Corporate and Professional update Sept 19, 2016

CORPORATE AND PROFESSIONAL UPDATE SEPT 19,2016

DIRECT TAX UPDATE

• Extension to 17-10-2016 of due date for filing ITRs in cases where the due date of ITR is 30.9.2016 due to clash with Income Declaration Scheme 2016. CBDT Order of 9-9-2016.
• No penalty for not declaring STCG due to bonafide mistake/clerical error [Shri Raj Dutta vs. JCIT (ITAT Delhi)].
• Under Income Declaration Scheme 2016 no capital gains/TDS on transfer (without consideration) of declared benami property within 1 year to the Declarant.
• Direct cash deposit in supplier’s bank a/c does not attract disallowance u/s 40A (3) [Bolkunda Pachwai & (S) C.S. Shop vs. Income-tax Officer (ITAT Kolkata)].
• CBDT clarifies due date extension is also applicable to Accounts audited under Sec 44AB vide notification no 225/195/2016-ITA II.
• IT: The service fee payable by the applicant to DRL Russia under the agreement for the promotion of goods cannot be regarded for the purpose of fees for technical services. – Not Taxable – In Re: Dr. Reddy Laboratories Limited(AAR)

INDIRECT TAX UPDATE

• The date of filing of DVAT return in forms 16,17 & 48 for Q-1 2016-17 has been extended upto 19-09-2016vide circular no-14, dated 09-09-2016.
• CBDT launches online ‘Nivaran’ to resolve Income Tax grievances.
• The last date for payment of the second installment of Advance Tax is 15.09.16.
• Dept 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- Service Tax, to be exempted from payment of service tax.

ICAI UPDATE

• MEF online submission date extended to 20 September 2016 declaration to be submitted 30 September 2016.
• Please pay ICAI Membership and COP fee before 30th September 2016 in order to avoid removal.
• ICAI launch a “Support-desk for Implementation of Ind AS”, so as to address the difficulties faced by the members and stakeholders.

OTHER UPDATE

• ESIC Hikes wage ceiling from Rs.15000 to Rs.21000 w.e.f 1st Oct 2016.
• EPF: To know your BALANCE, give a missed call on 011-22901406 from your registered mobile number to get SMS alert immediately.

RBI UPDATE

• 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 (Click here to view)
• The Reserve Bank of India issues guidelines for the preparation of half-yearly ProformaInd AS Financials by specified financial institutions CIRCULAR DBR.FID.NO.1/01.02.000/2016- 17, DATED 4-8-2016.

Unclaimed Deposits or Inoperative Accounts in Banks- RBI Revised Instructions

• The Reserve Bank of India has issued revised Instructions with effect from 01 April 2024 relating to Unclaimed Deposits  Inoperative Accounts in Banks & waiver of related Penal Charges applicable to Clients

GST UPDATE

• Under GST For Refund, Assessee to submit CA Certificate that GST burden not passed to the customer. Self Certification up to threshold amount.
• GST: Cabinet approves creation of GST Council and its Secretariat – The Finance Minister to be the Chairperson, decided to call the first meeting of the GST Council on 22nd and 23rd SEP 2016 in New Delhi.
• For GST roll out wef 1.4.2017, Parliament will have to approve CGST & IGST Bills & State Assemblies will pass their own SGST Bills.
• Under GST late returns would attract a fee of 100 per day subject to a maximum of Rs 5,000/- maximum fee in case of annual return is 0.25% of aggregate turnover.

MCA UPDATE

• MCA has relaxed additional fees for filing Form IEPF-1, replacing the Form-1-INV prescribed under CA’ 1956 and was not available for filing since 25 MAR 2016, upto 07 OCT 2016.

CS authorized to do compliance audit of labor laws for shops or factories in Haryana
NOTIFICATION  NO.11/38/2016-4Lab Dated 10th August 2016

MCA amends Schedule V of the Companies Act,2013, w.e.f. 12th September 2016. MCA Notification dated 12.09.16.

An MCA has enforced certain provisions of the Companies Act, 2013 w.e.f 9th Sept 2016. Section 227, 242, 246,241 or 245 and Sec 337 to 341 (to the extent of their applicability for Section 246.

MCA vide Notification dated 9 Sept. 2016 has notified the Companies Mediation and Conciliation Rules 2016, which shall come into force from the date of their publication in the Official Gazette.

The MCA has designated Special Courts for the States of Chhattisgarh, Manipur, Rajasthan, Punjab, Haryana, Chandigarh, Districts of Coimbatore, Dharmapuri, Dindigul, Erode, Krishnagiri, Namakkal, Nilgiris, Salem and Tiruppur, Pandichery for the purposes of providing speedy trial of offenses punishable with imprisonment of 2  years or more under the Companies Act, 2013.

FAQ on Company Law:

Query: Whether section 186 shall be applicable to NBFCs. Kindly advice

Answer: Section 186(11) provides an exception to banking company, insurance company, housing finance company that lends loan in the ordinary course of business and to companies that are engaged in the business of financing companies or providing infrastructural facilities.

Further, Rule 11(2) of Companies (Meetings of Board and its Power) Rules, 2014 provides that for the purpose of Section 186(11), the expression ‘business of financing companies’ shall include, with regard to, a Non-Banking Financial Company registered with Reserve Bank of India, the business of giving of any loan to a person or providing any guarantee or security for due repayment of any loan availed by any person in the ordinary course of business.

Query:  What is the procedure to file details of the unclaimed and unpaid amounts?

Answer:  Form IEPF-2 is required to be filed by the company/Corresponding New Bank which shall contain investor-wise details of unclaimed and unpaid amounts in respect of dividends, debentures, deposits, etc. The details of unclaimed and unpaid amounts shall need to be provided as on the Annual General Meeting (AGM) date. This form is to be filed annually within 90 days from the date of AGM. The form can be downloaded from the IEPF portal of the Ministry.

KEY DATES:

• Return of TDS for June quarter in DVAT-48- 19/09/2016
• Income Tax ITR filing extension of due date from 30-9-2016 to 17-10-2016, applicable for ITRs to be originally filed by 30-9-2016 & Tax Audit Reports also. CBDT Clarification of 14.09.2016.

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