Upgrade your business, redesign your finance mechanism to globally acknowledged levels, and become a truly international competitor

Upgrade your business, redesign your finance mechanism to globally acknowledged levels, and become a truly international competitor

Our collaboration with your enterprise involves a determination to provide you with a strong-caliber part time CFO at a fraction of the cost of an in-house e-CFO who will upgrade your finance role to globally recognized levels to allow you to succeed on the world stage.

When your position as Chief Financial Officer reduces you to the individual’s technical expertise, we have organized our business so that each of our clients can appreciate the collective talents, connections, and knowledge of our entire national and international team.

In addition to this, we also give you exclusive access to our clients and a larger network of partners, both in India and abroad, to help you expand your presence and exposure at home and abroad. We’ve worked for more than 2,000 customers so more than ‘partners.’

Reasons for recruiting an e-CFO Consultant

  1. Give support to your company

Any growing or established business needs support at least once in its lifetime. Growing businesses need more assistance to make the right decisions at the right time. Hiring a Virtual-CFO Consultant helps any business that requires support with timely consultation.

  1. Cash management

Ineffective cash management also leads to low productivity and a lack of money. Getting the right professionals on board to help you with the lifeblood of your market would save you from unorganized cash flow. Overspending on places that are not needed is a waste of your precious assets. Manage the cash in a smarter manner with the help of professionals.

  1. Improving profitability

Stagnant profitability is never attractive to any businessman. If you’re someone who’s always trying to improve your productivity, then hiring a Virtual-CFO Consultant is the best decision. A CFO Consultant will guarantee a steady improvement in productivity.

  1. Required a financial strategy

The company sometimes lacks a good financial plan. A CFO Specialist will help you draw up a solid financial plan to step in the right direction. Once you have an expert to meet onboard, you can also get a free report from us.

  1. Affordable consulting

Hiring a full-time CFO and underutilizing your resources is just a waste of your precious money. Alternatively, you should hire a CFO trainer to assist you to handle the things that concern you the most.

Virtual-CFO Consultants are inexpensive and serve their purpose very well, giving you the perfect outcomes. Their experience will help you expand and increase your productivity in business.

How do you appoint an e-CFO Consultant Service Provider?

Businesses also need good professional assistance in the area of finance and administration.

The CFO Consultant offers you all the support you need. Startups need special care, and we suggest that they employ a CFO Consultant right from the start to avoid making any wrong decisions.

Start-ups, small, medium-sized, and large companies may employ CFO consultants while you are conducting a new project.

  • You are going through the Mergers & Acquisition process
  • The cash flow is not being handled
  • You need more money in your company
  • You want to improve your productivity
  • You need a long-term strategic plan
  • You are restructuring your company and you need advice.
  • Our mission is to deliver much more value than any other Virtual-CFO service provider in India.
  • We are the industry leader in our segment and are able to deliver better quality, better value offering than our rivals thanks to our robust CFO application process, our innovative ‘’12 Box Architecture’ built to help you improve the Chief Financial Officer through 12 main areas and our integrated team structure, allowing you to appreciate the collective perspective of our whole network.
  • In short, the way we differentiate ourselves from the conventional in-house CFO is by providing much more control.
  • By using the Indian CFO Hub, you get much more than just a part-time Chief Financial Officer.

Here’s what you’re getting:

  1. One of the top Indian CFOs working with you on a part-time basis;
  2. A local support team with the highest-caliber CFOs in the country;
  3. The State Collaborative Committee with Best Practice Exchange CFOs;
  4. Connection to our multinational network of CFOs (so we can help you easily track the company’s growth to overseas markets);
  5. Connect to the latest goods and services across our unrivaled supplier network.
  6. Capacity to perform on the global level by moving to globally recognized accounting and regulatory criteria
  7. Easy access to credit/investment
  8. Expedited growth in India and globally through our innovative global quick back solution
  9. Increased cash balance to fuel production
  10. Preparing your company for a highly lucrative transition to a multinational/international
  11. 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. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. 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)

Strong reasons for Small business hire CFO Services

Strong reasons for Small business hire CFO Services

No one is better placed within an organization than the CFO to build a system based on a dynamic model and establish sustained financial results in a sector. Taking advantage of the financial experience, the CFO is channeling it into a strategic leadership position to build sustainable sustainability for the organization and its stakeholders.

A CFO has extensive knowledge of your corporate strategy and banking partnerships, meets with the board of directors, reviews comprehensive accounting and management analyses, deals with auditors, manages tax reporting, and sets rules on monitoring and payroll. Their roles include budgeting and planning, overseeing mergers and acquisitions, and regulatory concerns.

The CFO is forward-thinking in terms of fiscal, manufacturing, financial, policy control and social issues. A CFO is especially important to a quickly growing corporation with a vast number of staff and extensive product lines. Finance officers often add immense benefit to an organization as they consider making an investment or planning themselves to be purchased.

A CFO may offer guidance as predicting success is of vital significance when an organization sets its eyes on securing funding.

