CORPORATE AND PROFESSIONAL UPDATE APRIL 29, 2016

CORPORATE AND PROFESSIONAL UPDATE APRIL 29, 2016

1DIRECT TAX:

  • IT:Expenditure incurred towards fund – allowed as deduction while computing income of the assessee co-operative bank – The Karnataka State Co-operative Apex Bank Ltd. Vs. DCIT, Cir-3(1), Bangalore (2016 (4) TMI 871 – ITAT Bangalore)
  • IT:Deduction u/s. 54F – allowance of claim as assessee has purchased a semi-finished house and completed construction before the three years period as prescribed –  Srinivasa Rao Vs. ACIT, Cir-3(2), Hyderabad (2016 (4) TMI 867 ITAT Hyderabad)
  • Today (28.04.16) is last date to file DVAT- 56 (DVAT Return verification form) and DVAT-48(Return of TDS) for quarter ended March, 2016.
  • CBDT Circular regarding Commencement Of Limitation For Penalty Proceedings U/s 271D and 271E of the Income tax Act, 1961
  • The CBDT has issued Circular No. 09/DV/2016 dated 26th April 2016 in which it has expressed the view, by relying on the judgement dated dated 8.7.15 of the Kerala High Court in Grihalaxmi Vision vs. ACIT that the limitation for imposition of penalty under sections 271D and 271E of the Income tax Act, 1961 does not commence at the level of the Assessing Officer (below the rank of Joint Commissioner of lncome Tax) but commences at the level of the Range authority i.e. the Joint Commissioner of Income Tax./Addl. Commissioner of Income Tax. The CBDT has advised Assessing Officers (below the rank of Joint Commissioner of Income) to make a reference to the Range Head regarding any violation of the provisions of section 269SS and section 269T of the Act, as the case may be, in the course of the assessment proceedings (or any other proceedings under the Act). It has directed that the Assessing Officer, (below the rank of Joint Commissioner of Income Tax) shall not issue the notice in this regard. The Range Head will issue the penalty notice and shall dispose/ complete the proceedings within the limitation prescribed u/s 275(1)(c) of the Act
  • reduces interest rates on employee provident fund (EPF) from 8.75% to 8.7% for financial Year 2015-16.
  • Family pension claim not acceptable if option to join scheme was not exercised. [Ganesh Prasad Mishra vs. Commissioner EPF Organization (Madhya Pradesh HC at Indore)].
  • Excess of TDS deposited u/s. 195 eligible for interest u/s. 244A. Circular no:11/2016– IT.
  • Relaxation of Know Your Customers (KYC) Norms for customs notified vide circular no. 13/2016 dated 26Th April 2016- (click here to view)
  • The Contract entered for the purpose of packing loading and unloading etc. of the goods for which labour was supplied by the assessee to M/s Birla Corporation Ltd. cannot be held as Cargo Handling Service as the two conditions are not satisfied- (The Deputy Commissioner, Central Excise & Another Versus Sushil & Company – 2016 (4) TMI 987 – SUPREME COURT.
  • Assessee is providing the services directly to M/s. Jet Airways (I) bPvt. Ltd. which is not on behalf of Airport Authority – it cannot be said that Airport Authority has authorized the assesse to provide the services- (Commissioner of Service Tax, Mumbai-I Versus Soft Touch Aviation – 2016 (4) TMI 986 – CESTAT MUMBAI)

INDIRECT TAX:

  • Delhi VAT extended online return filing due date till 16/05/2016 for Q4 15-16 vide circular no: 02 dated 28th April.
  • DELHI VALUE ADDED TAX ACT, 2004 – NEW COMPOSITION SCHEME FOR RESTAURANTS AND HALWAIS : CIRCULAR NO.01 OF 2016-17 [NO.F.3(664)/POLICY/VAT/2016/106-112], DATED 27-4-2016 dealers whose annual turnover is upto Rs. 50 Lakhs and who makes sales of cooked food, snacks, sweets, savouries, juices, aerated drinks, tea and coffee etc. have an option to pay composition tax @ 5%.

COMPANY LAW:

  • Query: One of our client company has not done annual filing since F.Y 2009-10. Now when are trying to file the same. Form 23AC, ACA and Form 20B are not available on MCA portal. Can we file the same through Form GNL- 2. Advice
  • AnswerNo, Annual filing e-forms under the Companies Act, 1956 viz. 23AC/ACA, 23AC/ACA-XBRL, 20-B, 21-A, Form 66, I-XBRL, A-XBRL, 23B, 23C and 23D would be made available shortly for filing purposes on MCA Portal. You are therefore advised not to file these forms as attachments with GNL-2 e-forms.
  • MCA has issued general circular no. 04/2016 dated 27th April 2016: amended AS should be used for preparation of accounts for accounting periods commencing on or after the date of notification.

MCA UPDATES:

  • MCA has released Clarification with regard to Companies (Accounting Standards) Amendment Rules 2016 vide Circular No- 04/2016 dated 27/04/2016. (Click here to view)
  • MCA has released Notification regarding the Jurisdiction of the state of Telangana under Section 396 of Companies Act 2013 vide Notification dated 26/04/2016. (Click here to view)

OTHER :

  • Amended ASs to be applied from FY 16-17 onwards
  • ICAIin order to make the Members aware as to what information is going to flow from Institute’s records in MEF this year has hosted Pre-MEF data verification at meficai.org for applicants’ perusal w.e.f. TODAY (27 APR 2016).
  • RBIhas issued a Master Direction for merger of private sector banks and also between NBFCs and banks.
  • releases draft guidelines for computation of book profit by Ind AS compliant Cos
  • Courier entities in Delhi to file return in CR-II for F.Y.2015-16 byMay 16, 2016

Key Dates:

  • Filing of DVAT return verification form for quarter ended March where return not signed with digital signature: 28/04/2016
  • Return of DVAT TDS for quarter ending March: 28/04/2016
  • Return by scheduled banks branches in delhi engaged in sale of silver, gold, repossessed vehicles for quarter ending March: 28/04/2016

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