CORPORATE AND PROFESSIONAL UPDATE JUNE 6, 2017

Professional Update for the day:

34

 Direct Tax:

  • CBDT amends Rule 31(3) for due date of furnishing of Form 16 to the employees by June 15, 2017 following the FY in which salary was paid and TDS was deducted Notification No. 42/ 2017,; Earlier Rule provided for furnishing Form 16 by May 31.
  • Search warrant issued u/s 132 of the I T Act, is not valid, in the absence of any credible information with the dept that could lead to the reasonable belief that the person is in possession of undisclosed income. [Ameeta Mehra vs. ADIT (Inv.), High Court of Delhi]
  • Calcutta High Court held that where no material belonging to a third party is found during a search, but only an inference of an undisclosed income is drawn during the course of enquiry, during search or during post-search enquiry, Section 153C would have no application. Thus, the detection of incriminating material leading to an inference of undisclosed income is a sine qua non for invocation of Section 153C of the Act CIT Vs Veerprabhu Marketing Ltd. (Calcutta High Court)
  • ITAT Bangalore held that debenture when issued is a loan, and, therefore, whether it is convertible or non-convertible, does not militate against the nature of the debenture, being loan, and therefore the expenditure incurred would be admissible as revenue expenditure. Shanders Properties Pvt. Ltd. Vs The Income Tax Officer (ITAT Bangalore)

Indirect Tax:

  • DVAT Department clarified that in respect of dealers who have been issued Provisional Registration pursuant to earlier Circular No. 3 of 2015-16 dt. 27.04.2015, but the signed copy of registration certificate (DVAT-06) has not yet been issued due to pending VATI verification, the Assessing Authority/Ward Incharge shall process and issue signed copy of R.C. (DVAT-06)after due verification of registration application under the ACT vide Circular No. 7/2017 dated 29.05.2017.
  • CESTAT ALLAHABAD Held that: – The appellant submitted through the said letter dated 25.09.2009 that they were providing service to foreign clients and their activity amounted to export of service. Such aspect was not examined and the said SCN dated 20.10.2009 was issued wherein nowhere it was established that the commission received was in INR – SCN not sustainable – appeal allowed – decided in favor of appellant. M/s. Micromatic Grinding Technologies Versus Commissioner of Central Excise, Ghaziabad

GST Updates:

  • Finalise Sales from Apr-Jun 2017 also with Sales of 2016-17 as both figures to be reported in final format of GSTR-1 of Outward Supplies.
  • GST Council in on SAT (03 JUN 17), approved Return Rules & Transition Rules. Now 40% ITC of CGST on sale of goods out of Closing Stocks, 60% ITC when GST Rate is 18% or above. All States agreeing for July 1 Rollout of the GST.

FAQs on GST

Query: when credit would be allowed to a person if he uses goods or service received by him for personal consumption/non business purpose/effecting exempt supplies?

Answer: No, a person would not be allowed any credit  the taxes paid on the goods or services or both if he s uses good or services received by him for personal consumption /non business purpose/effecting exempt supplies.

Company Law Updates

  • SPICe form is likely to be revised on MCA21 Company Forms Download page w.e.f 7th June 2017. Stakeholders are advised to check the latest version before filing.
  • MCA issued clarification regarding transmission of Securities by Operation of Law Vide Circular No. 07/2017 dated 05.06.2017

Other Updates:

  • SEBI has set up a Committee on Corporate Governance under the Chairmanship of Shri Uday Kotak MD of Kotak Mahindra Bank.
  • Corporation Bank have called for “Request for application for empanelment for selection of Concurrent Auditors for Corporation Bank for 2017-18” online. Last Date 15.06.2017.

Key dates:

  • E- Payment of service tax for the month of May by Cos: 06.06.2017
  • Payment of TDS/TCS deducted/collected in the month of May : 07.06.2017

Quote of the Day:

“Be someone else sunshine, be someone’s smile today”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

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Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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.

