee from a state, registration required if turnover already exceeds 9 lacs in another state as limit is for India as a whole.
  • Gujarat became the sixth state to ratify the GST Bill after Assam , Bihar , Jharkhand, Himachal Pradesh and Chhattisgarh.
  • Infosys may get about dollar 60 million for GST project.

 

FAQ ON COMPANY LAW:

  • Query:   We have a query regarding the date of Annual General Meeting of company incorporated on 19th December 2015. Now our query is regarding the date of Annual General Meeting required to be held?

Answer: Section 96(1) of the Companies Act 2013 provides that in case of first Annual General Meeting, it shall be held within a period of nine months from the date of closing of the first financial year and in any case, within a period of six months, from the date of closing of the financial year.

Further, Section 2(41) of the Companies Act 2013 defines financial year in relation to any company or body corporate as the period ending on 31st day of March every year and where it has been incorporated on or after 1st day of January of a year, the period ending on 31st day of March of the following year, in respect whereof financial statement of the company or body corporate is made up

Thus, the Annual accounts of the company incorporated before 1st January 2016 shall be closed on 31st March 2016 and consequently AGM shall be held within a period of 9 months from the date of closing of the first financial year, i.e., 31st December 2016.

  • Query: We are trying to register DSC (Digital Signatures) of a director since last 15 days but at the time of selecting DSC, no icon is appearing so that we could select the DSC of director. We have raised ticket many times with the ROC but no solution is being provided by them and last date for filing e-form is approaching. Kindly let us know how can we register the same on MCA Portal.

Answer: You are required to install Java 8 update 45 and uninstall other versions of Java on your system, then try to register DSC with the MCA Portal and use either Mozilla Firefox or Internet Explorer for registering the same.

  • Query:We want to incorporate a Section 8 company with the words ‘micro-finance’ in its name?

Answer: Yes for this type of name, you can apply along with declaration as per rule 12 of the Companies (Incorporation) Rule, 2014 if, license is issued under section 8. However, Finance activity is under regulatory control of RBI. Hence at the time of filing incorporation documents promoters/director of proposed company are required to give undertaking as per rule 12 of the Companies (Incorporation) Rules, 2014.

MCA News:

Forms AOC-4, AOC-4 CFS, DIR-12, FC-2 and MGT-15 are likely to be revised on MCA21 Company Forms Download page w.e.f 24th August, 2016.

ICAI Updates:-

Ind AS Transition: Associate to adopt Ind AS from the FY in which holding company is required to adopt it

ICAI has invited to attend faculty Identification Programme on GST-II dated on 23.08.2016.

ICAI has extended the last date for Company Registration Related to Campus (9 Bigger Centres) from22 to 29 Aug’16.

ICAI is taking up the matter to resolve the  any problem in uploading tax audit reports due to non updation of PAN number at ICAI or due to differences in the name as per ICAI record and name given in PAN number with department on top priority basis and the members are requested to update/provide their PAN details by filling requisite details by clicking the linkhttp://online.icai.org/app_ forms/panupdate/index.html  at the earliest but latest by 26.08.2016.

Key Dates:

Advance information for 1st fortnight of September of functions with booking cost more than Rs. 1 Lakh in Banquet halls, hotels etc. in Delhi -27/08/2016

Payment of TDS in Form no. 26QB for purchase of property for the month of July: – 30/08/2016

Be thankful for hard times in your life, try not to look at them as bad things but as opportunities to grow and learn.

The most important thing is to enjoy your life – to be happy – it’s all that matters.  -Audrey Hepburn

The search for happiness is the main reason for unhappiness. Accept life the way it comes, as a result, you’ll find happiness in every moment of your life.

Never win people with arguments rather defeat them with your smile because people, who always wish to argue with you, cannot bear your silence.

We look forward for your valuable comments. 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. Continue reading