CORPORATE AND PROFESSIONAL UPDATE April 28, 2017

CORPORATE AND PROFESSIONAL UPDATE April 28, 2017

Direct Tax:

Supreme Court held that if an undertaking is sold as a running business with all assets and liabilities for a slump price, no part of the consideration can be attributed to depreciable assets and assessed as a short-term capital gain u/s 50(2). If the undertaking is held for more than three years, it constitutes a “long-term capital asset” and the gains are assessable as a long-term capital gain. [CIT Vs Equinox Solution Pvt. Ltd.]

CBDT has made it clear that income from letting out buildings /developed space along with other amenities in an industrial park/special economic zones (SEZs) would only be treated as “business income” and not as “income from house property”.

CBDT issued Circular No.17 of 2017 on the Clarification regarding Liability to income – tax in India for a non – resident seafarer receiving salary in NER (Non Resident External) account maintained with an Indian Bank.

Transfer pricing & advance tax requirements won’t apply to Indian Cos with overseas subsidiaries are likely to get some leeway around transfer pricing, withholding tax and advance tax requirements under the place of  effective management (POEM) rules.

Additional evidence was to be admitted if it was relevant for calculating actual income: HC [2017] 80 271 (Punjab & Haryana)

Where revenue urged that assessee company received share application money from bogus shareholders, it was for revenue to proceed by reopening assessment of such shareholders and assessing them to tax and not to add same to assessee’s income as unexplained cash credit. Proviso to Sec 68  [2017] 80  272 (Bombay HC)

Supreme Court asked why there was no objection from lawmakers on the government’s decision to make Aadhaar mandatory for making PAN cards in Parliament w.e.f. July 1, 2017.

CBDT has made it clear that income from letting out buildings /developed space along with other amenities in an industrial park/special economic zones (SEZs) would only be treated as “business income” and not as “income from house property”.

Indirect Tax:

Court can’t direct Central Government to issue Excise Exemption Notification, being a policy matter .[2017] 80  358 (SC)

Benefit of reduced penalty couldn’t be granted if excise duty was not paid within 30 days of demand order.  [2017] 80  293 (Punjab & Haryana).

CBEC issued a notification regarding  amendment in Notification no. 131/2016-Customs (N.T.) dated 31.10.2016 relating to AIR of duty drawback with respect to Guar and its products vide  Notification No. 41/2017-CUSTOMS (N.T.) dated 26th April, 2017.

CBEC issued an order vide order no. 1/2017 – Service tax dated 25th April, 2017 regarding  Extension of the date of submission of the Form ST-3 for the period 1st October 2016 to 31st March 2017 from 25th April 2017 to 30th April 2017.

Uttarakhand High court  HC rules on maintainability of appeal u/s 35G of Central Excise Act in respect of question of availability of ‘area based exemption’ benefit under Notification No. 50/2003-CE as a new industrial unit; Notes that Legislature has, by virtue of Section 35L(2), declared that question relating to taxability or excisability shall be included within the meaning of the expression “question in relation to rate of duty”; Hence, HC remarks that decision on ‘excisability’ or ‘taxability’ by CESTAT after amendment to Section 35L in 2014 would confer exclusive jurisdiction on Apex Court.  [TS-80-HC-2017(UTT)-EXC]

GST Update

Under GST Records can be kept in electronic form & authenticated by Digital Signature. Backups should be taken which can be restored in reasonable time.

Corporate Law:

Meeting of creditors could be dispensed with if maximum no. of creditors gave their consent to amalgamation scheme. [2017] 80  307 (NCLT – Bang.)

Other Update

Over four crore members of the retirement fund body EPFO can now withdraw funds from their EPF account for the treatment of illness and purchasing equipment to deal with handicap without medical certificates. MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 25th April,2017.

Supreme Court asked why there was no objection from lawmakers on the government’s decision to make Aadhaar mandatory for making PAN cards in Parliament w.e.f. July 1, 2017.

SEBI has taken the first major step towards development of the commodity derivatives market by approving introduction of options contracts since taking over the market’s regulation in September 2015.

FAQ on GST

Query: Kindly clarify the treatment of construction of building etc. as services or goods under GST Regime.

Answer: According to Schedule II to Model GST Law, construction of a complex , building, civil structure or part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier of Model Law shall be treated as supply of services.

With trust, even silence is understood. Without trust, every word is misunderstood. Trust is the soul of relationships.

Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.

Key Dates:

• Service Tax return for the half year ended march : 30.04.2017
• Return of DVAT TDS for quarter ending march : 28.04.2017
• Filing of DVAT return verification form for quarter ended march where return not signed with digital signature :28.04.2017

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

FOR FURTHER QUERIES CONTACT US:

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

More read :

Blocking the E-way bill creation system if fails to file GSTR-3B

Extension of the due date of GSTR-1

E-invoice details are auto-populated in the respective GSTR-1