Evaluating the type of CFO or the level of expertise available depends on the status of the business and where it is projected to be in the immediate future. In businesses that are witnessing rapid growth, a specific reason in recruiting a CFO could be linked to the decision to raise investment capital. In this situation, the finance chief also is the contact responsible for keeping investors up-to-date on the company’s results. The form of institution, whether public or private, and its history and culture would also affect the style of CFO required.

Changing markets, technological advancements, and modernization have expanded the concept of the position of CFO. It’s not constructive to stretch the position of the CFO so much, because it’s obvious not to expect the CFO to be successful at all.

When are you going to hire CFO Services?

Your business is expanding beyond your dreams, and now you’re finding yourself all over the place. Sales are growing up, so is the number of clients. You can not claim to be a flexible specialist in all business practices.

You’re a businessman, so you need to focus on your job, not on it. Employ the best professionals to take care of your accounts, so you can lay back and enjoy.

At CFO Services, provide the enterprise with all the support it needs to succeed. Leave the lifeblood job in the hands of the professionals so that you can concentrate on focusing on your core business! Wondering when is the time to hire a Virtual CFO?

  • You’re going to lose crucial financial details
  • Note the need for cash
  • You need a good financial way to walk on
  • Non-core operations are attracting more interest than the core business!
  • Require a person to assist with financial advice

CFOs execute a variety of main tasks. This may include:

  • serving as a right-handed and sounding board for the CEO to develop the company.
  • Ensure prompt receipt of sales.
  • Holding a business funded.
  • Encourage partnerships with providers of funding and help to relieve the CEO of the responsibility of maintaining relationships with creditors, borrowers and main stakeholders.
  • Company is more data-driven than ever before. The CFOs provide an interpretation of the results and offer crucial perspectives.

Reasons to Hire a Virtual CFO Services

We give you six strong reasons to employ a Virtual CFO Service, CFO Services provides you with absolute 360-degree support in managing the cash flow. We also suggest measures to increase the size of your company. And best of all, Virtual CFOs can be available over just a phone call or WhatsApp! Brief the following strong reasons to employ a Virtual CFO Service

  • Virtual CFOs provide versatility.
  • You will have them at a fraction of the cost i.e. Cost productivity.
  • They have immense skills and abilities means-Experience and Outlook.
  • They will respond to the evolving needs, such as Accessibility and Scalability.
  • You will work for a team, not just an person,
  • Independent perspective
  • Make strategic choices

A CFO might be needed:


Continuous expansion is a significant predictor of the need for a CFO. Development needs the proliferation of integrated structures, new infrastructure, and funding. The CFO is best positioned to cope with accelerated sales growth due to potentially increased difficulty. They must define innovation and development and the context of capital acquisition.

In order for the company to expand faster, the CFO must analyze the overall financial situation of the organization, industry dynamics to adopt the right approaches, and increase cash flow and earnings.

For sectors with regular transitions involving drastic shifts in capital management and businesses with fast growth or ambitious M&A strategies, external CFOs have become an essential tool. External hires are highly respected for their expertise in M&A, global networks, critical thinking and strategic perspective. Many CFOs with development experience have worked in specialized service companies such as investment banking, accounting, or private equity for a significant part of their careers


The future is more uncertain than ever before. Disruptive technologies, changing business conditions and modern leadership styles demand transition and adaptability. As a result, the CFO looked at him as a transition expert.

The CFO makes it easier to find new prospects and develops the goods and markets of the client, capitalizes and prepares for potential development, generates and expresses the business success narrative efficiently.

The CFO will address the main questions that revolve around the right location and the pacing of the extension.


If a company is planning for a merger and takeover, a committee is needed to assess a possible transaction. For certain cases, that will be outsourced and the company will still conduct due diligence on financial and regulatory matters.

The CFO must view the results of the due diligence team in order to adapt the terminology to the findings. The CFO will be able to express these results to a prospective borrower or lender. The CFO should be well trained to predict problems in order to shorten the process.


Managing prices, increasing efficiency, and evaluating price approaches are three areas that the CFO can increase profitability. Better decisions will be taken around the business by increasing the awareness of productivity. Through the oversight and management of financial services, the CFO can keep the CEO, the Board and investors aware of past and current financial reports.

The CFO must dig closely to measure the productivity of workers in order to decide if there are bottlenecks or slowdowns in operations. Financial reports from the CFO provide the CEO with a clear summary and comparison of the net income from revenues and operational expenses.


Corporate reputation is dependent on its ability to plan and report correct annual statements and to comply with its tax obligations. It could be time to recruit a CFO if the organization is unable to do so. High net worth corporations are frequently faced with complicated tax laws and regulations. The CFO works as a trainer and helps:

·         Consider changes to the law and which rulings will have benefits.

·         Analyze the tax advantages of investment, capitalization, and incentives for M&A.

·         Provide advice on the financial connection between founders, creditors, and the businesses they control.

·         Increase current tax positions.

·         Create and retain assets.


An organization has to invest strategically in its personnel and infrastructure to sustain corporate processes such as budgeting, estimating, and long-term planning. A successful CFO recognizes this and can balance its position as a business strategist.


