BRIGHT LINE TEST CAN’T BE APPLIED TO DETERMINE ALP OF AMP EXPENSES.

BRIGHT LINE TEST CAN’T BE APPLIED TO DETERMINE ALP OF AMP EXPENSES.

www.carajput.com; Expenses

www.carajput.com; Expenses

Honda Siel Power Products Ltd. v. DCIT, ITA No. 346 of 2015, Date of Decision: December 23, 2015

Facts of the Case

The assessee, is engaged both in the manufacture of licensed products as well as the distribution of goods manufactured by its associated enterprises (AE).The assessee has entered into the international transactions with its AE. Under a Technical Collaboration Agreement, the Assessee is granted exclusive license to manufacture and sell the products of the foreign AEs against payment of royalty of 4% on sales. Additionally, the assessee entered into agreement for obtaining license to use the trademark (HONDA) of its AE. The consideration for use of such trademark is determined at 1 per cent of the sales of licensed products. The Assessing Officer invoked Section 92CA(1) of the Act and referred the case of the Appellant to the Transfer Pricing Officer (TPO) for determination of Arm’s Length Price (‘ALP’) in relation to the international transactions undertaken by the Appellant with its AEs.

Decision of the Court

The High Court held that the mere existence of an agreement whereby a license has been granted to the assessee to use the brand name would not ipso facto imply any further understanding or arrangement between the Assessee and its foreign AE regarding the AMP expense for promoting the brand of the foreign AE. The assessee is carrying on business as an independent enterprise and is incurring AMP expenses for its own benefit and not at the behest of the AE. It was further held that the absence of an international transaction involving AMP spend with an ascertainable price, even if such price were to be nil, neither the substantive nor the machinery provision of Chapter X of the Act are applicable to the transfer pricing adjustment exercise. The Transfer Pricing adjustment envisages the substitution of the price of an international transaction with the ALP. Therefore, the Bright Line Test (BLT) is not a valid method for either determining the existence of international transaction or for the determination of ALP of such transaction.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

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

TP : LIBOR IS THE BEST BENCHMARK FOR INTEREST-FREE LOAN GRANTED TO AE

LIBOR IS THE BEST BENCHMARK UNDER TRANSFER PRICING FOR INTEREST-FREE LOAN GRANTED TO AE

www.carajput.com; Transfer pricing

www.carajput.com; Transfer pricing

DCIT V. GEODESIC LTD. [MUMBAI ITAT] ITA NO. 1656 OF 2013, DATE OF DECISION: AUGUST 12, 2015

FACTS OF THE CASE
The assessee has undertaken transaction of giving unsecured interest free loan to its subsidiary Geodesic Technology Solutions Ltd. (Hong Kong) (GTSL), which is its Associated Enterprise (AE). The TPO has applied interest rate @ 20.72% based on his consideration of credit rating of AE in the Category “B”. He also analyzed financial ratios like, earning per share, debt equity ratio and interest coverage ratio of the AE and based on such credit rating he held that interest rate of 20.72% is to be charged.

DECISION OF THE TRIBUNAL
The Appellate Tribunal held that the manner in which credit rating had been assigned to the AE was not a correct approach, because there was ‘no specific information’ with regard to the AE and making assumption of various factors for giving the credit rating actually would destroy the estimation of risk assumed. In international transactions LIBOR, is the best basis for benchmarking the interest rate.  Since, there was no independent CUP rate available to benchmark the said international transaction; RBI guidelines should be looked into in respect of ECB rates for the borrowing by the Indian corporates for the purposes of capital account transactions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com  or call at 9555555480

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

INCOME TAX UPDATE 18 NOVEMBER 2015

INCOME TAX ACT

Untitled8SECTION 2(15)

CHARITABLE PURPOSE

Object of general public utility : Where assessee was carrying on micro finance business in a commercial manner, its activities fell under category of ‘advancement of any other object of general public utility’ and thereby hit by proviso to section 2(15) disentitling it from exemption

SECTION 37(1)

BUSINESS EXPENDITURE – ALLOWABILITY

Repairs : Expenditure incurred by assessee towards fixing false ceiling, painting, electrical cabling and certain civil works in rented premises was to be allowed as business expenditure

SECTION 73

LOSSES – IN SPECULATION BUSINESS

Shares : Where assessee, a share broker, suffered loss on account of misdeals in purchase and sale of shares by actual delivery, or trading in derivatives in a recognised stock exchange, said loss was to be regarded as business loss which could be set off against its brokerage income

SECTION 80-IB

DEDUCTIONS – PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKING OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKINGS

Housing project : Fact that assessee, a builder, had not completed construction of all blocks of housing project, within stipulated period, would not deprive assessee from availing of deduction under section 80-IB (10) in respect of each of completed block on stand alone basis

SECTION 92C

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE

CPM is not a residuary method in the sense that if every other method of ascertaining the arm’s length price fails, CPM can be applied on the basis of imperfect data. If at all there is a residuary method, or what is termed as the method of last resort, it is transactional net margin method. TNMM has almost become the ‘default’ method for taxpayers in recent years

Determination of ALP : Where JMIPL, a contract manufacturer in a capital intensive industry, and car manufacturer MUL agreed on an arrangement where JMIPL would sell finished catalysts to vendors of MUL under instructions of MUL and JMIPL was obliged to procure raw material on instructions of MUL at a price dictated by MUL from source selected by MUL and JMIPL was entitled to a per unit fixed manufacturing charge whereas entire cost of raw materials passed on to or recovered from ultimate customer without any mark up, there was no fault in rejecting Return on Capital Employed (ROCE) as PLI and alternate PLI being OP/TC-RMC i.e., (Operating Cost/Total Cost excluding raw material cost) was to be accepted

