Professional Update for the Day:
Income Tax: Interest paid by contractor to finance its business wasn’t includible in cost of inventory; No understatement of WIP Deputy Commissioner of Income-tax, Central Circle 2(2), Bangalore v. JSR Constructions (P.) Ltd.  71 taxmann.com 184 (Bangalore – Trib.)
Income tax : ITAT Chennai in below citied case held that Continuance of registration u/s 12AA – The beneficiaries is only the members and benefit is not passed on to the public at large in any way. – Therefore, the objects and activities of the applicant cannot be called as “charitable” within the definition of main provision of section 2(15) –( ITAT Chennai in case of [M/s. Aiema Technology Centre Vs. The DIT, (Exemptions)]
Income tax : ITAT C Ahmedabad in below citied case held that Valuation u/s 50C is a deeming provision and it extends only to land or building or both. – Rights in the land cannot be equated to land or building or both and therefore section 50C is not applicable on transfer of such rights –( ITAT Ahmedabad in case of [Smt. Devindraben I. Barot Vs. ITO, Ahmedabad])
Excise : Where assessee manufactured two machineries and used same within its factory for manufacturing of final products and subsequently it cleared these machineries to its job worker and for discharging duty liability on machineries calculated assessable value of machineries by availing benefit of depreciation, availing of depreciation was in consonance with law –  71 taxmann.com 122 (Bangalore – CESTAT)
Service tax : Where assessee provided site formation and clearance and excavation services to one ‘S’ and ‘S’ in terms of agreement supplied explosives and diesel oil free of cost to assessee for rendering services and also paid bonus to it for a good performance, Adjudicating Authority was wrong in including value of explosives and diesel oil and bonus received by assessee in assessable value of services –  71 taxmann.com 175 (Bangalore – CESTAT)
COMPANY LAWUPDATES :
Query: What shall be treatment of reserves in case we convert our Private Limited company to LLP?
Answer: In case of conversion of Private company into LLP, reverves can be treated in two ways. – for the treatment of reserves subsisting in the Balance sheet of Company, either distribute the reserves among the partners in their capital sharing ratio or the same would be transferred in the reserves account of the LLP under the head Reserves & Surplus.
Use latest version of e-Forms INC-23, MR-1 and MR-2, which are likely to be revised on MCA Portal by 21.07.2016.
The recommendation of the Supreme Court-constituted special investigation team (SIT) to ban cash transactions above Rs.3 lakh and capping cash holdings of companies and individuals at Rs.15 lakh will be detrimental for India’s traditional economy, according to a leading traders body.
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
Time limit for payment of tax and penalty under the Income Declaration Scheme 2016 extended to 30.09.2017. CBDT Press Release dated 14.07.16
“Those who cannot renounce attachment to the results of their work are far from the path.”
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