corporate and professional update april 13, 2016

CORPORATE AND PROFESSIONAL UPDATE APRIL 13, 2016

DIRECT TAX:

• Income Tax: Refundable amount utilized by the Department hence interest was payable under Section 244(1A) –M/S. Jyotsna Holdings (P) Ltd. CIT, Delhi-II (2016 (4) TMI 390 – Supreme Court)
• Income Tax:  Penalty u/s 271D – cash transactions of the assessee with the directors and shareholders of the company due to business expediency. Nobody has doubted the genuineness of the transactions – No Penalty -M/s Chawla Chemtech Pvt. Ltd. Vs. CIT, Gobindgarh (2016 (4) TMI 378 – ITAT Chandigarh)
• Income Tax:  Depreciation carried forward and set off against the profits and gains of subsequent years without any limit whatsoever allowed –K. Lakshmi Cement Ltd. Vs. CIT (2016 (4) TMI 376 – ITAT Kolkata)

INDIRECT TAX :

• Service Tax: Date for deposit of Service tax by cheque – VCES Scheme 2013 – With the cheque having been realized the date on which the service tax should be taken to have been paid is deemed to be the date of presentation of the said cheque in terms of Rule 6(2A) of the ST Rules -Disha Securities & Manpower Pvt. Ltd. Vs. ACST(2016 (4) TMI 374 – Delhi High Court)
• EXCISE: As long as an assessee had manufactured goods, the mere fact that he used to trade or brand name of another individual, would not disentitle him from exemption – [2016] 68 Taxmann 7 (Andhra Pradesh)
• VAT: Period of limitation – Invocation of Section 61(1) of the Bombay Sales Tax Act 1959 – an order of the court cannot override the legal provision which is specific in nature – period of limitation statutorily prescribed cannot be waived -Raskamal Food & Fruit Pvt. Ltd. Vs. CST, State of Maharashtra (2016 (4) TMI 319 – Bombay High Court)

COMPANY LAW:

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

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

OTHER UPDATES

• RBI cuts repo rate by 25 bps to 6.5%, being the lowest repo rate in 6 years, CRR kept unchanged at 4%.
• Amended ASs to be applied from FY 16-17 onwards
• ICAIin order to make the Members aware as to what information is going to flow from Institute’s records in MEF this year has hosted Pre-MEF data verification at meficai.org for applicants’ perusal w.e.f. TODAY (27 APR 2016).
• RBIhas issued a Master Direction for merger of private sector banks and also between NBFCs and banks.
• releases draft guidelines for computation of book profit by Ind AS compliant Cos
• Courier entities in Delhi to file return in CR-II for F.Y.2015-16 byMay 16, 2016

 “Every exit has an entry somewhere. Every end has a new beginning. Every black cloud has a silver lining. Never leave hope, life means possibilities.”

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