{"id":2458,"date":"2016-05-28T12:55:37","date_gmt":"2016-05-28T07:25:37","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2458"},"modified":"2022-02-05T14:19:54","modified_gmt":"2022-02-05T08:49:54","slug":"corporate-and-professional-update-may-25-2016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-may-25-2016\/","title":{"rendered":"Corporate and professional update may 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-69d004cd49ee9\" 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-69d004cd49ee9\"  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-may-25-2016\/#Professional_Update_For_the_Day\" title=\"Professional Update For the Day:\">Professional Update For the Day:<\/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-may-25-2016\/#Direct_Tax\" title=\"Direct Tax:\">Direct Tax:<\/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-may-25-2016\/#Indirect_Tax\" title=\"Indirect Tax:\">Indirect Tax:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-may-25-2016\/#Company_Law\" title=\"Company Law:\">Company Law:<\/a><\/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-may-25-2016\/#Other_Update\" title=\"Other Update :\u00a0\">Other Update :\u00a0<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-may-25-2016\/#Key_Dates\" title=\"Key Dates:\">Key Dates:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-may-25-2016\/#_New_TDS_deduction_No_cash_transactions_exceeding_1_Crore_-Section_194N\" title=\"\u00a0New TDS deduction No cash transactions exceeding 1 Crore -Section 194N\">\u00a0New TDS deduction No cash transactions exceeding 1 Crore -Section 194N<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-may-25-2016\/#Deduction_us_80CCD_of_Income_Tax_Act_196\" title=\"Deduction u\/s 80CCD of Income Tax Act, 196\">Deduction u\/s 80CCD of Income Tax Act, 196<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #008080;\"><strong><span style=\"text-decoration: underline;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/03\/Untitled15A.png\" alt=\"Untitled15A\" width=\"1159\" height=\"644\" \/><\/span><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Professional_Update_For_the_Day\"><\/span><span style=\"color: #ff0000;\"><strong>Professional Update For the Day:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Direct_Tax\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/popular-faq-on-direct-indirect-tax-corporate-regulatory-matters\/\"><span style=\"color: #008080;\"><strong><span style=\"text-decoration: underline;\">Direct Tax:<\/span><\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">IT : Merely because creditor could not be traced on date when verification was made, is not a ground to conclude that there was cessation of liability in terms of section 41(1) because cessation of liability has to be cessation in law, of debt to be paid by assessee to creditor[2016] 69\u00a0\u00a0257 (Karnataka)\u00a0Commissioner of Income-tax v. Alvares &amp; Thomas<\/p>\n<p style=\"text-align: justify;\">Transmission charges for electricity won&#8217;t attract TDS under sec. 194J[2016] 69\u00a0\u00a0252 (Karnataka)\u00a0Commissioner of Income-tax v. Gulbarga Electricity Supply Co. Ltd.<\/p>\n<p style=\"text-align: justify;\">IT:\u00a0TDS &#8211; the payment paid by the assessee to scheduled banks for opening letters of credit was in the nature of interest u\/s 2(28A) &#8211; but since the amount had been paid to scheduled banks no tax was required to be deducted at source u\/s 194A &#8211; No disallowance u\/s 40(a)(ia) \u2013\u00a0M\/s Vardhman Chemtech Pvt. Ltd. Vs. ACIT, Chandigarh (ITAT Chandigarh)<\/p>\n<p style=\"text-align: justify;\">IT:\u00a0Revision u\/s 263 &#8211; the disallowances u\/s 14A and u\/s 36(1)(iii) of the Act were the matters before the CIT(A) &#8211; the same does not come under the jurisdiction of the CIT u\/s 263 \u2013\u00a0M\/s Deepak International Ltd. Vs. JCIT, Cir-V, Ludhiana (ITAT Chandigarh)<\/p>\n<p style=\"text-align: justify;\">Bogus purchase and sale of shares: Law explained as to on whom the onus is to show that the purchase and sale of shares are bogus and the circumstances required to be proved by the AOArvind