CORPORATE AND PROFESSIONAL UPDATE DECEMBER 18, 2015

CORPORATE AND PROFESSIONAL UPDATE DECEMBER 18, 2015

ST: Whether the activity of transportation services carrying employees of companies from specific points to the factory/establishment and back can be categorized under Tour operator service – Held NO – M/s L.N. Gupta Transport Co. Vs. C. C. E., Nagpur (CESTAT Mumbai)

VAT & ST: Merely because a chemical may not be recommended for spraying on crops it cannot be said that it cannot be used for plant protection as it could be added to seeds or to the soil – State of Haryana Vs. Om Pesticides, Karnal and Anr (Punjab And Haryana High Court)

ST: CENVAT Credit – inputs and capital goods were used in construction of jetty for rendering port service. There is no reason to deny CENVAT credit on such input and capital goods – M/s Adani Port & SEZ Ltd. & M/s Adani Petronet Port Pvt. Ltd. Vs C.S.T., Ahmedabad (2015 (12) TMI 1060 – CESTAT Ahmedabad)

VAT & ST: Taxability of Sodexo Meal Vouchers – Paper based vouchers – affiliates are bound to honour – appropriate test would be as to whether such vouchers can be traded and sold separately. The answer is in the negative. Therefore this test of ascertaining the same to be goods is not satisfied – Sodexo SVC India Pvt. Ltd. Vs. State of Maharashtra & Others (2015 (12) TMI 1041 – Supreme Court)

VAT & ST: Sale of hypothecated vehicles – sale of the repossessed cars by the Appellant Bank is incidental or ancillary or in connection with the Appellant s business – M/s. Citi Bank Vs C.S.T. (2015 (12) TMI 1040 – Delhi High Court)

ST: Advances received against bank guarantee – services to be provided – It is more in the nature of a deposit – not liable to service tax – Thermax Instrumentation Ltd. Vs. C.C.E., Pune-I (2015 (12) TMI 1222 – CESTAT Mumbai)

VAT & ST: Benefit under Section 9(1) of the DVAT for input tax credit – transactions involving two firms were sham / bogus transactions – validity of order of the Objection Hearing Authority (OHA) to remand back the cast of AO – HC refused to interfere into the matter – U.K. Overseas Vs. Commissioner of Trade & Taxes (2015 (12) TMI 1194 – Delhi High Court)

MCA: Annual Filing of Forms – Just 3 days (28 Dec to 30 Dec) left without payment of Additional Fees. Thereafter, normal Additional Fee will be applicable.

MCA: Statutory Auditor (Chartered Accountant) Cost Auditor or Secretarial Auditor has to report a fraud in the company in the prescribed manner – F. No. 1/33/2013-CL-V – Dated 14-12-2015

MCA: CLB to upload the certified copies of the “Interim Orders” passed by the Principal Bench and New Delhi Bench on its official web site w. e. f 1st January, 2016

MCA clarifies – The last date for Annual Filing Forms is 30 DEC 2015 and NO Further Extension would be accorded after this date.

Stamp Duty: Property valued below Circle Rates can be registered in the Capital – Delhi High Court.

IT: Revision u/s 263 – Addition u/s 68 – AO did not make befitting inquiry in the given circumstances and the CIT has held the asst. order to be erroneous and prejudicial to the interest of the revenue – order of revision and additions confirmed – insertion of proviso to section 68 is retrospective – Auroplas Gold Pvt. Ltd. & Ors Vs. CIT (2015 (12) TMI 1241 – ITAT Kolkata)

IT: Status of the assessee – Merely because PAN was issued by the Department erroneously there cannot be any insistence that return should be filed in the same capacity. Erroneous description in the PAN would not change the reality that no such partnership firm ever existed – Tulsi Mall (AoP) And 8 Vs. CIT, Valsad (2015 (12) TMI 1077 – Gujarat High Court)

IT: Reopening of assessment – action for sanction by JCIT was without application of mind but done in a mechanical manner – revenue appeal dismissed after condonation of delay – CIT, Jabalpur Vs. M/s. S. Goyanka Lime & Chemical Ltd. (Supreme Court Of India)

DTAA: Government of the Republic of India and the Government of the Republic of Macedonia sign DTAA for the avoidance of double taxation. Notification No. 94/2015, dt.21 DEC 2015.

CBDT states inapplicability of MAT to Flls / FPIs having no permanent establishment / place of business in India for the period prior to 01.04.2015 and decided to carry out appropriate amendment to this effect –Instruction No.18/2015, dt. 23 DEC 2015.

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