Professional Update For the Day:


  • CBDT prescribes the Class or classes of buyers to whom provisions of sub-section (1D) of section 206C shall not apply [CBDT Notification dated 19.08.2016].
  • The assesses applying for registration/ approval under section 12AA, 80G and 10(23C)(iv), (v), (vi) & (via) have option to apply in form 10A/ 10G/ 56/ 56D of the I. T. Rules, 1962 either manually or through e-filing, which will get barred by limitation on 31.08.2016
  • The functionality for approval of hospital u/s 17(2) of the IT Act and for registration of tax practitioner will be available in administration module of ITBA  w.e.f  22.08.2016.
  • Company’s only income is from leasing property, then it should be taxed under the head PGBP [SC Judgment, Rayala Corporation Ltd vs. Asst Commissioner]
  • No compensation from Insurance Co. if there is theft without a forcible entry: Apex Court
    [2016] 72 296 (SC) Industrial Promotion & Investment Corporation of Orissa Ltd. v. New India Assurance Co. Ltd.
  • ITAT Kolkata in the below citied case denied the continuance of registration u/s 12A. if it is found that the assessee was accepting bogus donations, then that fact can only lead to an inference that the activities of the trust are not genuine or are not carried out in accordance with the objects of the trust than registration will be cancelled(Dr. B.G. Memorial Trust Vs. CIT)


  • Contractors providing the service of construction of tube wells for the Government have been considered to be liable to pay service tax [Circular No. 199/09/2016-Service Tax].
  • CESTAT Allahabad in the below citied case held that Cenvat credit – availed on transportation charges in the process of cleaning and disposal of waste – the disposal of hazardous waste by the appellant is an essential activity, without which, the final products being excisable insecticides, cannot be manufactured. Hence credit will be allowed.(India Pesticides Ltd. Versus Commissioner of C. Ex. & S.T., Lucknow)- 2016(8) TMI 724- Service Tax)
  • CESTAT Chennai in the below citied case held that service tax credit will be allowed for- insurance premium having been paid for the health insurance of the employees of the factory and Pest Control Service availed to protect the property of the company.(Sundaram Fasteners Ltd. Versus Commissioner of C. Ex., Chennai-II- 2016 (8) TMI 723-Service tax)
  • Delhi Govt. does away with requirement of digital sign for filing DVAT returns
  • VAT Dept issued notification dated 24.08.2016 regarding withdraw of mandatory requirement of DSC in filing DVAT returns.



  • Under GST:
    • Composition Supplier can register in multiple states if total sales up to 50 lacs, no Inter state sale. Scheme must for all businesses having PAN.
    • Selling milk, eggs, chickens taxable under GST as dairy/poultry farming not part of agriculture. Vegetables not taxable but their saplings are taxable.
  • Under GST for sale of even a rupee from a state, registration required if turnover already exceeds 9 lacs in another state as limit is for India as a whole.
  • Gujarat became the sixth state to ratify the GST Bill after Assam , Bihar , Jharkhand, Himachal Pradesh and Chhattisgarh.
  • Infosys may get about dollar 60 million for GST project.



  • Query:   We have a query regarding the date of Annual General Meeting of company incorporated on 19th December 2015. Now our query is regarding the date of Annual General Meeting required to be held?

Answer: Section 96(1) of the Companies Act 2013 provides that in case of first Annual General Meeting, it shall be held within a period of nine months from the date of closing of the first financial year and in any case, within a period of six months, from the date of closing of the financial year.

Further, Section 2(41) of the Companies Act 2013 defines financial year in relation to any company or body corporate as the period ending on 31st day of March every year and where it has been incorporated on or after 1st day of January of a year, the period ending on 31st day of March of the following year, in respect whereof financial statement of the company or body corporate is made up

Thus, the Annual accounts of the company incorporated before 1st January 2016 shall be closed on 31st March 2016 and consequently AGM shall be held within a period of 9 months from the date of closing of the first financial year, i.e., 31st December 2016.

  • Query: We are trying to register DSC (Digital Signatures) of a director since last 15 days but at the time of selecting DSC, no icon is appearing so that we could select the DSC of director. We have raised ticket many times with the ROC but no solution is being provided by them and last date for filing e-form is approaching. Kindly let us know how can we register the same on MCA Portal.

Answer: You are required to install Java 8 update 45 and uninstall other versions of Java on your system, then try to register DSC with the MCA Portal and use either Mozilla Firefox or Internet Explorer for registering the same.

  • Query:We want to incorporate a Section 8 company with the words ‘micro-finance’ in its name?

