Corporate & professional update on tax jan 10, 2016

CORPORATE AND PROFESSIONAL UPDATE ON TAX JANUARY 10, 2016

DIRECT TAX

• The Revenue Department Delhi has made the e-filing of applications mandatory for companies for payment of stamp duty on share certificates.
• E-filing of appeal before CIT (Appeals) made mandatory for taxpayers who are required to file the return of income electronically.
• CBDT has issued draft guidelines for determination of place of effective management of a company.
• Due date of filing of TDS return for the third quarter of F.Y. 2015-2016 is 15.01.2016.
• The act of the AO not justified for treating the warehousing receipts as rental income where assessee is in business of constructed warehouses for warehousing purposes.[DCIT vs. D.R.S. Warehousing (North), ITAT-Delhi].
• In the revised format, the performance of the assessing officers will also be specifically measured for quality of assessment, the pace of disposal, and efforts made towards widening of tax base.
• With these changes the assessing officers will be more conscious of their accountability for the quality of their assessment orders and the tax demanded in such orders.
• This system is expected to bring about greater judiciousness in application of law by the assessing officers.

INDIRECT TAX

• New Guidelines for e-payment of Excise/ Custom Duty & Service Tax refund/ rebate are issued. CIRCULAR NO. 1013/1/2016-CX.
• Payment received in INR through foreign bank to be deemed as convertible foreign exchange to avail export benefit. Commissioner of Service Tax, [Mumbai vs PMI Organization Centre (P) Ltd (Mumbai-CESTAT)].

• Penalty can be levied on unrecorded receipts, expenditure and investments declared by assessee pursuant to search. [ACIT Vs. Dr. Nitin Laxmikant Lad, (ITAT PUNE)].
• CBEC issues guidelines for e-payment of refund/rebate of -Excise / Custom Duty /Service tax; speeding up transfer of funds to beneficiary.
• The Income Tax Department is committed to the objective of timely delivery of quality taxpayer services in a fair and transparent environment.
• Department has modified the Annual Performance Appraisal Report (APAR) of the Assessing Officers (Income Tax Officers as well as Assistant Commissioners/Deputy Commissioners of Income Tax) to bring about greater accountability in assessment functions.

SEBI & DGFT UPDATE  

• DGFT has laid down the procedure for modification / change in Branch office / Registered office address in IEC involving change in jurisdiction RA.
• SEBI approves framework for exit opportunity to dissenting shareholders if variation in terms of contracts of prospectus. SEBI PR No. 10/2016.
• ITAT Bar Association is organising a seminar on “Ease of doing business-towards an easy, effective and efficient tax administration and policy” on Saturday, 16.01.2016 at Stein Auditorium, India Habitat Center, Lodhi Road, New Delhi. Hon’ble Chairman, Member and Joint Secretary (TPL) – CBDT, Hon’ble Law Secretary, Hon’ble President, Vice-President and Members

OTHER UPDATE  

• GRACE PERIOD of 5 DAYS for Employers to PAY/ DEPOSIT PF Contributions by 15th has been REMOVED, Circular Reference: No. WSU/9(1)2013/Settlement/35631 
• Date:08th January, 2016 : This decision has been made applicable for three schemes (Employees’ Provident Fund Scheme 1952, Employees’ Pension Scheme 1995 & Employees’ Deposit Linked Insurance Scheme 1976) and shall apply from February, 2016 (contributions for month of January, 2016 and payable in the month of February, 2016).
• No separate addition can be made when net profit is estimated by rejecting book results. [Brahamanand Agarwal, Thekhedar vs. DCIT (ITAT Jaipur)].
• Changes in the APAR format of the Assessing Officers of Income Tax Department :

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