Comparables and adjustments/Method of computation – Resale Price Method : Where selection of TNMM by department had been found to be inappropriate by Tribunal in earlier years and assessee’s RPM had been accepted on identical facts, TPO was directed to adopt RPM as most appropriate method for benchmarking assessee’s transaction of import of seeds to its AE in relevant year

Comparables and adjustments/Adjustments – Exports, in case of : While computing ALP it was wrong to compare individual transactions of import of raw cashew with monthly average price published in cashew Bulletin of cashew Export Council

Comparables and adjustments/Adjustments – Interest : While determining ALP of transaction of purchase from AE, due weightage is to be given towards interest benefit enjoyed by assessee by availing credit for 150 days for payment

SECTION 220

COLLECTION AND RECOVERY OF TAX – WHEN TAX PAYABLE AND WHEN ASSESSEE DEEMED IN DEFAULT

Stay : In view of Instruction No. 1914 Assessing Officer has got ample power to dispose of stay application during pendency of appeal in which demand is disputed; if Assessing Officer had completely overlooked stay application, he had to consider same

WEALTH TAX ACT

SECTION 7

VALUATION OF ASSETS – IMMOVABLE PROPERTY

Land : Where vacant land in excess of ceiling limit under Ceiling Act, which was going to be taken over by Government, would not fetch more than Rs. 2 lakhs, Assessing Officer was not justified in working out value of vacant land by determining what it would have fetched, if it were sold in open market

COMPANIES ACT

SECTION 433

WINDING UP – CIRCUMSTANCES IN WHICH COMPANY MAY BE WOUND UP

Where petitioner firm failed to prove that respondent company was insolvent in commercial sense and company’s refusal to pay debt to petitioner, a chartered accountancy firm, was as a result of bonafide dispute, company was not liable to be wound up

SERVICE TAX

SECTION 65(31)

CONSULTING ENGINEER’S SERVICES

Where applicant executed work of construction of mess, quarters etc., for staff of army, issue as to whether such activity would fall under category of consulting engineer’s services or not was debatable; matter was to be readjudicated

SECTION 89

OFFENCES AND PENALTIES – SERVICE TAX

Finance Act, 1994, being a special and complete Code, prevails over general provisions of IPC and, accordingly, for alleged non-payment of service tax, department cannot filed FIR under provisions of IPC

CENTRAL EXCISE ACT

SECTION 2(f)

MANUFACTURE – MANUFACTURER/JOB-WORKER

Merely because principal manufacturer has extended loan to job-worker for investment in machinery, job-worker cannot be regarded as dummy of principal manufacturer

SECTION 9D

RELEVANCY OF STATEMENTS UNDER CERTAIN CIRCUMSTANCES

In absence of any extraordinary circumstances, denial of cross-examination citing that ‘there is no requirement in law’ or ‘it would delay adjudication’ was unjustified and said denial vitiated entire adjudication and, therefore, demand was set aside

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com  or call at 9555555480

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

INCOME TAX UPDATE 15 NOVEMBER, 2015

INCOME TAX ACT

Untitled32SECTION 9

INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA

Permanent Establishment : SLP granted against High Court’s ruling that where an assessee does not have any branch office or factory or workshop in India and merely because it has a subsidiary in India that by itself does not create a fixed place of business/location PE within meaning of article 5, paragraph 2, sub-clauses (b) to(k) of India-US DTAA – [2015]  214 (SC)

SECTION 36(1)(iii)

INTEREST ON BORROWED CAPITAL

Interest-free loan : Where no loan from any bank had been raised by assessee for advancing loans to its sister concerns as funds so advanced were generated from assessee’s own revenues, interest could not be disallowed under section 36(1)(iii) – [2015]  167 (Delhi – Trib.)

SECTIONS 40A(2)

BUSINESS DISALLOWANCE – EXCESSIVE OR UNREASONABLE PAYMENTS

Payments to sister concern : Where assessee company paid royalty to its sister concerns and received on job training, since Assessing Officer did not establish that expenses were unreasonable and excessive, disallowance made under section 40A(2) by Assessing Officer was unjustified – [2015]  167 (Delhi – Trib.)

SECTION 45

CAPITAL GAINS – CHARGEABLE AS

Where assessee’s claim of short term capital gain arising from sale of shares had been accepted in earlier years, mere fact that during relevant period certain benefits were given to investor in securities by insertion of provisions of section 111A, could not be a ground to treat assessee a trader in shares and thereby bring amount in question to tax as business income – [2015] (Mumbai – Trib.)

SECTION 48

CAPITAL GAINS – COMPUTATION OF

Immovable property : Value of flats allotted under JDA to be computed on basis of construction cost and not on basis of total project cost – [2015]  305 (Karnataka)

SECTION 92C

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE

Comparables and adjustments/Comparables – Illustrations : Companies engaged in product engineering services or in KPO services having huge revenues from software products or in sale of software licenses or having extraordinary events which affected their performance could not be comparable to assessee a software development services company for purpose of TP study – [2015]  276 (Bangalore – Trib.)

SECTION 194C

DEDUCTION OF TAX AT SOURCE – CONTRACTORS/SUB-CONTRACTORS, PAYMENTS TO

Advertising agency: Where assessee made payments of hoarding charges to different parties, it was required to deduct tax at source under section 194C – [2015] 279 (Mumbai – Trib.)