Asmal Mehta vs. ITO (ITAT Mumbai)<\/p>\n<p style=\"text-align: justify;\">S.143(1)\/ 147: Entire law on the reopening of s. 143(1) assessments in the light of Zuari Estate Development 373 ITR 661 (SC) explained\u00a0Indu Lata Rangwala vs. DCIT (Delhi High Court)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Indirect_Tax\"><\/span><span style=\"color: #008080;\"><strong><span style=\"text-decoration: underline;\">Indirect Tax:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">ST:\u00a0Recovery of interest &#8211; Section 73B of the Finance Act 1994 &#8211; Collected Service tax from the transporters when no service tax was payable and not deposited to the Government &#8211; later amount was deposited with the government &#8211; Demand of interest set aside \u2013\u00a0M\/s Chhattisgarh State Co-operative Marketing Federation Ltd. Vs. CCE&amp;ST, Raipur (CESTAT New Delhi)<\/p>\n<p style=\"text-align: justify;\">SC : Absent cargo loading \/ unloading, mere labour supply at customer&#8217;s packing-plant not\u00a0&#8216;CHS&#8217;\u00a0[TS-197-SC-2016-ST]<\/p>\n<p style=\"text-align: justify;\">CESTAT: Upholds input credit reversal on exempt goods; Duty-payment cannot render them &#8216;dutiable&#8217; [TS-196-CESTAT- 2016-EXC]<\/p>\n<p style=\"text-align: justify;\">Service Tax: Services received from a foreign intermediary in connection with raising of External Commercial Borrowings (ECB) is liable to service tax under &#8216;Banking and Other Financial Services&#8217; under reverse charge in hands of Indian service recipient[2016] 69\u00a0\u00a0266 (Mumbai &#8211; CESTAT) Gitanjali Gems Ltd. v. Commissioner of Service Tax<\/p>\n<p style=\"text-align: justify;\">Cenvat Credit: Payment of cenvat-reversal under rule 6 of CENVAT Credit Rules, 2004 is in nature of &#8216;other tax&#8217; and is, therefore, not includible in &#8216;transaction value&#8217; of exempted goods, even if reversal amount is recovered from buyers<\/p>\n<p style=\"text-align: justify;\">Cenvat Credit : When assessee is paying specified percent cenvat-reversal on value of &#8216;exempted HDPE pipes&#8217; used for manufacturing &#8216;exempted sprinkler system&#8217;, they are not required to pay cenvat-reversal on value of &#8216;exempted sprinkler system'[2016] 69\u00a0\u00a0265 (New Delhi &#8211; CESTAT)\u00a0Commissioner of Central Excise, Indore v. Kriti Industries (India) Ltd.<\/p>\n<p style=\"text-align: justify;\">SC: 9 Judge bench to decide entry tax validity; Hearings to commence July\u00a018\u00a0[TS-200-SC-2016-NT]<\/p>\n<p style=\"text-align: justify;\">Cenvat Credit : If Modvat credit could not be used by assessee due to restriction imposed by department, balance lying in Modvat account must be allowed as credit in Cenvat account[2016] 69\u00a0\u00a0216 (Patna)Commissioner of Central Excise v. Bata India Ltd.<\/p>\n<p style=\"text-align: justify;\">Deputation of employees and sharing of cost on actual basis with group Cos. doesn&#8217;t amount to rendering of service[2016] 69\u00a0\u00a0198 (Mumbai &#8211; CESTAT)\u00a0Franco Indian Pharmaceutical (P.) Ltd. v. Commissioner of Service-Tax<\/p>\n<p style=\"text-align: justify;\"><strong>VAT &amp; ST:<\/strong>\u00a0Validity of law &#8211; rate of tax &#8211; interstate movement of goods &#8211; The law validly enacted by a State Legislature cannot be challenged on the ground that it defies logic and common sense &#8211;\u00a0M\/s Schwing Stetter (India) Pvt. Ltd. Vs. CCT (Madras High Court)<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Company_Law\"><\/span><span style=\"color: #008080;\"><strong><span style=\"text-decoration: underline;\">Company Law:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong>Query:<\/strong>\u00a0Is Director Identification Number (DIN) mandatory for filing Form FTE with ROC?<\/p>\n<p style=\"text-align: justify;\"><strong>Answer:<\/strong>\u00a0\u00a0No, DIN is not mandatory for Managing Director or Director of the Company for filing Form FTE to strike off the name of Company under the Fast Track Exit mode Scheme. Details of Managing Director or Director can be filled up for inserting Permanent Account Number (PAN) or Passport Number instead of DIN.