CORPORATE AND PROFESSIONAL UPDATE May 4, 2017

Professional Update for the day:

GST FIRST LOOK

 

Direct Tax:

  • Supreme Court of India held that insertion of Section 35FF makes the provision of Section 35F more balanced because the amount so deposited by  the assessee-appellant, will be refunded with interest in case the  appeal is allowed in favour of the assessee-appellant and the rate  of interest will vary from 5% to maximum of 36% per annum  depending upon the notification published by the Central  [Satya Nand Jha vs. Union of India and Others (Supreme Court)]
  • ITAT Ahemdabad held that the assessee has actually received the salary from his previous employers after deducting the notice period as per the job agreement with them. Therefore, in our considered view, the actual salary received by the assessee is only taxable. [ Shri Nandinho Rebello Vs DCIT]
  • Bombay High Court held that the purpose of service is put the other party to notice and to give him a copy of the papers. The mode is irrelevant. The rules and procedure are not so ancient or rigid that only antiquated methods of service through a bailiff or by beat of drum is acceptable. E-Mail & Whatsapp are not formally approved but if service is shown to be effected and is acknowledged it cannot be said that the Defendants had ‘no notice’. Defendants who avoid and evade service by regular modes cannot be permitted to take advantage of that evasion. [Kross Television India Pvt. Ltd. Vs Vikhyat Chitra Production]

Indirect Tax:

  • CBEC has issued a circular vide circular no. 16/2017-Customs dated 2nd april, 2017 regarding monitoring of export obligation fulfillment under EPCG and Advance Authorisation Schemes.
  • CESTAT Delhi held that, as the relevant provisions (namely section 62 (25a), Section 65 (105)(zzze) and Section 66 of the Act), to the extent these provisions purport to levy service tax in respect of services provided by a club of association to its members is declared ultra vires. Hence, there are no operative legislative provisions of the Act legitimising the levy and collection of service tax from the appellants, for providing Club or association service, in so far as these relate to any services provided to members of these appellants.[M/s DLF Recreational Foundation Ltd. Vs CST, New Delhi]
  • Chhattisgarh High Court is of the considered opinion that there is no willful suppression of facts to evade tax on the part of the petitioner and it was bona fide on the part of the petitioner, it was not deliberate and in absence of finding relating to mensrea recorded by the Settlement Commission, the penalty imposed upon the petitioner under Section 78 of the Finance Act, 1994 deserves to be quashed. [Mahadev Logistics, Vs Customs and Central Excise Settlement Commission]
  • Services performed in India for a service recipient located abroad are export of services provided recipient does not have any branch or project or business establishment in India and payment for the service has been received in convertible foreign exchange:  Gap International Sourcing (India) Pvt. Ltd. Vs. CST- CESTAT NEW DELHI] 

GST Updates:

IGST, CGST, SGST deposited cannot be adjusted against each other. Only IGST, CGST & SGST input tax credit can be adjusted in specified order.

Key dates:

  • E- Payment of service tax for April by Cos: 06.05.2017
  • Submission of forms received in April to IT Commissioner: 07.05.2017
  • Payment of TDS/TCS deducted/collected in April:07.05.2017
  • Return of non – SSI assesses for april:10.05.2017
  • Return by units paying duty > 1 crore (CENVAT + PLA) for April: 10.05.2017

FAQ on GST

What are the major features of the proposed payment procedures under GST?

Answer: The major features of the proposed payments procedures under GST are as follows:

  • Electronic payment process- no generation of paper at any stage
  • Single point interface for challan generation- GSTN
  • Ease of payment – payment can be made through online banking, Credit Card/Debit Card, NEFT/RTGS and through cheque/cash at the bank
  • Common challan form with auto-population features
  • Use of single challan and single payment instrument
  • Common set of authorized banks
  • Common Accounting Codes

Other Updates

  • NCLT: Company petition filed by authorized signatory is maintainable where the source of authorization letter is the shareholders’ resolution and the authorized signatory is competent to file company petition. BUHARI ABDUL KHADER KHALID vs. EMIRATES TRADING LLC. CHENNAI BENCH.
  • RBI invites applications for Direct Recruitment for the posts of Officers in Grade ‘B’ (General) – DR, DEPR and DSIM in Common Seniority Group (CSG) Streams – 2017. visit rbi.org.in 

Quotes of the Day:

“When we give cheerfully and accept gratefully, everyone is blessed.”

