corporate and professional update july 20, 2016
Page Contents
Professional Update for the Day:
DIRECT TAX:
Income Tax: CBDT has notified the transfer pricing- computation of arm’s length price. It notified percentage under third proviso to section 92C vide Notification No. 57/2016 dated 14th July 2016.
The Central Government hereby notifies that where the variation between the arm’s length price determined under section 92C and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one percent of the latter in respect of wholesale trading and three percent of the latter in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price for Assessment Year 2016-2017.
Income tax: Receipts from the mobilization of a vessel are parts of the contract for seismic data processing; including in sec. 44BB profits Western Geco International Ltd. v. Assistant Commissioner of Income-tax [2016] 71 taxmann.com 166 (Delhi – Trib.)
INDIRECT TAX:
Excise: Where assessee manufactured two types of machinery and used same within its factory for manufacturing of final products and subsequently it cleared this machinery to its job worker and for discharging duty liability on machinery calculated assessable value of machinery by availing the benefit of depreciation, availing of depreciation was in consonance with the law – [2016] 71 taxmann.com 122 (Bangalore – CESTAT)
Excise: No extended period when dept. itself is unclear on the classification of goods Zenith Spares v. Commissioner of Central Excise, Bhopal [2016] 71 taxmann.com 148 (New Delhi – CESTAT)
Service tax: Where assessee, a restaurant, opted to pay tax under Composition Scheme, whereas Assessing Authority passed reassessment order on the assessee and denied him the benefit of Composition Scheme based on the ground that during the year he purchased from outside State tiles and since they were ‘goods in stock’, there was a violation of conditions and restrictions imposed under rule 135(2), as tiles were fixed in the floor of the restaurant, they could not be said to be ‘goods in stock’ – [2016] 71 taxman 77 (Karnataka)
COMPANY LAW UPDATES :
Query: What are the requirements and consequences provided in the Act in respect of licenses, permits, approvals, etc obtained by a firm, private company, or an unlisted public company, prior to its conversion into LLP?
Answer: On conversion of a firm/private company/unlisted public company into LLP, any approval, permit or license issued to the firm/private company/unlisted company under any other Act shall, subject to the provisions of such other Act under which such approval, permit or license was issued, be transferred in the name of converted entity viz LLP.
OTHER UPDATES:
SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2016 – Insertion of Regulation 43A – NOTIFICATION NO.SEBI/LAD-NRO/GN/2016-17/008, DATED 17-6-2016
KEY DATES:
Payment of ESI for the month of June-21/07/2016
E-payment of DVAT & CST for the month/quarter ended June-21/07/2016
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