CORPORATE AND PROFESSIONAL UPDATE Aug 26,2016

Professional Update For the Day:

1DIRECT TAX:

  • CBDT prescribes the Class or classes of buyers to whom provisions of sub-section (1D) of section 206C shall not apply [CBDT Notification dated 19.08.2016].
  • The assesses applying for registration/ approval under section 12AA, 80G and 10(23C)(iv), (v), (vi) & (via) have option to apply in form 10A/ 10G/ 56/ 56D of the I. T. Rules, 1962 either manually or through e-filing, which will get barred by limitation on 31.08.2016
  • The functionality for approval of hospital u/s 17(2) of the IT Act and for registration of tax practitioner will be available in administration module of ITBA  w.e.f  22.08.2016.
  • Company’s only income is from leasing property, then it should be taxed under the head PGBP [SC Judgment, Rayala Corporation Ltd vs. Asst Commissioner]
  • No compensation from Insurance Co. if there is theft without a forcible entry: Apex Court
    [2016] 72 taxmann.com 296 (SC) Industrial Promotion & Investment Corporation of Orissa Ltd. v. New India Assurance Co. Ltd.
  • ITAT Kolkata in the below citied case denied the continuance of registration u/s 12A. if it is found that the assessee was accepting bogus donations, then that fact can only lead to an inference that the activities of the trust are not genuine or are not carried out in accordance with the objects of the trust than registration will be cancelled(Dr. B.G. Memorial Trust Vs. CIT)

 INDIRECT TAX:

  • Contractors providing the service of construction of tube wells for the Government have been considered to be liable to pay service tax [Circular No. 199/09/2016-Service Tax].
  • CESTAT Allahabad in the below citied case held that Cenvat credit – availed on transportation charges in the process of cleaning and disposal of waste – the disposal of hazardous waste by the appellant is an essential activity, without which, the final products being excisable insecticides, cannot be manufactured. Hence credit will be allowed.(India Pesticides Ltd. Versus Commissioner of C. Ex. & S.T., Lucknow)- 2016(8) TMI 724- Service Tax)
  • CESTAT Chennai in the below citied case held that service tax credit will be allowed for- insurance premium having been paid for the health insurance of the employees of the factory and Pest Control Service availed to protect the property of the company.(Sundaram Fasteners Ltd. Versus Commissioner of C. Ex., Chennai-II- 2016 (8) TMI 723-Service tax)
  • Delhi Govt. does away with requirement of digital sign for filing DVAT returns
  • VAT Dept issued notification dated 24.08.2016 regarding withdraw of mandatory requirement of DSC in filing DVAT returns.

 

GST UPDATES :

  • Under GST:
    • Composition Supplier can register in multiple states if total sales up to 50 lacs, no Inter state sale. Scheme must for all businesses having PAN.
    • Selling milk, eggs, chickens taxable under GST as dairy/poultry farming not part of agriculture. Vegetables not taxable but their saplings are taxable.
  • Under GST for sale of even a rupee from a state, registration required if turnover already exceeds 9 lacs in another state as limit is for India as a whole.
  • Gujarat became the sixth state to ratify the GST Bill after Assam , Bihar , Jharkhand, Himachal Pradesh and Chhattisgarh.
  • Infosys may get about dollar 60 million for GST project.

 

FAQ ON COMPANY LAW:

  • Query:   We have a query regarding the date of Annual General Meeting of company incorporated on 19th December 2015. Now our query is regarding the date of Annual General Meeting required to be held?

Answer: Section 96(1) of the Companies Act 2013 provides that in case of first Annual General Meeting, it shall be held within a period of nine months from the date of closing of the first financial year and in any case, within a period of six months, from the date of closing of the financial year.

Further, Section 2(41) of the Companies Act 2013 defines financial year in relation to any company or body corporate as the period ending on 31st day of March every year and where it has been incorporated on or after 1st day of January of a year, the period ending on 31st day of March of the following year, in respect whereof financial statement of the company or body corporate is made up

Thus, the Annual accounts of the company incorporated before 1st January 2016 shall be closed on 31st March 2016 and consequently AGM shall be held within a period of 9 months from the date of closing of the first financial year, i.e., 31st December 2016.

  • Query: We are trying to register DSC (Digital Signatures) of a director since last 15 days but at the time of selecting DSC, no icon is appearing so that we could select the DSC of director. We have raised ticket many times with the ROC but no solution is being provided by them and last date for filing e-form is approaching. Kindly let us know how can we register the same on MCA Portal.

Answer: You are required to install Java 8 update 45 and uninstall other versions of Java on your system, then try to register DSC with the MCA Portal and use either Mozilla Firefox or Internet Explorer for registering the same.

  • Query:We want to incorporate a Section 8 company with the words ‘micro-finance’ in its name?

Answer: Yes for this type of name, you can apply along with declaration as per rule 12 of the Companies (Incorporation) Rule, 2014 if, license is issued under section 8. However, Finance activity is under regulatory control of RBI. Hence at the time of filing incorporation documents promoters/director of proposed company are required to give undertaking as per rule 12 of the Companies (Incorporation) Rules, 2014.