In the end, the CEO is at the forefront of creating a strategy plan. Nevertheless, the CFO is a central player in the preparation phase by extending the plans of the CEO. The CFO should guarantee that the financial requirements of the plan are not unreasonable or too dangerous.

A successful CFO would be the right hand of the CEO, ready to help and push him or her to lead the company. The CFO must report company results and concerns to the Board of Directors. They should exchange important knowledge and ideas with their colleagues to promote dialogue and decision-making, and to subordinates to ensure productivity and to keep them engaged.

CEOs and boards would want CFOs not only to have timely and reliable financial reports, but also to work with them in shaping the company’s strategy.

The CFO is more informed on the budgets, procedures and risk control required to fulfill the CEO’s strategic strategy. The CFO may outline the specifics of the strategic plan, check it, review its feasibility, and advise on potential changes to the plan in order to achieve the desired outcome.

CFOs are an invaluable friend of the CEO and frequently serve on the board, bridging the divide between day-to-day activities and the overall strategy of the business.

If the execution is complicated, the CFO can take over the strategic planning task.


If you need someone to take care of your company resources because the income is not will, you need a CFO. This involves the assessment of the particular investment plan and the type of assets to be listed.

The CFO must make reliable predictions, analyze the terms, create and implement the payment structure and segment the consumers, suppliers and inventory.


The price approach is an example of how margins can be influenced. Your business members may be ignorant of the combined effect of potentially thousands of price decisions made on a regular basis. Lack of consistency in demand execution can be more detrimental over time than a poorly defined pricing policy. The pricing policy can be a big lever for the widening of profit margins and further control of execution.


Decision-making is focused on instincts and intestine. This may also contribute to disputes within an company where each has their own personal view of ‘the facts.’ Lack of knowledge may be crucial statistics on cash flow, working capital, or liquidity modeling. You may lack the understanding of demographic, industrial and regulatory changes that could have a direct effect on your sector. Or you are unable to produce the financial reports needed by the banks, vendors, lenders, creditors and associates. You may need a CFO for each of these cases.

CEOs are encouraged to get a finance professional in place who knows how to fix challenges and manage the company financially. CFOs are well placed to help create a business that is financially stable and to generate value for its members.

You don’t even have to invest in a full-time CFO right now. In the first place, anyone who comes in one or two days a week could be enough.

How much do I pay for Virtual CFO services in Delhi and other cities?

You’re interested in hiring a virtual CFO for your business? Please go no further than CFO Products. Compared to a full-time supplier of CFO services, Automated CFO rates are lower. While recruiting a larger company can only cost you a lot, we’re offering you our best Virtual CFO services in India at the fairest price. Our structured Automated CFO pricing is customized to the company’s requirements. We add all the advantages of a virtual CFO with simplicity and usability at a reasonable price. We also offer a free report that will let you know where your company is now!

We offer advice on how to consistently track and evaluate your market growth and earnings. Our team of professionals will be able to support and steer you out of any unforeseen financial situation. Our Virtual CFO Services is located in Delhi and provides Virtual CFO Services in Noida, Chandigarh, Gurgaon, Mumbai, and Varanasi other parts of India.

Fill out the form right now and get in touch with us taking a step forward in helping the company grow smart! If you think your company wants a CFO, please email info@carajput.com.

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 thereon. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates, a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. I 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 the Day:

Untitled5DIRECT TAX: 

Income Tax: Disallowance of profit in sale of agriculture land – whether transaction in property by assessee company should not be treated as business activity – Held that – There is no enabling provision in the income-tax law prescribing that even if the assessee s income is exempt by a provision, then it can be forcibly brought into the tax net by assuming the assessee s activity to be adventure in the nature of trade. – ( The ACIT, Circular, Alwar Versus M/s. Focal Point Builders and Promoters Pvt. Ltd. ) – 2016 (5) TMI 635 – ITAT MUMBAI.

Income Tax: Addition u/s 41 – conversion of unsecured loan from the sister as gift by book entry – in the earlier years, interest paid to sister was claimed as deduction – whether remission / cessation of liability u/s 41(1) – Held that – There was no remission of liability u/s 41(1) of the Act, because the gift was genuinely made by Smt. Kiranben Gandhi and accepted by the assessee out of natural love and affection and there was no business consideration  ( Shri Shailesh C. Modi Versus Income Tax Officer, Ward – 1 (1) (4) , Surat)-  2016 (5) TMI 637 – ITAT AHMEDABAD. 

VAT : Department of Trade & Taxes has extended the last date of filling of online/hard copy of fourth quarter return for the year of 2015-16 in DVAT Form-16, DVAT Form-17, and DVAT Form 48 along with required Annexure /enclosures to 23/05/2016 vide Circular No. 5 of 2016-17 dated 16.05.2016 . However, the tax due shall continue to be paid in the usual manner as per the provisions section 3(4)  of the Delhi value Added Tax Act, 2004.

VAT & CST : Department of Trade & Taxes has issued a Circular on Grant of registration under DVAT & CST vide circular No. 6 of 2016-17 dated 17.05.2016.The department of trade and taxes has developed a mobile application DVATMsewa to provide various services to the traders.One of the services to be provided with this app is registration of delars under DVAT Act,2004 and CST Act, 1956

Key dates :

Today (21.05.16) is the last date for e-payment of DVAT & CST for the month of April, 2016.

