CORPORATE AND PROFESSIONAL UPDATE May 26, 2017

PROFESSIONAL UPDATE FOR THE DAY

Direct Tax:

Bogus purchases: In view of the Supreme Court’s order in Vijay Proteins Ltd vs. CIT whereby the verdicts of the Gujarat High Court in Sanjay Oilcake Industries vs. CIT 316 ITR 274 (Guj) and N.K. Industries Ltd vs. Dy. CIT were confirmed, the AO has to accept the law and verify whether the transaction is genuine or not on the basis of the aforesaid three judgments CIT vs. M/s Carpet Mahal (Rajasthan High Court)

ITAT Kolkata held that in absence of fresh material indicating escaped income, the AO cannot assume jurisdiction to reopen already concluded assessment. A.C.I.T., Circle-2(1) Vs M/s. BNK E Solution Pvt. Ltd. (ITAT Kolkata)

 Indirect Tax:

SC dismisses assessee’s SLP, thereby upholds levy of service tax on commission received by automobile dealer from Maruti Finance, a unit of Maruti Udyog Ltd. (Maruti) under ‘business auxiliary service’ (BAS) u/s 65(105) of Finance Act, 1994; HC had earlier dismissed assessee’s writ petition rejecting his plea that, since Maruti had already deposited service tax amount, hence, it (i.e. assessee) cannot be asked to satisfy outstanding demand as same would amount to ‘double taxation’  [TS-127-SC-2017-ST]

FAQ on GST

Query:  What is the time limit for issuance of invoice in case of supply of service stopped before completion of the service?

Answer: In situation when supply of service cease under a contract before completion of supply. The invoice would be issued to the extent of supply which has been made before such cessation.

Read more about: What is core Business Activity GST

Read more about: Important decisions made at the  43^rd GST Council  meeting

Other Updates

Central Government directed Income-tax authorities under section 116 of the Income-tax Act, 1961, having headquarters at the places specified, to exercise the powers and perform the functions of the ‘Authority’ under the Prohibition of Benami Property Transactions Act, 1988.

Under GST Casual taxable person or Non-resident taxable person cannot opt for Composition scheme under GST. (Rule 3(1) (a) of Composition Rules).

GST Council may reconsider the proposed 43 per cent tax on hybrid cars at its meeting next week after the auto industry voiced disappointment over the steep rate hike.

RBI issued Regulatory requirements for issue of Pre-paid Payment Instruments by Co-operative Banks which have installed ATMs and issued ATM cum Debit cards to introduce semi-closed Prepaid Payment Instruments (PPIs) for payment of utility bills / essential services up to a limit of Rs.10, 000.

Union Cabinet scrapped the 25-year-old Foreign Investment Promotion Board (FIPB), which has been overseeing foreign direct investment (FDI) proposals requiring government approval.ICAI issued Important Clarification on Amendment to Paragraph 17 of Revised Guidance Note on Audit of Consolidated Financial Statements.

LIVE Webcast on SFT in Form 61A under Rule 114E on 26.5.17 from 3-5 PM addressed by DIT (I&CI) -organized by DTC, ICAI. Visit www.icai.org

Key dates:

Advance Information for 1^st fortnight of June functions with booking cost > Rs. 1 lakh in Banquet Halls, hotels etc. in DVAT: 27/05/2017

Issue of TCS Certificates by collectors for quarter ended March: 30/05/2017

Issue of TDS certificate to employee:31/05/2017

TDS returns for march quarter by ALL deductors:31/05/2017

Quote of the Day:

“Remember your yesterdays, dream your tomorrows and live your todays..”

” The biggest challenge in life is being yourself… In a world trying to make you like everyone else.”.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com    E: singh@carajput.com   T: 011-233-4-3333, 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.