Answer: Yes for this type of name, you can apply along with declaration as per rule 12 of the Companies (Incorporation) Rule, 2014 if, license is issued under section 8. However, Finance activity is under regulatory control of RBI. Hence at the time of filing incorporation documents promoters/director of proposed company are required to give undertaking as per rule 12 of the Companies (Incorporation) Rules, 2014.

MCA News:

Forms AOC-4, AOC-4 CFS, DIR-12, FC-2 and MGT-15 are likely to be revised on MCA21 Company Forms Download page w.e.f 24th August, 2016.

ICAI Updates:-

Ind AS Transition: Associate to adopt Ind AS from the FY in which holding company is required to adopt it

ICAI has invited to attend faculty Identification Programme on GST-II dated on 23.08.2016.

ICAI has extended the last date for Company Registration Related to Campus (9 Bigger Centres) from22 to 29 Aug’16.

ICAI is taking up the matter to resolve the  any problem in uploading tax audit reports due to non updation of PAN number at ICAI or due to differences in the name as per ICAI record and name given in PAN number with department on top priority basis and the members are requested to update/provide their PAN details by filling requisite details by clicking the link forms/panupdate/index.html  at the earliest but latest by 26.08.2016.

Key Dates:

Advance information for 1st fortnight of September of functions with booking cost more than Rs. 1 Lakh in Banquet halls, hotels etc. in Delhi -27/08/2016

Payment of TDS in Form no. 26QB for purchase of property for the month of July: – 30/08/2016

Be thankful for hard times in your life, try not to look at them as bad things but as opportunities to grow and learn.

The most important thing is to enjoy your life – to be happy – it’s all that matters.  -Audrey Hepburn

The search for happiness is the main reason for unhappiness. Accept life the way it comes, as a result, you’ll find happiness in every moment of your life.

Never win people with arguments rather defeat them with your smile because people, who always wish to argue with you, cannot bear your silence.

We look forward for your valuable comments.


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  • Income Tax: Correction of statement cum challan relating to TDS on sale of property u/s 194IA – CPC-TDS has enabled functionality for online correction in form 26QB from 29/02/2016.
  • Income Tax: TDS u/s 194I – whether the tour operators/travel agents were required to deduct TDS under Section 194-I of the Act while making payments to the hotels on behalf of foreign tourists? – Held Yes – HC
  • Income Tax: Exemption u/s 13A – ITAT was justified in denying exemption to the INC under Section 13A of the Act and refusing to condone the delay that had occurred in the audit of some of the state units by holding that the ITAT was right in its conclusion that the INC failed to fulfil the three conditions envisaged under clauses (a), (b) and (c) of Section 13A of the Act – HC
  • Income Tax: Exemption u/s 13A – As long as a political party continues to avail the exemption from payment of income tax, there can be no excuse for not maintaining its account whether it has one or more state units. – no valid reasons have been given by the ITAT for overturning the reasoned and detailed orders of the AO and CIT (A). – HC
  • Income Tax: Entitlement to claim carry forward loss – delay in filing the return – when the petitioner as a litigant is entitled to claim carry forward loss, mere delay should not defeat the claim of the petitioner – CBDT should have condoned the delay of one day in filing the return by the petitioner.- HC
  • Income Tax: Minimum Alter Tax (MAT) – Forfeiture of share warrants being a capital receipt – adjustment need to be made to the disclosures made in the notes on accounts forming part of the profit and loss account of the assessee and the profits arrived after such adjustment, should be considered for the purpose of computation of book profits u/s 115JB

INDIRECT TAX          

  • Service Tax: Demand of Service tax at the rate of 6%/8% of the value of exempted goods – As per Sub-Rule (3A) of Rule 6(3), the Cenvat Credit required to be reversed is as per the formula prescribed. Here, as the appellant have reversed the entire credit availed on common input service, the demand of 6%/8% of the value of exempted goods is not sustainable.
  • Service Tax: Cenvat credit – Appellant constructed various malls and rented the same to various parties and discharge of service tax on rent received. Also availed the Cenvat Credit of input services which are used for construction and maintenance of the various malls – credit allowed – Tri
  • Central Excise: Validity of order against the dead person – once the factum of death of the sole proprietor has come to the knowledge of the learned Commissioner, the learned Commissioner should have dropped the proceedings rather than passing the impugned order.
  • Customs: Classification – Used damaged cut rails for melting (melting scrap) – to be classified under CTH 72.04 denying benefit of exemption benefit under Notification No.12/2012 or under CTH 73.02 allowing benefit – the goods are to be classified under CTH 73.02 – exemption allowed.

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; Hope the information will assist you in your Professional endeavors. For query or help, contact: or call at 011-233 433 33 Continue reading