corporate and professional updates 26th june 2018

Image result for corporate and professionalDirect Tax :

  • Mumbai ITAT rules that capital gains of Rs. 455.70 Cr. arising to assessee-company (a tax resident of Singapore), pursuant to trading in Indian securities during AY 2011-12, not taxable in India under Article 13(4) of India-Singapore DTAA; Rejects Revenue’s stand that in view of Article 24 (Limitation of Benefit clause), capital gains exemption under Article 13(4) cannot be allowed since income was not repatriated to Singapore, ITAT clarifies that Article 24 does not have much relevance insofar as it relates to applicability of Article 13(4); [TS-321-ITAT-2018(Mum)]
  • Kolkata ITAT dismisses Revenue’s appeal for AY 2009-10, deletes long term capital gains (‘LTCG’) addition u/s. 50B, made by the AO on transfer of Trading and Distribution (‘T&D’) division of assessee-company (GE Healthcare OY’s wholly owned subsidiary) to Wipro GE Healthcare vide demerger (approved w.e.f. April 1, 2008); [TS-320-ITAT-2018(Kol)]
  • Validity of reopening of assessment beyond 4 years – there is no mention that income amounting to ₹ 1 lac or more is believed to have escaped assessment – reassessment proceedings held to be null & void ab-initio –Usha Agarwal Vs. ITO (2018 (6) TMI 1175 – ITAT Agra).
  • Assessment u/s 153A – Addition u/s 68 – the burden had shifted to revenue to show the basis of some reliable and tangible material which could indicate undisclosed receipts out of books of accounts in the hands of assesse – we cannot improve upon what AO could have done himself – addition made by AO on account of alleged receipts of cash deleted – Godwin Construction Pvt. Ltd. Vs. ACIT, CC & Vice Versa (2018 (6) TMI 1172 – ITAT Delhi).
  • CBDT has proposed clear-cut timelines by which excess amount assessed by transfer pricing officials (TPOs) over what was declared by associated enterprises of multinational corporations (MNCs) has to be brought in India. These timelines relate to advance pricing agreements (APAs) and mutual agreement procedures (MAPs).

INDIRECT TAX

  • Services provided by TPADL with respect to the non-tariff charges recovered from their customers are not eligible for exemption and TPADL is liable to pay tax on the aforesaid recovery made from their customers – AAR, Rajasthan in TP Ajmer Distribution Ltd. (2018 (6) TMI 1196).
  • The service provided by M/s. Rishi Shipping is classifiable as ‘Rental or leasing services involving own or leased non-residential property’ (Service Accounting Code – 9972) leviable to GST @ 18% – AAR, Gujaratin Rishi Shipping (2018 (6) TMI 1195).
  • CBEC has issued modifications to the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular No. 41/15/2018-GST dated 13.04.2018
  • E-Way bill generation touches 10-crore mark over 80 days after its launch on April 1, e-way bill generation hit the 10-crore mark. “Ten crore E-Way bills in two months and 21 days and still it is showing an upward trend.
  • Short term accommodation, conferencing, banqueting etc provided to SEZ developer/ unit to be treated as Inter-State supply. Circular 48 of 14.6.18.

FAQ on E-WAY BILLS:

  • Query:How does the unregistered transporter get his unique id or transporter id?
  • Answer:The transporter is required to provide the essential information for enrolment on the EWB portal. The transporter id is created by the EWB system after furnishing the requisite information. The details of information to be furnished are available in the user manual. 

OTHER UPDATES

  • Overriding IBC, 2016 – Since NCLT is not a forum superior to the High Court, it’s orders cannot be construed as injuncting this Court from proceeding with a winding up proceeding in which it has clear jurisdiction to hear and decide – Vinod Jain Vs. Jaipur Metals & Electricals (2018 (6) TMI 1167 – Rajasthan HC).
  • ICICI Bank NSE 0.91 % has disclosed that it has received a whistleblower complaint, alleging irregularities in respect of 31 loan accounts worth Rs 6,082 Crore. The allegations pertain to incorrect accounting of interest income on non-performing assets (NPAs) as fees and overvaluation of security provided for corporate loans.
  • Prime Minister Narendra Modi called for targeting double-digit GDP growth for breaking into the USD 5 trillion economy club and said India’s share in world trade has to more than double to 3.4 per cent.