“Our character is what we do when we think no one is looking.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

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Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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.

CORPORATE AND PROFESSIONAL UPDATE May 3, 2017

Professional Update for the day:

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Direct Tax: 

  • ITAT Mumbai held that the activities of Banquet Hall Hiring, Hospitality (Restaurants) and Permit Room (Bar) are prima facie in the nature of carrying on trade, commerce, or business for consideration and are hit by the proviso to s. 2(15). If the receipts from these activities are in excess of the minimum prescribed threshold limit, the DIT is required to conduct detailed enquiry and examination as to the nexus between the activities and trade, commerce or business. [MIG Cricket Club Vs DIT (E)]
  • Adhaar card and Pan linking option now activated on income tax website whereby now, name as per Adhaar card also to be given. Both get linked even if there is difference in name.

Indirect Tax: 

  • A educational coaching is covered by the expression “coaching centre” as defined in section 65(26) and (27). That it is not on commercial basis or predominantly for profit is the only argument canvassed throughout. On some occasions in the past, it was accepted but after the insertion of the explanation even that is unavailable. Now, irrespective of profit motive and so long as such service is rendered for consideration, it falls within the purview of the service tax. [Chanakya Mandal Vs Union of India (Bombay High Court)]

GST Update

  • GST Migration for existing taxpayers has been temporarily discontinued by GSTN w.e.f. 1st May 2017.
    No need for Traders dealing only in petrol, diesel & other exempt or zero-rated goods to register under GST. Register if deal in other goods also.
  • Round-the-clock presence of Central Excise officers in the cigarette factories is not mandatory but directory. Circular No. 1055/04/2017-CX dated 1st May, 2017.

Key dates:

  • E- Payment of service tax for April by Cos: 05.2017
  • Submission of forms received in April to IT Commissioner: 05.2017
  • Payment of TDS/TCS deducted/collected in April: 05.2017
  • Return of non – SSI assesses for april: 05.2017
  • Return by units paying duty > 1 crore (CENVAT + PLA) for April: 05.2017

FAQ on GST

What will be status of Tobacco and Tobacco products under the GST regime?

Answer: Tobacco and tobacco products would be subject to GST. In addition, the Centre would have the power to levy Central Excise duty on these products.

Which authority will levy and administer GST?

Answer: Centre will levy and administer CGST & IGST while respective states will levy and administer SGST.

Other Updates: 

  • About 900,000 registered companies do not file annual returns and are potential sources of money laundering. Govt. pitched for the country’s top anti-financial crime agency to be used “expeditiously” against tax cheats.
  • RBI has issued Guidelines on Merchant Acquisition for Card Transactions. Co-operative banks have been permitted to install both onsite/offsite ATM networks and can issue debit cards.
  • CA Students Appearing for exam can send Their Observations of the question papers of CA exams-May, 2017  to the notice of the Exam Department, by e-mail at examfeedback@icai.in or by Speed Post.
  •  SEBI has issued a Consultation Paper on permitting Category III Alternative Investment Funds (AIFs) in the commodity derivatives market.
  • CPT Exam June-2017 last date extended for examination application forms to 6th May, 2017.

Quotes of the Day:

“In order to succeed your desire to success  should be greater than fear of failure.”

“Believing in yourself is the first secret of success.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com    E: info@carajput.com   T: 011-233-4-3333, 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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.