SECTION 194J

DEDUCTION OF TAX AT SOURCE – FEES FOR PROFESSIONAL OR TECHNICAL SERVICES

Advertising agency : Where assessee, engaged in business of advertising and marketing communication services, availed services of creative consultants, it was required to deduct tax at source under section 194J while making payments to them – [2015]  279 (Mumbai – Trib.)

SERVICE TAX

SECTION 65(19)

TAXABLE SERVICES – BUSINESS AUXILIARY SERVICES

Commission earned by authorised agents of BSNL on sale of SIM cards/vouchers of BSNL is not chargeable to service tax – [2015]  295 (Madras)

SECTION 65(25)

TAXABLE SERVICES – CLEARING AND FORWARDING AGENT’S SERVICES

Merely supervising loading/handling of coal and movement from collieries to client’s factories, without any role in clearance of coal from collieries, cannot amount to ‘Clearing and Forwarding Services’; hence, not liable to service tax – [2015](Bombay)

CENTRAL EXCISE ACT

SECTION 5A

EXEMPTIONS – CENTRAL EXCISE – SSI/THRESHOLD EXEMPTION

Clearances made with other’s brand : (i) are governed by normal provisions of Act, (ii) are liable to duty with benefit of Cenvat credit; and (iii) are outside scope of SSI-exemption notification; and, therefore, mere taking of Cenvat Credit thereon cannot lead to denial of SSI-exemption on unbranded clearances – [2015]  (SC)

CENVAT CREDIT RULES

RULE 3

CENVAT CREDIT – GENERAL

Where DEBP scheme specifically barred taking of credit of CVD not paid in cash, assessee cannot take credit of CVD paid by debit to DEPB script – [2015]  300 (Madras)

STATUTES

DIRECT TAX LAWS

Prime Minister to launch Gold related Schemes on 5-11-2015 – PRESS RELEASE, DATED 3-11-2015

CORPORATE LAWS

Gold Monetization Scheme, 2015 – Interest Rate – CIRCULAR DBR.IBD.BC.53/23.67.003/2015-16 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com  or call at 011-23343333

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

INCOME TAX UPDATE 14 NOVEMBER, 2015

INCOME TAX ACT

Untitled48ASECTION 11

CHARITABLE OR RELIGIOUS TRUST – EXEMPTION OF INCOME FROM PROPERTY HELD UNDER

Application of income : Where in support of its claim for exemption under section 11, assessee brought on record grant sanctioned letter of Ministry of Commerce and Industry showing that said amount of grant had to be spent outside India for some specific purposes such as trade fairs etc., matter was to be remanded back for reconsideration of assessee’s claim – [2015]  288 (Chennai – Trib.)

Accumulated income : Assessee is entitled to flat deduction without any condition or formality of filing Form No. 10, if income is accumulated or set apart for application of objects of trust in India, to extent to which income so accumulated or set apart does not exceed 15 per cent of income – [2015]  297 (Chennai – Trib.)

SECTION 12AA

CHARITABLE OR RELIGIOUS TRUST – REGISTRATION PROCEDURE

Application of section 13 : Where assessee-society applied for registration under section 12AA, since Commissioner did not question about charitable character of objects nor could he prove that activities of assessee were in genuine, impugned order denying registration to assessee-society was to be set aside – [2015]  299 (Chandigarh – Trib.)

SECTION 41(1)

REMISSION OR CESSATION OF TRADING LIABILITY

Cessation of liability : Where AO made addition under section 41(1) in respect of amount payable by assessee to a creditor, since there was no act of remission or cessation of said liability, mere fact that liability was more than seven years old, could not be a ground to make impugned addition – [2015] 62  286 (Bangalore – Trib.)

SECTION 92C

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE

Comparables and adjustments/Comparables – Illustrations: For a company rendering marketing support services for mineral processing equipment, a company providing agency service in metals and fertilizers or trading in chemical or engaged in air ticketing and selling holiday package or publishing newspaper, could not be comparable; company having more than 15 per cent related party transactions could also not be accepted as comparable – [2015] 306 (Delhi – Trib.)

SECTION 145

METHOD OF ACCOUNTING – SYSTEM OF ACCOUNTING

Cash system of accounting : Where in terms of agreements, which enabled assessee company to demand additional finance charges was only an enabling provision and recovery of same was not certain, same was taxable on cash receipts basis and not on accrual basis – [2015]  298 (Madras)

SECTION 250

COMMISSIONER (APPEALS) – PROCEDURE OF

Additional evidence : Even if additional evidence produced by assessee are in nature of clinching evidence leaving no further room for any doubt or controversy, Commissioner (Appeals) is under statutory obligation to put additional material/evidence taken on record by him to Assessing Officer – [2015]  302 (Kerala)

COMPANIES ACT

SECTION 433

WINDING UP – CIRCUMSTANCES IN WHICH COMPANY MAY BE WOUND UP

Since respondents at time of winding proceedings had made false statements which constituted an offence of giving false evidence, Registrar was directed to file complaints under section 340 of Code of Criminal Procedure, 1973, read with sections 191, 193 and 209 of the Indian Penal Code 1860 Indian Penal Code – [2015]  301 (Andhra Pradesh and Telangana)

SERVICE TAX

SECTION 86

APPEALS – RECTIFICATION OF MISTAKES/REVIEW – APPELLATE TRIBUNAL

Where a matter is referred to Third Member for resolution of difference of opinion, both Judicial Member and Technical Member must have given their findings on said issues; if Member (Judicial) has not given his findings thereon, same results into rectifiable mistake – [2015]  98 (Mumbai – CESTAT)

