CORPORATE AND PROFESSIONAL UPDATE SEPT 17,2016

Professional Update For the Day:

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DIRECT TAX:

CBDT has extended the due date of filling of Income tax return  by tax payers whose accounts are required to be audited under the Income Tax Act from 30th September , 2016 to 17th october, 2016 vide order  F.No.225/195/2016-1TA-II dated 09/06/2016.

ITAT Delhi in the below citied case held that no penalty u/s 271(1))(c) will be levied as  The entire addition was based on the conditional surrender made by the assessee. The AO did not honour the condition of not levying penalty and went ahead and issued notice for levying penalty u/s 271(1)(c)- [AdeshTyagi, S/o Shri Karan Singh Tyagi Vs. ITO, Ward-1 (1) , Ghaziabad]

Office in Chennai doesn’t confer territorial jurisdiction to Chennai HC if assessment records available at Delhi Tecpro Systems Ltd. v. Union of India [2016] 73 taxmann.com 58 (Madras)

IT: The NOIDA has been constituted by the State Act and therefore entitled to exemption of payment of tax at source under section 194-A (1) of the Act – CIT (TDS) Vs Syndicate Bank (2016 (9) TMI 308 – Allahabad High Court).

IT: Transfer pricing adjustments – TPO directed to take into account 30 additional cost base to account free of cost material and revised the OP/TC margin of 13.65 for determining the arm s length margin as claimed by the Assessee – Pr.CIT-02 Vs Bombardier Transportation India Pvt. Ltd (2016 (9) TMI 306 – Delhi High Court)

If there is neither anything in its condition nor anything in the evidence to indicate the intention of its owners or possessors so as to connect it with an agricultural purpose the land could not be agricultural land.( Mr. Rajesh J. Thakkar Versus The Deputy Commissioner of Income Tax)

CBDT has launched the ambitious ‘e-nivaran’ facility for online redressal of taxpayers’ grievances related to refunds, ITRs and PAN among others as part of its initiative to reduce instances of harassment of the public when it comes to complaints related to the I-T Department.

INDIRECT TAX:

The doctrine of unjust enrichment is established even if the credit notes are issued after clearance of goods. –( C.C.E., Bhopal Versus M/s. Tesla Transformer Ltd.) – 2016 (9) TMI 285 – CESTAT NEW DELHI – Central Excise

ST: The Department of Revenue has specified that the religious places shall be exempted from payment of Service Tax. All religious places shall be considered to fall within the purview of clause (a) of entry 5 of Notification No. 25/2012- ST, to be exempted from payment of service tax.

DVAT: Date of filling of DVAT Return in Form-16, 17 & 48 for Q-1FY2016-17 has been extended up to 19 SEP 2016. Circular No.14, dt.09-09-2016.

DVAT has extended the due date of filling the return in form 16,17 & 48 for Q1 2016-17 upto 19-09-2016 videcircular No- 14/2016 F. No. .7(420)/VAT/Policy/2011/PF/ 172-17 dated 09-0-2016.

GST UPDATE:

GST Act of the Parliament received the assent by the president on the 8th September,2016 and has been published for general information.This Act may be called the Constitution (One Hundred and First Amendment) Act, 2016.

GST bill now a law, President Shri Pranab Mukherjee gives assent to the constitutional amendment bill. GST Council to be constituted to resolve GST rates, dual control over assessment / scrutiny & area based exemptions.

GST: Provisions relating to Formation of GST Council comes into effect from  (12 SEP 2016 – The Constitution (One Hundred and First Amendment) Act, 2016 as notified on 10.09.2016.

FAQ on Company Law:

Query:   A Private limited Company has subsidiary named ‘Y Private Limited, and both are SMC’s. Kindly confirm whether that Private Limited  Company  be required to prepare CFS?

Answer: As per section 129(3) every company is required to prepare the CFS. In AS-21, it is clearly stated that the accounting standard does not mandate an enterprise to present consolidated financial statements but, if the enterprise presents consolidated financial statements for complying with the requirements of any statute or otherwise, it should prepare and present consolidated financial statements in accordance with AS.

So in this case, that Private Limited Company will be required to prepare the CFS as per the requirement of Companies Act, 2013 and for the purpose of preparing CFS it has to follow guidelines of AS.

Query:  Can a director attend all Board meetings in a year through video conferencing mode. Will it be counted for quorum? Please advice.

Answer: Yes, as per Rule 3(2)(e) & (f) of the Companies (Meetings of Board and its Powers) Rules, 2014, any director who desire, to participate may intimate his intention of participation through electronic mode at the beginning of calendar year and such declaration shall be valid for one calendar year. And in absence of any intimation, it shall be assumed that director shall attend the meeting in person.

Further, Rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 provides for the matters which shall not be dealt with in a meeting through video conferencing mode or other audio visual means.

RBI UPDATE

RBI asks banks to accept cash from declarants of IDS, 2016 RBI/2016-17/62 Dated September 8, 2016 DBR.No.Leg.BC. 13/09.07.005/2016-17 Dated September 8, 2016

RBI issued Income Declaration Scheme , 2016 –Acceptance of cash over the counter vide RBI/2016-17/62 dated 08/09/2016. RBI asks banks to accept cash from declarants of IDS, 2016

ICAI UPDATES:

MEF online submission date has been  extended to 20th Sept . This is the second extension. Declaration to be submitted by 30 Sept in case of manual submission of declaration. You can also sign it digitally. In case of partnership firm, DSC of all the partners required. The application is in three Parts. Now only Part A shall be filed.  B and Part  C of MEF have been made non functional thus MEF PART A for Bank Audit is to be filed by 20 sep rest to be filed after 1 October 2016.

Key Dates:

  • Issue of TDS certificate in case of payment/credit made in july for the purchase of property u/s 194IA- 14/09/2016
  • Deposit of DVAT/TDS for the month of August-15/09/2016
  • Payment of Advance Tax(Second Installment) for the A.Y. 2017-18.-15/09/2016
  • Last date of deposit of PF contribution by the employee;- 15/09/2016

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