CORPORATE AND PROFESSIONAL UPDATE JUNE 6, 2017

Professional Update for the day:

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 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

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