CENVAT CREDIT RULES

RULE 9

CENVAT CREDIT – DOCUMENTS ON WHICH CREDIT MAY BE TAKEN

For period up to 15-6-2005, when rules did not prescribe any document for taking credit of GTA services, TR-6 challans has to be considered as a proper document evidencing payment of tax; hence, credit taken on basis of TR-6 challans was valid. – [2015]  296 (Madras)

STATUTES

DIRECT TAX LAWS

Section 80P of the Income-tax Act, 1961 – Deduction – Income of Co-Operative Societies – Interest from Non-SLR Securities of Banks – CIRCULAR NO.18/2015 [F.NO.279/MISC./140/2015/ITJ], DATED 2-11-2015

 CORPORATE LAWS

Special Investigation Team (SIT) calls for, among others, greater Vigilance by Law Enforcement and Intelligence Agencies in cases of persons holding directorship in more than 20 Companies – PRESS RELEASE, DATED 3-11-2015

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com  or call at 9555555480

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

PROFESSIONAL UPDATE FOR 27th OCTOBER 2015

PROFESSIONAL UPDATE FOR 27th OCTOBER 2015

Untitled3INCOME TAX ACT

SECTION 5

INCOME – ACCRUAL OF

Interim award : Interim award received by assessee pursuant to order of High Court is not liable to tax in year of receipt but in year when final award is passed by High Court – [2015] 174 (Karnataka)

SECTION 35

SCIENTIFIC RESEARCH EXPENDITURE

Sub-section (2AB) : In case of allowance of weighted deduction, provision of section 35(2AB) nowhere suggests or implies that machinery is required to be installed and commissioned before expiry of relevant previous year –[2015] 124 (Karnataka)

SECTION 40(a)(ia)

BUSINESS DISALLOWANCE – INTEREST, ETC., PAID TO A RESIDENT WITHOUT DEDUCTION OF TAX AT SOURCE

When to deposit tax : Provisions of section 40(a)(ia) would not be applicable where assessee paid architect’s fee before end of accounting year – [2015] 169 (Chennai – Trib.)

SECTION 92C

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE

Comparables and adjustments/Adjustments – Others : Where assessee had entered into a long-term contract with its AE for procuring copper concentrates for life time of mines, price paid to its AE should be compared with comparable having similar features – [2015] 181 (Mumbai – Trib.)

Comparables and adjustments – Adjustments/Corporate guarantee fee : Rate of 0.50 per cent charged by assessee for giving corporate guarantee to its AE was appropriate – [2015] 62 181 (Mumbai – Trib.)

Comparables and adjustments/Comparables – Illustrations : A manufacturer of tractor cannot be considered as comparable with manufacturer of harvester combine, simply because both machines fall in overall category of ‘Agricultural equipments’ – [2015] 173 (Delhi – Trib.)

Comparables and adjustments/Adjustments – Capacity adjustment : Under TNMM, first step in granting capacity utilization adjustment is to ascertain percentage of capacity utilization by assessee and comparables and then to give effect (positive or negative) to differences in percentage of capacity utilization of assessee vis-à-vis comparables, one by one, in operating profit of comparables by adjusting their respective operating costs – [2015] 173 (Delhi – Trib.)

SECTION 115JA

MINIMUM ALTERNATE TAX

Computation of book profits : ‘Lease equalization charges’ is not in nature of a reserve and, therefore, same cannot be added back while computing book profits as per Explanation under section 115JA(2) – [2015] 128 (Karnataka)

Reassessment : Where information regarding assessee’s claim of enhanced depreciation in view of re-estimation of written down value of its assets over remaining useful life was with Assessing Officer at time of passing assessment order, reopening of assessment beyond four years from relevant assessment year on ground that claim of additional depreciation had reduced book profit under section 115JB was without jurisdiction – [2015] 129 (Bombay)

SECTION 145

METHOD OF ACCOUNTING – ESTIMATION OF INCOME/ADDITIONS TO INCOME

Revision : Where issues in respect of set off of unabsorbed losses fall in gross profit rate and depreciation had been examined by Assessing Officer in detail at assessment stage, jurisdiction under section 263 would not be invoked – [2015] 69 (Chandigarh – Trib.)

SECTION 194C

DEDUCTION OF TAX AT SOURCE – CONTRACTORS/SUB-CONTRACTORS, PAYMENTS TO

Freight : Where assessee could not adduce any evidence that C & F agent deducted tax at source while making payment to carrier so as to prove that amount which was paid by assessee to C & F agent represented reimbursement of freight paid by C & F agent on behalf of assessee to airlines, provisions of section 194C were applicable – [2015] 168 (Panaji – Trib.)