Issue of TDS Certificate in case of payment/credit made in April for purchase of property u/s 194Iain Form 16B: 22/05/2016

Issue of DVAT Certificate for deduction made in April: 22/05/2016

Payment of ESI of April: 21/05/2016

No one gets a sudden rise, not even the sun. It takes time to rise to the peak of success. Just keep your efforts going and be positive. 

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Professional Update For the Day: 

Untitled18ADirect Tax:

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

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

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

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

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

Indirect Tax:

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

Company Law:

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

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

Key Dates:

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

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

True guidance is like a small torch in a dark forest. It doesn’t show everything at once.But gives enough light for the next step to be safe.

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

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Professional Update For the Day:


CBDT notifies jurisdiction for Income Declaration Scheme, 2016 Circular No. 19/2016-Income Tax.

SCN cannot be issued to debtors until tax liability crystallise – HC [M/s Quality Fabricators and Erectors Vs The Deputy Director, DGCEI, Zonal Unit Mumbai and Others (High Court Of Bombay) ]

Sec. 263 not justified due to multiple view on applicability of TDS[Neo Sports Broadcast Pvt.Ltd Vs CIT (TDS) (ITAT Mumbai)]

No Addition u/s 68 if identity, creditworthiness & genuineness established[DCIT Vs. M/s Overseas Infrastructure Alliance (I) Pvt. Ltd. (ITAT MUMBAI)]

ITAT deletes hypothetical, harassing & inconvenient decision[Mrs.Mintu Sayermal Jain Vs Income Tax Officer (ITAT Mumbai)]

Income tax has enabled Electronic Verification Code for online filling of appeal before Commissioner (Appeal) in Form 35 for taxpayers not required file using DSC on income tax India Efilling .(Click here to view)

Mumbai ITAT upholds CIT(A)’s inclusion of interest income earned on Fixed Deposit Receipts as part of operating income while benchmarking international transactions in assessee’s Manufacturing and Trading Activities segment for AY 2005-06; Holds that since advances received against exports were immediately placed in FDR with the bank for the purpose of taking letter of credit in favour of the overseas sellers, it could not be said that surplus funds were parked in FDRs only to earn interest income. MUMBAI ITAT – [TS-264-ITAT-2016(Mum)-TP]


Central Govt. issues draft Notification and Circular proposing to provide optional single registration and return to first stage dealer and importer; As per proposed Notification, assessee who conducts business as first stage dealer shall be exempt from taking separate registration as an importer and vice versa; However, same is optional and any assessee needing separate registration for his own business purposes may so register; This is so as credit chain becomes shorter when an importer operates also as first stage dealer; Moreover, such assessees henceforth shall have option to file single quarterly return giving details of transactions as first stage dealer and importer in one single table; CBEC invites feedback from Departmental Officers and members of trade by June 6th : CBEC Circular

No service tax applicable on payment processing services proposed to be rendered to foreign entity, who provides domain registration services to customers in India; Such intended services, classifiable as “Business Support Services”, would be rendered on applicant’s own account for a fee equal to operating costs incurred plus 13% mark-up; Consequently, since recipient is located outside India and applicant would receive payment in convertible foreign exchange, these services would qualify as ‘export’ in terms of Rule 6A of Service Tax Rules and remain non-taxable for purpose of service tax; Further, no services can be said to have been provided to Indian customers as applicant would receive fees from foreign entity even in respect of those customers who directly remit service charges through International Credit Card, wherein applicant is not in the picture

Company Law:

Query: Whether a partner would be able to give loan to or transact other commercial transactions with LLP?

Answer: A partner may lend money to and transact other business with the LLP and shall have the same rights and obligations with respect to the loan or other transactions as a person who is not a partner

Key Dates:

Advance information for the 1st fortnight of June of functions with booking cost > Rs1 lakh in Banquet halls, hotels etc. in Delhi: 27.05.2016

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

“It always seems impossible until it’s done.”

“Originality will always catch the attention of a good critic whether you’re striving for success  or living proof of success. Be yourself! Stay  Original!”

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Professional Update For the Day:

Untitled15ADirect Tax:

IT : Merely because creditor could not be traced on date when verification was made, is not a ground to conclude that there was cessation of liability in terms of section 41(1) because cessation of liability has to be cessation in law, of debt to be paid by assessee to creditor[2016] 69  257 (Karnataka) Commissioner of Income-tax v. Alvares & Thomas

Transmission charges for electricity won’t attract TDS under sec. 194J[2016] 69  252 (Karnataka) Commissioner of Income-tax v. Gulbarga Electricity Supply Co. Ltd.

