corporate and professional update march 4, 2016

CORPORATE AND PROFESSIONAL UPDATE DATED  MARCH 4, 2016

Direct Tax

• New Form 35 for Appeal to the Commissioner of Income-tax (Appeals) introduced vide CBDT NOTIFICATION dated 01.03.16.
• Last day to pay advance tax is 15th March for payment of 100% of income tax for FY 15-16.
• Time Limit for completion of property acquired or constructed with the borrowed capital increase from 3 year to 5 years for getting exemption u/s 24(b) in respect of Self Occupied House Property
• Contributions made on or after the 1st day of April, 2016 by an employee participating in a recognised provident fund and superannuation fund, up to 40 % of the accumulated balance attributable to such contributions on withdrawal shall be exempt from tax.
• 68 : No addition where creditability of creditors established. [Mahalaxmi Housing & Finstock Pvt. Ltd. vs. ACIT (ITAT Ahmedabad)].
• CBDT notifies 15% depreciation allowance on Oil Wells. Notification 13/2016.
• IT: Deduction u/s. 10B – Even though an estimation of excess stock in the middle of the year while accepting the Books of Accounts of the year is not generally permitted by various decisions of the ITAT since Assessee is eligible for deduction u/s.
• 10B on the additions/disallowance made on these units we are of the opinion that the same amount can be allowed for deduction u/s. 10B as the stock pertains to Hosur and Ongole units which are eligible for deduction u/s. 10B – Madhucon Granites Ltd. Vs. DCIT, Hyderabad (2016 (3) TMI 83 ITAT Hyderabad)
• Addition u/s. 68 – CIT(A) should not have rubbished the affidavit without going into the merits. Therefore in the interest of justice and fair play we restore this issue to the files of the A.O. – Shri Dinesh Tarachand Kasat and Others Versus The Dy. Commissioner of Income-Tax, Central Circle-1 (3) , Ahmedabad and Vica-Versa (2016 (3) TMI 91 – ITAT Ahmedabad)

Indirect Tax

• Services of transportation of passengers by stage carriage excluded from Negative List (applicable w.e.f.1st June’ 2016) such services by a non-air-conditioned contract carriage will continue to be exempted, notification No. 09/2016-S.
• Education services deleted from Negative List (Applicable w.e.f. the enactment of Finance Bill’ 2016)  but the service tax exemption on them is being continued by incorporating them in the general exemption notification (Notification No. 25/2012-ST) – notification No. 09/2016-ST.
• CCI doubles limit of value of assets & turnover for determining entities combination. NOTIFICATION S.O. 675(E).
• Prior permission to transfer Cenvat Credit after Amalgamation / Merger. [M/s. S.C. Johnson Products (P) Ltd. vs.  C.C.E. (CESTAT Delhi)]
• Cenvat Credit can be claimed on the basis of photocopy of duty payment document.[Arbes Tools P. Ltd. vs. CCEx (CESTAT Mumbai)].
• Increase in clean energy cess (Notification No. 1 & 2/2016 dated 29th Feb, 2016) applicable from 1st March, 2016.
• DVAT: Due date for filing online Form 9 for FY 2014-15 has been extended to 31 MAR 2016.
• DVAT: Digital Signatures made mandatory for filing DVAT-16 and DVAT-17 w.e.f. Q4-FY 2015-16 returns for dealers with GTO exceeding Rs.50 Lac in FY 2014-15.

MCA Updates

• MCA: As the National Company Law Tribunal (NCLT) and its Appellate Authority is at an advanced stage of constitution and after its constitution, it is proposed to commence the provisions relating to Revival of Sick Companies (Chapter XIX) of Companies Act, 2013.
• The draft Rules for the Revival of Sick Companies (Chapter XIX) of Companies Act, 2013, have been prepared by a Committee consisting of Ministry officials and Experts drawn from various fields.

Other Updates

• RBI has issued Know Your Customer Direction, 2016 for all Banks or entities licensed u/s 22 of Banking Regulation Act, 1949, Etc.

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