corporate and professional update oct 17, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 17, 2016

Direct Tax:-

Income escaping reassessment void if reasons not supplied. Bombay High Court. The Assessing Officer (AO) is bound to furnish reasons within a reasonable time and bound to dispose of the same by passing a speaking order.

Electoral trusts will not be able to accept foreign funds or contributions from public sector companies, according to new rules notified.

CBDT has issued a circular regarding the applicability of TDS provisions of section 194-I of the Income Tax Act, 1961 on lump sum lease premium paid for acquisition of long term lease.

No TDS liability u/s 194-I on lump sum lease premium or one-time upfront lease charges which are not adjustable against periodic rent paid or payable for acquisition of long-term leasehold rights over land (Click here to view)

ITAT  Mumbai in the below-cited case held that merely because doctors are subject to the payment of PF or other retirement benefits TDS u/s 194J is not deductible.

Neither the AO nor the ld CIT (A) gave their finding that any of the conditions contained in the contract of the Doctors mandate that there was the employee-employer relationship between the assessee and them, which specifically may bring the doctors in the category of employee. ( Sir Hurkisondas Nurrotumdas Hospital and Research Centre Versus The DCIT, (TDS) -3 (2), Mumbai. – 2016 (10) TMI 432

Indirect Tax:-

Supreme Court in the below-citied case held that in case of levy of security service tax after choosing one particular remedy the plaintiff cannot avail the other remedy as well in respect of the same relief founded on the same cause of action. – SC – Service Tax-( State of Rajasthan Versus Union of India And Others) – 2016 (10) TMI 462

CESTAT Mumbai in the below-citied case held that no penalty can be levied on late payment of service tax as the appellant has collected the service tax but not deposited the same it in time but deposited before issuance of show cause notice.(M/s. Kalbhor Construction Co. Versus Commissioner of Central Excise, Pune – 2016 (10) TMI 458 )

The government has doubled the limit of excise duty evasion for arrest and prosecution of accused to Rs 2 crore and also asked officials not to resort to penal provision in cases of technical nature.

FAQ on Company Law:

Query:  We have a query that in case a person is a director of a private company and holds 50% shareholding in that company and at the same time also hold 25% shareholding in another company of which he is not a director. Then, the two companies shall be Related Parties or not. If yes, kindly provide me the provision in the Companies Act 2013 as well.

Answer: As per Section 2(76)(iv) of the Companies Act 2013, Related Party with reference to a company means & includes – a private company in which a director or manager is a member or director.

Thus, Both the Companies shall be Related Parties as per the provisions of the Companies Act 2013.

MCA UPDATE :

MCA has notified that e-Form INC-29 (Integrated Incorporation Form) will be withdrawn w.e.f. 1 .11. 2016.

The Ministry of Corporate Affairs has released the new forms relevant to costing rules prior to companies (cost records and audit) FORM 23C, FORM 23D.

GST UPDATE :

Under GST returns GSRT-1A & 2A introduced in draft rules for additions, corrections, deletions of outward/inward supplies by the recipient /supplier.

Under GST normal & compounding taxpayer to file annual return. Not to be filed by casual / Non-resident taxpayers, ISDs & persons liable to deduct TDS.

SEBI UPDATE:

The special investigation team (SIT) on black money has asked the SEBI to furnish the details of P-Note data for black money investigation.

SEBI in it’s circular stated that exclusively listed co (ELCs) will be required either raise capital for listing or exit from the dissemination board.

RBI UPDATE:

The Reserve Bank of India has allowed banks to classify government securities borrowed from the central bank as SLR.

State Bank of India request for proposal (RFP) for engagement of auditor for special audit of 5 associate banks namely (SBH) ii) (SBP) iii) (SBT) iv) (SBBJ) v) (SBM) and Bhartiya Mahila Bank Ltd.

Bank of Baroda, invites proposal (RFPs) for appointment of concurrent auditors for branches for south Gujarat zone (Baroda) Last Date : 07.11.2016.

Key Dates:

Payment of DVAT TDS for the month of September-15/10/2016

Form 27EQ (TCS return) by all deductor-15/10/2016

Issue of TDS Certificate in case of payment/credit made in the month of august for purchase of property u/s 194IA-15/10/2016

Statement by bank in Form no. 15CC in respect of foreign remittance during the quarter-15/10/2016

E-Payment of PF for the month of September-15/10/2016

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