Complete Guidance on Udyog Aadhar registration in India

Complete Guidance on Udyog Aadhar registration in India – Registration procedure, Benefits and Documents required

Udyog Aadhaar Registration – Process, Documents Required, Benefits ...

In recent times, the Government of India has launched the Udyog Aadhaar registration process in order to improve the small-scale businesses in the region. Previously, if a person wants to start a company, he/she must be registered with both the small-scale industry and the MSME.

This step has now been facilitated by the incorporation of only 2 types under the Udyog Aadhaar Registration which are Entrepreneur Memorandum I and Entrepreneur Memorandum II, whereas the former one was used to fill out 11 various types of forms which were required earlier.

The major characteristics of Udyog Aadhaar

  • Enrolment is online instead of personal registration. It’s just a button of a task.
  • UAM can be registered by self-declaration of the company’s data.
  • Details required for registration: Personal Aadhaar number, name of the industry, address, bank details and some common information.
  • You can file more than one Udyog Aadhaar with the same Aadhaar number.
  • No filing fee.
  • After the registration number has been filled in and submitted, it is obtained in the mail-id issued.

Udyog Aadhaar Registration is a fully online process. Companies listed under the Udyog Aadhaar are eligible to obtain incentives from a range of government schemes, such as discounts, simple loan approvals, etc.

What kind of Benefits of registration of Udyog Aadhaar :

The main advantages of registration under Udyog Aadhaar are listed below:

  1. The MSME registered enterprises get the financial support from the Government to participate in foreign expo. i.e MSME registered companies receive financial support from the Government to participate in the foreign exhibition
  2. Quick Accessibility of Collateral Free Bank loans : Once registered with MSME, the micro, small or the medium enterprise would be eligible for all government scheme benefits like without guarantee loan, easy loan, loan with low rate of interest.
  3. 50 per cent grant for patent registration
  4. Simplification of obtaining licenses, approvals and other registrations
  5. ISO Certification Reimbursement
  6. NSIC Performance and Credit Rating Subsidy:
  7. Concession of electricity bills and more
  8. The enterprise is also entitled for the Government subsidies:

Potentially Details Required of Udyog Aadhaar Registration:

The information needed at the time of registration of Udyog Aadhaar are as follows:

  1. 12 Aadhaar number given to the client. In the case of a company, corporation or any other entity, the Aadhaar number of Managing Director, Approved Partner, etc. shall be given.
  2. Name of the organization under which it carries out its business.
  3. Type of business entity such as individual, firm, company, etc.
  4. Postal Business address for communication purposes, including contact numbers and e-mail address.
  5. Date of beginning of the business.
  6. Details of the previous validation of the MSME.
  7. Banking details of the client, including the bank account number and the IFSC code.
  8. Main business areas – service or manufacturing.
  9. The number of staff in the company.
  10. Complete amount of investment by the company in terms of machinery and equipment.
  11. Social Category – The applicant may pick the Social Category (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes). Evidence of belonging to SC, ST or OBC can be sought by the proper authority, if and when necessary.
  12. Physically Disabled-The Applicant may choose a Physically Disabled Entrepreneur status.

13. Plant Location-Applicant can attach multiple plant locations to one registration by clicking the    Attach Plant button.

  1. Major Activity-The main activity, i.e. “Manufacturing” or “Service,” may be chosen by the company for Udyog Aadhaar. If your business involves both type of activity and if major work involves Manufacturing and a small portion of activity involves the Service sector, then select your main activity type as “Manufacturing” and if major work involves Services and a small portion of activity involves Manufacturing, then select your main activity type as “Services”
  2. National Industrial Classification Code (NIC Code)-The individual may choose various National Industrial Classification-2008 (NIC) Codes to protect all their activities. Which means that users can select multiple NICs from the Manufacturing and Service sector by clicking the “Add More” button. If you want to add Manufacturing then select the “Manufacturing” radio button and click the “Add More” button otherwise if you want to add Service then select the “Services” radio button and click the “Add More” button. The NIC codes are drawn up by the Central Statistical Organisation (CSO) under the Ministry of Statistics and System Implementation, Government of India. The applicant can use the National Industrial Classification-2008 (NIC) Scanning facility codes to escape a 3-step selection process.