COMPANIES ACT

SECTION 397

OPPRESSION AND MISMANAGEMENT

Where petitioners exited from company fifteen years back, filing petition by invoking jurisdiction of Bench under section 397/398, by alleging purported acts of oppression and mismanagement appeared to be a mala fide intention and was an abuse of process of law – [2015] 55 (CLB – Chennai)

NEGOTIABLE INSTRUMENTS ACT

SECTION 138

DISHONOUR OF CHEQUE FOR INSUFFICIENCY ETC. OF FUNDS IN ACCOUNT

Where in a complaint under section 138 evidence had already been concluded before trial Court and there was specific averment in complaint that on representation of petitioner and other co-accused MOU was signed, mere fact that cheque issued by accused and MOU signed by accused did not bear signature of petitioner made out no case for quashing of complaint and summoning order against petitioner – [2015] 176 (Punjab & Haryana)

CENTRAL EXCISE ACT

SECTION 37B

CIRCULARS/INSTRUCTIONS TO DEPARTMENTAL OFFICERS

Where Tribunal had merely followed its earlier judgment, which was approved by Supreme Court and accepted by CBEC Circular of 2001, filing of appeal by revenue against said Tribunal order in year 2006 was a total mindless exercise and abuse of process of law; hence, appeal was dismissed – [2015] 156 (SC)

CENTRAL EXCISE TARIFF ACT

SECTION 2

CLASSIFICATION – CALCINED CHINA CLAY

Calcined China Clay, which is also known as Kaolin Clay, is classifiable under Heading 2505.10 ‘Kaolin clays, whether or not calcined’ and not under heading 3824.90 “Other products of chemical or allied industries” – [2015] 157 (SC)

STATUTES

DIRECT TAX LAWS

Income-tax (Seventeenth Amendment) Rules, 2015 – Amendment in Rule 2F – NOTIFICATION NO.84/2015 [F.NO.133/43/2015-TPL], DATED 20-10-2015

CORPORATE LAWS

Risk Management for Regional Commodity Derivatives Exchanges – CIRCULAR NO.CDMRD/DRMP/2/2015, DATED 21-10-2015

Annual Return on Foreign Liabilities and Assets (FLA Return) – Reporting by Limited Liability Partnerships – A.P. (DIR SERIES 2015-16) CIRCULAR NO.22, DATED 21-10-2015

Gold Monetization Scheme, 2015 MASTER DIRECTION DBR.IBD.No.45/23.67.003/2015-16, DATED 22-10-2015

Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 – NOTIFICATION NO. GSR 792(E) [F.NO.11033/3/2015-CA-II], DATED 20-10-2015

INDIRECT TAX LAWS (ST./EX./CUS. &(CST & VAT)

Section 66B of the Finance Act, 1994 – Charge of service tax on or after Finance Act, 2012 – Mega Exemption Notifications – Amendment in Notification No.25/2012-STs, Dated 20-6-2012 – NOTIFICATION NO.20/2015-ST, DATED 21-10-2015

Submission of information online in Form DP-1 – Amendment in notification No.F.3(352)/Policy/VAT/2013/818-829, dated 30-9-2015 – NOTIFICATION NO.F.3(352)POLICY/VAT/2013/929-40, DATED 21-10-2015

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com  or call at 9555555480

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

CORPORATE TAX UPDATE FOR THE MONTH OF OCTOBER FORTH WEEK

Corporate tax Update for the Month of October forth week

Untitled34AINCOME TAX ACT

SECTION 2(14)

CAPITAL GAINS – CAPITAL ASSET

Agricultural land : Where assessee transferred land as his capital contribution to a firm, land being outside jurisdiction of Municipal Corporation it could not be treated as capital asset and no capital gain tax would be leviable – [2015] 61  281 (Amritsar – Trib.)

SECTION 9

INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA

Royalties : Remuneration paid in foreign currency by assessee-company, for services rendered outside India to a US-resident for product designing services, was not liable to be taxed in India – [2015] 62  15 (Chennai – Trib.)

SECTION 36(1)(iii)

INTEREST ON BORROWED CAPITAL

Interest free advances : Where due to restrictions imposed by Land Acquisition Act, assessee had given interest-free advances to group companies for development of land, in absence of any finding recorded by Assessing Officer that said advances were not for business purposes, matter was to be readjudicated – [2015] 62 40 (Delhi – Trib.)

SECTION 41(1)

REMISSION OR CESSATION OF TRADING LIABILITY

Outstanding liabilities : Since assessee had not adduced any material or evidence or even explanation as to why impugned amounts were not paid in normal course and outstanding for 3 to 25 years, same amounted to cessation or remission of liability under section 41(1) – [2015] 61  297 (Mumbai – Trib.)

SECTION 48

CAPITAL GAINS – COMPUTATION OF

Deductions/Interest : Where interest or borrowed capital to invest in shares, for period prior to financial year 1997-98, was claimed and allowed as revenue expenditure, it could not transform its character from financial year 1997-98 onwards to become a capital cost without any change in underlying facts, and hence, same could not be treated as cost of acquisition and/or improvement in computation of capital gains – [2015] 61  297 (Mumbai – Trib.)

SECTION 50C

CAPITAL GAINS – SPECIAL PROVISION FOR FULL VALUE OF CONSIDERATION IN CERTAIN CASES

Valuation : Where assessee sold a plot and Assessing Officer for purpose of computing capital gains under section 50C adopted valuation of plot as per SRO records and Commissioner (Appeals) after considering objections of assessee concluded that there was no need for adopting valuation as per SRO, matter required to be sent back to Assessing Officer for de novo assessment – [2015] 62  31 (Hyderabad – Trib.)

SECTION 80-IB

DEDUCTIONS – PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKING OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKING

Housing projects : Where assessee had completed construction of its entire housing project and applied for Building use permission/completion certificate within prescribed time-limit, it would be entitled to deduction under section 80-IB(10) notwithstanding fact that it could not receive permission for its entire project – [2015] 62 38 (Gujarat)

SECTION 92C

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE

Comparables and adjustments/Adjustments – Depreciation : While computing margins of comparable companies, no adjustment for differential rate of depreciation is to be made on account of uncommon assets between assessee and comparables – [2015] 62  32 (Pune – Trib.)