 

 

CORPORATE AND PROFESSIONAL UPDATE MAY 1, 2017

Professional Update For the Day: 

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Direct Tax:

  • IT:Registration u/s 12AA – proof of charitable activities – treatment as registered trust – receipt of land as Donation – the objects of the assessee trust being charitable had not been objected – exemption allowed – CIT (Exe.), Chandigarh Vs Smt. Shanti Devi Educational Trust (2017 (4) TMI 1065 – Punjab & Haryana High Court)
  • CBDT: Lease rent from letting out buildings/developed space with other amenities in an Industrial Park/SEZ – taxable as business income –Circular No. 16/2017, dt.25.04.2017..
  • CBDThas issued a Clarification on removal of Cyprus from the list of notified jurisdictional areas under Section 94A of the Income Tax Act, 1961.
  • IT:Prim-facie adjustment u/s 143(1) intimation – Expenditure on advertisement and public issue – Even though it is a debatable issue but as Gujarat High Court had taken a view that it is capital expenditure and the registered office of the respondent assessee being in the State of Gujarat the law laid down by the Gujarat High Court was binding – DCIT Vs Raghuvir Synthetics Ltd. (2017 (4) TMI 975 – Supreme Court)

Indirect Tax:

  • ST: Activity of inspection or examination of seeds in various stages is liable to service tax as technical inspection & certification service – M. P. State Seed Certification Agency Vs CCE, Bhopal (2017 (4) TMI 1085 – CESTAT New Delhi)
  • ST: Interest cannot be levied for service tax paid on the basis of retrospective amendments on renting of property prior to 01.07.2010 – Thadi Satya Ramalinga Reddy Vs CCEST&C, Visakh (2017 (4) TMI 1024 – CESTAT Hyderabad)
  • ST: Service of SCN on partners instead of firm – services provided by the Partnership Firm – demand raised against one partner is non est in law – Maturu Panchakshari Vs CC,CE&ST, Guntur (2017 (4) TMI 998 – CESTAT Hyderabad).
  • Date of filing of DVAT Return in Form 16, 17 & 48 for Q4, 2016-17 has been extended upto 15.05.2017 vide Circular No. 2 dated 28.04.2017.

GST Update

  • Under GST every registered person to keep in physical /electronic form, books of account at Principal & EVERY related place of business mentioned in his RC.
  • Andhra, Telangana, Bihar and now Today, Jharkhand assembly passes GST bill.
  • CBCE: Only 34% service taxpayers moved to GST Network.
  • GST to rate taxpayers, businesses on payment record, make ratings public
    Trade and industry will be assigned a ‘compliance rating’ based on their credibility with regard to timely deposit of taxes to the exchequer and filing of returns under the goods and services tax structure. Revenue Secretary Hasmukh Adhia said a system of GST Compliance Rating will be put in place so that every trader or businessman will be rated

FAQ on GST

Question: How will imports be taxed under GST?

Answer: The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods.

How would GST be administered in India?

Answer: Keeping in mind the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.

Corporate Law:

Where revenue urged that assesses company received share application money from bogus shareholders, it was for revenue to proceed by reopening assessment of such shareholders and assessing them to tax and not to add same to assessee’s income as unexplained cash credit. Proviso to Sec 68  [2017] 80  272 (Bombay HC).

MCA has issued a Circular clarifying the issues relating to the Transfer of shares to IEPF Authority. The due date for transfer of shares by Companies to IEPF is May 31, 2017 .

Meeting of creditors could be dispensed with if maximum no. of creditors gave their consent to amalgamation scheme. [2017] 80 taxmann.com 307 (NCLT – Bang.).

Govt. has notified section 234 of the Companies Act, 2013 which provides for mergers and amalgamations between an Indian Company and a foreign company and vice versa. RBI has also inserted Rule 25A[2] to amend the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.

Corporate Law:

IBBI has published the draft regulations for Fast Track Corporate Insolvency Resolution Process of Corporate Persons

CL: Company petition for winding up – allegation that company failed to make the payment against dues – The disputed questions cannot be gone into in this winding up petition – Nasir Amin Hungund Vs Glasspaane Aluminium (I) Pvt. Ltd. (2017 (4) TMI 1019 – Bombay High Court).