Step by step procedure of Udyog Aadhaar Registration

Registration system and Process of Udyog Aadhar along with the requirement of information for Registration: Below is the legal process for the registration of Udyog Aadhaar:

1. Online visit the link of

2. Enter the Aadhaar number and the name of the individual who is the agent of the organization and confirm the Aadhaar number:

3. Enable the OTP

4. Upon validation, it will be redirected to Udyog Aadhaar form, which will be as follows: and Verify further Enter the following information in the field:

• Social group (e.g. SC / ST / OBC / General)

• Sex and categories

• Whether is He not physically handicapped

• Name of Enterprise

• Type of Organisation

• PAN no of the relevant person

• Address of the business entity

• The contact address of the organization and the telephone or email number of the designated person;

• Date of start of business

• Past registration details of MSME, if any

• Corporate bank info like IFSC code and bank account number

• Main activity of the unit (whether engaged in production or service)

• National Industrial Classification (NIC) Operation Code (One or more activities can be added)

• Overall number of individuals working by the company

• Overall financial investment of the company

• The district where the entity is placed

• Click on the checkbox for the declaration and submit

5. After acceptance, you will obtain an OTP for submission of the form-enter OTP and click on the final submission button.

6. After submission, it will be forwarded to the Udyog Aadhaar Memorandum page.

7. Below the Udyog Aadhaar Memorandum, you can find the Udyog Aadhaar Certificate button. Click on it to generate the Udyog Aadhaar Certificate:

8. After clicking the Create Certificate button, the Udyog Aadhaar Card will be issued.

9. If you need qualified assistance for Udyog Aadhaar, please write to us at or click Here to Subscribe to Online Service.

May you register Udyog Aadhaar Registration Online without an Aadhaar Number?

No Applicant or authorized signatory who is not registered for Aadhaar shall be required to apply for Aadhaar enrolment and, if he or she is entitled to receive Aadhaar in compliance with section 3 of the Aadhaar Act, he or she may visit any Aadhaar enrolment center for Aadhaar enrolment.

  •  A.   Provided that by the time Aadhaar is allocated to the person, the registration of the UAM shall be registered by the DIC or MSME-DI concerned on behalf of that undertaking, subject to the creation of the supporting following information as an alternate and feasible form of identifying.
  • If he’s registered, his Aadhaar Enrolment ID slips; Ok
  •  copy of his application for enrolment by Aadhaar
  • B.  Any of the below papers, namely: – bank photo passbook; or voter ID card; or passport; or driving license; or PAN card; or employee photo ID card issued by the Government.

Post by Rajput Jain & Associates

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. 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: or call at 09811322785/4 9555 5555 480)

Micro, Small and Medium Enterprises

Overview on MSME’s Companies:

Related image


Definition of MSME:-

The Micro Small & Medium Enterprises (MSMEs) are defined in India in the MSME Act 2006 according to capital investment made in plant and machinery, excluding investments in land and building.

Manufacturing units having investment below Rs 25 lakh were termed Micro, those between Rs 25 lakh and Rs 5 crore termed as Small and from Rs 5 crore to Rs 10 crore as Medium. Similarly, for Service units, corresponding investment thresholds were upto Rs 10 lakh Micro, between Rs 10 lakh to Rs 2 crore Small and between Rs 2 crore to Rs 5 crore Medium.

Mandatory filling of MSME Companies:

According to the rules every specified company are required to file MSME Form I with Roc in in the situation mentioned below:

Two Type of Returns required filing by “Specified Companies” like:

  • One Time Return.
  • Half Yearly Return.

Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within thirty days from the date of publication of this notification which is 22nd January.

Every specified company shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March.

Specified Company means Every Company “Public or Private” who Received Goods or Services ‘from’ Micro or Small Enterprises ‘of which’ Payment Due or Not Paid till 45 days.


All companies having outstanding payments to MSME for more than 45 days from the date of acceptance or deemed acceptance of goods or/and services, who are not required to file the MSME Form I.

The Companies who have no outstanding payments to MSME or such outstanding payments are for not more than 45 days are not required to file this form.


Every Company within 30 days from the date of the notification i.e. 22nd February, 2019 (22nd January, 2019 + 30 days) is required to file this form as Initial Return.

Every company within 30 days from the last day of half year shall file regular half yearly return.

  • October 31st for the period1st April to 30th September.
  • April 30th for the period01st October to 31st March.



Total outstanding amount, Details of suppliers and payments due (PAN of Suppliers)


Total outstanding due for the period and particulars of suppliers therein for the period, Reasons for delay in payment.

Penalty Provision as per Section 405 (4) of the Companies Act, 2013, if the said details are not submitted to MCA on or before 20/02/2019 or the information submitted is incorrect or incomplete.


Company – up to Rs. 25,000

Directors, CFO and CS

Imprisonment – up to 6 Months, or

Fine – not less than Rs. 25,000 up to Rs. 3, 00,000 per person

NOTE: Non-compliance of such provisions will lead to punishment and penalty under the provision of the Act.