SECTION 115A

FOREIGN COMPANIES – TAX ON DIVIDENDS, ROYALTY AND TECHNICAL SERVICES

Where Assessing Officer formed opinion that taxation of advertisement and distribution revenue of US company was to be governed by MAP resolution and 10 per cent of total revenue generated would be treated or business income and he completed assessment after verifying detailed reply to huge questionnaire and all supporting documents, reopening of assessment on basis of same material, taking plea of taxing total revenue at 10 per cent as per section 115A, would not be permissible – [2015] 62  120 (Delhi)

SECTION 145

METHOD OF ACCOUNTING – REJECTION OF ACCOUNTS

Gross profit rate : AO couldn’t prove suppressed production on basis of sample of electricity consumed in one hour – [2015] 62  41 (Punjab & Haryana)

SECTION 151

INCOME ESCAPING ASSESSMENT – SANCTION FOR ISSUE OF NOTICE

Sanction from Commissioner : Where notice under section 148 was issued after obtaining sanction from Commissioner instead of Joint Commissioner who is competent authority to approve issuance of notice, assessment framed consequent thereto was not valid and same was void ab initio – [2015] 61  320 (Lucknow – Trib.)

SECTION 254

APPELLATE TRIBUNAL – POWERS OF

Additional evidence : Parties to appeal cannot produce additional evidence of their own but if Tribunal so requires, same can be produced on recording of reasons by Tribunal – [2015] 61  281 (Amritsar – Trib.)

SECTION 293

BAR OF SUITS IN CIVIL COURT

Where Income-tax department appropriated amount deposited by assessee with a firm towards income-tax dues of firm, in absence of any allegation of fraud against Income-tax department, civil court had no jurisdictions to entertain recovery suit filed by assessee against Income-tax department – [2015] 62  36 (Punjab & Haryana)

COMPANIES ACT

SECTION 433

WINDING UP – CIRCUMSTANCES IN WHICH A COMPANY MAY BE WOUND UP

Where company had admitted its indebtedness to petitioner to extent of Rs. 119 lakh, company was to be directed to pay that amount with interest and on its failure to do so winding up petition would be advertised -[2015] 62  34 (Calcutta)

SECTION 468

WINDING UP – CUSTODY OF COMPANY’S PROPERTY

Sale of property of company-in-liquidation in auction without proper publicity through advertisement or fixing any reserve price for assets could not be sustained particularly when property put in auction was of much higher valuation than price at which it was sold – [2015] 62  11 (SC)

CENTRAL EXCISE ACT

SECTION 4

VALUATION UNDER CENTRAL EXCISE – TRANSACTION VALUE – RELATED PERSON

Where assessee’s entire sales are below cost owing to international market prices being very low, sales to related parties cannot be value on basis of ‘cost plus method’ and are to be valued as per best judgment principle at ‘price charged from unrelated parties’ – [2015] 62  7 (SC)

VALUATION UNDER CENTRAL EXCISE – TRANSACTION VALUE – EXCLUSION OF COST OF TRANSPORT/TRANSIT INSURANCE

Transit freight/insurance is includible in value only upto ‘place of removal’ and ‘Place of removal’ is dependent upon facts and where said place of removal was not examined by Tribunal on facts, matter was remanded back -[2015] 62  6 (SC)

CENTRAL EXCISE RULES

RULE 16

RETURN OF DUTY-PAID GOODS TO FACTORY

Credit of duty-paid returned goods can be allowed only if invoice is in name of person availing credit or invoice is endorsed in favour of assessee; credit cannot be taken on invoice in name of a third party – [2015] 62 28 (Madras)

STATUTES

DIRECT TAX LAWS

Income-tax (Fifteenth Amendment) Rules, 2015 – Amendment in Rule 11DD and omission of Form 10-I -NOTIFICATION NO.78/2015 [F.NO.142/20/2015-TPL]/SO 2791(E), DATED 12-10-2015

CORPORATE LAWS

Rule 10 of the Official Language (Use for Official Purposes of the Union) Rules, 1976 – Working Knowledge of Hindi – More than Eighty Per Cent Staff Members of Competition Appellate Tribunal under Ministry of Corporate Affairs acquired working knowledge of Hindi – NOTIFICATION NO. SO 2761(E) [NO.E-11016/1/2010-HINDI], DATED 14-5-2015

Appointment of New Executive Director of SEBI – PRESS RELEASE NO.242/2015, DATED 9-10-2015

INDIRECT TAX LAWS (ST./EX./CUS. & (CST & VAT)

Levy of Service Tax on Transportation of Passengers by Rail – COMMERCIAL CIRCULAR NO.32 OF 2015, DATED 26-5-2015

Introduction of Facility of Payment of Rebate/Refund claims amount directly to Assessee/Exporters’ Bank Account – TRDE NOTICE NO.19/2015-ST, DATED 23-6-2015

Withdrawal of order under Section 37B of Central Excise Act, 1944 on classification of Coconut Oil packed in small containers – CIRCULAR NO.1007/14/2015-CX, DATED 12-10-2015

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

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

CORPORATE TAX UPDATE FOR THE MONTH OF OCTOBER THIRD WEEK

Corporate tax Update for the Month of October third week

Untitled7AINCOME TAX ACT

SECTION 2(22)

DEEMED DIVIDEND

Loans or advances to shareholder : Where current account transactions between two group companies were business/commercial transactions, same could not be regarded as deemed dividend under section 2(22)(e) –[2015] (Delhi – Trib.)