Other Update

MoL&E: The Ministry of Labour and Employment has released a set of clarifications addressing concerns under the provisions of the Maternity Benefit (Amendment) Act, 2017.

SEBI: The SEBI Board in its last meeting has taken various decisions’ to improve the facilities being offered to the stakeholders.

C&AG: The status of provisional empanelment cum point score of the firms for the year 2017-18 is being made available in website C&AG website at www.cag.gov.in from 26 APR2017 to 05MAY2017. The mistakes, if any can be emailed at sao2ca5@cag.gov.in by 05 MAY 2017.

EMP: Dena Bank invites applications from CA Firms for empanelment as Concurrent Auditors for the Year July’ 17 to June’ 2018. The last date for submission of Online Applications is 10 MAY 2017.

ICAI appeals its Members to contribute towards Swachh Bharat Abhiyaan launched by Hon’ble Prime Minster of India Shri Narendra Modi on 2nd October, 2014.

Key Dates:

  • E- Payment of service tax for April by Cos : 06.05.2017
  • Submission of forms received in April to IT Commissioner : 07.05.2017
  • Payment of TDS/TCS deducted/collected in April : 07.05.2017
  • Return of non – SSI assesses for april : 10.05.2017
  • Return by units paying duty > 1 crore (CENVAT + PLA) for April : 10.05.2017

Success lies not in the result…but in the effort, Being the best is not at all important, Doing the best is all that matters.

Life is not a sharp Knife to cut all those bad memories but Life is a needle to weave golden thread of sweet memories…!!

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com    E: info@carajput.com   T: 011-233-4-3333 , 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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.

CORPORATE AND PROFESSIONAL UPDATE JAN 06, 2017

Professional Update for the Day:

Company-name-approval-in-india-venture-care-750x422

Direct Tax:-

  • CBDT has issued press circular regarding signing of three more Advance Pricing Agreements (APAs). These agreements pertain to the Engineering goods & Shipping sectors of the economy. The international transactions covered in these agreements include Intra-group services & support services.
  • Punjab & Haryana Court in the below cited case held that deduction under section 80IB is allowable over the period of 6 years which follows that conditions for claiming deduction must remain fulfilled in all years for which deduction being claimed.
  • Supreme Court in Gopal and Sons(HUF) vs. CIT Kolkata-XI has held that even if a HUF itself is not a registered shareholder, the provisions of deemed dividend are attracted once the payment is received by the HUF, and shareholder is a member of the said HUF and has substantial interest in it.

Indirect Tax:-

  • CBEC has issued a circular via circular no. 1/2017- Customs regarding extending the Single Window Interface for Facilitation of Trade (SWIFT) to Exports.
  • Supreme court in the below cited case held that in case the goods are purchased from other states or are imported from outside the country for the purpose of only using in the works contract, then the transaction would be covered under the Central Sales Tax Act and not liable to tax under local VAT act. [Commissioner, Delhi Value Added Tax Vs M/s. ABB ltd.]

GST Update:-

  • GST aggregate turnover includes exports, exempt (including non-taxable) & inter-state supplies calculated PAN wise on all India basis.

Other Update:-

  • Finance Minister expressed confidence that direct and indirect tax mop-up will surpass budget estimate of Rs.16.3 lakh crore by March-end.
  • SEBI issued Guidelines for participation/functioning of Eligible Foreign Investors (EFIs) and FPIs in International Financial Services Centre (IFSC).
  • ICAI  issued exposure draft standard on auditing (SA) 720 (Revised) The auditor’s responsibilities relating to other information.

Key Dates:-

  • E-Payment of Service Tax for the month of December – 06.01.2017.
  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“Infuse your life with action. Don’t wait for it to happen. Make it happen. Make your own future. Make your own hope.”

“There is nothing called “Darkness”, It’s just absence of light.similarly,  there is nothing called “Problem”. It’s just Absence of an idea to find solution.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com             E: info@carajput.com            T: 011-233-4-3333 , 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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.