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 decision do consult your professional /tax advisor for their 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. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at for any query you can write to Hope the information will assist you in your professional endeavors. For query or help contact:  or call at 09811322785/4- 9555555480.




One of the key sources of dispute is the existing arrangement for follow up on audit objections by Internal Audit Party and the Revenue Audit Party. In terms of the existing arrangement, the AO is required to take corrective steps following audit objections. The corrective measures take the form of rectification or reassessment (by reopening the case under section 147 or revision by the Principal Commissioner or Commissioner under section 263). In the case of rectification, these are general in the nature of correction for arithmetical errors and other mistakes which are apparent from the record. The problem arises when the AO seeks to take corrective measures by invoking the provisions of section 147 or 263 of the Income tax Act. Since the audit objections are based on material on record and there is no occasion for new material to be brought on record in the course of audit, any reopening of assessment or review by the Principal Commissioner constitutes “change of opinion” in the eyes of the law. This being so, the corrective measure under section 147 or section 263 of the Income tax Act is held to be invalid by Courts.

In spite of several court judgments to this effect, the CBDT had issued a circular to the effect that in all cases of audit objections, the AO should initiate corrective steps irrespective of whether the objection is valid or not in the eye of law. Consequently, steps are initiated by the AO to reopen the completed assessment or by the Principal Commissioner for revision of assessment orders. These steps give rise to several rounds of litigation; first the assessee challenges the very act of reopening or revision, as the case may be, and upon losing, the Department files appeal before the higher Courts thereby clogging the judicial system. While this process is on, the AO proceeds to complete the assessment on merit leading to another round of litigation. In large number of cases, the assessments on merit are completed even though the Department is in disagreement with the audit objection. The very issue has also been considered by the Income-Tax Simplification Committee constituted by the Govt. of India against such mechanical reopening .

In a recent judgment in case of Sunil Gavaskar vs. ITO, the Hon’ble bench of ITAT Mumbai considered the legality of such reassessments based on audit objections. Primarily reopening merely on the basis of audit objections and in absence of any new material indicating escapement of income, amounts to change of opinion and creates uncertainties for taxpayers.

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: or call at  9555555480




Direct Tax:

Income Tax has issued a circular on Framework for computation of book profit for the purposes of levy of MAT under section 115JB of the Income-tax Act, 1961 for Indian Accounting Standards (Ind AS) compliant companies dated 28/04/2016.

 Levy of entertainment tax – Water sport activities offered by Polo Amusement – Polo amusement contended that levy of ET under the ET Act is conditional upon the activity being amusement where people are given admission to an entertainment as defined under Section 2(a) – Held that – the charging provision, Section 6 (1) enacts that tax is to be levied and paid on all payments for admission to any entertainment. Section 2 (m)(iv).( Commissioner of Excise Entertainment, Polo Amusement Park Ltd. Versus M/s Polo Amusement Park Ltd. & Others, Govt of NCT of Delhi And Another).- 2016 (4) TMI 1059 – DELHI HIGH COURT


Department of Trade & taxes has issued a notification that returns in Form CR-II for the financial year 2015-16 are required to be filed by 16-May-2016 vide Notification no. .F.3(628)/Policy/VAT/2016/113- 125 dated 28/04/2016

DVAT has extend the period of Filling of online return for fourth quarter of 2015-16 vide circular No. 02 of 2016-17


MCA clarifies that the companies (AS) amendment rules, 2016 dated 30.03.16, to be applicable from F.Y.2016-17. Circular no. 04/2016.

FEMA Updates:

RBI has issued a circular on Foreign Exchange Management (Remittance of Assets) Regulations, 2016 vide circular No. 64/2015-16 [(1)/13(R)] dated 28/04/2016

Key Dates:

  • Deposit of TDS deducted during during March (Other than u/s 194IA in case of purchase of property) through Challan No. ITNS-281- 30/04/2016
  • Excise Return ER-5 for FY 2014-15 by units paying duty > 1 Crore (CENVAT + PLA) in Form ER-5-30/04/2016
  • Excise Return ER-7 for FY 2014-15 by other excise units- 30/04/2016
  • E-Filling of information of declarations in Form 60 received upto 31st March in Form 61-30/04/2016
  • Filling of option to avail composition scheme in DVAT-01- 30/04/2016
  • Filling of withdrawal from composition Scheme in DVAT-03 – 30/04/2016

Plain paper has no value but if you write on it, it becomes document. Life is same, you have to decide which kind of document you want to make of it.