KEY DATE:

  • QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
  • DUE DATE FOR FILLING GST TRAN-2- 30.06.2018
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. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at https://carajput.com/blog/For any query you can write to info@carajput.com. 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 NOV 11, 2016

Professional Update For the Day:

8-Tips-Biz-Name

Direct Tax:-

  • CBDT issued clarification regarding Chapter VI-A deduction on enanced profits vide Circular No. 37/2016 dated 02/11/2016.(Click here to view)
  • Kerala High Court in the below citied case held that the assessment proceedings generated by the issuance of a notice u/s 153A (1)(a) can be concluded against the interest of the assessee including making additions even without any incriminating material being available against the assessee in the search u/s 132 –  [E.N. Gopakumar Vs. CIT (Central)]
  • HC allows withdrawal of oppression petition as other shareholders approached CLB on similar issue Karnataka Theaters Ltd. v. Ratnavarma Padival [2016] 74 taxmann.com 230 (Karnataka)
  • CBDT:Deduction under Chapter VI-A is admissible on the Enhanced profits  by the disallowance made under sections 32, 40(a)(ia), 40A(3), 43B, etc. –  Circular # 37, dt.02.11.2016.
  • IT:Expenditure related to exempted income – Provisions of Sec.14A are clearly applicable to the investment made in a EOU covered under u/s 10B – Riviera Home Furnishings Pvt. Ltd. Vs ACIT, Range-15, New Delhi (Vice Versa) (2016 (11) TMI 256 – ITAT Delhi)
  • IT:Disallowance of expenditure on advertisement on television – the corporate advertisement expenditure facilitates the business having a direct impact on sales and profitability of the Assessee – CIT, Mumbai Vs Asian Paints (India) Ltd. (2016 (11) TMI 258 – Bombay High Court)
  • Validity of reopening of assessment – Since this is a case of original non-scrutiny assessment, the concept of change of opinion cannot be applied – Gujarat High Court in case of [Gujarat State Board of School Textbooks Vs. ACIT Gandhinagar Circle].
  • Capital gain tax will be paid by the partners of the dissolved partnership firm on the sale of its assets.{Vatsala Shenoy Vs. JCIT, Supreme Court of India}..
  • Since no material whatsoever was found in the course of search, the question of allowing additional depreciation or not could not have been subject matter of proceedings u/s 153A of the Act – ITAT KOLKATA in case of [M/s. Ujjal Transport Agency Vs.  CIT, Kolkata].
  • Mere default in furnishing Form 15G/15H doesn’t call for sec. 40(a)(ia) disallowance. Assistant Commissioner of Income-tax, Circle 1(1), Tirupati v. Chittoor Dist. Co-operative Central Bank Ltd. [2016] 74 taxmann.com 202 (Hyderabad – Trib.).
  • ITAT kolkata in the below citied case held that Since no material whatsoever was found in the course of search, the question of allowing additional depreciation or not could not have been subject matter of proceedings u/s 153A of the Act [M/s. Ujjal Transport Agency Vs.  CIT, Kolkata].

 

Indirect Tax:-

  • CBEC issued a Defferd payment of Import duty Rules vide Notification No. 134/2016 dated on02/11/2016.(Click here to view)
  • Valuation – inclusion of royalty in the value of imports – Running royalties are condition of sale for the transaction value and thus needs to be added in the value for the purpose of payment of Customs duty. – Tri – Customs. Commissioner of Central Excise, Mumbai Versus Herbalife International India Pvt. Ltd. – 2016 (9) TMI 830 – CESTAT MUMBAI
  • VAT:Nothing prevents a constitutional court from granting interest on refund in extraordinary circumstances where the money has been withheld by the State for a long period of time without any authority in law – Indian Farmers Fertiliser Co.Op. Ltd. Vs State of Guj. (2016 (11) TMI 215 – Gujarat HC).
  • VAT:4% or 12.50% – tissue paper napkin, toilet paper rolls etc. retain the essential characteristics of paper – to be taxed at 4% – S. R. Foils & Tissue Ltd. Vs The State of Haryana & Anr (2016 (11) TMI 216 – Punjab & Haryana High Court)
  • Import of cosmetics and exporting the same after reassembling tantamounts to manufacturing
  • Commissioner of Customs v. Baccarose Perfumes & Beauty Products Ltd. [2016] 4 taxmann.com 222 (SC)
  • Penalty could be levied under omitted provision which was validated retrospectively Bharat Steel Rolling Mills v. Commissioner of Central Excise [2016] 74 taxmann.com 259 (SC)

GST UPDATE

  • GST Registration started from today (08.11.2016) at www.gst.gov.in. Assessees with verified PAN are allowed to fill details and submit proofs.
  • Under  GST GSTIN generated in phased manner. Already done for 20 lac VAT assessees in 8 states. Others to get later. ST Assessees to get in Jan’17.

OTHER UPDATE

  • HC rejects PIL for scrapping of notification on demonetization.)
  • Payment Systems (RTGS, NEFT, Cheque Clearing, Repo, CBLO and Call markets) to remain open on Saturday, November 12 and Sunday, November 13, 2016
  • No cash refund for Rail ticket cancellation of Rs.10,000­ & above
  • Updated Point of Taxation Rules, 2011 {Notification No. 18/2011-S.T., dated 1-3-2011)
  • PNB invites applications from CA /Advocates for empanelment as (i) Tax Retainer; and (ii) Tax Consultants.
  • PNB invites applications from practicing ‘Partnership firms of CA in India’  to have their Firms empanelled as Revenue Auditors of branches.

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

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CORPORATE AND PROFESSIONAL UPDATE OCT 12, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 12, 2016

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Direct Tax:-

CBDT has issued the Income Tax (24th Amendment) Rules, 2016 vide Notification No. 89/2016 dated 4/10/2016.These rules are regarding expenditure for obtaining right to use spectrum for telecommunication services.