CORPORATE AND PROFESSIONAL UPDATE JAN 03, 2017

Professional Update for the Day:

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Direct Tax:-

  • CBDT has issued a press release regarding signing of Third Protocol between India and Singapore for amending the Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation & prevention of fiscal evasion with respect to taxes on income.
  • Gujarat High Court held that a reference to the Transfer Pricing Officer(TPO) can be made only after passing a speaking order disposing of the objections raised by the assessee. In this case, the reference was made without passing such a speaking order, the reference so made was invalid. [M/s Alpha Nipon Innovatives Ltd. Vs CIT]
  • Income from vacant house property – income would not be assessed under Section 23(1)(c) but under Section 23(1)(a) – Punjab And Haryana High Court in case of [Susham Singla Vs. The CIT, Patiala].
  • Whether the provisions of Section 36 and Section 43-B are mutually exclusive and the Assessee is legally entitled to claim deduction of employees’ contribution to provident fund and ESI u/s 43-B as amended vide FA, 2003, even if the said deduction was not admissible u/s 36(1)(va) – Held Yes – Allahabad High Court in case of [Sagun Foundry Private Limited Vs. CIT, Kanpur].

Indirect Tax:-

  • Punjab & Haryana High Court has held that Input Tax Credit cannot be disallowed merely for a technical defect in the VAT Invoice such as not mentioning of words “ Input Tax Credit is available to a person against this copy” as per Rule 54 of the Punjab VAT Rules, 2005. [M/s Avdesh Tracks Pvt. Ltd. Vs State of Punjab & another]
  • Service tax dept. pulled up for unfair arrest of Make My Trip top officials; HC ordered tax refund. Makemytrip (India) (P.) Ltd. v. Union of India [2016] (Delhi).

MCA Update:-

  • MCA has notified the Companies (lncorporation) Fiffh Amendment Rules, 2016 which shall be applicable with effect from 1st Day of January, 2017.

ESIC Update:-

  • ESI applicability salary limit increased from Rs 15,000 PM to Rs 21,000 PM.

RBI Update:-

  • RBI has issued clarification on Interest Subvention Scheme for Short Term Crop Loans during the year 2016-17.

Other Update:-

  • In exercise of the powers conferred by Subsection (c) of Section 199B of the Finance Act, 2016 (28 of 2016),the Central Government in consultation with the Reserve Bank of India notified the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGK), 2016.
  • NRIs and Indians returning from abroad will have to physically show the junked 500 and 1,000 rupee notes to Customs officials at the airport and get a declaration form stamped before they can deposit the demonetized currency in RBI during the grace period.

Key Dates:-

  • E-Payment of Service Tax for the month of December – 06.01.2017.
  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017.
  • Due date to deposit of DVAT of December – 21.01.2017.

“In my experience, there is only one motivation, and that is desire. No reasons or principle contain it or stand against it.”

“Speaking lips can reduce many problems. Closed lips can avoid some problems. But smiling lips can solve all problems.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com             E: info@carajput.com            T: 011-233-4-3333 , 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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.

CORPORATE AND PROFESSIONAL UPDATE JAN 2, 2017

Professional Update for the Day:

12036518_636965443073687_8061467608404050178_n

Direct Tax:-

  • SC dismisses Revenue’s SLP challenging Bombay HC order quashing CIT’s order u/s 263 (revision proceedings) for AYs 2007-08 and 2008-09; CIT (A) had set aside assessment orders due to lack of sufficient enquiries by the AO in respect of the genuineness of the gifts received by the assessee (individual) while directing the AO to invoke Sec. 68 in case gifts are found to be non-genuine [TS-686-SC-2016]
  • Delhi ITAT held that Penalty can be imposed only on disproved claim of expenditure and not unproved claim of expenditure. Arun Duggal Vs. DCIT (ITAT Delhi)

Indirect Tax:-

  • Delhi High Court declared Rule 5A(2) of the Servcie Tax Rules, as amended, to the extent that it authorizes the officers of the Serviec Tax Department, the audit party deputed by a Comissioner  or the CAG to seek production of the documents mentioned therein on demand, as ultra virus the Finance Act and therefore, struck it down to that extent. Union of India Vs. Mega Cabs Pvt. Ltd. (Supreme Court)
  • Service tax dept. pulled up for unfair arrest of Make My Trip top officials; HC ordered tax refund Makemytrip (India) (P.) Ltd. v. Union of India [2016] (Delhi)

MCA Update:-

  • MCA vide Notification has issued an amended rules for Incorporation to make compulsory using of SPICE procedure for Incorporation of Companies wef 1.1.2017.

