CORPORATE AND PROFESSIONAL UPDATE MARCH 25, 2017

Professional Update For the Day:

Direct Tax:

Advertisement expenses incurred to publicize change of name from UTI bank to Axis Bank allowable as revenue exp. [2017] 79  187 (Ahmedabad – Trib.)

Sum paid for right to use software without any copyright won’t fall within the purview of royalty.[2017] 79  206 (Kolkata – Trib.)

Payment made by assessee to ICC as ‘Rights fee’ was exclusively for use of Marks of ICC for purposes of promotion and advertisement and not for manufacture and sale of licensed products, hence, not in nature of ‘Royalty’ or ‘Fees for technical services’. [2017] 79  271 (Delhi – Trib.

Interest rate prevailing in country where loan is consumed to be used to determine ALP of loan granted to AE. [2017] 79  215 (Mumbai – Trib.)

Pradhan Mantri Garib Kalyan Yojna to declare Black Money is going to end on 31.03.2017. Either Pay Tax @ 49% or @ 77% along with penalty, prosecution and enforcement actions after this Scheme. 

The Lok Sabha passed the Finance Bill, Starting from April 1, 2017:

2. A) The tax rate on income between Rs. 2.5-5 lakh will be 5 per cent from 10 per cent.
3. B) A 10 per cent surcharge for individuals having income from Rs. 50 lakh to 1 crore.
4. C) A simple one-page ITR form for individuals having a taxable income up to Rs. 5 lakh other than business income.
5. D) No deduction will be allowed for investment in Rajiv Gandhi Equity Saving Scheme from Assessment Year 2018-19.
6. E) Income tax officials can reopen tax cases for up to 10 years if search operations reveal undisclosed income over Rs. 50 lakh.

F)Taxpayers who do not file their returns on time will have to shell out a penalty of up to Rs. 10,000 from AY 2018-19.

1. F) The holding period of a property for qualifying as long-term gains will be reduced to two years, from three years.
2. G) The government has cut down tax benefits borrowers enjoyed on properties let out on rent up to Rs. 2 lakh.
3. H) Individuals will be required to deduct a 5 per cent TDS for rental payments above Rs. 50,000 per month fromJune 1, 2017.
4. I) Partial withdrawals from National Pension System (NPS) will not attract tax.
5. J) Aadhaar number will be a must while applying for PAN as well as filing of income tax returns fromJuly 1.

K)limit on cash transactions has been set at Rs. 2 lakh from proposed Rs. 3 lakh.

Indirect Tax:

Input service availed by wholly owned Subsidiary Company allowable as credit to Holding company:[2017] 79  217 (New Delhi – CESTAT)

Consumables used in provision of services can’t be treated as sales; not liable to VAT. [2017] 79 195 (Delhi)

GST Updates :

All existing indirect tax assessees to migrate to GST in next 7 days as 31.3.17 is the last date shown on www.gst.gov.in for this purpose.

More updates:IMPACTS OF GST E-INVOICING SYSTEM

More updates:Key characteristics for Auto-population of e-invoice

Key Due Dates:

Important dates for March 2017:

• 6 March  : Service tax monthly deposit other than Ind, HUF & P.Firm
• 7 March  : TDS/ TCS deposit
• 15 March : Deposit of PF
• 15 March : Payment of Advance Tax
• 20 March : Monthly UP VAT return & tax
• 21 March : Deposit of ESI
• 31 March : E-payment of service Tax by all assesses Monthly/ Quarterly
• 31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17
• Return of TDS for dec quarter in DVAT 48 : 17:03:2017
• E payment of DVAT & CST tax for Feb : 21:03:2017
• Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.
• E payment of service tax for quarter ended march : 31:03:2017
• E payment of excise duty for quarter ended : 31:03:2017
• Filing of ITR for AY 2016-17 without penalty & AY 2015-16 with penalty of 5000 : 31:03:2017
• Payment of balance Advanve income tax by ALL (sec 234B&234C) : 31:03:2017
• Issue of DVAT certificate for deduction made in feb : 22.03.2017

 

A seed grows with no sound, but a tree falls with huge noise. Destruction has noise, but creation is silent. Grow Silently.

You can never cross the ocean until you have the courage to lose sight of the shore.

 

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