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  • IT:Expenditure incurred towards fund – allowed as deduction while computing income of the assessee co-operative bank – The Karnataka State Co-operative Apex Bank Ltd. Vs. DCIT, Cir-3(1), Bangalore (2016 (4) TMI 871 – ITAT Bangalore)
  • IT:Deduction u/s. 54F – allowance of claim as assessee has purchased a semi-finished house and completed construction before the three years period as prescribed –  Srinivasa Rao Vs. ACIT, Cir-3(2), Hyderabad (2016 (4) TMI 867 ITAT Hyderabad)
  • Today (28.04.16) is last date to file DVAT- 56 (DVAT Return verification form) and DVAT-48(Return of TDS) for quarter ended March, 2016.
  • CBDT Circular regarding Commencement Of Limitation For Penalty Proceedings U/s 271D and 271E of the Income tax Act, 1961
  • The CBDT has issued Circular No. 09/DV/2016 dated 26th April 2016 in which it has expressed the view, by relying on the judgement dated dated 8.7.15 of the Kerala High Court in Grihalaxmi Vision vs. ACIT that the limitation for imposition of penalty under sections 271D and 271E of the Income tax Act, 1961 does not commence at the level of the Assessing Officer (below the rank of Joint Commissioner of lncome Tax) but commences at the level of the Range authority i.e. the Joint Commissioner of Income Tax./Addl. Commissioner of Income Tax. The CBDT has advised Assessing Officers (below the rank of Joint Commissioner of Income) to make a reference to the Range Head regarding any violation of the provisions of section 269SS and section 269T of the Act, as the case may be, in the course of the assessment proceedings (or any other proceedings under the Act). It has directed that the Assessing Officer, (below the rank of Joint Commissioner of Income Tax) shall not issue the notice in this regard. The Range Head will issue the penalty notice and shall dispose/ complete the proceedings within the limitation prescribed u/s 275(1)(c) of the Act
  • reduces interest rates on employee provident fund (EPF) from 8.75% to 8.7% for financial Year 2015-16.
  • Family pension claim not acceptable if option to join scheme was not exercised. [Ganesh Prasad Mishra vs. Commissioner EPF Organization (Madhya Pradesh HC at Indore)].
  • Excess of TDS deposited u/s. 195 eligible for interest u/s. 244A. Circular no:11/2016– IT.
  • Relaxation of Know Your Customers (KYC) Norms for customs notified vide circular no. 13/2016 dated 26Th April 2016- (click here to view)
  • The Contract entered for the purpose of packing loading and unloading etc. of the goods for which labour was supplied by the assessee to M/s Birla Corporation Ltd. cannot be held as Cargo Handling Service as the two conditions are not satisfied- (The Deputy Commissioner, Central Excise & Another Versus Sushil & Company – 2016 (4) TMI 987 – SUPREME COURT.
  • Assessee is providing the services directly to M/s. Jet Airways (I) bPvt. Ltd. which is not on behalf of Airport Authority – it cannot be said that Airport Authority has authorized the assesse to provide the services- (Commissioner of Service Tax, Mumbai-I Versus Soft Touch Aviation – 2016 (4) TMI 986 – CESTAT MUMBAI)


  • Delhi VAT extended online return filing due date till 16/05/2016 for Q4 15-16 vide circular no: 02 dated 28th April.
  • DELHI VALUE ADDED TAX ACT, 2004 – NEW COMPOSITION SCHEME FOR RESTAURANTS AND HALWAIS : CIRCULAR NO.01 OF 2016-17 [NO.F.3(664)/POLICY/VAT/2016/106-112], DATED 27-4-2016 dealers whose annual turnover is upto Rs. 50 Lakhs and who makes sales of cooked food, snacks, sweets, savouries, juices, aerated drinks, tea and coffee etc. have an option to pay composition tax @ 5%.


  • Query: One of our client company has not done annual filing since F.Y 2009-10. Now when are trying to file the same. Form 23AC, ACA and Form 20B are not available on MCA portal. Can we file the same through Form GNL- 2. Advice
  • AnswerNo, Annual filing e-forms under the Companies Act, 1956 viz. 23AC/ACA, 23AC/ACA-XBRL, 20-B, 21-A, Form 66, I-XBRL, A-XBRL, 23B, 23C and 23D would be made available shortly for filing purposes on MCA Portal. You are therefore advised not to file these forms as attachments with GNL-2 e-forms.
  • MCA has issued general circular no. 04/2016 dated 27th April 2016: amended AS should be used for preparation of accounts for accounting periods commencing on or after the date of notification.