IT: TDS – the payment paid by the assessee to scheduled banks for opening letters of credit was in the nature of interest u/s 2(28A) – but since the amount had been paid to scheduled banks no tax was required to be deducted at source u/s 194A – No disallowance u/s 40(a)(ia) – M/s Vardhman Chemtech Pvt. Ltd. Vs. ACIT, Chandigarh (ITAT Chandigarh)

IT: Revision u/s 263 – the disallowances u/s 14A and u/s 36(1)(iii) of the Act were the matters before the CIT(A) – the same does not come under the jurisdiction of the CIT u/s 263 – M/s Deepak International Ltd. Vs. JCIT, Cir-V, Ludhiana (ITAT Chandigarh)

Bogus purchase and sale of shares: Law explained as to on whom the onus is to show that the purchase and sale of shares are bogus and the circumstances required to be proved by the AOArvind Asmal Mehta vs. ITO (ITAT Mumbai)

S.143(1)/ 147: Entire law on the reopening of s. 143(1) assessments in the light of Zuari Estate Development 373 ITR 661 (SC) explained Indu Lata Rangwala vs. DCIT (Delhi High Court)

Indirect Tax:

ST: Recovery of interest – Section 73B of the Finance Act 1994 – Collected Service tax from the transporters when no service tax was payable and not deposited to the Government – later amount was deposited with the government – Demand of interest set aside – M/s Chhattisgarh State Co-operative Marketing Federation Ltd. Vs. CCE&ST, Raipur (CESTAT New Delhi)

SC : Absent cargo loading / unloading, mere labour supply at customer’s packing-plant not ‘CHS’ [TS-197-SC-2016-ST]

CESTAT : Upholds input credit reversal on exempt goods; Duty-payment cannot render them ‘dutiable’ [TS-196-CESTAT- 2016-EXC]

Service Tax : Services received from foreign intermediary in connection with raising of External Commercial Borrowings (ECB) is liable to service tax under ‘Banking and Other Financial Services’ under reverse charge in hands of Indian service recipient[2016] 69  266 (Mumbai – CESTAT) Gitanjali Gems Ltd. v. Commissioner of Service Tax

Cenvat Credit : Payment of cenvat-reversal under rule 6 of CENVAT Credit Rules, 2004 is in nature of ‘other tax’ and is, therefore, not includible in ‘transaction value’ of exempted goods, even if reversal amount is recovered from buyers

Cenvat Credit : When assessee is paying specified percent cenvat-reversal on value of ‘exempted HDPE pipes’ used for manufacturing ‘exempted sprinkler system’, they are not required to pay cenvat-reversal on value of ‘exempted sprinkler system'[2016] 69  265 (New Delhi – CESTAT) Commissioner of Central Excise, Indore v. Kriti Industries (India) Ltd.

SC: 9 Judge bench to decide entry tax validity; Hearings to commence July 18 [TS-200-SC-2016-NT]

Cenvat Credit : If Modvat credit could not be used by assessee due to restriction imposed by department, balance lying in Modvat account must be allowed as credit in Cenvat account[2016] 69  216 (Patna)Commissioner of Central Excise v. Bata India Ltd.

Deputation of employees and sharing of cost on actual basis with group Cos. doesn’t amount to rendering of service[2016] 69  198 (Mumbai – CESTAT) Franco Indian Pharmaceutical (P.) Ltd. v. Commissioner of Service-Tax

VAT & ST: Validity of law – rate of tax – interstate movement of goods – The law validly enacted by a State Legislature cannot be challenged on the ground that it defies logic and common sense – M/s Schwing Stetter (India) Pvt. Ltd. Vs. CCT (Madras High Court)

Company Law:

Query: Is Director Identification Number (DIN) mandatory for filing Form FTE with ROC?

Answer:  No, DIN is not mandatory for Managing Director or Director of the Company for filing Form FTE to strike off the name of Company under the Fast Track Exit mode Scheme. Details of Managing Director or Director can be filled up for inserting Permanent Account Number (PAN) or Passport Number instead of DIN.

Query: Whether a partner would be able to transfer his ‘economic rights’?

Answer: A partner’s economic rights (i.e. rights of a partner to a share of the profits and losses of the LLP and to receive distribution at the time of winding up) in the LLP shall be transferable. However, such a transfer shall not by itself cause the partner’s disassociation or a dissolution and winding up of the LLP.

However, such transfer shall not entitle the transferee or assignee to participate in the management or conduct of the LLP’s activities. Therefore, the transferee would not be deemed to be a ‘partner’ of the LLP just because a partner has transferred him the ‘economic rights’. For becoming a partner of LLP, the manner specified in the LLP Agreement or the provisions of the Act would have to be followed.

Other Update : 

ICAI: Committee on Economic, Commercial Laws & WTO (CECL&WTO) is organizing a Live Webcast on “Identifying Common FEMA Contraventions” on Friday, 27 May 2016 at 4-6PM. Link athttp://estv.in/icai/27052016

Key Dates:

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

Due date for e-filing of form no. 61 for Q4 extended to 31st October, 2016 from 30th April, 2016. CBDT Circular no. 14/2016 dated 18/05/16.

 “When you judge another, you do not define them, you define yourself.”

Don’t find fault, find a remedy.  -Henry Ford

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Professional Update For the Day:

Untitled7Direct Tax:

CBDT has issued a circular regarding Verification of tax-returns for Assessment Years 2009-2010, 2010-2011, 2011-2012 2012-2013, 2013-2014 and 2014-2015 through EVC which are pending due to non-filing of ITR-V Form and processing of such returns vide circular No. 13/2016 dated 09.05.2016.