SECTION 9

INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA

Where Chinese subsidiary of Indian holding company provides services in China in connection with procurement of goods by Indian company from Chinese vendors, specialized services of market research and information on new developments in China with regard to technology/product/process upgrade etc., fees received, by Chinese company is chargeable to tax in India to extent of full amount received as fees for technical services at the rate of 10% of gross amount – [2015] (AAR – New Delhi)

SECTION 10(23C)

EDUCATIONAL INSTITUTION

Furnishing of Audit Report in Form No. 10BB may be necessary for seeking approval under section 10(23C); however, mere failure to file Audit Report along with application under section 10(23C) would not result in rejection if the assessee furnishes the said report subsequently, prior to the rejection of the application – [2015] (Delhi)

SECTION 11

CHARITABLE OR RELIGIOUS TRUST – EXEMPTION OF INCOME FROM PROPERTY HELD UNDER

Application of income : Where assessee was carrying out relief work in areas affected by natural calamities but it could not produce details of expenditure on said activities, issue was to be restored to Assessing Officer to give one more opportunity to assessee to produce details – [2015] (Hyderabad – Trib.)

SECTION 40A(2)

BUSINESS DISALLOWANCE – EXCESSIVE OR UNREASONABLE PAYMENTS

Transportation and handling charges : Where Assessing Officer had merely assumed certain facts without bringing any evidence or material against assessee in respect of excessive payments of transportation and handling charges, disallowance under section 40A(2) was to be deleted – [2015] (Chandigarh – Trib.)

SECTION 40(a)(ia)

BUSINESS DISALLOWANCE – INTEREST, ETC., PAID TO RESIDENT WITHOUT DEDUCTION OF TAX AT SOURCE

Section 194C cases : Where Assessing Officer made disallowance under section 40(a)(ia) for failure of assessee to deduct tax at source out of payments made to sub-contractors, Tribunal was justified in restoring matter to Assessing Officer to verify transactions and if found to be correct, pass order accordingly – [2015] (Punjab & Haryana)

SECTION 69

UNEXPLAINED INVESTMENT

Cash deposit : Where assessee deposited cash and explained same as sale proceeds from his sole proprietorship concern, since assessee did not produce bank account details as well as sale vouchers to show that amount received was part of sale proceeds, matter was to be readjudicated – [2015] 61  99 (Chandigarh – Trib.)

SECTION 92C

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE

Comparables and adjustments : In case of assessee, rendering software development services to its AE, companies having functional difference, huge turnover and related party transactions in excess of 15 percent of revenue, could not be accepted as comparables while determining ALP – [2015] (Bangalore – Trib.)

SECTION 145

METHOD OF ACCOUNTING – ESTIMATION OF PROFIT

Net profit rate : Where Tribunal affirmed rejection of account books of assessee, but reduced net profit rate to 6 per cent, since in preceding as well as following year a net profit rate of 6.75 per cent and 5 per cent respectively was applied by Assessing Officer, there was no error in discretion exercised by Tribunal in applying net profit rate of 6 per cent – [2015] (Punjab & Haryana)

METHOD OF ACCOUNTING – REJECTION OF ACCOUNTS

Professional income : Assessing Officer could not reject books of assessee-doctor by presuming that all persons who had undergone lab tests had undergone surgery – [2015] 61 taxmann.com 353 (Chandigarh – Trib.)

Illustrations : Where assessee failed to verify genuineness of opening and closing balance of labour charges payable or furnish details called for by Assessing Officer rejection of books of account was justified – [2015] (Chandigarh – Trib.)

SECTION 153A

SEARCH AND SEIZURE – ASSESSMENT IN CASE OF

Condition precedent : Completed assessments can be interfered with by Assessing Officer while making assessment under section 153A only on basis of some incriminating material unearthed during course of search which was not produced or not already disclosed or made known in course of original assessment – [2015] (Delhi)

SECTION 271(1)(c)

PENALTY – FOR CONCEALMENT OF INCOME

Search & Seizure : Where assessee withdrew claim for depreciation on IPR in statement during search and seizure operations undertaken on assessee but nothing incriminating was found during search which was concealed by assessees, penalty could not be levied under section 271(1)(c) merely on basis of statement during search – [2015] (Mumbai – Trib.)

COMPANIES ACT

SECTION 446

WINDING UP – SUITS STAYED ON WINDING UP ORDER

Proceedings under section 138 of the Negotiable Instruments Act, 1881 cannot be stayed by invoking power under section 446 of Companies Act, 1956 – [2015] (Kerala)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

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

CORPORATE TAX UPDATE FOR THE MONTH OF OCTOBER SECOND WEEK

Corporate tax Update for the Month of Second week

Untitled33INCOME TAX ACT

SECTION 2(22)

DEEMED DIVIDEND

Loans or advances to shareholder : Where current account transactions between two group companies were business/commercial transactions, same could not be regarded as deemed dividend under section 2(22)(e) –[2015] (Delhi – Trib.)

SECTION 9

INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA

Where Chinese subsidiary of Indian holding company provides services in China in connection with procurement of goods by Indian company from Chinese vendors, specialized services of market research and information on new developments in China with regard to technology/product/process upgrade etc., fees received, by Chinese company is chargeable to tax in India to extent of full amount received as fees for technical services at the rate of 10% of gross amount – [2015] (AAR – New Delhi)

SECTION 10(23C)

EDUCATIONAL INSTITUTION

Furnishing of Audit Report in Form No. 10BB may be necessary for seeking approval under section 10(23C); however, mere failure to file Audit Report along with application under section 10(23C) would not result in rejection if the assessee furnishes the said report subsequently, prior to the rejection of the application – [2015] (Delhi)

SECTION 11

CHARITABLE OR RELIGIOUS TRUST – EXEMPTION OF INCOME FROM PROPERTY HELD UNDER

Application of income : Where assessee was carrying out relief work in areas affected by natural calamities but it could not produce details of expenditure on said activities, issue was to be restored to Assessing Officer to give one more opportunity to assessee to produce details – [2015] (Hyderabad – Trib.)

