CORPORATE AND PROFESSIONAL UPDATE DEC 17, 2016

 

Professional Update for the Day:

Direct Tax:-

• Delhi High Court held that assessment proceedings to be invalid against the assessee in those cases where the assessee ceased to have legal existence on account of amalgamation with another entity on a date even prior to search. Because when the assessee ceased to have existence even on the date of search, no notice as a result of search can be issued in its name. [CIT Vs Indu Surveyors & Loss Assessors P. Ltd.].
• 147 reopening opens a “Pandora’s box” and cannot be done in a casual manner. The reasons cannot be based on mere doubts or with a view to verify basic facts. If the AO takes the view that the income referred to in the reasons has not escaped assessment, he loses jurisdiction to assess other escaped income that comes to his notice during reassessment Torm Shipping India Pvt Ltd vs. ITO (ITAT Mumbai).

Indirect Tax:-

• CESTAT Chennai in the below cited case held that merely because assessee has not reverse credit attributable to provision of exempted services would not disentitle it to claim credit which is otherwise available in respect of input services used in provision of taxable services. [SIFY Technologies ltd. Vs Commissioner of Service Tax, LTU Chennai].

Companies Act  Update:-

• MCA has issued the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 which shall be come into force with effect from 15th December, 2016.

GST Update:-

• VAT Dealers of Chandigarh, Delhi, Haryana, Himachal, J&K, Punjab, Rajasthan, Uttarakhand & UP start Enrolment at www.gst.gov.in w.e.f. 16 Dec 2016.
• In Revised Draft GST Law, Securities has been excluded from definitions of Goods & Services. So no GST will be applicable on shares, bonds etc.

RBI Update:-

• RBI has advised all the Regulated Entities (REs) to strictly comply with the extant instructions stipulated in the Master Direction on Know Your Customer (KYC).

Other Update:-

• Pradhan Mantri Garib Kalyan Yojna where in 50% tax, surcharge, penalty and 25% deposit for four years is stipulated for disclosure of cash or deposit in bank, shall come into force from 17-12-2016 and shall be in force till 31-03-2017. [Notification No. 115/2016 dated 16-12-2016].
• The Insolvency and Bankruptcy Board of India notifies Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 notified.

Key Dates:-

• E- Payment of DVAT & CST for Nov : 12.2016
• Issue of DVAT Certificate for Deduction made in Nov : 12.2016

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