CORPORATE AND PROFESSIONAL UPDATE MARCH 22, 2017

Professional Update For the Day:

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Direct Tax:

  • Royalty and fee for technical assistance paid in pursuance of the license agreement are revenue expenditure and not capital in nature – CIT, Noida Vs H-One India Pvt. Ltd. (2017 (3) TMI 396 – Allahabad HC).
  • CBDT issued guidelines to ITOs that in case of individual not having business income, no further verification is required to be made in cash deposit is up to Rs 2.5 lacs and in case above 70 years of age, the limit is Rs 5 lacs.
  • Society running an educational institute to impart education to youth is entitled to sec. 12A registration. [2017] 78 com179 (Chandigarh – Trib.)
  • CBDT rolled out Prosecution Module under Income Tax Business Application.
  • Finance Ministry seeks to limit cash transactions at Rs 2 lakh in Finance Bill amendment. Effective from01.04.2017.
  • 30 individuals on I-T Deptt radar for Tax evasion to the tune of Rs.500 Cr. established during demonetization and planning to initiate criminal prosecution against them.
  • CBDT vide notification no 10/2017 dated 14th February, 2017 notifies the amended India-Israel DTAA signed on 14th October, 2015.
  • CBDT has issued a circular via circular no. 08 of 2017 dated 23rd February, 2017 regarding clarification of determination of Place of Effective Management (POEM) of a Company, other then an Indian company.
  • New versions of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) are applicable from February 23, 2017.
  • No TDS liability if payee not identifiable at time of making provision for expenditure at year end. [2017] 78 com195 (Delhi – Trib.)

Indirect Tax:

  • CBEC launches a Mobile Application for GST to inform the taxpayers of the latest updates on GST among others.
  • The clearances to 100% EOU is to be treated as export – Refund of accumulated CENVAT credit availed on input services allowed – CCEC&ST Vs Nash Ind. India Pvt. Ltd. (2017 (3) TMI 351 – CESTAT Bang.).

GST Update :

  • No GST on Education & Health Care provided by Government or its Authority, Local Authority (Schedule IV). Those provided by others may attract GST.
  • Central Board of Excise and Customs (CBEC) has started Migration to GST on or before 31st March 2017. Log on to  to aces.gov.inobtain Provisional ID and password.  Use it to enroll at www.gst.gov.in. Call Help Desk No 1800 1200 232 or mail to cbecmitra.helpdesk@icegate.gov.in.
  • GST Council to approve Composition, Valuation, Input Tax Credit & Transition Rules on Council Meeting on 31-3-17. Other Rules already approved.
  • For B2C supplies, invoice wise details in GSTR-1 for interstate sales of more than 2.50 lacs & State wise total for sales up to 2.50 lacs.
  • Under GST separate invoice to be issued for reverse charge and forward charge goods & services. Both cannot be clubbed together in single invoice.

SEBI UPDATE :

  • SEBI increased the investment ceiling of debt mutual funds in housing finance cos from 10 per cent to 15 per cent,” Under the current guidelines, the sectoral exposure for debt mutual fund schemes is 25 per cent.

RBI UPDATE

  • RBI services offered through eBiz portal will be migrating to a new platform from 27th February, 2017.
  • RBI has issued a Master direction on Money Transfer Service Scheme (MTSS) of transferring personal remittances from abroad to beneficiaries in India.

Other update :

  • Companies (Indian Accounting Standards) Amendment Rules 2017 effective from 1.4.2017.
  • Standard Operating Procedure (SOP) to be followed by the AOs in verification of Cash transactions relating to demonetization – Inst No. 03/2017, dt. 21 FEB 2017.
  • Parliament passes Maternity Benefit Bill to provide 26-weeks paid leave, creche in office, to be effective once the President gives his assent.
  • Supreme Court directed all industrial units situated in severely polluted areas across the country to install primary effluent treatment plants (PETP) within three months, failing which they will be shut down.
  • Labour Ministry has doubled the Gratuaty amount to Rs 20 Lacs for the employees of Private Companies.
  • State Bank of India is going to shut down 47% of associate banks’ offices (SBBJ, DBOH, SBOP, SBOT & SBOM) post-merger .Out of five head offices of the associate banks, will retain only two. All banks branches to operate under SBI w.e.f. 1.4.2017.

Key Due Dates:

Important dates for March 2017:

6   March  : Service tax monthly deposit other than Ind, HUF & P.Firm

7   March  : TDS/ TCS deposit

15 March : Deposit of PF

15 March : Payment of Advance Tax

20 March : Monthly UP VAT return & tax

21 March : Deposit of ESI

31 March : E-payment of service Tax by all assesses Monthly/ Quarterly

31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17

Return of TDS for dec quarter in DVAT 48 : 17:03:2017

E payment of DVAT & CST tax for Feb : 21:03:2017

Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.

  • Our main business is not to see what lies dimly at a distance, but to what clearly lies at hand.
  • Anxiety, doubt and uncertainty about future are three worst enemies for anybody to grow in life. Let us resolve to do our work in hand rather than be under stress and waste our precious time.

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