SECTION 40A(2)

BUSINESS DISALLOWANCE – EXCESSIVE OR UNREASONABLE PAYMENTS

Transportation and handling charges : Where Assessing Officer had merely assumed certain facts without bringing any evidence or material against assessee in respect of excessive payments of transportation and handling charges, disallowance under section 40A(2) was to be deleted – [2015] (Chandigarh – Trib.)

SECTION 40(a)(ia)

BUSINESS DISALLOWANCE – INTEREST, ETC., PAID TO RESIDENT WITHOUT DEDUCTION OF TAX AT SOURCE

Section 194C cases : Where Assessing Officer made disallowance under section 40(a)(ia) for failure of assessee to deduct tax at source out of payments made to sub-contractors, Tribunal was justified in restoring matter to Assessing Officer to verify transactions and if found to be correct, pass order accordingly – [2015] (Punjab & Haryana)

SECTION 69

UNEXPLAINED INVESTMENT

Cash deposit : Where assessee deposited cash and explained same as sale proceeds from his sole proprietorship concern, since assessee did not produce bank account details as well as sale vouchers to show that amount received was part of sale proceeds, matter was to be readjudicated – [2015] 61  99 (Chandigarh – Trib.)

SECTION 92C

TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE

Comparables and adjustments : In case of assessee, rendering software development services to its AE, companies having functional difference, huge turnover and related party transactions in excess of 15 percent of revenue, could not be accepted as comparables while determining ALP – [2015] (Bangalore – Trib.)

SECTION 145

METHOD OF ACCOUNTING – ESTIMATION OF PROFIT

Net profit rate : Where Tribunal affirmed rejection of account books of assessee, but reduced net profit rate to 6 per cent, since in preceding as well as following year a net profit rate of 6.75 per cent and 5 per cent respectively was applied by Assessing Officer, there was no error in discretion exercised by Tribunal in applying net profit rate of 6 per cent – [2015] (Punjab & Haryana)

METHOD OF ACCOUNTING – REJECTION OF ACCOUNTS

Professional income : Assessing Officer could not reject books of assessee-doctor by presuming that all persons who had undergone lab tests had undergone surgery – [2015] 61 taxmann.com 353 (Chandigarh – Trib.)

Illustrations : Where assessee failed to verify genuineness of opening and closing balance of labour charges payable or furnish details called for by Assessing Officer rejection of books of account was justified – [2015] (Chandigarh – Trib.)

SECTION 153A

SEARCH AND SEIZURE – ASSESSMENT IN CASE OF

Condition precedent : Completed assessments can be interfered with by Assessing Officer while making assessment under section 153A only on basis of some incriminating material unearthed during course of search which was not produced or not already disclosed or made known in course of original assessment – [2015] (Delhi)

SECTION 271(1)(c)

PENALTY – FOR CONCEALMENT OF INCOME

Search & Seizure : Where assessee withdrew claim for depreciation on IPR in statement during search and seizure operations undertaken on assessee but nothing incriminating was found during search which was concealed by assessees, penalty could not be levied under section 271(1)(c) merely on basis of statement during search – [2015] (Mumbai – Trib.)

COMPANIES ACT

SECTION 446

WINDING UP – SUITS STAYED ON WINDING UP ORDER

Proceedings under section 138 of the Negotiable Instruments Act, 1881 cannot be stayed by invoking power under section 446 of Companies Act, 1956 – [2015] (Kerala)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

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

Other News: PROFESSIONAL UPDATES FOR THE 3RD WEEK OF JUNE 2014, BY RAJPUT JAIN & ASSOCIATES TEAM

Untitled297

  • Exporters with 3 year track record can get bank advance up to 10 years for long term export contracts, subject to conditions[RBI Circular 132 of 21-05-2014].
  • SEBI hikes regulatory fees for market intermediaries vide Notification No. LAD-NRO/GN/2014-15/03/1089, Dated 23-5-2014.
  • RBI further simplifies KYC norms for opening of bank accounts vide circular number RBI/2013-2014/634 dated 09-June-2014 regarding one documentary proof of address.
  • Dis-allowance of input tax credit by assessing officer of VAT on the ground that seller is bogus or cancelled dealer.
  • Resident Director of Foreign Companies to submit PAN at the time of incorporation. General Circular No. 16/2014, Dated: 10.06.2014.IMPORTANT DATES
  • Deposit of DVAT TDS for April : 15.05.2014
  • Filling of TDS/TCS for March Quarter by all Deductors including Govt : 15.05.2014
  • E -Payment of PF for April : 15.05.2014 o Deposit of VAT/CST for April : 21.05.2014
  • Deposit of Advance Tax: 15.06.2014
  • Deposit of DVAT TDS for May: 15.06.2014
  • Deposit of Advance Tax – Companies (15%) : 15.06.2014
  • Deposit of DVAT TDS for May: 15.06.2014

Further, If you are looking professional assistance on Corporate Law, Direct, Indirect tax law or any other related matter, mail us at: -info@carajput.com or call at 011-43520194, We will try to get it resolved as early as possible. Please mention your mobile no. & address so as to serve you better. OUR SERVICE’s AREA:

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