Gujarat HC allows assessee’s writ, holds that interest on enhanced compensation doesn’t fall within the ambit of the expression “interest” as envisaged u/s 145A (which provides that interest received on compensation/ enhanced compensation shall be taxable in the year of receipt); Revenue had rejected assessee’s NIL TDS certificate application made u/s 197(1) on the ground that interest on enhanced compensation (received u/s 28 of the Land Acquisition Act) is taxable as income from other sources in terms of Sec 145A- Gujrat High Court

Only consistent loss making co. should be excluded from the list of comparables: ITAT

IT: Interest income accrued on time deposits – AO has only taken into account the Journal entries credited in the account. The AO has not taken into account the corresponding Journal entries debited – No additions –DLF Hilton Hotels Vs. CIT, Delhi (2016 (5) TMI 492 – Delhi High Court)

IT: Refund of TDS wrongly deducted – Deduction for TDS on Compensation u/s 28 of Land acquisition Act – ITO (TDS) directed to forthwith deposit such amount with the Reference Court which shall thereafter disburse such amount to the petitioner herein – Movaliya Bhikhubhai Balabhai Vs. ITO, Surat (2016 (5) TMI 488 – Gujarat High Court)

Indirect Tax:

HC reverses CESTAT decision, disallows MODVAT credit under Rule 57G of Central Excise Rules on the basis of invoices endorsed by consignee; Said Rule amended w.e.f. April 1, 1994 by which invoices issued by manufacturers and dealers in prescribed form were considered valid duty paying documents, thus eliminating endorsement thereof; Further, in terms of Notifications dated March 30, 1994 and July 4, 1994, invoices issued by specified category of persons viz. wholesale distributors, dealers & importers, enabled input credit availment; HC finds that CESTAT has ignored LB ruling in Balmer Lawrie & Co. Ltd. where it was held that after the issuance of Notification dated July 4, 1994, invoices can be issued only by a registered dealer and only then MODVAT credit can be claimed on strength thereof; Hence, by virtue of changes in procedure, manufacturer could avail MODVAT credit only upon invoices being issued under Rule 52A, holds HC thereby allowing Revenue appeal  : Gujarat HC

HC dismisses Revenue appeal, upholds availment of CENVAT credit by company HO i.r.o. input services rendered to various units, absent restriction of proportionate distribution in terms of Rule 7(d) of CENVAT Credit Rules; Rule 7 at relevant time, permitted input service distributor (ISD) to distribute CENVAT credit of input services to its manufacturing units or units providing output services subject to conditions that (a) credit distributed does not exceed service tax amount, and (b) credit of service tax attributable to service used by one or more units exclusively engaged in manufacture of exempted goods or providing exempted services shall not be distributed.- Rajsthan High Court

Company Law:

MCA has notified new versions of e-forms PAS-3, CHG-1, DIR-12, SH-11 and FTE.

Word of Wisdom:

Life is ten percent what happens to you and ninety percent how you respond to it.    -Lou Holtz

Life’s most persistent and urgent question is, ‘What are you doing for others?’     -Martin Luther King, Jr.

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Professional Update For the Day:

Untitled34ADirect Tax: 

IT: Taxing of capital gains u/s.50B r.w.s.2 (42C) – sale of undertaking as a going concern for a lump sum consideration – addition made by the AO u/s.50B on account of gain arising from transfer of BOPP Films Undertaking confirmed – Supreme Industries Ltd. Vs. ACIT, CC-29, Mumbai (2016 (5) TMI 264 – ITAT Mumbai)

IT: Undisclosed income – Addition made on the basis of the statement during the survey u/s. 133A is not sustainable in the eyes of law – Avinash Kumar Setia Vs. DCIT, CC-17, New Delhi (2016 (5) TMI 261 – ITAT Delhi)

CBDT prescribes procedure for e-filing of Form 15CC in respect of foreign remittance made u/s 195

CBDT prescribes procedure for e-filing of Form 15G/15H

Provisions relating to gift apply only to an Individual or HUF and not to an AOP
[2016] 68 taxmann.com 376 (Delhi – Trib.) Mridu Hari Dalmia Parivar Trust v. Assessing Officer, Circle 31(1)

A person can apply for non-deduction of TDS u/s 195 even if he has been subjected to concealment penalty: CBDT

Now, TDS or TCS return can also be filed via incometaxindiaefiling.gov.in

Indirect Tax:

Excise & Customs : Where pre-deposit amount has been determined after considering/adjusting Cenvat credit amount, then, such ‘net pre-deposit’ amount has to be paid in cash and cenvat credit cannot be used to pay same[2016] 69 taxmann.com 10 (Kerala) Commissioner of Central Excise, Customs & Service Tax v. Kinship Services (India) (P.) Ltd.