  • MCA has released Clarification with regard to Companies (Accounting Standards) Amendment Rules 2016 vide Circular No- 04/2016 dated 27/04/2016. (Click here to view)
  • MCA has released Notification regarding the Jurisdiction of the state of Telangana under Section 396 of Companies Act 2013 vide Notification dated 26/04/2016. (Click here to view)


  • Amended ASs to be applied from FY 16-17 onwards
  • ICAIin order to make the Members aware as to what information is going to flow from Institute’s records in MEF this year has hosted Pre-MEF data verification at for applicants’ perusal w.e.f. TODAY (27 APR 2016).
  • RBIhas issued a Master Direction for merger of private sector banks and also between NBFCs and banks.
  • releases draft guidelines for computation of book profit by Ind AS compliant Cos
  • Courier entities in Delhi to file return in CR-II for F.Y.2015-16 byMay 16, 2016

Key Dates:

  • Filing of DVAT return verification form for quarter ended March where return not signed with digital signature: 28/04/2016
  • Return of DVAT TDS for quarter ending March: 28/04/2016
  • Return by scheduled banks branches in delhi engaged in sale of silver, gold, repossessed vehicles for quarter ending March: 28/04/2016

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Your mind is a magnet. If you think of blessings, you attract blessings and if you think of problems, you attract problems. Always cultivate good thoughts and always remain positive and optimistic.

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Direct Tax:

Waiver of loan tantamount to benefit or perquisite, chargeable to tax under Sec. 28(iv)[2016] 68 289 (Madras) Commissioner of Income Tax v. Ramaniyam Homes (P.) Ltd.

Interest on loan allowed to be deducted as loan was obtained to repay on old business loan [2016] 68 223 (Bangalore Trib.) Senate v. Deputy Commissioner of Income-tax

Indirect Tax:

Govt. constitutes board to issue eligibility certificates for availing tax benefits by ‘startups’25 April 2016, Govt. constitutes board to issue eligibility certificates for availing tax benefits by ‘startups’

Operating of plants of client is ‘Business Support Services’ and not ‘Maintenance or Repair services'[2016] 68 239 (Mumbai – CESTAT)  Commissioner of Service Tax v. Global S.S. Construction (P.) Ltd.

Department cannot insist to avail particular option under rule 6. [Mahindra & Mahindra Limited vs. CCE (CESTAT New Delhi)].

CENVAT allowed on linkage of inputs/capital goods to production. [C.C.E. Raipur vs. Bharat Aluminum Co. Ltd. (CESTAT NewDelhi)].

Excise & Customs : Where assessee has manufactured or exported goods by procuring domestic inputs without payment of duty under rule 19(2) of Central Excise Rules, 2002, then, in view of specific restrictions imposed by drawback notifications, no drawback can be allowed to assessee (not even of customs component of drawback)[2016] 68 238 (Bombay)  Anandeya Zinc Oxides (P.) Ltd. v. Union of India

Delhi VATCOM assured extension of return filing due date till 16/05/2016 for Q4 15-16. Further assured that item name and item code to be optional for Q4 15-16. Members are advised to file returns only after new updation of software i.e. 03/05/2016. Digital signature is also made optional for Q4 (All dealers).

Company Law:

Query: We filed Form INC-29 and there is resubmission but when we affixing DSC, the size of e-form automatically increase by 2 MB and there is pop-error as file size cannot exceed 5 MB. Kindly advice as is there any alternate way as its last date of resubmission is also approaching.

Answer: This is a technical issue on the part of new modified MCA Portal, you can compress the attachments and try accordingly.

AASB of ICAI issues guidance note on the Companies (Auditors Report) Order, 2016 on 23.04.2016.

Key dates

Extension of due date of filing ST-3 returns from 25th April to 29th April : Assessees have faced difficulties in accessing the ACES application on 25th April 2016, therefore, in exercise of the powers conferred by sub­rule (4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs has extended the date of submission of the Form ST-­3 for the period from 1st October 2015 to 31st March 2016, from 25th April 2016 to 29th April 2016 vide Order No. 1/2016-ST.

I think if you just look at life in a positive way, positive things will happen. -Jake Owen

Words have no value. But the manner in which you chose them while speaking decides whether you will get value or pay for them.

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The definition of rent includes any payment by whatever name called, for use of buildings including factory buildings, equipment, furniture or fittings. Even if machinery was leased, the consequent rent comes under the definition. But machinery lease cannot be considered under income from House property .(Heritage Hospitality Limited Versus Deputy Commissioner of Income Tax, Circle-2 (2) , Hyderabad)- 2016 (4) TMI 873 – ITAT HYDERABAD

Unexplained investment – addition made simply on the basis of the statement recorded u/s. 133A – Held that – An admission by assessee during the search or survey proceedings cannot be considered as conclusive unless it is supported by corroborative evidence. (Sai Priya Constructions and Others Versus The Income Tax Officer, Ward-8 (2) , Hyderabad) 2016 (4) TMI 868 – ITAT HYDERABAD