Other Update:-

Salient Points of Hon. PM’s speech:

  • Two new housing schemes for poor.
  1. Lower interest rates for urban housing Loans of less than 12lakhs.
  2. Lower interest rates for rural house development loans up to 2lakhs.
  • Farmers get 2 months of interest waiver on select crops.
  • 6000/- to be given to every pregnant woman.
  • FD interest to be min 8% for senior citizens for deposits up to 7.5lakhs.
  • Please use BHIM app.
  • Loan up to 2 CR with govt guarantee. No 3rd party guarantee required.
  • Only 6% of total revenue collected digitally will be assumed to be income as compared to present 8%.

Key Dates:-

  • E-Payment of Service Tax for the month of December – 06.01.2017
  • Due date of deposit of Tax deducted/collected for month of December – 07.01.2017

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CORPORATE AND PROFESSIONAL UPDATE MAY 3, 2016

Professional Update For the Day:

29DIRECT TAX:

Now, deductor is liable to furnish of evidence of claims by employee for deduction of tax under section 192 of IT Act, 1961. Notification no. 30/2016 dated 29/06/2016.

Property TDS Payment due date extended to 30 days. Notification no. 30/2016-IT dated 29/04/2016.

In absence of contumacious conduct penalty U/s. 271C not leviable. [ITO (TDS), Vs. Pushpanjali Hospital and Research Centre Pvt. Ltd. (ITAT Agra)].

CBDT has issued a Press Release on Framework for computation of book profit for the purposes of levy of MAT under section 115JB of the Income-tax Act, 1961 for Indian Accounting Standards (Ind AS) compliant companies dated on 28th April, 2016.

CBDT has issued a MAT-IndAS Committee Report.

Madras HC sets-aside ITAT order, holds loss on share-sale transaction, not speculative for assessee rejects Revenue’s invocation of deeming fiction under Explanation to Sec 73;Held that When there is no systematic or organised course of activity and when there is no regularity in the transaction and as the purchase is infact an one time activity it cannot be construed as a speculative transaction” and further cannot come under the ambit of ‘business.

PERMANENT ACCOUNT NUMBER  : Duplicate PAN card : Where two PAN Cards were allotted in name of assessee-society to two factions within management of assessee – society, it was held that question as to, which of two actions should be authorized to operate PAN CARD would depend on orders of pending suit; till that time, holder of second PAN CARD should Surrender said second PAN Card to PAN Service provider – [2016] 68 taxmann.com 297 (Delhi)

INDIRECT TAX:

Central Govt. exempts all coastal vessels carrying exclusively coastal goods and operating from coastal or EXIM berths from provisions of Sections 92, 93, 94, 95, 97 and 98(1) of Customs Act; Accordingly, such vessels would no longer be required to make entry by presenting bill of coastal goods and carry advice book; Also, goods can be loaded at any port without bill being passed by the officer and can depart without written order vide notification No. 56/2016 dated 27th April,2016.

Delhi Govt. issues clarification on new composition scheme for restaurants and halwais u/s 16(12) of DVAT Act; States that condition requiring payment of tax on opening stock is not applicable to those dealers who w.e.f April 1, 2016 intend to shift from composition scheme u/s 16(1) to new the scheme, as such goods have already suffered VAT at time of purchases and also no ITC has been claimed thereon; Also clarifies that such dealers shifting to new scheme shall not be eligible to claim ITC on closing stock held on March 31, 2016 vide Circular No. 1 of 2016-17 dated 27-04-2016.