MCA News:

Forms AOC-4, AOC-4 CFS, DIR-12, FC-2 and MGT-15 are likely to be revised on MCA21 Company Forms Download page w.e.f 24th August, 2016.

ICAI Updates:-

Ind AS Transition: Associate to adopt Ind AS from the FY in which holding company is required to adopt it

ICAI has invited to attend faculty Identification Programme on GST-II dated on 23.08.2016.

ICAI has extended the last date for Company Registration Related to Campus (9 Bigger Centres) from22 to 29 Aug’16.

ICAI is taking up the matter to resolve the  any problem in uploading tax audit reports due to non updation of PAN number at ICAI or due to differences in the name as per ICAI record and name given in PAN number with department on top priority basis and the members are requested to update/provide their PAN details by filling requisite details by clicking the linkhttp://online.icai.org/app_ forms/panupdate/index.html  at the earliest but latest by 26.08.2016.

Key Dates:

Advance information for 1st fortnight of September of functions with booking cost more than Rs. 1 Lakh in Banquet halls, hotels etc. in Delhi -27/08/2016

Payment of TDS in Form no. 26QB for purchase of property for the month of July: – 30/08/2016

Be thankful for hard times in your life, try not to look at them as bad things but as opportunities to grow and learn.

The most important thing is to enjoy your life – to be happy – it’s all that matters.  -Audrey Hepburn

The search for happiness is the main reason for unhappiness. Accept life the way it comes, as a result, you’ll find happiness in every moment of your life.

Never win people with arguments rather defeat them with your smile because people, who always wish to argue with you, cannot bear your silence.

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The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications. Continue reading

CORPORATE AND PROFESSIONAL UPDATE MAY 11, 2016

Professional Update For the Day:

Untitled34ADirect Tax: 

IT: Taxing of capital gains u/s.50B r.w.s.2 (42C) – sale of undertaking as a going concern for a lump sum consideration – addition made by the AO u/s.50B on account of gain arising from transfer of BOPP Films Undertaking confirmed – Supreme Industries Ltd. Vs. ACIT, CC-29, Mumbai (2016 (5) TMI 264 – ITAT Mumbai)

IT: Undisclosed income – Addition made on the basis of the statement during the survey u/s. 133A is not sustainable in the eyes of law – Avinash Kumar Setia Vs. DCIT, CC-17, New Delhi (2016 (5) TMI 261 – ITAT Delhi)

CBDT prescribes procedure for e-filing of Form 15CC in respect of foreign remittance made u/s 195

CBDT prescribes procedure for e-filing of Form 15G/15H

Provisions relating to gift apply only to an Individual or HUF and not to an AOP
[2016] 68 taxmann.com 376 (Delhi – Trib.) Mridu Hari Dalmia Parivar Trust v. Assessing Officer, Circle 31(1)

A person can apply for non-deduction of TDS u/s 195 even if he has been subjected to concealment penalty: CBDT

Now, TDS or TCS return can also be filed via incometaxindiaefiling.gov.in

Indirect Tax:

Excise & Customs : Where pre-deposit amount has been determined after considering/adjusting Cenvat credit amount, then, such ‘net pre-deposit’ amount has to be paid in cash and cenvat credit cannot be used to pay same[2016] 69 taxmann.com 10 (Kerala) Commissioner of Central Excise, Customs & Service Tax v. Kinship Services (India) (P.) Ltd.

Govt. entities in Delhi no more required to file details of purchases below Rs. 1000 in DVAT Form GE-II

ST: Levy of penalty – As the assessee had paid service tax and interest by showing their bonafides before issuance of SCN – Penalty liable to be waived of by invoking Section 80 – Cognizant Technology Solutions India Pvt. Ltd. Vs. CCE&ST, Chennai (2016 (5) TMI 230 – CESTAT Chennai)

VAT & ST: Merely because the advertisements of the advertisers were displayed on the Sites would not necessarily lead to the conclusion that they had acquired the right to use the Sites – Tim Delhi Airport Advertising Pvt. Ltd. Vs. CT&T (2016 (5) TMI 297 – Delhi High Court)

FEMA Updates:                 

Ministry of Commerce & Industry has issued  Policy on foreign investment for Asset Reconstruction Companies-amendment of paragraph 6.2.18.1 of ‘consolidated FDI Policy Circular of 2015’ vide press No. 4(2016 Series) dated 06/05/2016.

MCA Updates:

MCA has issued Companies (Registration Offices and Fees) Amendment Rules, 2016 vide Notification dated 06/05/2015, which shall come into force from the date of their publication in the Official Gazette. The New Rules has further substituted Form No. GNL-1 (Form for filing an application with Registrar of Companies) and Form GNL-4 (Form for filing addendum for rectification of defects or incompleteness)

Word of Wisdom:

The most difficult task is to make everybody happy. The simplest task is to be happy with everyone. Surprisingly, the purpose of both are the same.

Mankind is made great or little by its own will.      -Friedrich Schiller

Life isn’t about finding yourself. Life is about creating yourself.      George Bernard Shaw Continue reading