CBEC have revise the rate of exchange of conversion of the foreign currency with effect from 22nd April, 2016  vide Notification No. 55/2016 – Dated 21-4-2016 – Customs (Click here to view)

Indian Revenue Services ( Customa and Excise ) Group “A” Rules 2016 vide Notification No. G. S. R. 438(E) dated 22/04/2016

Imposition of penalty – Services provided as marketing agent – non-payment of Service Tax for the commission payments received – Held that – it is clear that the 2nd respondent has given an opportunity of personal hearing to the petitioner and he was also represented by his counsel before the 2nd respondent. The petitioner also filed his reply before the 2nd respondent, which was also considered by the 2nd respondent. Therefore, from the above, it is clear that there is no violation of principles of natural justice committed by the respondents  (V.R. Mohanraj, Proprietor of M/s. VMBK Promoters Versus The Commissioner of Service Tax –I , The Joint Commissioner of Service Tax)


MCA has released FAQs on problems faced by Stakeholders due to change/updation of MCA Portal.


 E-Return for DVAT for the quarter ended March: 25-04-2016 (Form 16 and CST 1)

Service tax return ST-3 for the half year ended March: 25-04-2016

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IT: Expenditure relatable to day to day running of the business is allowable as revenue expenditure in the hands of assessee irrespective of the fact that the assessee was following percentage completion method of recognizing its revenue – Arun Pitambar Seth Vs. ACIT, Cir-3, Pune (2016 (4) TMI 752 – ITAT Pune)

IT: Assessment u/s 153C – the concerned documents / diaries did not emanate from out of seizures made in the course of search action – M/s. Giriraj Developers Vs. ACIT, Cir-13, Mumbai (2016 (4) TMI 749 – ITAT Mumbai)

No penalty for non-maintenance of TP docs if assessee furnished updated margins of earlier comparables Assistant Commissioner of Income-tax, Circle-6, Jaipur v.Integrated Decisions & Systems (India) (P.) Ltd.[2016] 68 185 (Jaipur – Trib.)

Fall in value of stock allowed to be deducted, though it was in transit and lying at port Pr. Commissioner of Income Tax v. STCL Ltd [2016] 68 224 (Karnataka)

IT: Export sales directly made to the consignee through the sister concern was the deemed export of the assessee – deduction u/s 10B allowed – M/s. Earth Stone Group Vs. ACIT (2016 (4) TMI 824 – ITAT Delhi)


ST: Once what is received by the service receiver being output services the same would automatically become input service in terms of Rule 2 (l) of Cenvat Credit Rules – M/s Sundaram Industries Ltd. Vs. CCE, Madurai (2016 (4) TMI 777 – CESTAT Chennai)

Excise & Customs: Where assessee surrendered its registration certificate for de-registration, denial of de-registration on ground that a case of demand of duty was pending against it was wrong [2016] 68 200 (Mumbai – CESTAT)  Akasha Syncotex Ltd. v. Commissioner of Central Excise

VAT & ST: Refund of excess TDS – construction business – Section 27 & 24 of HVAT Act would be applicable only to the taxable turnover i.e. after deducting service component and turnover relating to sales outside State in the course of inter-state sales or in the course of import – M/s. S.M. Constructions, Ludhiana Vs. The State of Punjab (2016 (4) TMI 762 – Punjab & Haryana High Court)

DVAT: Delhi Govt. has issued Delhi Value Added Tax (Amendment) Rules, 2016. Return Forms DVAT-16 and DVAT-17 have been amended wherein dealers are now required to furnish details of purchases and sales in Annexure 2A and 2B along with the description of goods and their codes. Forms DVAT-30 and DVAT-31 have also been amended.

ST: Increase in rates of service tax in respect of bank guarantee and insurance premium is directly relatable to the terms of the contract – M/s Centrodorstroy Vs. NHAI (2016 (4) TMI 801 – Supreme Court)

VAT & ST: Different view taken by Court – Tribunal has already decided the matter in case of original petitioner – Once a decision has attained finality it cannot be upset just on a mere ground that subsequently the higher forum has taken a different view – M/s. IFB Industries Ltd. Vs. DCCT (2016 (4) TMI 761 – Karnataka High Court)

Other Update

MCA: The relaxation of additional fees vide General Circular No.03/2016 dated 12 APR 2016 has been implemented in MCA21 system w.e.f. 21 APR 2016. The additional fee payable on Company e-forms which are due for filing b/w 25 MAR to 30 APR 2016 is relaxed till 10 MAY 2016.

