{"id":2240,"date":"2016-02-29T12:46:24","date_gmt":"2016-02-29T07:16:24","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2240"},"modified":"2024-11-15T15:41:46","modified_gmt":"2024-11-15T10:11:46","slug":"corporate-and-professional-update-dated-february-24-2016-2","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 25, 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-69cfe95fdf032\" 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-69cfe95fdf032\"  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-dated-february-24-2016-2\/#CORPORATE_PROFESSIONAL_UPDATE_DATED_FEBRUARY_25_2016\" title=\"CORPORATE &amp; PROFESSIONAL UPDATE \u00a0DATED FEBRUARY 25, 2016\">CORPORATE &amp; PROFESSIONAL UPDATE \u00a0DATED FEBRUARY 25, 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-dated-february-24-2016-2\/#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-dated-february-24-2016-2\/#CBDT_sets_monetary_limit_to_waive_interest\" title=\"CBDT sets monetary limit to waive interest\">CBDT sets monetary limit to waive interest<\/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-dated-february-24-2016-2\/#_CHARGEABLE_AS_INCOME\" title=\"\u00a0CHARGEABLE AS INCOME\u00a0\">\u00a0CHARGEABLE AS INCOME\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/#COMPANIES_ACT\" title=\"COMPANIES ACT\">COMPANIES ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/#SERVICE_TAX\" title=\"SERVICE TAX\">SERVICE TAX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/#CUSTOMS_ACT\" title=\"CUSTOMS ACT\">CUSTOMS ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/#CENVAT_CREDIT_RULES\" title=\"CENVAT CREDIT RULES\">CENVAT CREDIT RULES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/#STATUTES\" title=\"STATUTES\">STATUTES<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/#You_may_like_a_few_other_posts\" title=\"You may like a few other posts\u00a0\">You may like a few other posts\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/#GST_Return_compliances_calendar-_Nov_2020\" title=\"GST Return compliances calendar- Nov 2020\">GST Return compliances calendar- Nov 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-dated-february-24-2016-2\/#SALIENT_FEATURES_OF_NEW_GST_SYSTEM_IN_INDIA\" title=\"SALIENT FEATURES OF NEW GST SYSTEM IN INDIA\">SALIENT FEATURES OF NEW GST SYSTEM IN INDIA<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><\/h2>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled35.png\" rel=\"attachment wp-att-1765\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1765\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled35-300x109.png\" alt=\"Untitled35\" width=\"798\" height=\"290\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled35-300x109.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/10\/Untitled35.png 723w\" sizes=\"(max-width: 798px) 100vw, 798px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CORPORATE_PROFESSIONAL_UPDATE_DATED_FEBRUARY_25_2016\"><\/span><span style=\"color: #000080;\">CORPORATE &amp; PROFESSIONAL UPDATE \u00a0DATED FEBRUARY 25, 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<h3><span class=\"ez-toc-section\" id=\"CBDT_sets_monetary_limit_to_waive_interest\"><\/span><span style=\"color: #000080;\"><strong>CBDT sets monetary limit to waive interest<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27780\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/CBDT-sets-monetary-limit-to-waive-interest.jpg\" alt=\"CBDT sets monetary limit to waive interest\" width=\"761\" height=\"379\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/CBDT-sets-monetary-limit-to-waive-interest.jpg 761w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/CBDT-sets-monetary-limit-to-waive-interest-300x149.jpg 300w\" sizes=\"(max-width: 761px) 100vw, 761px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 4<\/strong><\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"_CHARGEABLE_AS_INCOME\"><\/span><span style=\"color: #800000;\"><strong>\u00a0CHARGEABLE AS INCOME\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>General principle :\u00a0<\/strong><\/span>Tax cannot be levied on assessee at a higher amount or at a higher rate merely because assessee, under a mistaken belief or due to an error, offered <a href=\"https:\/\/carajput.com\/blog\/taxes-on-income-received-from-blogging-under-income-tax\/\">income<\/a> for taxation at that amount or that rate &#8211;<em>[2016] 66<\/em><em>\u00a0<\/em><em>taxmann.com<\/em><em>\u00a0<\/em><em>181 (Rajkot &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 92C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">TRANSFER PRICING &#8211; COMPUTATION OF ARMS LENGTH PRIC<\/span>E<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Comprarables and adjustments\/Comparables \u2013 Illustrations :<\/span>\u00a0<\/strong>Where on FAR analysis conclusion that a company is correctly chosen as a comparable remains unassailed, then it is necessary for revenue at that stage to bring some cogent reason, argument or fact justifying that still comparable needs to be excluded<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Comparables and adjustments\/Comparables \u2013 Illustrations :<\/span>\u00a0<\/strong>Where assessee (Semco) had provided a comparable summary of FAR analysis undertaken by Semco and Sigma, an overseas enterprise, to show that Semco was less complex entity and in earlier and later years, Semco was taken as tested party, there was no justification for taking Sigma as tested party for benching international transaction<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Comparables and adjustments\/Safe Harbour rule :<\/span>\u00a0<\/strong>Amendment to proviso to section 92C being applicable with effect from 1-10-2009, will have no bearing on benefit of +\/- 5 per cent safe harbour given to assessee for year 2005-06<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 