ST: Cenvat credit – Common Input services belongs to three units but whole of the credit was availed at one unit – assessee has been able to prove that all the three units are one and the same have common management – credit allowed – National Engineering Industries Ltd. Vs. CCE, Jaipur (2016 (5) TMI 12 – Rajasthan High Court)

VAT & ST: Waiver of pre-deposit under APGST Act – It is always open to the petitioner to file appropriate proceedings before ADC seeking stay in the appeal filed or by filing a separate application as required under Section 19(2A) – Anand Cements Vs. State of Telangana (2016 (5) TMI 5 – Supreme Court)

Company Law Updates:

Company Law Board has notified the amended Regulations further to amend the Company Law Board Regulation, 1991 through which official timing for hearing at CLB has been changed w.e.f 02.05.2016, words  and   expression “10.30 a.m. to 1.30 p.m.  and 2.30 p.m. to 4.30 p.m.” the words and  expression  “10.30 a.m.  to 1.00 p.m. and 2.00 p.m. to 4.30 p.m.” shall be substituted in Regulation 9 of the said regulation.

Other Updates:

The Real Estate (Regulation and Development) Act, 2016 came into force on May 01, 2016. Union Ministry of Housing and Urban Poverty Alleviation (HUPA) notified 69 of the total 92 sections of the Act to bring it into force from 1 May 2016.

Key Dates:

Last date of E-payment of service tax foe April by companies vide Challan No. GAR-7 -06/05/2016

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CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 5,2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 5,2016

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Direct Tax

  • TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE: Where assessee had benchmarked its international transactions on TNMM basis and TPO had neither disputed assessee’s claim that TNMM was most appropriate method, nor comparables selected by assessee, it was not open for TPO to reject benchmarking done by assessee and make adhoc ALP additions in value of international transactions – [2016]  16 (Mumbai – Trib.)
  • ON BORROWED CAPITAL: Where assessee paid interest on borrowed capital which was used for acquisition of windmill for extension of existing business of generation of electricity through windmill, interest could not be allowed till capital asset acquired by assessee was put to use – [2016] INTEREST 277 (Chennai – Trib.)
  • UTILIZATION OF CAPITAL GAINS : Where assessee purchased a vacant site but couldn’t complete construction of house within prescribed period of three years to avail exemption from capital gain, whole of capital gain was liable to be taxed in previous year in which period of three years expired from date of sale of original asset

Indirect Tax

  • Following activities undertaken by the applicant would not amount to manufacture or deemed manufacture under Section 2(f) of the Central Excise Act 1944 namely; Inspection testing and installing batteries Cleaning lint brushing and deodorizing Touching up and re-stitching Filing debundling and jewellery correction Activities related to spectacles and frames Folding hanging and ironing Polishing shinning and coating Tagging Freebies Protective stickering Placing the products in original box Inserting warranty card Inserting moisture absorbing tablets Inserting books mark and Replacing shoe laces- (/s Amazon Seller Services Private Limited, Bangalore Versus The Commissioner of Central Excise, Thane-I – 2016 (3) TMI 69 – AUTHORITY FOR ADVANCE RULINGS).
  • Claim of interest on delayed Refund – delay in grant of refund – relevant date to be computed from the date of application of refund or from the date of rectification of defect in the refund application – The adjudicatory process by no stretch of imagination can be carried on beyond three months. It is required to be concluded within three months – Interest allowed from the date of application- (Union of India & Others Versus M/s Hamdard (Waqf) Laboratories – 2016 (3) TMI 68 – SUPREME COURT)

MCA Updates

SHARES – POWER OF COMPANY TO PURCHASE ITS OWN SECURITIES: In law, petitioner is entitled to buy back its own shares by means of a scheme under section 391 read with sections 100 – 104 of the Companies Act, 1956 , scheme cannot be said to be a colourable device to evade income tax, it is a legally permissible procedure which petitioner is entitled to follow to buy back its shares

Key Dates

E-Payment of Service Tax for Feb by companies: 06/03/2016

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