Govt. entities in Delhi no more required to file details of purchases below Rs. 1000 in DVAT Form GE-II

ST: Levy of penalty – As the assessee had paid service tax and interest by showing their bonafides before issuance of SCN – Penalty liable to be waived of by invoking Section 80 – Cognizant Technology Solutions India Pvt. Ltd. Vs. CCE&ST, Chennai (2016 (5) TMI 230 – CESTAT Chennai)

VAT & ST: Merely because the advertisements of the advertisers were displayed on the Sites would not necessarily lead to the conclusion that they had acquired the right to use the Sites – Tim Delhi Airport Advertising Pvt. Ltd. Vs. CT&T (2016 (5) TMI 297 – Delhi High Court)

FEMA Updates:                 

Ministry of Commerce & Industry has issued  Policy on foreign investment for Asset Reconstruction Companies-amendment of paragraph of ‘consolidated FDI Policy Circular of 2015’ vide press No. 4(2016 Series) dated 06/05/2016.

MCA Updates:

MCA has issued Companies (Registration Offices and Fees) Amendment Rules, 2016 vide Notification dated 06/05/2015, which shall come into force from the date of their publication in the Official Gazette. The New Rules has further substituted Form No. GNL-1 (Form for filing an application with Registrar of Companies) and Form GNL-4 (Form for filing addendum for rectification of defects or incompleteness)

Word of Wisdom:

The most difficult task is to make everybody happy. The simplest task is to be happy with everyone. Surprisingly, the purpose of both are the same.

Mankind is made great or little by its own will.      -Friedrich Schiller

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Professional Update For the Day: 



Disallowance of the deduction claimed u/s 54 – two flats situated on different storey – Held that:- There is nothing in these sections, which require the residential house to be constructed in a particular manner. The only requirement is that it should be for the residential use and not for commercial use.We do not think that the fact that the residential house consists of several independent units can be permitted to act as an impediment to the allowance of the deduction under section 54/54F.(Surendra Sharma Versus Income Tax Officer, Ward 6 (3) , Jaipur).- 2016 (4) TMI 1098 – ITAT JAIPUR

IT: Period of Limitation for passing the Block Assessment Order – benefit of exclusion of the period during which there was a stay order against the order of special audit is available to Revenue – VLS Finance Ltd. & Anr Vs. CIT & Anr – 2016 (4) TMI 1133 – Supreme Court

Society having 2 PAN cards asks to surrender duplicate one[2016] 68 taxmann.com 297 (Delhi) Sri Ram Chandra Mission v. Commissioner of Income-tax

IT: Assessment against non-existing companies to be held as void ab initio – Orbit Corporation Ltd. Vs. DCIT, Central Circle-47, Mumbai – 2016 (4) TMI 1130 – ITAT Mumbai

Disallowance of interest paid by the appellant to the bank as well as to the other parties – Held that – The assessee was able to establish that he had incurred the expenditure wholly and exclusively for the purpose of business and therefore there is no justification for the revenue to disallowance the interest component. The revenue cannot claim to put itself in the armchair of the businessman and decide how much is reasonable expenditure. (M/s. Lakhani Shoe Co. Pvt. Ltd. Versus The ACIT, Circle-2, Alwar)-  2016 (4) TMI 1127 – ITAT JAIPUR

A transaction couldn’t be deemed as transaction of agency just because word ‘agency’ was written in agreement
IT : Where assessee-logistic company did not deduct TDS on payment made to overseas organizations for availing their logistic services, since transaction was on principal to principal basis and merely word ‘agency’ was used in agreement did not mean that there existed relationship of agency, TDS was not required to be deducted[2016] 68 taxmann.com 384 (Kolkata – Trib.) Balmer Lawrie & Co. Ltd. v. Income-tax Officer

Transactions having contingent impact on profit/ losses are not international transactions. [ Siro Clinpharm Pvt. ltd. vs. DCIT (ITAT Mumbai)].

CBDT notifies new form 35 for e-filing of appeal with CIT (A). IT notification no. 11/2016.


In terms of the provisions authorization has to be specifically from the foreign service provider and cannot be fastened upon the Indian Service recipient by the Revenue – In absence of such authorization no liability would fall upon appellant.(Escorts Ltd. Versus CCE, Jaipur And Vice-Versa)- 2016 (4) TMI 1077 – CESTAT NEW DELHI

Seeking cross-examination of certain witnesses – Petitioner submitted that show cause notice is based on several statements of witnesses including those of the experts and any reliance on such statements without offering such witnesses for cross examination would be opposed to the principles of natural justice. Held that:- the reasons cited by the adjudicating authority are completely baseless. Merely because, the concerned witnesses have not retracted their statements would not be a ground to deny cross examination. .(M/s Mulchand M. Zaveri & 1 Versus Union of India & 1)- 2016 (4) TMI 1074 – GUJRAT HIGH COURT

Additional Commissioner of Delhi VAT can’t reject application filed under Amnesty Scheme [2016] 68taxmann.com 385 (Delhi)Jaycon Infrastructure Ltd. v. Commissioner of Trade & Taxes

CST & VAT: Delhi VAT – Where assessee, a bank, made advances to customers for purchase of cars and said cars were hypothecated to bank as security and upon default in repaying loan bank had right to repossess car and brought it to sale, disposal of repossessed cars by bank constituted ‘sale'[2016] 68 taxmann.com 296 (Delhi) Citi Bank v. Commissioner of Sales Tax

Amount received by bank from sale of hypothecated goods is liable to sales tax under Delhi VAT

Company Law:

MCA clarifies that the Companies (Accounting Standards) Amendment Rules, 2016, dt.30.03.2016 is applicable from F.Y.2016-17. Cir.No.04/2016.