<\/p>\n<p style=\"text-align: justify;\"><strong>Query:<\/strong>\u00a0Whether a partner would be able to transfer his \u2018economic rights\u2019?<\/p>\n<p style=\"text-align: justify;\"><strong>Answer<\/strong>:\u00a0A partner\u2019s economic rights (i.e. rights of a partner to a share of the profits and losses of the LLP and to receive distribution at the time of winding up) in the LLP shall be transferable. However, such a transfer shall not by itself cause the partner\u2019s disassociation or a dissolution and winding up of the LLP.<\/p>\n<p style=\"text-align: justify;\">However, such transfer shall not entitle the transferee or assignee to participate in the management or conduct of the LLP\u2019s activities.<\/p>\n<p style=\"text-align: justify;\">The transferee would not be deemed to be a \u2018partner\u2019 of the LLP just because a partner has transferred him the \u2018economic rights\u2019. For becoming a partner of LLP, the manner specified in the LLP Agreement or the provisions of the Act would have to be followed.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Other_Update\"><\/span><span style=\"color: #008080;\"><strong><span style=\"text-decoration: underline;\">Other Update :<\/span><\/strong><strong>\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">ICAI: Committee on Economic, Commercial Laws &amp; WTO (CECL&amp;WTO) is organizing a Live Webcast on \u201cIdentifying Common FEMA Contraventions\u201d on Friday, 27 May 2016 at 4-6PM. Link athttps:\/\/estv.in\/icai\/27052016<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Key_Dates\"><\/span><span style=\"color: #008080;\"><strong><span style=\"text-decoration: underline;\">Key Dates:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Issue of TDS\/TCS certificates for March quarter by all deductors\/collectors:\u00a030.05.2016<\/p>\n<p style=\"text-align: justify;\">Due date for e-filing of form no. 61 for Q4 extended to\u00a031st October, 2016\u00a0from 30th April, 2016. CBDT Circular no. 14\/2016 dated 18\/05\/16.<\/p>\n<p style=\"text-align: justify;\">\u00a0\u201cWhen you judge another, you do not define them, you define yourself.\u201d<\/p>\n<p style=\"text-align: justify;\">Don&#8217;t find fault, find a remedy.\u00a0 -Henry Ford<\/p>\n<p style=\"text-align: justify;\">We look forward for your valuable comments.\u00a0<a href=\"https:\/\/carajput.com\">www.carajput.com<\/a><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><strong>FOR\u00a0 FURTHER \u00a0QUERIES\u00a0 CONTACT\u00a0US:<\/strong><\/span><\/p>\n<p>W: www.carajput.com<\/p>\n<p>E: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a><\/p>\n<p>T:011-233-4-33333 ,\u00a0 9-555-555-480<\/p>\n<p>Popular blog:-<\/p>\n<h4><span class=\"ez-toc-section\" id=\"_New_TDS_deduction_No_cash_transactions_exceeding_1_Crore_-Section_194N\"><\/span><a href=\"https:\/\/carajput.com\/learn\/new-tds-deduction-provision-prevent-cash-transactions-of-more-than-1-crore-section-194n.html\"><strong>\u00a0New TDS deduction No cash transactions exceeding 1 Crore -Section 194N<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Deduction_us_80CCD_of_Income_Tax_Act_196\"><\/span><strong><a href=\"https:\/\/carajput.com\/learn\/deductions-under-section-80ccd-of-income-tax-act.html\">Deduction u\/s 80CCD of Income Tax Act, 196<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><\/h4>\n<p><!--more--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Professional Update For the Day: Direct Tax: IT : Merely because creditor could not be traced on date when verification was made, is not a ground to conclude that there was cessation of liability in terms of section 41(1) because cessation of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150,9,117,16,15],"tags":[5,333,9040,4629],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2458"}],"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=2458"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2458\/revisions"}],"predecessor-version":[{"id":21865,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2458\/revisions\/21865"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}