CORPORATE UPDATE FOR 1st NOVEMBER 2015

UPDATES

1. ST: Where assessee was under bonafide belief that its activities were non-taxable, same was a reasonable cause for non-payment of service tax in time, and hence, no penalty could be imposed in such case [2015] 196 (Mumbai – CESTAT) Arvind Processors (P.) Ltd. v. Commissioner of Central Excise & Service Tax

2. CENVAT: Cenvat credit can be availed by the manufacturer on strength of invoices issued by the supplier for clearance of inputs or capital goods, showing manufacturer’s name as consignee and name of dealers as a buyer [2015] 193 (Mumbai – CESTAT) Aplab Ltd. v. Commissioner of Central Excise

3. IT: Where assessee was under bonafide belief that receipt from the non-compete agreement was a capital receipt and had credited same to capital account and the Capital account was furnished along with the return of income, the penalty for furnishing inaccurate particulars was not justified [2015] 236 (Ahmedabad – Trib.) (TM)Piruz Areez Khambatta v. ACIT

4. IT: On cancellation of booking of the apartment if an excess refund is made to the old purchaser after taking advance from the new purchaser, such excess payment could not be qualified to be interesting as defined under section 2(28A); payer builder would have no TDS obligation [2015] 177 (Kerala) Beacon Projects (P.) Ltd. v. CIT

5. Liability for excise duty payable on closing stock should be provided in the books

6. CBDT constitutes a committee to simplify tax provisions; Taxmann’s author Mukesh Patel and CA Vinod Jain included in the committee

Banking and Corporate Laws:-

1. Compliant filed for defective goods within 3 years of expiry of guarantee period wasn’t barred by limitation.
2. CLB isn’t conferred with jurisdiction under Cos Act to adjudicate upon validity of allotment of shares.
3. 56 com411 (Calcutta)CL: Non-payment of unpaid dividend by a company is a continuous offence committed by company of which limitation cannot be bar.
4. IRDA’s approval must to register transfer of shares of Insurance-co. if it changes substantial holding of transferee.
5. CCI rejects allegation of anti-competitive practices against Flipkart, Amazon, and other e-commerce portals.
6. Banks acquiring equity shares pursuant to debt restructuring needn’t comply with disclosure norms under takeover code.
7. SEBI prescribes norms on pricing for debt-equity conversion under debt-restructuring scheme; amends ICDR norms.
8. Where defense raised by respondent-company against winding up proceedings initiated against it by appellant-company on its inability to pay transportation charges were not clear and appellant also could not support its claim being strictly as per approved rate, petition was admitted for part amount. 56 com441 (Calcutta).
9. Cabinet approved a proposal to allow REITs to access foreign investments.
10. IRDA revises fee structure for cancellation or change in nomination of insurance policies.
11. Complaint filed for defective goods within 3 years of expiry of guarantee period wasn’t barred by limitation.

CST And Vat:-

1. Credit denied as assessee failed to establish existence of transporter who had supplied inputs to him.
2. Orissa VAT Audit assessment isn’t possible after completion of assessment of escaped turnover.

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