220<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>COLLECTION AND RECOVERY OF TAX &#8211; WHEN TAX PAYABLE AND WHEN ASSESSEE DEEMED IN DEFAULT<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #00ccff;\">Waiver of interest :<\/span>\u00a0<\/strong>Where order of Commissioner (Appeals) allowing registration to assessee firm was reversed by Tribunal, benefit of waiver of interest in respect of section 220(2) would be allowed up to period provided in this order of Tribunal and it could not be restricted up to date of order of jurisdictional High Court in another case on similar issue<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 268A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>FILING OF APPEAL OR APPLICATION FOR REFERENCE BY INCOME-TAX AUTHORITIES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>Circular No. 21\/2015 :\u00a0<\/strong><\/span>Where tax effect in revenue&#8217;s appeal before High Court was below than prescribed monetary limit of Rs. 20 lakhs as per circular No. 21\/2015, dated 10-12-2015, appeal was liable to be treated as dismissed as withdrawn<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>Circular No. 21\/2015 :\u00a0<\/strong><\/span>CBDT Circular No. 21\/2015, dated 10-12-2015 will apply to pending appeals also<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"COMPANIES_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>COMPANIES ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 445<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>WINDING UP &#8211; COPY OF ORDER TO BE FILED WITH REGISTRAR<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In case of winding up of company, relevant date for computing workmen&#8217;s dues will be date of winding up as per section 445(3) and not date of appointment of Official Liquidator<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 529A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>WINDING UP &#8211; OVERRIDING PREFERENTIAL PAYMENTS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Dues of secured creditors including banks and workers have priority over all other debts including claim of Excise Department &#8211;\u00a0<em>[2016]\u00a0<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"SERVICE_TAX\"><\/span><a href=\"https:\/\/carajput.com\/services-tax-registration.php\"><span style=\"color: #0000ff;\"><strong>SERVICE TAX<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 65(27)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>TAXABLE SERVICES &#8211; COMMERCIAL TRAINING OR COACHING SERVICES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Flying training services provided by an approved flying training institute are not liable to service tax, as services fall within meaning of &#8216;qualification recognized by law&#8217;<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CUSTOMS_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>CUSTOMS ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 132<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>OFFENCES AND PENALTIES \u2013 CUSTOMS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee has been exonerated in adjudication proceedings on merits and charge of holding\/importing &#8216;prohibited goods&#8217; or charge of evasion has been dropped on merits, criminal prosecution cannot continue on same set of facts<\/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 5<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>CENVAT CREDIT &#8211; REFUND OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Provision of onsite services by overseas branch for which payment is received in India in convertible foreign exchange would amount to &#8216;export of service&#8217; and would form part of &#8216;export turnover&#8217; as well as &#8216;total turnover&#8217; in determining cenvat refund under rule 5 of CENVAT Credit Rules, 2004<\/p>\n<h3 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><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>DIRECT TAX LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Guidelines for Power Generation, Transmission and Distribution in Special Economic Zones (SEZs)<\/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; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact:\u00a0<a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at\u00a0011-233 433 33<\/p>\n<h4><span class=\"ez-toc-section\" id=\"You_may_like_a_few_other_posts\"><\/span><span style=\"color: #000080;\"><strong>You may like a few other posts\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"GST_Return_compliances_calendar-_Nov_2020\"><\/span><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\">GST Return compliances calendar- Nov 2020<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"SALIENT_FEATURES_OF_NEW_GST_SYSTEM_IN_INDIA\"><\/span><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\" data-cke-saved-href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\">SALIENT FEATURES OF NEW GST SYSTEM IN INDIA<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><\/h4>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE &amp; PROFESSIONAL UPDATE \u00a0DATED FEBRUARY 25, 2016 INCOME TAX ACT CBDT sets monetary limit to waive interest SECTION 4 \u00a0CHARGEABLE AS INCOME\u00a0 General principle :\u00a0Tax cannot be levied on assessee at a higher amount or at a higher rate merely because assessee, under a mistaken belief or due to an error, offered income for &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,172,9,4,1],"tags":[9065,162,5,333,9038,322,9076],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2240"}],"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=2240"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2240\/revisions"}],"predecessor-version":[{"id":27781,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2240\/revisions\/27781"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}