Department of Education, Delhi Govt. invites application from CAs for empanelment for audit of private schools For details, please visit:

CALS, a sister concern of “Grant Thornton (India)”offers cost effective learning for CA Final in an offline mode anytime, anywhere. For details:Toll free number: 1800-1200-560.   Email on,

Key Dates:

Issue of TDS Certificate in case of payment/credit made in March for purchase of property u/s 194A:22/04/2016

Issue of certificate for deduction made in March in DVAT-43: 22/04/2016

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Indirect Tax:

IT: Receipt by the assessee from the HUF of which the assessee was the member – treated as gift received from the relative (group of relatives) – Not Taxable u/s 56 (2) r.w.s. 2(31) – Biravelli Dhanalaxmi Vs. ITO, W-4, Karimnagar (2016 (4) TMI 669 – ITAT Hyderabad)

IT: The question of TDS u/s 194-I does not arise on consideration paid to the Government – the manner in which the amount was quantified and the method of selection of the JV Partner are the crucial determining factors in this case to understand that the said amount could never constitute rent – M/s. Tril Info Park Ltd. Vs. ITO, W-1 (2016 (4) TMI 674 – Madras High Court)


ST: Services which are supporting in nature to the main business like services relating to customer relationship telemarketing office infrastructure etc. are covered under Business Support Service – T.V. Today Network Pvt. Ltd. Vs. CCE, Delhi (2016 (4) TMI 690 – CESTAT New Delhi)

VAT & ST: In case of different stand taken by the department by rejecting its own order the exemption of entertainment tax is granted from the date of release of movie and not from the date of issuance of Government Order – Sushanth Prasad Vs. CCT (2016 (4) TMI 679 – Madras High Court)



MCA has released the list of few Frequently Asked Questions on the various issues related to the MCA website. An attempt has been made by MCA to clarify and all Stakeholders are requested to make note of the common queries. Stakeholders are also requested not to raise duplicate Helpdesk tickets on the issues which have been clarified through these FAQ’s.


Small tobacco pouches weighing less than 10 grams not subject to retail sale price based assessment. [CCE, vs. Shakti Zarda Factory (India) Pvt. Ltd. (CESTAT New Delhi)].

Today (21.04.16) is the last date for deposit of ESI, DVAT & CST for the month of March, 2016.

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Key Dates:

Payment of ESI of March for ESI: 21/04/2016

Payment of MVAT and WCT TDS for March for MVAT: 21/04/2016

MVAT return for March (10 days extra for e-returns): 21/04/2016

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Direct Tax:


Royalty : Where on date of agreement entered by assessee, US company, with Indian company for providing data transmission service was in knowledge of Assessing Officer to invoke section 44D still he assessed receipt as royalties under section 9(1)(vi) at rate of 15 per cent, reopening of assessment to tax said receipt at rate of 20 per cent under section 44D was not sustainable – [2016] 68 51 (Delhi – Trib.)

Very important case, in the pretext of Last Date Fiascos

NSDL releases e-TDS/TCS RPU version 1.5 from FY 2007-08 onwards on 13/04/2016.



Business income : Where assessee, a Norway based company, earned revenue from contract of providing crew on vessel, since entire payments were intricately linked to services rendered in India, assessee was not justified in not offering a part of revenue to tax in India on ground that when ship was beyond 200 nautical miles from Indian shoreline, it could not be presumed to be located in India – [2016] 68 135 (Delhi – Trib.)


Comparables and adjustments/Adjustment – Method of computation : Where Assessing Officer considered both TNMM and also CPM and Commissioner (Appeals) decided case only under TNMM, inevitable conclusion would be that TNMM was accepted by authorities below as most appropriate method – [2016] 68 taxmann.com62 (Delhi – Trib.)

Comparables and adjustments/Adjustments/CUP/TNMM : Where purchaser, manufacturer as well as intermediary are all AEs and components purchased which constituted 86 per cent of total raw material is imported from intermediary not from manufacturer, job of TPO extends to critically evaluating materials and onus is clearly on assessee to offer a convincing and reasonable explanation – [2016] 68 55 (Delhi)

Comparables and adjustments/Adjustment – Capacity/utilization : Where adjustments on account of under-utilization of capacity and difference in depreciation are factors which are likely to materially affect price or cost charged or paid, or profit arising from, such transactions in open market, Assessing Officer/TPO should allow adjustments on account of under-utilisation of capacity and also difference in depreciation method adopted by assessee and comparable companies – [2016] 68 50 (Hyderabad – Trib.)