Government increases interest rates on employee provident fund (EPF) contributions from 8.7% to 8.8% for 2015-16.

Taxis that run on petrol or diesel will not be allowed to ply in NCR from May 1.

Key Dates:

Last date of E-payment of service tax foe April by companies vide Challan No. GAR-7 -06/05/2016

Income Tax Updates:-

The facility to upload online quarterly TDS/TCS statements in the E-Filling portal shall be available with effect from 1st May 2016. (Click here to see the procedure)

Bulk upload of form 15CA, Form 15CB and Form 15CC are available for E-Filling.

No teacher, no professor nor a mentor can teach the important lessons in life better than a hungry stomach and an empty pocket.

The things that we love tell us what we are. -Thomas Aquinas

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Professional Update For the Day:


Now, deductor is liable to furnish of evidence of claims by employee for deduction of tax under section 192 of IT Act, 1961. Notification no. 30/2016 dated 29/06/2016.

Property TDS Payment due date extended to 30 days. Notification no. 30/2016-IT dated 29/04/2016.

In absence of contumacious conduct penalty U/s. 271C not leviable. [ITO (TDS), Vs. Pushpanjali Hospital and Research Centre Pvt. Ltd. (ITAT Agra)].

CBDT has issued a Press Release 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 on 28th April, 2016.

CBDT has issued a MAT-IndAS Committee Report.

Madras HC sets-aside ITAT order, holds loss on share-sale transaction, not speculative for assessee rejects Revenue’s invocation of deeming fiction under Explanation to Sec 73;Held that When there is no systematic or organised course of activity and when there is no regularity in the transaction and as the purchase is infact an one time activity it cannot be construed as a speculative transaction” and further cannot come under the ambit of ‘business.

PERMANENT ACCOUNT NUMBER  : Duplicate PAN card : Where two PAN Cards were allotted in name of assessee-society to two factions within management of assessee – society, it was held that question as to, which of two actions should be authorized to operate PAN CARD would depend on orders of pending suit; till that time, holder of second PAN CARD should Surrender said second PAN Card to PAN Service provider – [2016] 68 taxmann.com 297 (Delhi)


Central Govt. exempts all coastal vessels carrying exclusively coastal goods and operating from coastal or EXIM berths from provisions of Sections 92, 93, 94, 95, 97 and 98(1) of Customs Act; Accordingly, such vessels would no longer be required to make entry by presenting bill of coastal goods and carry advice book; Also, goods can be loaded at any port without bill being passed by the officer and can depart without written order vide notification No. 56/2016 dated 27th April,2016.

Delhi Govt. issues clarification on new composition scheme for restaurants and halwais u/s 16(12) of DVAT Act; States that condition requiring payment of tax on opening stock is not applicable to those dealers who w.e.f April 1, 2016 intend to shift from composition scheme u/s 16(1) to new the scheme, as such goods have already suffered VAT at time of purchases and also no ITC has been claimed thereon; Also clarifies that such dealers shifting to new scheme shall not be eligible to claim ITC on closing stock held on March 31, 2016 vide Circular No. 1 of 2016-17 dated 27-04-2016.

ST: Cenvat credit – Common Input services belongs to three units but whole of the credit was availed at one unit – assessee has been able to prove that all the three units are one and the same have common management – credit allowed – National Engineering Industries Ltd. Vs. CCE, Jaipur (2016 (5) TMI 12 – Rajasthan High Court)

VAT & ST: Waiver of pre-deposit under APGST Act – It is always open to the petitioner to file appropriate proceedings before ADC seeking stay in the appeal filed or by filing a separate application as required under Section 19(2A) – Anand Cements Vs. State of Telangana (2016 (5) TMI 5 – Supreme Court)

Company Law Updates:

Company Law Board has notified the amended Regulations further to amend the Company Law Board Regulation, 1991 through which official timing for hearing at CLB has been changed w.e.f 02.05.2016, words  and   expression “10.30 a.m. to 1.30 p.m.  and 2.30 p.m. to 4.30 p.m.” the words and  expression  “10.30 a.m.  to 1.00 p.m. and 2.00 p.m. to 4.30 p.m.” shall be substituted in Regulation 9 of the said regulation.

Other Updates:

The Real Estate (Regulation and Development) Act, 2016 came into force on May 01, 2016. Union Ministry of Housing and Urban Poverty Alleviation (HUPA) notified 69 of the total 92 sections of the Act to bring it into force from 1 May 2016.

Key Dates:

Last date of E-payment of service tax foe April by companies vide Challan No. GAR-7 -06/05/2016

Look at mistake as just a mistake not as “My” or “His” mistake because “My” brings guilt & “His” brings anger. Only acceptance brings Improvement.

Noble deeds that are concealed are most esteemed. -Blaise Pascal

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