CORPORATE AND PROFESSIONAL UPDATE JULY 26, 2016

Professional Update for the Day:

12

DIRECT TAX:

Income Tax: CBDT has issued standard operating procedure for handling AIR transactions without valid PAN videF.No.225/193/2016/ITA.1I dated 22nd July 2016.

 Income tax ITAT Mumbai in the below citied case held that the fair market value of the property is dependent on several factors which influence valuation and there is no scientific or straight jacket method to value the property at a particular point of time and somewhere estimation element will definitely creep in while determining the fair market value of the property as on date keeping in view the mandate of Section 55 and 55A.

Income tax : The ITAT Delhi in the below cited case held that the need, rendition and benefit test for services availed by the assessee from associated enterprises should be applied having regard to the assessee’s business and not in a generic manner. TPO should have given due thought to the requirements, benefits and manner of rendition of services by AEs before jumping to the conclusion that services not provided and no benefit accrued to assessee.

INDIRECT TAX:

Excise: CESTAT allows Revenue appeal, holds that assessee cannot claim refund of Additional Duty of Excise (Textile and Textile Articles) credit remaining unutilized under Rule 5 of CENVAT Credit Rules, upon opting for Notification exemption. It held that assessee is not entitled to such refund unless it shows fulfillment of conditions prescribed under Rule 5 and Notification there under, and in terms of SC ruling in Woodcraft Products Ltd, assessee is bound to restitute the amount refunded pursuant to appellate order  : Mumbai CESTAT  [TS-292-CESTAT-2016-EXC]

Vat & Service tax: Levy of VAT and Service tax both on Supply of tangible goods service – Merely because the petitioner argues that not service tax but value added tax would be leviable since the title in the property does not pass on to the lessee would not be a ground to hold that the tax authorities cannot examine and entertain such a contention thus rendering them wholly without jurisdiction. – HC – Service Tax

COMPANY LAW UPDATES:

Query:  Do we need to execute any agreement/deed for transferring the assets & liabilities on conversion of company into LLP?

Answer:  On conversion of the Company into LLP, all tangible (movable or immovable) and intangible property vested in the company, all assets, interests, rights, privileges, liabilities, obligations relating to the company and the whole of the undertaking of the company shall be transferred to and shall vest in the limited liability partnership without further assurance, act or deed.

The transfer of assets and liabilities will be made automatically on approval of conversion application and therefore there is no requirement of executing any agreement/deed.

OTHER UPDATES:

SEBI: SEBI through its Circular has asked intermediaries to upload KYC documents with the central server for all new individual accounts that will be opened from August 1.

Govt notifies pay scale as per 7th Pay Commission recommendations .Notification No. 1-2/2016-IC dated 25.07.2016.

KEY DATES:

Advance information in Form BE-2  for 1st fortnight of August of functions with booking cost more than Rs 1 lakh in Banquet Halls, hotel etc. in Delhi in DVAT Act:- 27/07/2016

E-Return of DVAT in form no-16 and CST-1 for the quarter ended June- 28/07/2016

Last Date of filling of ITR for the A.Y. 2016-17 is 31st July, 2016.

“Anger comes alone but takes away all our good qualities. Patience too comes alone but brings all the good qualities for us. Choice is our so have patience.”

FOR FURTHER QUERIES CONTACT US:
W: www.carajput.com E: info@carajput.com T: 011-233-4-3333, 9-555-555-480

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