Professional Update For the Day:

Direct Tax:-

  • ITAT Amritsar in the belo mentioned case held that  Once the books of accounts has been rejected the Assessing Officer cannot fall back upon the same books for making addition on account of interest accrued on the FDRs reflected in the books of account.( M/s National India Construction Co. Vs. ACIT, Pathankot And ITO, Vs. M/s National India Construction Co.)
  • Supreme court in the below citied case held that   Rental Income from business of leasing out house properties taxable as business income.( M/s Rayala Corporation Pvt. Ltd. vs. ACIT)
  • ITAT Bangalore held that  When the transactions in question are falling under the ambit of definition of ‘international transaction’ as provided u/s.92B, then the AE being tax resident of India will not take out the matter from the purview of the Transfere Pricing  provisions.( United Engineers (Malasia) Berhad Quorum Vs. DCIT, (International Taxation), Bengaluru
  • IT : Preliminary expenses incurred by assessee-company in connection with issue of right shares qualify for benefit of section 35D(2)(c)(iv) Nitta Gelatine India Ltd. v. Assistant Commissioner of Income-tax, Circle 1(1), Ernakulam[2016] 75 142 (Kerala)
  • CBDT notification on amendment in Rule 114B for compulsory quoting of pan in case of cash deposit exceeding 50k in a single day or aggregating to more than 2.5 lakh during the period 09.11.16 till 30.12.16
  • Amendment in Rule 114E for filing AIR report as required u./s 285BA w.r.t reporting by banking company and a cooperative bank on account of aggregate cash deposits in one or more current account of a person in excess of Rs12.5 lakhs OR Rs2.5 lakh or more in one or more account of a person during 09.11.16 till 30.12.16.
  • Income Tax dept starts issuing notices for cash deposits of more than Rs 250,000/- on or after 09/11/2016.
  • No tax on collection of contingent sales tax liability if same was refunded to customers
    Commissioner of Income-tax v. Khoday Breweries Ltd.[2016] 75 155 (SC)



Indirect Tax:-

  • Export of Business Auxiliary Services under resulted in accumulation of un-utilized credit of service tax availed on input services. Appellants filed three separate refund claims which were rejected on the ground that these input services have been received by the appellants after the period of export of services. In case of Shell India Markets Pvt. Ltd. vs. CCE, Bangalore – 2012 (278) E.L.T 50 (Kar.)it was held that it is necessary to verify not only that particular input service is consumed for providing particular output service but also that eligible service received under various invoices have actually gone into consumption for providing impugned exported output service and not utilized for other purpose (M/s BNY Mellon International Operation (India) Pvt. Ltd. Vs. Commissioner of Central Excise (Appeals), Pune-III)
  • Existing dealers registered under VAT, Profession Tax, Luxary Tax etc in a state etc to get single Provisional Login ID for Enrolment under GST.
  • Filing of online return of VAT for second quarter of 2016-17 extension of period thereof. Dated 21.11.2016, CIRCULAR NO. (19 of 2016-17).

ESIC Update:-

The Employees’ State Insurance Corporation (ESIC) Raised The Monthly Wage Threshold Limit from Rs 15000 To Rs 21,000 wef October 1.


  • Enrolment under GST is common for Central & State GST. There will be common Registration, Returns & Challan for CGST & SGST.
  • Under GST Class 2 /3 Digital Signature in Token can be used at from Internet Explorer 10, Chrome 49  or Firefox 45 or higher versions.
  • Under GST Summary of invoices issued to be given in GSTR-1 and Every advance receipt against supplies shall get a transaction id which is to be mentioned against invoice issued later in GSTR-1.
  • GST desktop browser for accessing GST common portal should be internet explorer 10, chrome 49 or firefox 45 or higher versions.
  • Enrolment  in GST begins at Delhi, Haryana, UP, Punjab from 16-31 Dec .  Gujarat, Maharastra 14-29 Nov. ST assessees in Jan 2017.

RBI Updates:

  • 500 / 1000 Monetization: Small cash deposit into the Bank upto Rs.2.5Lac not to face any Enquiry – FM.
  • RBI: No limit on deposit of Rs.500 / 100 Currency Notes into the Bank. Please check your books for cash in hand before doing so.
  • RBI: Banks to remain open for public on SAT (12Nov) & SUN (13Nov) as normal working including RTGS / NEFT transactions.

Other Update

  • ICAI has released the 5th Edition (November 2016) of the guidance note on report under Section 92E of the Income Tax Act, 1961.
  • No charges on use of ATM between 10.11.2016 to 30.12.2016,[ Circular no DPSS.CO.PD.No.1240/02.10.004/2016-2017].
  • Supreme Court refuses stay against Demonetisation notification. Refuses to even consider validity of notification. On pleading by Kapil Sibal, restricts scope to public inconvenience. Asks govt to file status report.

The Dollar after US Presidential Elections : The dollar was expected to weaken with a Republican Party victory as it was surmised that Donald Trump would turn protectionist which would not be good for the economy. However, the dollar has been strengthening relentlessly since then; and while domestic fundamentals have played their part at times for specific countries, in general currencies have been weakening against the dollar as the table below shows. To maintain comparability the periods chosen are 7 trading sessions before the Elections i.e. 8 th of November and a similar number of sessions post- 8 th November (ending 18th November). Some major countries have been selected and the changes in their currencies relative to the dollar have been tabulated for the two time periods. The numbers in red represent appreciation in the currency vis-à-vis the dollar. The changes are reckoned on a point on point basis for these 17 currencies.

Key Dates:

Issue of DVAT certificate for the deduction made in the month of October in Form DVAT-43 – 22.11.2016

Advance Information for 1st fortnight of Dec of functions with booking cost more than Rs. 1 Lakh in banquet halls,hotels etc.- 27.11.2016

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