{"id":2146,"date":"2016-02-08T17:44:40","date_gmt":"2016-02-08T12:14:40","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2146"},"modified":"2021-12-17T19:26:19","modified_gmt":"2021-12-17T13:56:19","slug":"corporate-and-professional-update-february-8-2016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-8-2016\/","title":{"rendered":"corporate and professional update february 8, 2016"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea8ddb27796\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea8ddb27796\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-8-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_8_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 8, 2016\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 8, 2016<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-8-2016\/#INCOME_TAX_ACT\" title=\"INCOME TAX ACT\">INCOME TAX ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-8-2016\/#CENVAT_CREDIT_RULES\" title=\"CENVAT CREDIT RULES\">CENVAT CREDIT RULES<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-8-2016\/#STATUTES\" title=\"STATUTES\">STATUTES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-8-2016\/#CORPORATE_LAWS\" title=\"CORPORATE LAWS\">CORPORATE LAWS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-february-8-2016\/#INDIRECT_TAX_LAWS_STEXCUS_CST_VAT\" title=\"INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (CST &amp; VAT)\">INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (CST &amp; VAT)<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><\/h3>\n<h3 style=\"text-align: justify;\"><span style=\"color: #000080;\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/Untitled7.png\" rel=\"attachment wp-att-2147\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2147\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/Untitled7-300x139.png\" alt=\"Untitled7\" width=\"896\" height=\"415\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/Untitled7-300x139.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/Untitled7.png 620w\" sizes=\"(max-width: 896px) 100vw, 896px\" \/><\/a><\/span><\/h3>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_FEBRUARY_8_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 8, 2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INCOME_TAX_ACT\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\"><span style=\"color: #0000ff;\"><strong>INCOME TAX ACT<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 10B<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>EXPORT-ORIENTED UNDERTAKING<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Computation of <a href=\"https:\/\/carajput.com\/blog\/deduction-in-respect-of-royalty-income-royalty\/\">deduction<\/a>:<\/span>\u00a0<\/strong>Interest on FDRs which were under lien with Bank for facilitating letter of credit and bank guarantee facilities would qualify for deduction under section 10B &#8211;\u00a0<em>[2016] 65 \u00a0287 (Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 14A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Rule 8D: <\/strong><\/span>Disallowance made under section 14A, read with rule 8D, towards interest expenditure would not be tenable where Assessing Officer failed to establish a nexus between interest-bearing funds and investment made &#8211; <em>[2016] 65 \u00a0295 (Karnataka)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 32<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DEPRECIATION &#8211; ALLOWANCE\/RATE OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Deferred tax liability: <\/strong><\/span>Where deferred tax liability was never an item of expenditure in profit and loss account, its addition was liable to be deleted &#8211;\u00a0<em>[2016] 65 289 (Kolkata &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 115JB<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MINIMUM ALTERNATE TAX<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Tea business:<\/span>\u00a0<\/strong>40 percent of the profit of the tea business will be the book profit of tea company for calculation of minimum alternate tax &#8211; <em>[2016] 65 \u00a0289 (Kolkata &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Provision for gratuity:<\/span>\u00a0<\/strong>Where the provision of gratuity was based on the report of the actuarial valuation, its addition was liable to be deleted &#8211; <em>[2016] 65 \u00a0289 (Kolkata &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Section 80HHC deduction: <\/strong><\/span>For determining book profits, net profits shown in the profit and loss account had to be reduced by the number of profits eligible for deduction under section 80HHC and not by the amount of deduction under section 80HHC &#8211; <em>[2016] 65 \u00a0289 (Kolkata &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 153<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>ASSESSMENT-TIME-LIMIT FOR COMPLETION OF ASSESSMENT\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Limitation for purpose of section 153 would start from the end of the assessment year in which notice under section 148 is served upon assessee and not from the end of the assessment year in which such notice is issued &#8211; <em>[2016] 65 293 (Bombay)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 194C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong><a href=\"https:\/\/carajput.com\/tds.php\">DEDUCTION OF TDS<\/a> &#8211; CONTRACTOR\/SUBCONTRACTOR, PAYMENT TO<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Transport contracts:<\/span>\u00a0<\/strong>Assessee would be liable to deduct tax at source under section 194C on payments made as transportation charges to intermediate parties who arranged actual transporters from open market for carriage of goods by transport for the assessee, even if there was no written contract between the assessee and intermediary party &#8211; <em>[2016] 65 \u00a0294 (Mumbai &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 275<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>PENALTY &#8211; BAR OF LIMITATION FOR IMPOSITION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Pending assessment:<\/span>\u00a0<\/strong>Where appeal of the assessee against addition made in assessment was pending before Tribunal, an order imposing penalty under section 271(1)(c) was premature &#8211; <em>[2016] 65 \u00a0293 (Bombay)<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENVAT_CREDIT_RULES\"><\/span><span style=\"color: #0000ff;\"><strong>CENVAT CREDIT RULES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 2(l)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; INPUT SERVICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Advertisement and Sales Promotion: <\/strong><\/span>Where principally agreement is to appoint agent\/stockist for storing and selling goods of the assessee, such stockist would be &#8216;commission agent&#8217; and not &#8216;sales promotion agent&#8217;; hence, commission so paid to him is ineligible for credit. &#8211; <em>[2016] 65 \u00a0283 (Gujarat)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 6<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; EXEMPTED AND DUTIABLE GOODS OR EXEMPTED AND TAXABLE SERVICES, OBLIGATION OF ASSESSEE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee had cleared cenvated packing materials under bond under CT-2 certificates to Export Processing Godown (EPG) for packing of export goods, no credit reversal was warranted thereon under rule 3 or rule 6 &#8211;\u00a0<em>[2016] 65 286 (Chennai &#8211; CESTAT)<\/em><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"STATUTES\"><\/span><span style=\"color: #0000ff;\"><strong>STATUTES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_LAWS\"><\/span><span style=\"color: #ff6600;\"><strong>CORPORATE LAWS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Revision in Position Limits for Agricultural Commodities &#8211;<em>CIRCULAR NO.CDMRD\/DMP\/ CIR\/32\/2016, DATED 29-1-2016<\/em><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INDIRECT_TAX_LAWS_STEXCUS_CST_VAT\"><\/span><span style=\"color: #ff6600;\"><strong>INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (CST &amp; VAT)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Rajasthan <a href=\"https:\/\/carajput.com\/services-vat.php\">Value Added Tax<\/a> (Amendment) Rules, 2016 \u2013 Amendment in Rules 14, 16, 22A, 33 and Form VAT-01 and Substitution of Rules 12, 13, 25 &amp; 77 &#8211;\u00a0<em>NOTIFICATION NO.F.12(79)FD\/TAX\/ 2014-111, DATED 8-1-2016<\/em><\/p>\n<p style=\"text-align: justify;\">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.<\/p>\n<p style=\"text-align: justify;\">Hope the information will assist you in your Professional endeavors. For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 8, 2016 INCOME TAX ACT SECTION 10B EXPORT-ORIENTED UNDERTAKING Computation of deduction:\u00a0Interest on FDRs which were under lien with Bank for facilitating letter of credit and bank guarantee facilities would qualify for deduction under section 10B &#8211;\u00a0[2016] 65 \u00a0287 (Delhi) SECTION 14A EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150,172],"tags":[4144,3533,162,5,333,3664,9016],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2146"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=2146"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2146\/revisions"}],"predecessor-version":[{"id":20127,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2146\/revisions\/20127"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}