CORPORATE AND PROFESSIONAL UPDATE MARCH 29, 2017

Professional Update For the Day:

Direct Tax:

Share application money received from bogus shareholders, ITO to reopen assessment of such shareholders and not to add the same to the assessee’s income as unexplained cash credit – CIT-1 Vs Gagandeep Infrastructure Pvt. Ltd. (2017 (3) TMI 1263 – Bombay High Court).

Lessee can’t claim depreciation on reimbursement of construction cost to lessor: Apex Court [2017] 79 375 (SC)

Fine for traffic violation isn’t deductible as business expenditure: Kolkata ITAT .[2017] 79 240 (Kolkata – Trib.).

Recruitment services to foreign co. using information technology wouldn’t be eligible for benefit u/s 10A, SLP granted .[2017] 79  255 (SC)

Materials confiscated due to contravening excise rules could be retained by assessee on payment of redemption fine. [2017] 79 262 (Madras).

Out of pocket expenses which are in nature of conveyance, travel, mobile expenses etc. cannot be included for purpose of levy of service tax under category of management consultant. [2017] 7 196 (New Delhi – CESTAT).

The Central Board of Direct Taxes (CBDT) on March 24 issued a circular for waiver of interest in disputed tax demand in different scenarios.

Govt. can make Aadhar must for ITRs, PAN, Bank A/cs, etc. except welfare schemes – Supreme Court of India.

Share application money rec’d from bogus shareholders, ITO to reopen assessment of such shareholders and not to add the same to the assessee’s income as unexplained cash credit – CIT-1 Vs Gagandeep Infrastructure Pvt. Ltd. (2017 (3) TMI 1263 – Bombay High Court).

CBDT has issued a notification via notification no. 17/2017/F.No. 370142/4/2017-TPL dated 23rd march,2017declaration of Income tax ( 3rd Amendment) Rules, 2017.

ITAT Mumbai held that TDS is not applicable on Hotel Rent in absence of any contract . Red Chillies Entertainment Pvt. Ltd. Vs ACIT.(TDS) (ITAT Mumbai)

ITAT Mumbai held that Rule-8D is not attracted and applicable in a situation, where, the assessee has voluntarily computed the disallowance as per Rule-8D of the Rules. M/s Shapoorji Pallonji & Co. Ltd Vs. DCIT (ITAT Mumbai)

Rajasthan High Court held that notice issued by the authority asking the assessee to file the returnwithin fifteen days under section 158BC is not in accordance with the provisions of the Income-tax Act and therefore it is invalid. Kumawat Udyog Bus Stand Vs CIT (Rajasthan High Court)

Indirect Tax:

DVAT has prescribed the procedure  to be adopted for de-selling of the business premises, which are sealed in the event of Enforcement Survey etc. by the officers of the Department of Trade & TaxesVide Circular No. 27 of 2016-17 dated 08.03.2017. (Click here to view)

CBEC has issued Master Circuar on Show Cause Notice, Adjudication and Recovery Vide Circular No. 1053/02/2017-CX dated 10.03.2017.

CBEC has issued a circular via circular no. 205/3/2017 – service tax dated 27th march, 2017 regarding extension of e-payment deadline and of banking hours.

CESTAT Mumbai held that enhanced duty inapplicable on goods loaded on ship for export, before enhancement of duty; Accepts assessee’s contention that, checklist of shipping bill indicates that permission has been granted on each day when loading has taken place, therefore, enhanced rate of duty would be applicable only to consignments loaded after issue of notification. [TS-567-CESTAT-2016-CUST]

FAQ ON GST:

Query: 

If an individual buys a car for personal use and after a year sells it to a car dealer. Whether this transaction will be a supply in terms of MGL?

Answer: No, this transaction is not be a supply because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was meant for non-business use.

Query: Under reverse charge, what is the time of supply of service?

Answer: The time of supply will be the earliest of the following dates:

1. a) date of receipt of services;
2. b) date on which payment is made;
3. c) date of receipt of invoice;
4. d) date of debit in the books of accounts by supplier.

GST UPDATE

GST Peak rate kept at 40% in the Bill to obviate the need to approach Parliament for changing tax rates in case of exigencies or when the Cess is removed.

The CGST Bill keeps TCS not >1% of the net value of taxable supplies out of payments to vendors of goods or services through e-Commerce companies portal.

More updates:IMPACTS OF GST E-INVOICING SYSTEM

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

SEBI Updates:

SEBI has further extended the period by three months to the Exclusively Listed Companies (ELCs) on the Dissemination Board (DB) till June 30, 2017.

MCA Update:

MCA has revised the versions of eForm – Form 20B, Form PAS-3 and  Form 23ACA, will be available on the portal w.e.f  29th  March 2017.

Other Update :

ICAI is organising Master in Business Finance Certificate Course (MBFCC) – Registrations opened. https://resource.cdn.icai.org/44930cma34840.pdf. Cntct-0120-3045905 / cma@icai.in

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

The Secret of Health for both mind and body is, not to mourn for the Past, worry about the Future or anticipate Troubles, but to live in the Present Moment wisely and earnestly.

The pain you feel today is the strength you feel tomorrow.

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