India and Cyprus entered into an agreement to avoid double taxation of income and prevention of fiscal evasion since December 1994. The impugned section 94-A (1) was notified by India, as there was no information flow from Cyprus. Petitioners filed nine petitions, challenging legality of section 94-A(1), on ground that it conferred sweeping powers upon the central government to specify any country as a notified jurisdictional area in relation to transactions entered into by any assessee, irrespective of whether such country is one, with whom a bilateral treaty has already been entered into. – [2016] 68 182 (Madras)

IT : Where delay of a day in filing return was only due to technical snags of website of department on last date of filing return, such delay was to be condoned; claim of carry forward of losses could not be denied[2016] 68 93 (Madras)

Regen Infrastructure & Services (P.) Ltd. v. Central Board of Direct Taxes, New Delhi* Section 139, read with section 80, of the Income-tax Act, 1961 – Return of income (Condonation of delay in filing return) – Assessment year 2010-11 – Assessee filed its return of income late by a day – Assessee’s claim of carry forward loss was not granted by department – Assessee approached CBDT and sought for condonation of delay in filing of return and explained that due to last hour rush on last day of filing of return, there were technical snags in website of department and, thus, return could not be uploaded; it could only be uploaded in midnight and, hence, date of filing had been reckoned by department as next day – CBDT rejected petitioner’s contention – Whether since petitioner had not gained anything from delay and had satisfactorily explained reason for delay in filing return, CBDT should have condoned delay of one day in filing return by assessee; mere delay should not defeat claim of assessee – Held, yes [ Para 7] [In favour of assessee]

Sum paid to witness in famous ‘Best Bakery case’ for turning hostile wasn’t unexplained payment
IT :
Where, during proceedings before Supreme Court in famous ‘Best Bakery case’, a VCD was found in which assessee was alleged to have paid money to a witness for becoming hostile and, consequently, Assessing Officer treated said amount as unexplained payment made by assessee on basis of said VCD but did not corroborate said transaction by any other evidence, action of Assessing Officer was not justified [2016] 68 198 (Ahmedabad – Trib.) Mahendrabhai B. Shrivastav v. Income-tax Officer

Indirect Tax:


SECTION 65(19) : Where under multi-level marketing concept of principal, a distributor earned monthly income in three ways – (a) difference between his purchase price and sale price as his profit margin; (b) commission received depending upon volume of purchases of Amway products; and (c) monthly commission based on volume of sale made by second level distributors, only tast category would be covered by business auxiliary service – [2016] 60 (New Delhi – CESTAT)

CBEC exempts service-tax on registration services provided by Govt. For detailed notification, send text message to my number

CBEC issues instructions for discharging of quasi-judicial functions by its officials April 14, 2016 DECISION OF CESTAT FINAL ORDER NO.40344/2016 IN CASE OF COMMISSIONER OF CUSTOMS (IMPORT) V. DO BEST INFOWAY INSTRUCTION F.NO.390/CESTAT/24/2016-JC, DATED 13-4-2016



Where assessee, a manufacturer of sugar and molasses in its factory located in remote area, constructed dormitory within factory for stay of technicians/engineers as same may be called as and when if there was a fault in plant or machinery, it was entitled to take cenvat credit on construction services of dormitory – [2016] 47 (New Delhi – CESTAT)


CLASSIFICATION – MEDICAMENT: There is distinction between house mark and product mark; a monograph on ‘ayurvedic medicine’, which only identifies manufacturer would not make such medicine a ‘patent or proprietary medicine’ and therefore, said medicine continues to be exempt from duty – [2016] 68 54 (New Delhi – CESTAT)

INTEREST – ON DELAYED REFUNDS  : There is no provision for payment of interest on ‘delayed payment of interest on refunds’ in Customs/Central Excise/Service Tax law or rules made thereunder and grant of interest by High Courts under its discretionary writ jurisdiction cannot be relied upon by Tribunal to grant similar interest – [2016] 68 137 (New Delhi – CESTAT)


ASSESSMENT – CENTRAL EXCISE – PROVISIONAL ASSESSMENT : Upon finalization of provisional assessments, assessee is entitled for adjustment of excess paid duty/tax with short-paid duty/tax during period of provisional assessments – [2016] 68 136 (Bangalore – CESTAT)



SECTION 3 : Where OP-drug manufacturer and Distributors Association refused to supply medicines to informant stockist, imposed condition on informant not to seller or supply products out side area allotted to it and appointed new distributor to its detriment, conduct of OP would be anti-competitive – [2016] 68 63 (CCI)


  • Payment of ESI of March for ESI: 21/04/2016
  • Payment of MVAT and WCT TDS for March for MVAT: 21/04/2016
  • MVAT return for March (10 days extra for e-returns): 21/04/2016

“समय  सीमा  पर  काम  ख़तम  कर  लेना  काफी  नहीं  है, मैं  समय  सीमा  से  पहले  काम  ख़तम  होने  की  अपेक्षा  करता  हूँ|” ~धीरूभाई अंबानी

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