CORPORATE AND PROFESSIONAL UPDATE JULY 6, 2016

Professional Update For the Day:

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DIRECT TAX:

Income Tax : ITAT in the given case held that-as the international transactions of payment of royalty and fees for technical services are separate transactions and not closely linked with the other transactions with which the assessee has merged them, we cannot permit such merger or aggregation for the purpose of the determining their ALP on entity level under TNMM. (Gruner India Pvt. Ltd. Vs. DCIT, New Delhi)

Income Tax : S. 37(1): Expenditure on Corporate Social Responsibility (CSR), though voluntary, is allowable as business expenditure. Explanation 2 to s. 37(1) inserted w.e.f. 01.04.2015 is not retrospective. It applies only to CSR expenditure referred to in s. 135 of the Companies Act and not to voluntary CSR expenditure ACIT vs. Jindal Power Limited (ITAT Raipur)

Income Tax: No notional interest on belated payments by AE when assessee allows credit period to non-AEs as well GSS Infotech Ltd. v. Assistant Commissioner of Income-tax, Circle-2(2), Hyderabad [2016] 70 taxmann.com 356 (Hyderabad – Trib.)

Income Tax: Apex Court admits SLP of revenue against ‘Vodafone India’ to decide taxability of transfer of call option rights
Commissioner of Income-tax-3 v. Vodafone India Services (P.) Ltd. [2016] 70 taxmann.com 383 (SC).)

INDIRECT TAX:

Vat & sales tax: Department of Trade & Taxes has issued a circular regarding description of goods /Items along with their item codes vide circular No. 10 /2016-17 dated 01.07.2016.All registered dealers of Delhi are mandatorily required to file their returns as per the list made by the department for the tax period commencing from 1st April, 2016 and all subsequent tax periods. The list along with item codes has been uploaded on the website of the department.

Vat & sales tax: Department of Trade & Taxes has issued a notification regarding filling of return through Digital Signature vide notification No. F3 (643)/Policy/VAT/2016/419-31 dated 01-07-2016 The dealers with gross turnover exceeding one crore rupees, shall furnish their returns in Form DVAT 16 or in Form DVAT 17, as the case may be with digital signatures in accordance with the provisions of the Information Technology Act, 2000 for the tax period 1st April, 2016 to 30th June, 2016 and subsequent tax periods.

CBEC has issued a circular regarding recovery of confirmed demands during the pendency of stay application vide circular No. 1035/23/2016-CX dated 04-07.2016.

OTHER UPDATES:

COMPAT quashes CCI’s penalty order of Rs. 6.75 crores on India Trade Promotion Organisation India Trade Promotion Organisation v. Competition Commission of India , New Delhi [2016] 71 taxmann.com 71 (CAT – New Delhi)

Time period u/s 139 to comply with provisions of rotation, changed to 1st AGM held after 3yrs from commencement of Companies Act, 2013. Removal of Difficulties 3rd Order, 2016.

KEY DATES :

E- Payment of service tax for June: 06/07/2016

Payment of TDS for the month of June: 07/07/2016

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Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE JULY 5, 2016

Professional Update For the Day:

blog-rja-with-imageDIRECT TAX:

Income Tax : Gujrat High Court held that the payment of stamp duty is not for business expediency but it is in the nature of a compulsory levy under the Bombay Stamp Act. It is legally settled that accounting practice cannot over rider the provisions of the Income Tax Act, 1961. Whole expenditure allowed as revenue expenditure. (M/s. Prithvi Associates Vs. ACIT)

Income Tax : ITAT Delhi in the given case held that business loss cannot be set off against the income assessed under the deeming provisions of section 68, which is not falling under any of the five heads of income.( ACIT, Circle, Haridwar Vs. M/s. Sant Steel & Alloys (P) Ltd.)

Income Tax: Transfer-fees from outgoing member not taxable for co-operative housing society applying ‘mutuality’  [TS-346-HC-2016(BOM)]

Income Tax:  AO isn’t required to furnish reasons for rejecting computation of assessee for determination of ALP
Philips Electronics Ltd. v. Assistant Commissioner of Income-tax, Circle-11, Kolkata
[2016] 70 taxmann.com 350 (Kolkata – Trib.)

Voluntary CSR Expense allowable as business expenditure. [ACIT vs. Jindal Power Limited (ITAT Raipur)].

INDIRECT TAX:

Vat & sales tax:  Uploading of notice on DVAT website in account of assessee is valid service of notice: HC Bajrang Fabrics (P.) Ltd. v. Commissioner of VAT [2016] 70 taxmann.com 348 (Delhi)

Excise: Onus of establishing that inputs have been received is on person taking credit and not on revenue. (Commissioner of Central Excise, Pune-II v. K.B. Chougula)

Custom : Clearance of bunker fuels to Indian ship/vessel carrying containerized cargo—reg. vide Circular No. 1034/22/2016-CX dated 1st July, 2016.

Excise: Buyer can take credit of excess duty paid by supplier as long as assessment at end of supplier isn’t modified Commissioner of Central Excise, Bhopal v. Hindustan Electro Graphite Ltd.
[2016] 70 taxmann.com 353 (New Delhi – CESTAT)

Service tax : Ministry of Finance has vide notification exempted the entire service tax leviable on taxable services provided by way of transportation of goods by a vessel from outside India upto the customs station in India with respect to which the invoice for the service has been issued on or before the 31st May, 2016. However, the exemption is subject to the condition that the import manifest or import report required to be delivered under Section 30 of the Customs Act, 1962 has been delivered on or before 31st May, 2016 and the service provider or recipient produces Customs certified copy of such import manifest or import report.

CENVAT: Canteen, Housekeeping & cleaning service- CENVAT credit allowed. [M/S. Tata Steel Ltd. Vs. Commissioner Of Central Excise & Service Tax, Jamshedpur (Cestat Kolkata)]

OTHER UPDATES:

Form MR-1 (Return of Appointment) not required to be filed for CEO, CS, and CFO w.e.f. 30.06.16. Companies (Appt. & Remuneration of Managerial Personnel) Amendment Rules, 2016.]

Time period u/s 139 to comply with provisions of rotation, changed to 1st AGM held after 3yrs from commencement of Companies Act, 2013. Removal of Difficulties 3rd Order, 2016.

KEY DATES :

E- Payment of service tax for June: 06/07/2016

Payment of TDS for the month of June: 07/07/2016

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FOR FURTHER QUERIES CONTACT US:

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

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)