CBDT has issued the Income Tax (25th  Amendment) Rules, 2016 vide Notification No. 90/2016 dated 5/10/2016.Form No. 68 notified to get immunity from penalty for underreporting and misreporting of income.CBDT also insert the rule 129 and Form no. 68.

CBDT has issued the Income Tax (26th  Amendment) Rules, 2016 vide Notification No. 91/2016 dated 06/10/2016.CBDT notified rules for allowability of Spectrum license fee paid by TeleCos.

IT: Transaction of shares – nature of income – business income or capital gain – magnitude of transactions carried out by the assessee in our view should not be very material in coming to the conclusion that income in question is income from business – Shree Padmasagar Exports Pvt. Ltd. Vs CIT, Cir-5, Kol (2016 (10) TMI 320 – ITAT Kolkata)

IT: Validity of reopening of assessment – Revenue in the instant case has come to the conclusive finding which attained finality that the transactions of purchase of shares are sham and bogus transactions camouflaged with an intention to evade taxes – Ratnakar M. Pujari Vs ITO, W-25(3)(3), Mumbai (2016 (10) TMI 316 – ITAT Mumbai)

 Indirect Tax:-

Principle of lifting of the corporate veil – recovery of duty / tax from the director cannot be made merely on the basis of allegation . The test of fraudulent conduct not satisfied so as to attract the principle of lifting of corporate veil.High Court -VAT and Sales Tax.( Shri Harbhajan Singh Versus The Commissioner of Trade Tax, U.P. Lucknow)

 The petitioner cannot seek for cross examination of the officer who gave the report – the contention raised by the petitioner that they have to be permitted to cross examine the Chemical Examiner of the Central Laboratory is a misconceived plea – High Court – Customs-(M/s. Visal Lubetech Corporation, P. Karthikeyan Versus The Additional Commissioner of Customs)

ST: Suo motu adjustment of excess payment of service tax made in October 2008 with subsequent service liability – procedural violation – demand of service tax of the said amount is not sustainable – ONGC Ltd. Vs CCEC&ST, Surat-II (2016 (10) TMI 307 – CESTAT Ahmedabad)

FAQ on Company Law:

Query: One of the director of our client company died in the car accident who was one director of only TWO Directors Company. Kindly tell us the procedure to fill the casual vacancy so arose as immediately as possible as the company as a whole is suffering due to this.

Answer: As per Section -161 of the Companies Act 2013, the articles of company confer on its Board of Directors the power to appoint any person, other than a person who fails to get appointed as a director in general meeting, as an additional director at any time who shall hold office upto the date of AGM or the last date on which AGM should have been held, whichever is earlier.

So, additional director can be appointed by the remaining director of the company  who shall hold office upto the date of AGM  & thus is required to be regularized in the forthcoming AGM of the company.

Query: Whether the members of the Institute of Company Secretaries of India, Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India are exempted from obtaining registration under Investment Adviser Regulations?

Answer: Members of the Institute of Company Secretaries of India, Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India who provide investment advice to their clients incidental to their professional services are exempted from obtaining registration under IA Regulations. For example :- An advice by a professional CA as a tax consultant to his tax client for investing in ELSS in the course of tax planning will be treated as incidental to his profession as a tax consultant. However, if they are engaged in providing investment advisory services in securities as an activity or business to clients or investors which is not incidental to their main activity then they are required to get registration as an investment adviser.

ICAI Updates:-

The Council, at its 359th meeting, held on September 16-17, 2016, has decided to withdraw the Guidance Notes on Availability of Revaluation Reserve for Issue of Bonus Shares[GN(A) 9 (Issued 1994)] and Guidance Notes on Accounting for Fringe Benefits Tax[GN(A) 20 (Issued 2005)] dated on 07/10/2016.

Application Guide on the Provisions of Schedule II to the Companies Act, 2013 is no longer effective as the Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to the Companies Act, 2013 has been issued.

SEBI UPDATE:

SEBI proposed a Consultative Paper titled ‘Corporate Governance Issues in Compensation Agreements’ to review the disclosure requirements under SEBI (LODR) Regulations, 2015.

ED: 10 OCT 2016 is the Last date for filing of Excise return in form ER-1 for the m/o SEP’ 2016.

GST update:

Under GST Reverse charge provisions will be applicable in case of both goods & services in case of specified supplies and assessees.

Under GST In case of advance payment received from purchaser, pay tax proportionately and not on total amount of supplies to be made.

Under GST registration certificate issued to casual or non-resident dealer is valid for 90 days. Extension by another 90 days, on request.

 Key Dates:

ER-1 return for non ssi assessee for the month of September-10/10/2016

ER-2 return for EOUs for month of September-10/10/2016

Submission of ER-3 return by SSi unit for September quarter-10/10/2016

An error becomes a mistake only when we refuse to accept and correct it.

May your troubles burst away like the fireworks and your happiness be multiple ten times, Happy Dussehra to you and your Family.”

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

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